2021Telluride SX vs 2020 Explorer limited

[noles1983]

If i got rid of cars that fast, i would pay more to have one of them subscription services, like Volvo. It makes zero sense, as others have pointed out, to buy/sell every 2 years.

 

[Kwim]

If i got rid of cars that fast, i would pay more to have one of them subscription services, like Volvo. It makes zero sense, as others have pointed out, to buy/sell every 2 years.

leasing is expensive, leasing involves hands and obligations. With a loan, I am my own boss: I want to keep it, I wanted to change it any time. Leasing has always been, is and will be more expensive than a loan. Well, with leasing, I can only reduce taxes by monthly payment, and the loan uses a good % of depreciation, which is much more.

 

[noles1983]

leasing is expensive, leasing involves hands and obligations. With a loan, I am my own boss: I want to keep it, I wanted to change it any time. Leasing has always been, is and will be more expensive than a loan. Well, with leasing, I can only reduce taxes by monthly payment, and the loan uses a good % of depreciation, which is much more.

Leasing exists for people exactly like you, those who churn cars. Like i said, if i wanted a new vehicle every 2 years I would pay the $750/month for Volvo subscription for the XC90 that includes literally everything, even the insurance. But you do you, my dude. Not my money, whatever makes you happy. I would stick with the Kia over the Ford though.

 

[TellTastic]

leasing is expensive, leasing involves hands and obligations.

I don’t think anyone is arguing this. Unfortunately, your personal spending habits are more expensive than leasing.

But as long as you’re happy!

______________________________

 

[Kwim]

I don’t think anyone is arguing this. Unfortunately, your personal spending habits are more expensive than leasing.

But as long as you’re happy!

please provide figures.

 

[TellTastic]

please provide figures.

I mean, I thought I did.

2021Telluride SX vs 2020 Explorer limited

Hi, Everybody. Kia is getting more expensive, the explorer is getting cheaper. I deposited today, returning the deposit for the Explorer Limited 2.3 Ecoboost. Telluride SX will land soon. Since I keep the car for no more than 2 years (about 30k km) and change it to a new one. I would like to...

tellurideforum.org

Let the be the end of it. I don’t care anymore. You do you

 

[Wee]

Tax included.

you spent $36,700 over 5.4 years or $6,800/year to essentially lease a few vehicles.

You paid $566/month over the past 5+ years to buy and sell cars. After spending $37,000 you own nothing, and that doesn't account for the registration fees, etc... associated with each new vehicle.
You could have just kept that original Santa Fe @ $37,000 - it would be paid off and likely still running strong while your cost of ownership decreases with each passing day.

That's a horrendous financial practice.
However, to each their own so long as you're happy
But it is by no means "not expensive"
Selling an asset (although a depreciating asset) for on average a 21.75% loss every 18 months is
Also unless you're using each one as a business vehicle and benefiting from the tax savings/shelter you're losing hand over fist every time.

I do not agree with you, but I change every 2 years and it is not expensive. the car will cost me 500-650 bucks a month, it is cheaper than leasing the base trim, although I take medium or top trim.

please provide figures.

it's a piss poor financial decision. No financial advisor would agree with spending $37,000 over 5 years and walking away with nothing is a good idea in regards to purchasing an item. Not to mention when you buy/sell that often vs. leasing your put ALL liability for repairs and maintenance on yourself. Yeah, sure - ownership gives you "freedom" to do as you please with your vehicle and you clearly paid a price for that freedom. To the tune of $37,000 up in smoke

If you lost your job tomorrow because of _______ reason. You're stuck with either making a payment you can't afford or have no car. I'll never understand why most people believe it's just normal to carry a financial liability indefinitely for cars like it's normal and "just something everyone does"

leasing is expensive, leasing involves hands and obligations. With a loan, I am my own boss: I want to keep it, I wanted to change it any time. Leasing has always been, is and will be more expensive than a loan. Well, with leasing, I can only reduce taxes by monthly payment, and the loan uses a good % of depreciation, which is much more.

Buying and owning a vehicle involves obligations too. Leasing is typically more expensive compared to keeping vehicles for extended periods of time. In your case it's basically 6 of one or half dozen of the other. At the end of a lease you walk away with nothing having spent XXX dollars, you have done the same thing.

 

[Kao]

Hi, Everybody.

Kia is getting more expensive, the explorer is getting cheaper.
I deposited today, returning the deposit for the Explorer Limited 2.3 Ecoboost. Telluride SX will land soon. Since I keep the car for no more than 2 years (about 30k km) and change it to a new one.

I would like to hear your advice? What you thinks about?

Kia will cost me $ 57 more a month.
+ 500 bucks on the go to install a hitch.

as an option, i still think I can take an explorer SR 3.0 hybrid, but in this case the kia will turn out a little more expensive. What do you think?

