We've been car shopping for weeks. It doesn't have to do with the job change. It's just time. My current "car" is actually a truck--a Ford Explorer. It's very nice. I got the Eddie Bauer version with the V8 (yeah, I know, very fuel efficient--I actually buy carbon tax credits to offset the pollution, but I digress...). It's a nice truck, but I'm ready for something new.
My old car was a Volvo S80, and I was excited to read that they have a new version. I wasn't going to just jump right into a new car, so we've also checked out Lexus and others, but we're as impressed with the new S80 in person as we were in reading about it.
We've been on two test drives. I took it out a few weeks ago. Then today, since I wanted him to drive it before we went any further, we arranged for Marc to drive it. So then we got into a serious discussion with the salesman. Here's where the problem comes in.
What he said they'd give for trade-in on the Explorer was very low. Well, at least very low compared to what I'd expected.
I used the Kelley Blue Book site to price trade-in value, and their estimate was over $2,000 above what the dealer offered. The dealer insisted that the KBB number was too high. He said that gas-guzzling trucks weren't so popular now, that there is a glut of such vehicles and that their (the dealer's) numbers were from actual wholesale auctions.
So I told him that was too low and we couldn't do anything now if that was the case. Then we left.
Here's the fun part. I came home, ignored KBB and looked in the online classifieds for trucks similar to mine. Sadly, the asking prices for those trucks support the dealer's number. Rats.
I think I'll lease the next car. Then I don't have to worry about this crap. The lease ends, I toss the keys on his desk and get a new car. That's that. It's just easier.
The underlying numbers are about the same either way--and none of it's cheap--but actually seeing such a clear demonstration of the truck losing 75% of its value in three-and-a-half years is just depressing!
2 comments:
I have gone both ways several times: leasing and buying. First off, $2,000 difference in the scheme of a $40,000 vehicle isn't going to amount to squat, assuming you are going to need to take out a loan to finance the difference between your trade-in and the S80. Get a dealer to run some paperwork for you and find out what kind of interest rate you can expect to get if you buy and figure out what your payments would be on a 48 or 60 month loan. Can you afford that? If so, buying is going to be your best option.
Now, find out also what a 3-year lease will run you and be HONEST about how many miles you drive in a year. It will come out less, but maybe not MUCH less... maybe you could afford even more car than the S80 if you leased?
I leased an S60 T5 for four years before I got my Land Rover Freelander which I am buying. I am paying about the same a month on the Freelander that was only $9,000 less than the Volvo. But, I get the advantage of more flexibility than I had with my lease. Leasing is not for everyone... but it can be cool if it makes sense!
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