Should you buy or lease? New or used?
Aug 13, 2012|
Tough decisions made easy with The Car Guys. Listen as they break down the pros and cons of car buying.
Transcript - will not be 100% accurate
Welcome back to the car guys radio show here and M 680 WRKO am here with pill -- Georgian Joseph Messina of the car guys guys. Segment two starts now let's talk a little bit about the differences between. Police in own because when I think when the last time I went to go by my car I was pushed heavily into. Leasing the cars is being a good option for me. I wasn't quite sure war. I don't know enough about what what police is all about so this is great the U guys here now I can finally find out why it is Elise. Is it good for me is -- not good for me is it good for some people and out of this breakdown release form what what is this well. Okay so basically. -- a lot of people like to lease a car. The people that really if it works thus far is somebody that's a business owner who can write off. I completely the weeks. And they'd sometimes. That's that can be sort of a a -- to the business if you will. Where they can actually drive a fairly nice car and just pay your payment you know. Per month and not have to put up a lot of money up front. But the the downfall is a lot of people get trapped into these leases where they buy or purchase a car -- -- -- the and they do too many miles. In give -- you would tell me earlier sometimes as a a 1010121000. A year. Cap rate -- that's all basically it's a thousand miles a month which are probably doing about a week. Right exactly so for those people it doesn't work believe me you know the have all these enticing adds about you know leasing vehicles. And how cheap it is per month but the bottom line news. If you end up. Going over on the miles they really penalize issue I mean it's thousands of dollars in you can never really thorough. In their sometimes we you might think you know go thousand but sometimes an odd muffled pop pop we drive in the lot -- have to go cross country. After -- formats -- in Europe completely. There's no little give room there it's 121000 that's it. That's it and you'll get penalized believe me the other thing is when you turn the car -- a lot of times what would we would. What you and I may consider normal Wear and tear you know rules grateful scratch and doing what. They kind of go over these guys and they charge of fortune. To recondition it now when you Trinidad to you personally that the person who leased it so I left the car and drive it. I bring -- back and now I get charged. Term but re up -- real quick fix to recondition the cut to really to its original specifications. Supposedly. Now -- as. -- sounds like release is not -- not the option that many people should -- that I've had a lot of. I've got a lot of business associates that have their own businesses and and quite a fuel -- least. Then when the bubble burst a couple of years back and don't when you lease a vehicle it's nice that we have a profitable business could write it off. If you don't show a profit and is nothing really to write -- And when the bubble dress a lot of these. Fellows had to win three and four and five as least it is businesses. In the 88 the expense and now what they did was. There there's still people know what their cats and the give them alone so. -- I gave it as a business person as a business owner I know of at least. Basically what you're saying is my own fortune 500 company leasing might be the way to go from mrs. I don't own a business. I'm not CEO of fortune 500 companies song gonna have to go to -- owned situation is no benefit. You to at least does that benefit of the -- you and have a payment from for the -- you know -- So it that is it never stops though because once at least is done what he's gonna go you have to release again. Sold exact basically that payment is continues and continues. I remember we had a complication of -- that actually. That you associating -- was yes it only does above 5000 miles MES lucky you know knowing it's like her house of church and -- it and she -- Generale woman she's an older woman tail and she leases that kind -- consider myself why would she -- released that cut. If she bought it and she did of or a normal like a five year immunization on her a purchase yet. She'd be all done paying for that -- five years down the road that -- would only have 25000 miles on it probably. As 175000. Miles life of life left the net and now she won't have to pay a payment ever again so let's get into that she shouldn't she she should own that car. Absolutely -- I'll you've told a little bit wide but tell me what the more reason why owning is much better than policing how the car guys. At the target has website dark on how you guys come into that that okay. Well first of all just wanna say one thing. As of the data that I've had he'd given to be as of last month. Oh we've seen that the average the person. Average the average time that a person keeps a card now is about ten point eight years. So. You know what I grew up as a kid I mean people would trade their cousin every two or three years is because. They could do and you know. Vehicles were you know 3000 those -- no. Was -- -- imports back then but the bottom line is. You could do it and the economy was was pretty good now the economy is as sort of -- Boris over the past 45 years. In basically people out there watching their pennies so they keeping their -- because guess what. When you go to get a new car you know you could be spending 203040000. Dollars or even more. To purchase a new vehicles sold this saying to themselves you know what I don't wanna make a commitment. For 40000 dollars and 30000 dollars right now because. I don't know what might incomes