Need a car, buy or lease?

[tagrims]

I currently drive a 96 VW Jetta and I went to get it inspected and I got an estimate of $900 to get it up to code (they are usually pretty good and honest) another place I took it too said about the same price (without the earlier knowledge of the 1st estimate).

I also noticed a rattaling in the engine this week (maybe it is just the exhaust.....) so that might be more money down the road. In August I spent $400 for new brakes and to fix an oil leak.


I am thinking this car might become a money pit real quick, and not to pay to get it up to code for inspection.


Kelly's has a 1,500 trade-in value for the car and I have a little bit of money for a down payment.

I am just wondering if it makes more sense to buy or lease a car? I'd prefer to buy (so I can see some of the money come back) but I am not sure you see much of that money back anyways.

I drive approximately 50 miles to and from work every day, so the mileage scares me.

Any thoughts on what I should look at? Buying or leasing? Used? I am mostly looking at Honda's, Toyota's and Nissans. Any help is appreciated.

[midnight]

Don't lease. I've never heard of a good lease deal. Buy a used 2 to 3 year old car for the best value.

[BAGAGT1]

DON'T LEASE!!!! I agree with Midnight, buy yourself a good 2 to 3 year old car. Although I would take your current vehicle to trusted mechanic to check out the rattling in your engine. It is almost always cheaper to repair than it is to buy.

[Dingoluv4eva]

the heavy driving alone is gonna make lease a terrible option.

mileage depreciates your car.
and the more miles u have the more u have to pay to lease the car..
at the end of the least they adjust it if u broke their limit basially fine u a penalty..

also they will charge u for any kind of other quirks they see, dents, scratches etc.. and penalize you..

buy a car within your means, and keep good care of it, than when u have more loot, sell it get a nicer one..
one way to think about it, the cheaper car i get today means a nicer car next time around.

[Russell]

Option 1: Invest $1k into the Jetta and keep it for 1 yr, which comes out to be about 15k miles based on your 50 mile work day commute. So,

$1k/15000 = .06 cents per mile

Pros:
- You own the car so if you sold it after 1 yr you'll still get some money back.
- Insurance will be cheaper
- You don't care if someone dings or dents it

Cons:
- May need more money for repairs down the road (with a few basic tests you can get a pretty good idea of the health of the engine)

- May not be as fuel efficient as a newer car



Option 2: Finance a car with $150/mo payments. In one yr the car would cost:

$1800/15000 = .12 cents per mile

Pros:
- May not need non-scheduled repair/maintenance for the next few years if taken good care of

Cons:
- You don't own the car yet so if you sold it you might be lucky enough to pay off the loan and break even.

- Insurance will likely be more expensive since you'll have to carry full coverage if you're financing a car



How many miles on your car ? Those engines are fairly reliable but unfortunately the Bosch electronics stuff (fuel pumps etc) aren't. Also if its an automatic, the trans will need costly repair if the mileage is high, unless you take good care of it - by changing trans fluid regularly.

Finally: Learn to work on your car and save money!

[Russell]

buy a [mechanically sound] car within your means, and keep good care of it...

Couldn't agree with you more

[Tree0164]

Don't lease-never worth it.

You might not get the $1500 for selling it since there needs to be work done. It might be worth it to keep the car for little while, get it fixed and you be able to use it for another year. During the year you can save up for a down payment. Russell did a good cost comparision for you.

[terry1156]

I think the all around agreement is not to lease and I agree too. Do some research about which cars hold their value and aren't expensive to upkeep. Used is always a better deal financially than new - good luck.

[robex]

I wouldn't lease a car, either. My husband drove 100 Km a day for 14 years in the same honda civic...it now has 435000 on it and we still don't have any problems with it, just do the regular oil changes etc. It's getting rusty around the trunk, but DH won't get rid of it because there's nothing wrong with it. He'll drive it until it dies on him!

[tagrims]

The engine currently has 127,000 miles on it and it has a manual transmission. I have had quite a few electrical issues in the past (power windows broke twice, locks broke once) and I imagine there will be more in the future.

I am happy with the car when it runs... (it gets 30mpg) I just don't want to sink $900 into now and then another 900 a month later.


Has anyone had any experience with 96 Jetta's? Will the major components last for a long time (engine, transmission, etc.)



Thanks for all the advice.

I am going to go try to find another place to get an estimate....I don't see why I need to have brand new struts to get the car to pass inspection.

[dmontngrey]

I have a 98 Jetta (with 113000 miles) and had a 90 Jetta before this car. The first Jetta made it to 166000 miles before it had an unforunate misdiagnosis that ruined the engine.

My current Jetta has had the check engine light on for over a year now. We have it narrowed down to two items, and are really hoping it's just the throttle body. The major problem I've found with this car is that nothing can be fixed for less than $800. I need a few parts fixed, but at that price I'm trying to get by as best I can. They're not urgent yet, which is good!

In all, it's a great car and I hope to get a few more years out of it! The engine and transmission and quite strong, as is common in VWs. If you can put up with the little quirks VWs have, they are wonderful cars. I figure just a few $800 repairs over the next few years is much cheaper than a newer car.

A great site for advice on your particular car is http://www.dub-tech.com/
The folks there know more about VWs than anyone you'll run across. They'd be able to help you figure out if certain repairs are really necessary.

Good luck with your car!

[jmjj215]

Terry, where's that calculator that shows the true cost of a car? Is it on edmunds.com? I thought I remembered you posting it here before..

99% of the time, leases are a bad idea. I've heard a few horror stories involving Jettas. I would hold on to the Jetta though until you've saved up enough cash to purchase a reliable & inexpensive car (and they do exist).