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Originally Posted by 21Archer84 Firstly, Thanks for your reply Avi. I've gone through your well composed CX-9 thread and felt your thoughts would be helpful with the information I'm looking for. |
You're welcome Archer. Since I'm in the region perhaps my suggestions will make more sense.
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Originally Posted by 21Archer84 He's yet to finalise. With the wide range of cars across segments in US, we're spoilt for choice.
To make matters worse, he is hoping for suggestions from me. I'm not into big fat SUVs and would've preferred between Golf GTI or R and being a FCA fan the Alfa Romeo Guilia Quadrifoglio(if I could afford that is). |
Me too not a fan of a fat SUV
. I assume you are not married and this being my first ever SUV from the 10 brand new cars that I purchased till date which were all either a sedan or a hatchback was purely due to Wife's insistence that "enough is enough-we need to get an SUV this time. Bored of sedans...LOL !!"
If my wife had cut me loose, I would have brought home a hellcat...Sigh!
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Originally Posted by 21Archer84 He's yet to find a home, but that's where he wants to reside.And Just to make it a bit more smaller, My friend and I are Hyderabadis too |
Indeed a small world. Now don't add to coincidence and tell me he plans to live in Muirwood??? You can ask him to get in touch with me and happy to help with any other info for a fellow Hydeez.
Where are you based out of?
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Originally Posted by 21Archer84 Thanks for the valuable insights. Leasing seems to be the best option, provided he's willing to buyback the car or pay for the additional miles he might clock at the end of the leasing period. |
Leasing is always the best (IMHO) as cars are highly depreciating assets and you end up losing a lot so lease lets you enjoy a high end brand new car in it's peak period (3 years) at a nominal cost.
Buying is for people who want to retain the car for 7-10 years. If you look at my car buying history, I have never kept a car beyond 3-4 years.
Another Simple analogy of
Lease vs Buy .
Lets take an example of BMW X3 ($52,000).
Lease Payment (Approx) : $550/Month.
After 3 Years it's residual value : ~ $30,000 (If you wish to buy).
Total Cash outgo : $2000 (Advance when Leased) + $19,800 ($550 X36) + $30,000 = $53,600.
Buy : $700/month for 84 months (If you are lucky otherwise maximum they give till the visa is valid or 5 years which means the monthly payment will go up to $900/month for 60 months).
I hope this gives you the drift of overall costing between both these options. I would recommend him to get the lease as he can still buy the car at the end of the lease period but, he needs to be careful of what "residual value" the dealership puts in the agreement. Thumb-rule is "Lower the better".
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Originally Posted by 21Archer84 He will be reporting to work from Monday, through a consultant. Would that still qualify him to get Employee discount? Is December a good time for additional discounts in US, as is generally the case in India? |
I doubt if he is contract worker he will get the benefits. This option is only for FTE's. But, let me double check with a friend who is an FTE at GM and will let you know as he got a Traverse recently.
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Originally Posted by 21Archer84 Thank You for details. This will help him plan his finances accordingly.I'm yet to understand his budget for the car, which will help shortlist the best ones to choose from with the features you have recommended. I will keep you posted. |
Again a simple budgeting rule for newbies in US (again these numbers will vary depending on their income potential).
Lease : $30,000-$50,000 is affordable.
Buy : I personally not recommend a car >$30,000.
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Originally Posted by vj123 I have spent quite a bit of time in Lincoln MKX (Nautilus). Those vehicles are luxurious and has a premium interior with good amount of features. In general, its targeted towards old people who needs a plush ride. |
Agree. I did not want to mention but, Lincoln's are also bought mostly by white Caucasians (Have an Indian friend and an Indian client - Both are exceptions...LOL) and as you rightly mentioned older people.
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Originally Posted by vj123 In his case, buying might be a better option as he will easily overshoot 15k miles per year (max mileage option in a lease) |
Buying for a newbie in US will be really expensive especially since he has set his heart on a Lincoln.
With buy option, IMO, it will be tough to go beyond the Accord, Camry, Fusion levels.
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Originally Posted by vj123 Dealers can manipulate customers very easily with any lease. Most dealers would not share money factor and residual of a lease and this makes it really difficult to understand the deal. They would try to convince the customer with monthly payments which is a terrible way of buying any vehicle. |
Totally agree. Negotiation should be hard or walk away.
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Originally Posted by vj123 I have not heard huge difference in auto insurance quote between owned and leased vehicle. Auto insurance payments would be in addition to lease payments and can be substantial for few models. I know people who have decided their vehicle models mainly based on auto insurance quotes. |
There is no difference between lease or buy option. It will be exactly same.
Btw, another point to note is if you add a 2nd driver on the same car the insurance shoots up by nearly $60/month.....Ridiculous
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