My lease on my 07 Ridgeliner is about up. I'm going to go ahead and buy it. There's a difference of $5,000 in my buyout price and it's retail price. So either way I have equity in it. Even if I buy it and sell it the next day I'm making money on it. However I might drive it for a couple more years and then sell it. The question is do I buy a 3 year warranty on it for an additional $1200 or take my chances? One major boo boo or a few minor ones could pay for the warranty. Or...... I could just waste $1200 and have nothing go wrong for 3 years. Thoughts?
Yeah mag that's what I've always kind of thought but i'm thinking about this one for some reason. I mean.... $1200 over 3 years? Am I going to have to have fixed $400 of stuff a year for 3 years? Doesn't sound that far fetched to me. Wheel bearing, electric, AC, whatever....... could add up quick. Not to mention something major where that could triple. Plus parts and labor for any job aren't exactly cheap these days. Chances are I would be fine with just general maintenance but I dunno. With my luck I'd pull out and the engine would blow.
BUY IT! Unless you got the cash to pay for a major repair at hand ... I wheel bearing and your half way there ... and its prolly transferable ..
$1200 to forget about it is a small price IMHO. The axle seals just went out on my truck, I'm 2000 miles over the factory drivetrain/powertrain warranty, and the dealer wanted roughly $1000 to fix it. Good thing I know how to work on stuff myself, because I'll be able to do it for roughly $200 in parts.......but to be honest I wished I had the warranty right now. I'd rather have my weekend back to do somthing I wanted to do, plus then I'd also have them fix the broken cruise control switch that I won't fork the $$$ out to do on my own. Just MHO.
I used to sell 'em....and I wouldn't buy the warranty for 1/2 that price. My "bet" is, it doesn't cover everything you think it does.
My welder stopped feeding the wire last week and i bought the two year replacement warranty. without it i would just have a broken welder, but with it i now have a brand new one on my work table. You may not need it, but if you opt to not buy it next thing you know you could be kicking yourself for it.
Extended warranties rarely are needed on most things you purchase. The only exception I'll make is with a laptop and it's an all inclusive damage and repair coverage because I'm extremely tough on laptops as they're carried daily and I've had a couple go out. Check the wording of the warranty very carefully. It might not only not cover what repairs you think it will. But, it's also very selective on what shops can do the repairs.
Well you lost money from the get go with a lease. Shame .... Shame .... Shame. Leases only help the dealer. Leases are a losing proposition for the leasee. Go ahead and buy it. Extended warranty is a toss up in favor of the company selling you the extended.
Not all leasing is a bad thing. My wife and I leased and she put on far less miles than the least amount allowed as she only works two miles from home. Same car, had we of bought it, would have cost us far more in payments, insurance, repairs etc. It's a rental. Not any different than renting an apartment, IMO.
Good point Jeff. One thing I learned a very valuable lesson was that you better read the very small print at the bottom of the page. As for my opinion on buying It, how good has this vehicle been for you? What's the reputation of this vehicle? I think having to buy warranty's Is about as crooked as It gets. Why the **** should anyone have to buy a warranty when your buying something new? Warranty's should be Included at no cost.
My "bet" is, it doesn't cover everything you think it does. If you like to gamble you may as well go to Vegas... any smart financial manager will tell you to forget the warranty !
$1200 will go a long way toward a repair if you HAPPEN to need it. If you don't need it,then you saved $1200 dollars. That is about half to 1/3 the cost of most major repairs and I'm not wagering that much on a bet.
Not entirely true. I have a whole in depth philosophy about lease vs. buy. There's a time and place for leasing. And it makes financial sense in a different way.
Leaseing I bet was a writeoff for NY. It's only money, something you have plenty of, right? You could hustle someone in a game of golf for that price. If it gives you peace of mind drop the cash.
FTR...with the interest rates you can get today, it makes purchasing NEW cars the most likely best route. But,......there's always exceptions. With a Honda Ridgeline.......if you're not gonna be driving it many miles.....that's probably a really good lease deal. The problem with a high residual is.....if you like the vehicle, it costs a pretty fair penny to purchase it. You can't have it both ways. You're never gonna have a really good lease payment and a low residual. Sooner or later, the vehicle's gonna have to be paid for. My guess is....NY's under the miles on his lease. If I was at or over on miles (I have been, before), I'd negotiate a purchase price with the lease holder. They DO NOT want the vehicle back....I promise. There is a time and a place for leasing.