You DO realize you are on the Telluride Forum, right?! .

______________________________

 

[TellTastic]

@Wee , what an educated, detailed and articulate response!
@Kwim , Mmm pretty sure I said the same thing, albeit not in as much detail.

Should be enough said

 

[bruesjoh04]

Technically no discussion of sound financial decisions should ever include a new car. If all you care about is making the most of your money, you’d buy a fully- or mostly-depreciated reliable car and keep it as long as possible.

But cars are fun, new things are fun. If you can afford it, do whatever you want. No one needs to defend their decisions and no one needs to criticize other people’s decisions.

I personally know I’m going to spend $x amount a month on my vehicle(s). If when I’m ready to move on I’ve paid it off or I can get more for it than I happen to owe at the time, awesome.

I’m happy and this has worked for me for a while. If others are happy doing what they are doing (whatever that is), that’s good, too.

 

[Kwim]

Technically no discussion of sound financial decisions should ever include a new car. If all you care about is making the most of your money, you’d buy a fully- or mostly-depreciated reliable car and keep it as long as possible.

But cars are fun, new things are fun. If you can afford it, do whatever you want. No one needs to defend their decisions and no one needs to criticize other people’s decisions.

I personally know I’m going to spend $x amount a month on my vehicle(s). If when I’m ready to move on I’ve paid it off or I can get more for it than I happen to owe at the time, awesome.

I’m happy and this has worked for me for a while. If others are happy doing what they are doing (whatever that is), that’s good, too.

I completely agree. great answer.

 

[Kwim]

You DO realize you are on the Telluride Forum, right?! .

well, what do you think?

______________________________

 

[Wee]

well, what do you think?

ohh and buy the Telluride!!
Step inside a $45k Explorer vs a $45k Telluride and you'll instantly feel like Ford should cut that price by 30-50%

We looked at both last year too, was no contest.

 

[Kwim]

Leasing exists for people exactly like you, those who churn cars. Like i said, if i wanted a new vehicle every 2 years I would pay the $750/month for Volvo subscription for the XC90 that includes literally everything, even the insurance. But you do you, my dude. Not my money, whatever makes you happy. I would stick with the Kia over the Ford though.

We have the cheapest equipment, 718 per month for 24 months. This is 50% more than I pay on average.

I don’t think anyone is arguing this. Unfortunately, your personal spending habits are more expensive than leasing.

But as long as you’re happy!

I asked you for numbers, but you never did.

Yesterday I got Telluride and gave the sedona, the sedona cost me - 476.

Simple comparison:
The simplest LX costs 488.
Maximum trim - 608.
Moreover, my sedona is more loaded than the current maximum trim.

I had a sedona at an interest rate of 0.49%.
Since 2016, I have seen only a minimum lease rate of 1.99%.
On average, the difference is always 1.5%, which is an average overpayment of $ 57 per month.

If you lease a car for 36 months, and want or have to sell it earlier, you will be obliged to pay the entire amount under the contract + interest rate for all 36 months.
When the car is financed, you sell it at any time, close the loan.

LEASING will never be cheaper than a regular loan. NEVER.
See the numbers above.

The only plus for leasing is accidents and / or damage that fall into history. If the history of the car is dirty, then the aftermarket price will be below average and more money could be lost. In the case of leasing, the car must be taken back and if all the damages are repaired, the numbers will not change.

 

[Kwim]

@Wee,
I hope you agree that the payment option (credit, leasing, cash, exchange for a kidney, etc.) does not affect the price in the secondary market. Having paid for the car in any way, if it cost 46K new and after 2 years 36K, then in any case you lose 10k.

you spent $36,700 over 5.4 years or $6,800/year to essentially lease a few vehicles.

You paid $566/month over the past 5+ years to buy and sell cars. After spending $37,000 you own nothing, and that doesn't account for the registration fees, etc... associated with each new vehicle.
You could have just kept that original Santa Fe @ $37,000 - it would be paid off and likely still running strong while your cost of ownership decreases with each passing day.

That's a horrendous financial practice.
However, to each their own so long as you're happy
But it is by no means "not expensive"

Do you think it is beneficial to keep a car?
Let's imagine that having bought in 2014 Santa fe Sport Luxury, I continued to hold it until today. And I decided to sell it.
Now the average price is 15K. Approximate mileage 130K.
The loan parameters were: 0%, 84 months, 446 per month.
Today the debt would still be 6700.

15000 - 6700 = 8300. Wow, as if you paid, paid and you still have 8300.
But this is all dust in the eyes and an illusion.

