Tell me about your car! Thinking of going from a lease to owning, and from SUV to small car.

[emer95]

I’d love to hear your thoughts.

I’m currently leasing a 2016 Kia Sportage, and it’s up in October. I need to make some decisions. I have leased 2 vehicles in my life (the last one was a Subaru Forrester). There are definitely some good things about leasing. My payments were so cheap.

I only drive 7 miles to work, and my kids are now grown. I don’t do a lot of driving other than work and errands which are close to home. I do not care about new or fancy at all. I just need reliable, and get me from point A to point B.

I’ve driven a small SUV or minivan for so long, it would be tough to get used to a small car, but it makes the most sense and I know I can do it. I live in Buffalo, so I definitely drive in snowy weather. However I’m a teacher, so when the weather is at it’s worst, I don’t have to go anywhere.

I know that leasing isn’t a smart financial decision, so I’m prepared to buy. I can probably only put down 5K. I like small payments and short loans, but doing some loan calculations has shown me that I won’t get the payments I want unless I put down more $$, or am willing to pay for 60 months (crazy!).

Any thoughts? Suggestions? Do you love your small car?

 

[LYSE]

Before letting your lease go you should look at what the buy out is and compare that to anything else you are thinking of buying.

By the way, there's nothing wrong with leasing it just isn't for everyone...but you can definitely come out ahead (and you actually may have on that sportage)

 

[jeepwreck]

if you like your kia buy out the lease. or look into what it will cost.

we just bought my wife a 2018 Sportage and she loves it, its not too big for her.

 

[sjrec]

Yes, if you like your Kia that would be a good option. I love my Forrester-bought it last year-my Hyundai Tucson was 10 years old and I wanted the new safety features. We drive our cars at least 10 years-get 0% financing and pay off in four years. It’s wonderful not having a car payment and even repairs after it’s been paid off have been minimal. I can see why leasing can make sense for some, but we’re happier owning the car.

 

[emer95]

Thanks- that’s an angle I hadn’t thought about. My current car doesn’t have a back up camera, which isn’t the end of the world, but it would be a reason I’d consider trading it in. I appreciate the advice!

 

[DaddysPrincess]

Buicks are my favorite. Reliable, good on gas, smooth ride, and actually pretty spacious.

Side note:
I'm lucky my bf is a mechanic. He buys repairables that we either sell or drive around for a few years.
The love not having to pay car payments or full coverage insurance

 

[Poohforyou]

Personally I won't buy anything except a Subaru, Honda or Toyota. We've had Subaru Foresters for about 10 years and love them. Lots of room but not huge. Good gas mileage. Low maintenance. Very reliable.

 

[descovy]

Thanks- that’s an angle I hadn’t thought about. My current car doesn’t have a back up camera, which isn’t the end of the world, but it would be a reason I’d consider trading it in. I appreciate the advice!

If you really want a backup camera, you can buy one, you know. You don’t have to trade it in just because of that.

I had a touchscreen Apple/Android car stereo put in with a backup camera at Car Toys for about $400.

 

[tvguy]

By the way, there's nothing wrong with leasing it just isn't for everyone...but you can definitely come out ahead (and you actually may have on that sportage)

OP put it well. Leasing isn't a smart financial decision. It is for people who want to always have a new car and are willing to pay for it.

 

[Pea-n-Me]

OP, just curious why you went from a Subaru to a Kia?

I would stick with an SUV, personally, if you have to do a lot of driving in snowy weather, or look for a sedan, if you really want one, that has AWD.

 

[emer95]

OP, just curious why you went from a Subaru to a Kia?

I would stick with an SUV, personally, if you have to do a lot of driving in snowy weather, or look for a sedan, if you really want one, that has AWD.

Strictly because of cost. When I started leasing the Subaru, I had a minivan to trade in so the payments were low. When the Subaru lease was up, I had nothing to put down, but I wanted to keep my payments the same. The Kia fit the bill.

 

[LYSE]

OP put it well. Leasing isn't a smart financial decision. It is for people who want to always have a new car and are willing to pay for it.

This isn't what the thread is really about but there are some cases where leasing is better financially, like when you will be using the vechcile for buissness and like you said when you don't plan on keeping the car long term anyway. Also leasing EVs is usually a much better deal than purchasing. (Usually, I was considering the bolt and those lease terms arent very attractive)

We all know what's the BEST financial decision though...buy a cheap beater or just ride your bike everywhere.