going to be I don't know -- consolidating where it works so. Maybe I might lose my job all right let me I may be out of work for a little while I don't wanna have the commitment of having net payment every month. So I'm looking to do something different is there ever -- situation that we're buying new cars oppose the use scars. Is better. Is that that's something you should be doing that the arrests in cases where you know somebody evading any way eighty you know from a 25 girls I have enough time in -- -- to -- the car is -- it from 45 -- maybe I should buy or use -- maybe it's an an opposite. Well the way I always look at it is. Generally speaking in this is with every vehicle -- some vehicles pulled this value what -- of those but just in general. I would say. I liked I liked by congress to a three years old. It is what mileage. There is that what you call the sweet spot. You did earlier -- a -- to -- way to limit the -- -- mean that that's addressed I consider that the sweet spot because I consider that are still fairly newly. Say for instance we bought -- it's 2012 -- it's that we won only nine or ten. Vehicle in. Typically these cars depreciate because depreciated anywhere from twenty to 40%. Over the period of time. Over this three years so. You get a substantial discount that power in the calf that's that has that low mileage like for instance you know 203040000. Miles. Most guys in last you know 200000 miles failed war. So I think that that's really this sweet spot that's what I call it because I think that's it re re. Savings for a costly yet. Because the Dave would let's issues an example it's his seat could save anywhere from twenty to 40%. And when I say 40% could be even more than 40% because I just sold. I've sold recently some hiring 'cause like Lexus BMW Mercedes. And basically. That -- they were bought half price. What they were no. Only three years old would reasonably low mileage of so to me that's that's of great value -- mean if you gonna -- -- it was 60000 dollars and you could buy that's in our. But 30003. Years old with illegal mileage and still be able to get almost the same -- time. Out of it that you gonna you know be the use would be would be great -- I think that that's you know to me no matter how much money you make. The throwaway. I don't know what should absolutely have to have something that's brand new. I would try to go with the use when it's absolutely pristine shape. And Joseph that's for you guys come in to look for that absolutely pristine used car. Exactly I mean I can go to -- it's very if you want me here it absolutely. Capsule we got a call from from a client and that happened and on the follow. And he was interest that it in a 2000 in the jaguar convertible that was being sold at a dealership local. And he says Joseph I'd like -- have you and -- check this Cairo for me. And he if you get me goodbye that add fuel to see if we did do that. Nice that if you are right we can we can help you out there and he gave me the vin number in the vehicle. We checked that out I checked that out and get that would bill will happen to be done in Pennsylvania at the time. And he did his. Joseph Friday. Investigative. I think none. And sure enough. We find out that the wasn't an accident was registered at a Connecticut was in the major accident Houston Texas. And when my friend -- to look at the vehicle. They and they never mentioned that to him because they I don't believe they actually know it. There and then. A -- all the bills to assemble but airbags is that you know 00 yeah all the epic. That's right all the airbags in the vehicle -- deployed that there was many of Iraq that's something you guys. Notice the -- the dealership wherever he was either failed to notice that or did -- bother telling him. While they wouldn't tell him there you know I mean that would be. I mean it would turn them away from the sale. So I call them I called up the dealership -- explain to them that the type of business but when I was in and that we had a client who was interest in this vehicle. And there -- ask in 5700990. For the vehicle almost 58000. And that I told them again that -- business but when I was in and we had a client -- who's looking to buy that vehicle kind of a deal would that make us. Newer ones sold me that vehicle before I -- 99. It would take an 8000 dollars -- -- the vehicle when I call that client they told him about it. And he says that's a super deal rights issue this the tip -- there's a problem. The cat was in the major accident -- bag deployed and that's why -- we know may have framed him. Please. No what I don't give him 48 for a clunker -- yeah while they know we we we actually found out how much they paid for the vehicle and at duke and who have been in. -- little greedy there rational on what they paid for it. So he said no I'm not interest that I let that go and a couple days later that he call us back -- -- -- -- Why don't I just said bill look Ricardo real. And this -- what I want I want -- jaguar convertible. We found them the most beautiful. -- this. We if you want to the 2000 and they view item 2007. The styling. Basically I was exactly -- they had 198700. Miles. He saved themselves. -- well over 121000 dollars my mind. LA that's sir and it's haywire because your client had a specific model in mind that he wanted. And we're wrapping up this example when we come back -- wanna get into some of the more popular brands of people looking for -- it pros and cons of as opposed to. What's out there and what you need him what you don't need in how you go vote buying come. So get it said the car guys radio show here and AM six AW are killed their phone number. 3302274897. That's 330227. 4897. And online at the car guys website. Dot com.