Topic: In over my head: to lease or to buy? new vs used?

[butternoodle]

Hello

I hope I'm not breaking anyrules. I am brand new here.

I currently lease a Honda civic and I am looking to trade it in.
I am certain I want a cross-over like a Hando CRV or Toyota Rav4

My budget is $250/month (finance or lease)
Must-have features: AWD, heated seats, sunroof

I am struggling to figure out if I should

1. go used or new. I am not against buying used, but if I do then certainly nothing before 2016. I don't know what I should be looking for in a used car. eg how much mileage is too much? how much cheaper should a used car be vs new? is maintenance for a used car in the long term worse than if I just buy new?

2. If going with new then should I buy or lease? I have friends and family debating this often. It's nice to get a new car every few years with leasing, but am I losing a considerable amount of money by doing this rather than buying and after a number of years selling it to make some money back?

I feel like I am in way over my head and don't know where to start. Looking at some used ads I see 2016 CR-Vs going for 25000, while a new one is just over 30K.

Thank you for any help!

EDIT: I live in Ontario if that helps at all.

[JohnnyMac]

Your budget of $250 per month is not realistic to lease any new CUV.  You could get a user CUV for that budget but you'll be looking at older and higher kms. 

[butternoodle]

Your budget of $250 per month is not realistic to lease any new CUV.  You could get a user CUV for that budget but you'll be looking at older and higher kms.

Thanks for your reply!

Maybe I should remove the 250 bit. I'm more concerned over the overall price of the car. I am not sure what is reasonable to pay vs old and new, lease vs finance

[haven_seeker]

It’s tough. The payments add up fast. I’m looking right now.

Are you nearing the end of your lease? Any surprises there you need to worry about!l? Why are you now looking at buying used vs leasing? (You mention also potentially leading again but most people who go into that sort of lifestyle stay with it)

[Brig]

SPAM should be along shortly. 

[butternoodle]

It’s tough. The payments add up fast. I’m looking right now.

Are you nearing the end of your lease? Any surprises there you need to worry about!l? Why are you now looking at buying used vs leasing? (You mention also potentially leading again but most people who go into that sort of lifestyle stay with it)

I am nearing the end of the lease. It ends in exactly a month. Leasing had some cons I didn't foresee such as doing everything with Honda. Any little bits of damage to the car needed to be fixed and those add up. If I owned the car I probably would let a number of things go.

I am trying to just get an idea of what is a reasonable price for a car. eg what should someone be paying for a 2016 honda CRV base model? <20000?

[quadzilla]

I am nearing the end of the lease. It ends in exactly a month. Leasing had some cons I didn't foresee such as doing everything with Honda. Any little bits of damage to the car needed to be fixed and those add up. If I owned the car I probably would let a number of things go.

Did you really think you could drive somebody else's car, cause damage and not need to fix it?  This has nothing to do with Honda, this is the way the world works.

I am trying to just get an idea of what is a reasonable price for a car. eg what should someone be paying for a 2016 honda CRV base model? <20000?

Check Autotrader in your area and you will see a range of prices to give you an idea.

[2JDM]

Your budget of $250 per month is not realistic to lease any new CUV.  You could get a user CUV for that budget but you'll be looking at older and higher kms. 

Yep, $250 a month is peanuts, assuming no $ down. You can barely lease a subcompact for that price.

A 2016 CRV base model LX, 2WD likely goes for $15-$20k depending on mileage/condition. Again, check AutoTrader for values.

[Hannibalsmith]

Your budget of $250 per month is not realistic to lease any new CUV.  You could get a user CUV for that budget but you'll be looking at older and higher kms. 

Yep, $250 a month is peanuts, assuming no $ down. You can barely lease a subcompact for that price.

A 2016 CRV base model LX, 2WD likely goes for $15-$20k depending on mileage/condition. Again, check AutoTrader for values.

My go to recommendation for safe, reliable, transportation on a budget:

Toyota Corolla base. Leases for $308.39 / month for 48 months. What else do you need?

[2JDM]

Your budget of $250 per month is not realistic to lease any new CUV.  You could get a user CUV for that budget but you'll be looking at older and higher kms. 

Yep, $250 a month is peanuts, assuming no $ down. You can barely lease a subcompact for that price.

A 2016 CRV base model LX, 2WD likely goes for $15-$20k depending on mileage/condition. Again, check AutoTrader for values.

My go to recommendation for safe, reliable, transportation on a budget:

Toyota Corolla base. Leases for $308.39 / month for 48 months. What else do you need?

I want leather, Bose stereo, sunroof, 20 inch wheels, V8 and 7 seats for that price!!!!

[carcrazed]

If you don't NEED a CUV, buy out the Civic and don't repair the damage.

[dirtyjeffer]

It’s tough. The payments add up fast. I’m looking right now.

Are you nearing the end of your lease? Any surprises there you need to worry about!l? Why are you now looking at buying used vs leasing? (You mention also potentially leading again but most people who go into that sort of lifestyle stay with it)

I am nearing the end of the lease. It ends in exactly a month. Leasing had some cons I didn't foresee such as doing everything with Honda. Any little bits of damage to the car needed to be fixed and those add up. If I owned the car I probably would let a number of things go.

I am trying to just get an idea of what is a reasonable price for a car. eg what should someone be paying for a 2016 honda CRV base model? <20000?

be careful with the word "trade in" as that typically applies to a vehicle you own and are "trading it in" towards the price of another vehicle...you don't own the Civic as it is a lease...it's essentially a rental...when your lease period is done, you return it...as far as value, it likely isn't worth anything towards another vehicle.

assuming a payment of $250/month, you would be looking at vehicles worth around $11,200 and loan of about 5 years (assuming an interest rate of around 7%).

depending on what you can find in that price range, you will need to rethink what you need or what you can afford...it's doubtful you'll find an SUV, 2016 or newer, with AWD and low mileage for $11,200...you may be best to just buyout your civic and use it for a few more years.

https://www.scotiabank.com/ca/en/personal/loans-lines/auto-loan/auto-loan-payment-calculator.html

[haven_seeker]

Leasing is a dangerous game. You have to be in it for the long-haul, always re-sign, get mentally ready to know you'll never own a car again, but you will always be driving a new vehicle. That's worth it to a lot of people.

Me? I buy what I can afford (A8's excepted - though to be fair hasn't happened yet) and stick to that formula, driving them til they're near useless.

[OliverD]

Leasing is a dangerous game. You have to be in it for the long-haul, always re-sign, get mentally ready to know you'll never own a car again, but you will always be driving a new vehicle. That's worth it to a lot of people.

That doesn't have to be the case. I leased a couple of cars and now own one. Desires and needs change.

If you want to be in a newer vehicle at all times I think leasing makes a lot of sense, but it's important to realize that you shop for leases in a completely different way. Sticker price doesn't mean nearly as much as it does when buying. Those "cheap" Hyundais and Kias tend to lease very poorly, for example.