 

[morgan98]

I recently downsized and somewhat down-graded to a Honda Civic Hatchback Sport Touring model and I love it. It has two toned leather seats, the backup and side cameras and steering/lane change warnings, variable cruise control, navi/Apple play etc. It is great on gas, comfortable and just very easy to drive.

I have a commute in traffic that I was tired driving a stick shift during and I also realized that 98% of the time of more it is only me commuting in this car. It was crazy to drive something larger and more expensive in case I ever had to drive others around.

 

[ronandannette]

OP put it well. Leasing isn't a smart financial decision. It is for people who want to always have a new car and are willing to pay for it.

{{sigh}} This old saw simply doesn't apply to everyone - people have different financial situations. I've had a lease allowance through my work for 12 years; the alternate would be taking a per/km reimbursement for the use of my personal vehicle. The allowance is a (generous) flat amount added to my cheque every month and since my vehicle costs are much lower than the total, I've come out waaaaay ahead over the years and had the benefit of always driving a nice, new car.

Strictly because of cost. When I started leasing the Subaru, I had a minivan to trade in so the payments were low. When the Subaru lease was up, I had nothing to put down, but I wanted to keep my payments the same. The Kia fit the bill.

I've had 8 new vehicles over the past 25 years; 5 of which were leases. One thing I've learned is that at the end of your lease term, the best "deal" you'll likely find is from the same dealer you got your current vehicle from. They will offer many incentives to keep your business. Now, buying out your current car may not be the best since they will want you to pay the entire lease-end-value as specified in your original contract without any negotiation. Buying (or leasing) a new one will give you more opportunity to deal, but bear in mind they will probably not give you more than the lease-end value for your car even if it has held more value. You mentioned maybe going to a smaller vehicle - there are a number of cross-over and hatchback options in the Kia line-up right now; I'd go take a look and talk to them about your options.

Now OTOH, if you are over-mileage and will end up owing on that, or if the Sportage has not held it's value, going to a different dealer and treating it like a trade is the better play. I presume you're financing? Find the vehicle you want and tell the sales person where you need the payment to be. If they can roll it all into a ball and come out with something favourable - done.

 

[clutter]

If you think about buying your Kia, look at the buyout amount v. market. You can take your car to CarMax for a price that they'd buy it for. At least check with Blue Book. If your car is worth more than the buyout you can sell or trade it yourself and use the money to pay the buyout and the rest for a new car. If it's worth less than the buyout, then you don't want to buy yours. Give it back to the leasing company and let them deal with it.

For me, I've been in a Prius or hybrid Camry for the last 10 years. I would like to go to a small SUV for better sightlines. I always feel so short on the road.

 

[BearFamily]

1. LOVE my Subaru. When my Outback finally died (it took a lot of years and a lot of miles!) I had to downsize to an Impreza to cut costs, but in retrospect, I'm so glad I didn't do some of the other non-Subaru options we considered. My sister has a different Subaru, cheaper than a Forester, that is like my Impreza but higher off the ground - I can't remember what it's called but I like it even better than mine!

2. Just an FYI on leasing. We've always bought, my sister has always leased (for some of the very good work-related-driving reasons listed above.) Something we recently learned the hard way - even death is often not a way out of your lease. We recently inherited a leased Subaru. The person leasing knew when she leased it that she might be facing some tough times with health over the next couple years, and SPECIFICALLY ASKED if she would be able to end the lease were she to become unable to drive. She was told yes, no problem, just bring it back. As she entered hospice (with 18 months left on the lease) she gave instructions to have the car returned to the dealership. Before we returned it, we contacted them to make sure we could get some sort of "quit claim" in writing so we wouldn't keep paying for the next 18 months with no actual car in hand. We also did a little googling. (One particularly egregious example: http://www.latimes.com/business/la-fi-lazarus-20140321-column.html) The dealership basically said, "Oh yes, of course you can bring it back! But we have nothing to do with the payments or the lease - that's the finance company." In other words, we'll take it back but you still have to keep paying! My husband contacted the finance company - they said nope. The lease contract has no provision for early cancellation due to death and is still in effect for 18 months unless we buy the car or find someone to transfer the lease to.

