The pros and cons of leasing a vehicle.

[KennyG]

I beg to differ. Today's cars are overpriced, over-engineered and designed with obsolescence in mind.

Well, the post I was replying to referred to cars of the 50's and 60's, not the 90's, but I don't agree that cars today are designed with obsolescence in mind. We all have fond memories of those heavy iron cars that we remember being easy to fix. However, they needed to be. Tuneups every 5,000 to 10,000 miles, new tires every 20,000 miles, shocks at 50,000, engine and transmission rebuild at 100,000. We may worry about the electronics but no one even expected a clock in a car to work after the first two years.

I'm very impressed with the quality of cars now and the reliability of the current generation of electronics. Of course you can find horror stories, but I have 4 vehicles, 2004 through 2013 model years, with 20,000 to 100,000 miles on them. I feel very comfortable taking off on a long trip in the 2004 with over 90,000 miles on it. I'm not sure I would have felt that confident with a 1990 car and certainly, if I did this in a 1965 model I would have a trunk full of tools and spare parts.

 

[arrow]

"...A warranty certainly provides "peace of mind" for many..."




"..I feel like I probably paid too much for peace of mind..."

Consumer Reports: Extended Warranties for Cars - Consumer Reports

This is different. Beyond that I do not take much stock in Consumer Reports, I believe they are talking about extending "new car warranties" right at the point of purchase. I'm talking about putting warranties on program cars. I hardly ever sold extended new car warranties unless the customer insisted and over my advice not to bother. I did advise my daughter to purchase one when she bought a new Focus in 2012 as she puts on 30K a year. She paid $1200 for it. It did not make sense for her to have a warranty gone within a year or two if she were keeping the car for 5 years or more. She now has over 70K on the car with a transmission that let go just two months ago. It cost her $100 for an almost $4000 job.

It's like life insurance. Do you have any? Your betting upon your own death. If you win, you lose in other ways.

 

[arrow]

Well, the post I was replying to referred to cars of the 50's and 60's, not the 90's, but I don't agree that cars today are designed with obsolescence in mind. We all have fond memories of those heavy iron cars that we remember being easy to fix. However, they needed to be. Tuneups every 5,000 to 10,000 miles, new tires every 20,000 miles, shocks at 50,000, engine and transmission rebuild at 100,000. We may worry about the electronics but no one even expected a clock in a car to work after the first two years.

I'm very impressed with the quality of cars now and the reliability of the current generation of electronics. Of course you can find horror stories, but I have 4 vehicles, 2004 through 2013 model years, with 20,000 to 100,000 miles on them. I feel very comfortable taking off on a long trip in the 2004 with over 90,000 miles on it. I'm not sure I would have felt that confident with a 1990 car and certainly, if I did this in a 1965 model I would have a trunk full of tools and spare parts.

Cars are much better built now without question. There was a time when GM insisted the life of a car was 65-70K. This is how they built cars with that longevity in mind when designing parts. It was when Toyota came on the scene and they realized car sales had more to do with people thinking you sold a reliable product rather than forcing you into a sale because your car has had it before it reaches 100,000 miles.

Cars have very little problem with going 200,000 trouble free miles now a days. Better lubrication, efficient fuel burning, closer tolerances, better build quality and cleaner filtration has led to increased miles to just about every car made today. Are cars more complicated? Absolutely. Are cars taking the mechanic out of the back yard? Yes. Do I wish for a simpler but reliable car? Without question . If I had to give these things up, I'd certainly want in return a car that would go 100,000 miles before a tune up or 70,000 miles before a break job or a paint job that lasted the life of the car and a car that would go 200,000 miles almost all by itself. I feel manufacturers have given us that. I hate it to but as long as my and other's sacrifice has had a return, I can sleep a little easier and not get so pissed off about the turn of events.