Now look what additional costs await you:
1 - I only change oil and filters, since all expensive services go closer to 80K. At least you will spend another 1k on services.
2 - Tires. For such a run, you will have to change it 2 times. And that's 1200 for Santa Fe at least. Total 2400.
3 - Repairs after guarantees: it is very difficult to calculate here, well, I think we will lay down 1k.
4 - Trade tax difference: 11k difference in sales price then and now, in my province the tax is 5%. 5% of 11k = 550 bucks.
I laid it down to the minimum.

Total: 8300 - 1000 - 2400 - 1000 - 550 = 3350

Thus, it turns out on hand, a piece of shit (an old car) which in fact gives a capitalization of only 3350.
And if you add lost profit in tax write-off here, you get a deep minus.

Also unless you're using each one as a business vehicle and benefiting from the tax savings/shelter you're losing hand over fist every time.

In addition to the figures above, I use depreciation, which gives me a decent amount to withdraw from taxes in the first 2 years.

If you lost your job tomorrow because of _______ reason. You're stuck with either making a payment you can't afford or have no car. I'll never understand why most people believe it's just normal to carry a financial liability indefinitely for cars like it's normal and "just something everyone does"

there are such cases. agreed with the bank, here the banks are loyal.
And if he didn't agree, he sold the car, exchanged it or gave it to the bank.
And again, even in such a situation, a loan is more profitable than a lease.
Credit - your obligations end when you sell or change, or the bank takes the car.
Leasing - your obligations end when you have fully paid the amount you promised to pay.
Of course, it is better to buy a car with cash, but very few people can afford it. I recently saw statistics that in North America, if I'm not mistaken, only 24% are bought with cash.

 

[2020Telly]

I’m just curious, @Kwim, why wouldn’t you just lease to buy and get all the advantages of leasing along with lower APR then sell or trade in on another lease to buy? The net effect is the same but you probably need slightly better credit to get a lease. Who holds the title is irrelevant and it sounds like your pattern of buying fits this model. Plus you can choose to put some money down or none vs an auto loan that might require you to finance a certain amount to get a rate. The only difference is that the lease is considered debt on your credit rather than owing money on a depreciating asset.

Are you in the US? I’m guessing not if you are claiming depreciation on your taxes. I thought you need the SUV’s GVWR of over 5,000lbs (or maybe even 6,000?) which the Telluride is just under to claim it on taxes. Unless, I guess you are claiming the SUV as a passenger vehicle and claiming less?

______________________________

 

[blitt]

When I purchased my 20 Telly SX P in November there was only one other contender on my list......the new Lincoln Aviator which had the same performance, tech and luxury level. The "Lincoln" label indicates the luxury level you expect....the KIA label has always indicated "cheaper". In the end the Telly beat the Lincoln on ALL at a price point 40K less than the Aviator and takes KIA to a new level in the car market! There is now 12K on the meter and not one issue has come up....the comfort and capability have been amazing.

 

[Wee]

I’m just curious, @Kwim, why wouldn’t you just lease to buy and get all the advantages of leasing along with lower APR then sell or trade in on another lease to buy? The net effect is the same but you probably need slightly better credit to get a lease. Who holds the title is irrelevant and it sounds like your pattern of buying fits this model. Plus you can choose to put some money down or none vs an auto loan that might require you to finance a certain amount to get a rate. The only difference is that the lease is considered debt on your credit rather than owing money on a depreciating asset.

Are you in the US? I’m guessing not if you are claiming depreciation on your taxes. I thought you need the SUV’s GVWR of over 5,000lbs (or maybe even 6,000?) which the Telluride is just under to claim it on taxes. Unless, I guess you are claiming the SUV as a passenger vehicle and claiming less?

because of the weight, you can't fully depreciate the entire price of the Telluride in one tax year but can still depreciate it over 5 years like a sedan, etc.... This is the issue I just ran into, could only depreciate $18k in first year instead of $50k.

 

[superk1977]

When I purchased my 20 Telly SX P in November there was only one other contender on my list......the new Lincoln Aviator which had the same performance, tech and luxury level. The "Lincoln" label indicates the luxury level you expect....the KIA label has always indicated "cheaper". In the end the Telly beat the Lincoln on ALL at a price point 40K less than the Aviator and takes KIA to a new level in the car market! There is now 12K on the meter and not one issue has come up....the comfort and capability have been amazing.

My wife really likes the Aviator and that would be her first choice if we could afford it (we can't). I told her we could always get a base Aviator used for ~50K (maybe). I am still trying to convince her that the T-Ride is the better option from cost/benefit standpoint than any other options.

 

[noles1983]

My wife really likes the Aviator and that would be her first choice if we could afford it (we can't). I told her we could always get a base Aviator used for ~50K (maybe). I am still trying to convince her that the T-Ride is the better option from cost/benefit standpoint than any other options.

No question its the best value, in a perfect world I would be buying an Audi Q7.