You Have $15,000, Do You Buy Or Lease A Car?

If you have $15,000 in cash, do you buy or lease a car? Actually, I’m going to make it more interesting. If you have $10,000 in cash would you buy or lease a car?

Having scanned through forums and Reddit, there are many young, and even older consumers, who ask the same question, usually with the same amount of money in hand asking for car buying advice. Now, if your commute to work and weekend trips make your annual mileage higher than 12,000 a year, then buying is the better option. But what about those who are driving around 8,000 – 10,000 miles a year. Would you still be so hasty to buy instead of lease?

Most people feel that leasing costs you more in the long run. But does it really? True, your car payments could be higher per month, but because it’s a new car, you won’t have to factor in major maintenance costs. At $10,000 – $15,000, you’re not going to end up with what you want. Certified pre-owned, you’re looking at the Honda Civic, Hyundai Elantra, or Toyota Corolla to name a few. Used can be a case of trick or treat. There’s always diamonds in the rough, but more often than not, you’ll end up with someone else’s problem. Mechanical failure is likely, factoring into the overall cost of the car, while it’s aging, and every year the resale value is slowly tanking. You either wind up with a money pit, or a decent car that will last you a few years before maintenance issues could arise.

Now let’s look to leasing. You have $10,000 – $15,000 in hand and you’re visiting local dealership websites comparing lease offers and deciding which one works best for you. You stumble upon a great deal. Your local Ford dealership down the street has a lease offer for a new Ford Escape SE; $4,173 due at signing, $159 a month for 24 months. If my math is correct, for those 2 years it will cost you a grand total of $7,989, not including oil changes and annual maintenance. You’re saving $2,000 in the long run, which will be two grand more saved up for your next lease. If you buy a $10,000 car, you’re looking at a world of unknowns.

So the choice. A new Ford Escape SE or an 8 year old car with 50,000+ miles on it. $8,000 overall in 24 months, or $10,000, plus maintenance that will inevitably happen sometime during your ownership of the car.

Another example; this time you have $15,000. Now I’m sure you can find some sweetheart deal for a 6+ year old Infiniti G35 or G37 or an older BMW 3 Series, but again let’s factor in unforeseen maintenance. But you decide, “I’ll lease instead because I want to drive a new car”. Here are the potential options you have. Let me just say this is all predicated on what the dealerships in your area are offering. Here’s a few from my neck of the woods.

Audi A3: $2,694 downpayment, $299 a month for 36 months = $13,458

BMW X1: $4,000 downpayment, $239 a month for 36 months = $12,604

BMW 320i X-Drive: 4,000 downpayment, $239 a month for 36 months = $12,604 (Same offer as the X1)

Infiniti Q40: $1,499 downpayment, $229 a month for 39 months = $10,430

Lexus IS 250: $1,599 downpayment, 349 a month for 36 months = $14,163

These are just some of the deals that are out there. They all cost under $15,000 within the three year window you have the car. Most come with leather seats, heated seats, bluetooth, navigation, and electric sunroof. So think about it for a minute. You can have a luxury car for the same price, or less than if you bought a certified pre-owned Honda Civic. There are even better offers out there if you don’t want to spend $15,000.

After seeing this, would you still buy or would you lease?

Acura Is Going Automatic, Leaving One Model Left With Manual In 2016

The consumer markets have spoken and one auto manufacturer has listened. Acura will soon be offering only automatics in their lineup, and in 2016 only the ILX will have a manual transmission. A new era in the automotive market is upon us, and while I can hear the groans from the car enthusiasts who swear by the manual transmission, paddle shifters is that kid on the block who’s taken over and everyone now follows.

The original story posted on Car and Driver goes through Acura’s transition thoroughly. The company that brought us the Integra is realizing that consumers don’t want the manual transmission, and there are a few theories as to why this is happening. For one, automatics are getting great gas mileage, a stronghold and persuasive buying point manuals once had.

Some people are blaming the non-car enthusiasts for this change, but let’s think about the sports cars and exotics that now offer paddle shifters. Ford Mustangs offer automatics, and for a while now, Ferrari has put paddle shifters in their cars. Most notably, the LaFerrari doesn’t even come with a traditional manual. Every car in-between Ford and Ferrari that attracted hardcore car enthusiasts and were for people who could drive manuals are now available in automatics or auto shift. This is the direction car manufacturers have gone, and with manuals only making up 6% of the market, demand is dwindling for a clutch.

With touch screens, navigation systems, iPhones, and other devices that distract drivers, the last thing most consumers want is to worry about shifting. Yes, the purists out there will say that manual is the only way to thoroughly enjoy a car, but an overwhelming majority of drivers, including car enthusiasts, are finding auto shift and automatics to be just as much fun. Let’s also remember the demographics here as well. With most people moving back into the city, having to upshift and downshift at every intersection and being in traffic on the highways is a chore most people don’t want to add when commuting.

Is there a place for manuals? Absolutely. For Acura however, most of their car buyers use their Acura’s as daily drivers, and with the Honda-owned company not offering much in the sports car market, most of the manual transmission lovers will have to look to older models to get their fill. Otherwise they’ll have to change brands, but even Lexus and Infiniti are beginning to change along with consumer demand.

At the end of the day, the goal for any company that sells products is to increase sales. As mentioned earlier, manuals only make up 6% of the market, which means 94% of consumers want an automatic or paddle shifters. Cars with manual transmissions really are a dying breed, and maybe some automakers will still offer traditional manuals on models they know have a cult following of loyal consumers.

The entire auto industry is in the midst of a revolution, and with electric cars gaining traction, who knows what other components will be different in cars in 5-10 years.

Acura is seeing the change and they’re going to listen to consumers. Other car manufacturers will follow suit, and are already moving away from the manual transmission but still offering it on some of their models. It’s truly amazing what consumer buying power can do, and with the advances we’re seeing in the auto industry, this change to going automatic and auto shift was bound to happen.