Does Car Leasing make sense?

[Vulcaneer]

Since buying our RV lot in Florida, my wife and I will be snow birding for 6 months next year. We will use our fifth wheel. But do need a car for the winter months. As an alternative to our big diesel truck. Shipping our current car from NH to Florida doesn't seem to make good sense. I believe a long term car rental is too expensive.

We have considered buying a car to leave in Florida. Maybe a newer used car, or a new moderately priced car. We expect to put on less than 4,000 miles each snowbird season.

I have never considered leasing a car to be a good investment before. But now, or needs have changed. And I am wondering if a car lease would make good sense for our needs.

Any thoughts?

[Lantley]

I have leased a car a while back. For me the advantage of leasing was a low payment. Disadvantage is I accrued no equity in the car. At the end of the lease I had nothing to show for my payments.
I must admit I did like the low payment. However turning the car in,leaving myself with nothing in return, left a bad taste in my mouth.
I would never lease again.
In your case a 1 year lease may have advantages, however the same pitfall exist.
How long do you plan to snowbird on your RV lot.
Is snow-birding on the lot a passing fad or something you plan to do long term.

Unless you only plan to snowbird 1 or 2 seasons, I don't see a lease as being a favorable option.
Insurance will be the deal breaker. You will have to insure the car year round.
A out of pocket used car will only need to be insured for the 6 months when you are using it.
Leasing maybe hassle free in terms of having a reliable new car with a reduced payment that won't have a lot of maintenance or unforeseen expenses however you will never own the car or accrue any equity. At some point the lease will end and you will have nothing to show for your payments.

[Campfire_Time]

I think only you can answer this question. You'd have to go to a dealer or two and find out what kind $ leasing would cost you over a period of time. Then go home, crunch the numbers and balance out cost and convenience. Leasing isn't for everyone. Every option you consider is going to have its tradeoffs. Some of us would be fine buying that $5k car and sticking a few bucks into it over a period of time. Some would be fine spending the money shipping a car twice a year.

What ever you do, its got to work for you.

[jason4598]

$1500 does sound like a lot to have a car available. I've never leased a car but the ads I've seen make me think that it might cost $3000 down plus $3600 a year plus insurance.

[rockhillmanor]

Vulcaneer wrote:
.....We are finding that a $5,000 used car is not a very desirable car. Usually older and very high mileage.

And Florida sun does a job on them.

Now maybe for $10K (+) we can find something. But not sure ownership is best for us......

And that is EXACTLY what is going to happen to the car you purchase to leave in Florida during the summer months!

Unless you have a garage to put this car in for the summer it WILL succumb to all what the hot, humid summer weather in Florida provides. Especially when it will be left all locked up for those months. Add mice, roaches, pollen, the dreaded green mold, etc that gets into cars down here to that mix and anything new you buy or lease will loose its value in no time!

I am from Wisconsin and I can leave a car unattended for months to years and it will never sustain the damage that Florida can dish out in one summer month! :B

Unless you have the need to impress I would vote for buying an inexpensive used vehicle to leave behind.

I'm here in Florida right now and IMHO $5,000 CAN net you a nice vehicle to drive around for the few winter months you snowbirding. Just saying. :C

[ScottG]

Folks, the OP wrote that they needed a SECOND VEHICLE.
Telling him to use his truck isn't going to help.

[Jayco-noslide]

Maybe but driving your truck would be less expensive that taking on the costs (no matter how you do it) of another vehicle. Your truck will depreciate just sitting anyway so it's only the fuel to worry about and for 4,000 miles having a higher MPG car won't make up the difference.

[Vulcaneer]

While I do appreciate all the alternative advice, I have considered all of those alternatives. i.e.: driving our northern car down. Paying a driver for Northern car. ($1000++ RT) Using only our F350 Diesel, Shipping our northern car (BTW $1750 round trip). Auto Train ($1300 Round trip ++), No Zip Car convenient to our location. Buying a $5,000 used car. (High Miles, less reliable, sun worn, older, riskier, higher maint. costs). Buying a $10,000 used car.

The question posed here pertains to leasing a car. Only one response addresses the leasing question. Is there anyone that really knows the ins and outs of leasing? And should it be a consideration in this situation?

[Bumpyroad]

CKNSLS wrote:
^^^^^^
Agree with the above. If you buy a $5,000.00 car you can insure it only for the months you use it....

A big plus!

in some states you have to have liability insurance on it to retain your tags.
bumpy

[jason4598]

Shipping your car back and forth might also be an option for you. There are lots of car haulers out there, and out east I think Amtrak has an auto train.

[MdKamper]

Halmfamily wrote:
I would think it would be less expensive to drive your truck the limited amount of miles you will be driving. By the time you factor in lease costs, insurance for both vehicles, registration for both vehicles, maintenance for both vehicles, etc. Granted its less expensive to fuel a car and easier to get around in some areas. I could not justify the expense of the second vehicle. Good luck and enjoy your new snow birding home.

I have to agree with the above ... and if you really need a car on a limited basis you may want to see if Zip Car is available in the area. Traditionally they are located more in larger city areas but offer a great alternative to rental cars. With Zip Car you rent by the hour, typically $8-$12 an hour depending on model but includes Gas, Insurance & tolls. We find it very convenient to use.

[pawatt]

Halmfamily wrote:
I would think it would be less expensive to drive your truck the limited amount of miles you will be driving. By the time you factor in lease costs, insurance for both vehicles, registration for both vehicles, maintenance for both vehicles, etc. Granted its less expensive to fuel a car and easier to get around in some areas. I could not justify the expense of the second vehicle. Good luck and enjoy your new snow birding home.

Same here.

[CKNSLS]

^^^^^^
Agree with the above. If you buy a $5,000.00 car you can insure it only for the months you use it....

A big plus!

[donn0128]

I think you would be far better off buying say a 5000 dollar car and leave it parked in FL for the summer.

[Lantley]

Leasing a 10K car maybe a cheaper alternative to buying a 10K car. However have you considered simply driving your car down from up north? Let your wife follow you.
I understand we all have a budget and standards but $10K seems like a huge number for a simple grocery getter with A/C. I would think you could by a decent car for $5K.
Lastly before spending $10K for a car drive or ship yours down for the first year and see how you enjoy the overall experience before investing another $10K.
If you enjoy your new snow bird lot leave your current car in FL and by another car when you return to your stix n brix home up north.

[Vulcaneer]

Oh...We do use the truck. But we need a second vehicle. She will drive the truck, but it is a problem for her. handling and parking. But she is really afraid of wrecking it, and rendering it useless. I know...but it is her concern.

We are finding that a $5,000 used car is not a very desirable car. Usually older and very high milage. And Florida sun does a job on them. Now maybe for $10K (+) we can find something. But not sure ownership is best for us.

The lease car insurance issue is a very good point. Not sure I want 12 months of payments for a 6 month use of a car. But some of the benefits seem to be 1) a newer, more reliable car. 2) less monthly payment. 3) when done easier to get rid of.