 

[ronandannette]

1. LOVE my Subaru. When my Outback finally died (it took a lot of years and a lot of miles!) I had to downsize to an Impreza to cut costs, but in retrospect, I'm so glad I didn't do some of the other non-Subaru options we considered. My sister has a different Subaru, cheaper than a Forester, that is like my Impreza but higher off the ground - I can't remember what it's called but I like it even better than mine!

2. Just an FYI on leasing. We've always bought, my sister has always leased (for some of the very good work-related-driving reasons listed above.) Something we recently learned the hard way - even death is often not a way out of your lease. We recently inherited a leased Subaru. The person leasing knew when she leased it that she might be facing some tough times with health over the next couple years, and SPECIFICALLY ASKED if she would be able to end the lease were she to become unable to drive. She was told yes, no problem, just bring it back. As she entered hospice (with 18 months left on the lease) she gave instructions to have the car returned to the dealership. Before we returned it, we contacted them to make sure we could get some sort of "quit claim" in writing so we wouldn't keep paying for the next 18 months with no actual car in hand. We also did a little googling. (One particularly egregious example: http://www.latimes.com/business/la-fi-lazarus-20140321-column.html) The dealership basically said, "Oh yes, of course you can bring it back! But we have nothing to do with the payments or the lease - that's the finance company." In other words, we'll take it back but you still have to keep paying! My husband contacted the finance company - they said nope. The lease contract has no provision for early cancellation due to death and is still in effect for 18 months unless we buy the car or find someone to transfer the lease to.

Subaru Crosstrek. It's the vehicle I wanted (instead of the Nissan Qashqai I just got) but I couldn't make the numbers work.

As for the issue of having to deal with a lease in the event of an emergency, you can always buy it out and re-sell it, or sell it to another dealer for their used inventory and have them pay it out. That's no different really than a car loan (although you can get some of them life-insured). At no point can you just return a vehicle to a dealer without handing the remaining contract, whether a loan or a lease.

 

[BearFamily]

Subaru Crosstrek. It's the vehicle I wanted (instead of the Nissan Qashqai I just got) but I couldn't make the numbers work.

As for the issue of having to deal with a lease in the event of an emergency, you can always buy it out and re-sell it, or sell it to another dealer for their used inventory and have them pay it out. That's no different really than a car loan (although you can get some of them life-insured). At no point can you just return a vehicle to a dealer without handing the remaining contract, whether a loan or a lease.

YES! It's a Crosstrek. I don't think it was out when I got my Impreza. She lent it to me for a week and I totally wish I had one.

Yeah, the frustrating thing is that she was basically misled by the salespeople. (I know, I know, read the actual contract....) She specifically asked before signing and was told "no big deal, just bring it back and it's all good" - pretty much like the guy in the article was told. One of the other people helping us out (we are out of state) even called the dealership AFTER she went into hospice and was told the same thing - just bring it back with all the keys. It wasn't until we started asking about some sort of documentation that they fessed up what the actual situation was. SO sketchy. Which makes me absolutely NOT want to sell it back to THEM....

 

[tvguy]

{{sigh}} This old saw simply doesn't apply to everyone - people have different financial situations. I've had a lease allowance through my work for 12 years; the alternate would be taking a per/km reimbursement for the use of my personal vehicle. The allowance is a (generous) flat amount added to my cheque every month and since my vehicle costs are much lower than the total, I've come out waaaaay ahead over the years and had the benefit of always driving a nice, new car.
.

I can't speak to Canada for sure. The IRS in the U.S. has really cracked down on lease allowances over the years. They were popular, then the scales kind of tipped to mileage reimbursement, and now companies just have a fleet of cars that stay at work and can't be taken home. I guess the paperwork required (and taxes that need to be tracked by the employer and paid by the employee) are a huge hassle.
A co-worker got in trouble about 3 weeks ago for using her personal car and trying to get reimbursed because while there were 11 company cars sitting in the parking lot, there were no keys. I now have 5 sets of spare car keys in my desk so THAT doesn't happen agian.

 

[leebee]

I drive a Kia Soul and really like it, except it doesn't always have the best traction in snowy northern New England! We put good snow tires on it and it made a world of difference!