 

[Bird]

Well, the post I was replying to referred to cars of the 50's and 60's, not the 90's, but I don't agree that cars today are designed with obsolescence in mind. We all have fond memories of those heavy iron cars that we remember being easy to fix. However, they needed to be. Tuneups every 5,000 to 10,000 miles, new tires every 20,000 miles, shocks at 50,000, engine and transmission rebuild at 100,000. We may worry about the electronics but no one even expected a clock in a car to work after the first two years.

I'm very impressed with the quality of cars now and the reliability of the current generation of electronics. Of course you can find horror stories, but I have 4 vehicles, 2004 through 2013 model years, with 20,000 to 100,000 miles on them. I feel very comfortable taking off on a long trip in the 2004 with over 90,000 miles on it. I'm not sure I would have felt that confident with a 1990 car and certainly, if I did this in a 1965 model I would have a trunk full of tools and spare parts.

Exactly right. I can remember when anything with 100k miles on it was junk. Police sedans were replaced at 60k miles and they were usually junk by then.

And a bit like you, but with even more miles, my 2001 Ford Ranger has over 110k miles on it and I wouldn't hesitate at all taking off on a long trip in it.

 

[smstonypoint]

Well, the post I was replying to referred to cars of the 50's and 60's, not the 90's, but I don't agree that cars today are designed with obsolescence in mind. We all have fond memories of those heavy iron cars that we remember being easy to fix. However, they needed to be. Tuneups every 5,000 to 10,000 miles, new tires every 20,000 miles, shocks at 50,000, engine and transmission rebuild at 100,000. We may worry about the electronics but no one even expected a clock in a car to work after the first two years.

Here are some data that support Kenny's view.

Source: Blog | OtterWood Capital Management - Part 15

Steve

 

[GolfAddict]

Can anyone tell me if you can find out how much a lease payment would be on a vehicle? Or do you have to just go in and suffer the agony at the dealership?

 

[Capricious]

"..she bought a new Focus in 2012 as she puts on 30K a year. She paid $1200 for it. It did not make sense for her to have a warranty gone within a year or two if she were keeping the car for 5 years or more. She now has over 70K on the car with a transmission that let go just two months ago.."


Apparently a common problem:

Investigation finds hundreds of complaints about Ford transmissions | Investigations - WTAE Home



But having forgone extended warranties for many years and many purchases, I believe that I could buy a $4,000.00 trans today and still come out ahead.


And a program car priced at, say $13,000.00 is no longer a $13,000.00 car if one is also buying a $1,200.00 or a $1,500.00 extended warranty.

 

[smstonypoint]

Can anyone tell me if you can find out how much a lease payment would be on a vehicle? Or do you have to just go in and suffer the agony at the dealership?

Check Edmunds: March's $199 Lease Deals | Edmunds.com

Steve

 

[timswi]

"..she bought a new Focus in 2012 as she puts on 30K a year. She paid $1200 for it. It did not make sense for her to have a warranty gone within a year or two if she were keeping the car for 5 years or more. She now has over 70K on the car with a transmission that let go just two months ago.."


Apparently a common problem:

Investigation finds hundreds of complaints about Ford transmissions | Investigations - WTAE Home



But having forgone extended warranties for many years and many purchases, I believe that I could buy a $4,000.00 trans today and still come out ahead.


And a program car priced at, say $13,000.00 is no longer a $13,000.00 car if one is also buying a $1,200.00 or a $1,500.00 extended warranty.

True if you saved all of the money you didn't spend or warranties or just have a slush fund for such things..If you don't---Just sayin.

I've bought them a couple of times and never needed them, but it also did provide some peace of mind when I didn't have the excess cash for a potential expensive repair. Now I can cover the risk even if I really don't want to.

 

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"


And a program car priced at, say $13,000.00 is no longer a $13,000.00 car if one is also buying a $1,200.00 or a $1,500.00 extended warranty.

No but it is still cheaper than new by a long shot. Plus you're getting a warranty on a car that is nearing or surpassed it's bumper to bumper safety net.
For her for the miles she puts on and this car which was in it's first year of the new design, it was wise to get an extended warranty. The devil is in the details. Live up to your moniker and look at it from different sides. Perhaps you'll "change"