Buy car at end of lease or lease again?

[Anonymous]

I still start this by saying I really do not understand what’s best when it comes to cars.

We have a vw id4 coming to the end of its lease. Our payment was about $340 per month and we can buy it for about $20k. It’s in great condition and has really low mileage. Or we could lease a new id4 for about $360 and $4k down. It’d be nice to not have a car payment and we can pay the $20k. It’d also be nice to have a brand new car. I have no idea how to decide what the right approach is. Can someone please help?

[Anonymous]

It sounds like money isn’t an issue for you.
I would lease a new id4 and be worry free.
360/month + 4k down -> ~21k spent after 4 years. I would pick that over purchasing the end of lease car for 20k. The car is probably out of warranty by now and would be a mess after 4 years. You would only win if you plan to keep the car beyond those 4 years.

[Anonymous]

Buy the current car at the end of the lease. $20K is a good price and cars are still very expensive. As you said, it's in great condition and low mileage.

EVs have a lot less maintenance than ICE vehicles so I wouldn't be worried as much about making sure I have something "brand new."

Take your monthly car savings and put it into your investment account.

[Anonymous]

Anonymous wrote:It sounds like money isn’t an issue for you.
I would lease a new id4 and be worry free.
360/month + 4k down -> ~21k spent after 4 years. I would pick that over purchasing the end of lease car for 20k. The car is probably out of warranty by now and would be a mess after 4 years. You would only win if you plan to keep the car beyond those 4 years.

What? My car is 8 years old and is not a "mess." It is a great car and I have zero problems with it. OP says the car is low milage. If maintenance has been/will be kept up, no reason the car would be a "mess" at all.

OP, leasing cars almost always makes zero financial sense. Here is a newer 2023 id4 that is just under 27k for perspective: https://www.beyervolvocarsdulles.com/used/Volkswagen/2023-Volkswagen-ID.4-for-sale-near-washington-dc-5e0d52090a0e0a997a9f1e71239cb264.htm?store=76690&campaignid=20535303760&adgroupid=&adid=&gad_source=1&gclid=CjwKCAjwrIixBhBbEiwACEqDJanL-1PLU3-jpmYkF57CmrxNG8cpkwBm184vjnPie8r-LO7m7-XdQRoCOBAQAvD_BwE

[Anonymous]

I would buy the car. Leasing, then buying actually makes the most financial sense vs. original purchase. Run the numbers and you will see.

[Anonymous]

If you were to buy the same car on the open market, would you pay more or less than $20,000.

There's your answer.

But leasing is generally a stupid financial decision for anyone (I make an exception for EVs given the quantum leaps in the technology at the moment).

[Anonymous]

Buy

[Anonymous]

Definitely don't buy the old one, get the new one.

[Anonymous]

Anonymous wrote:It sounds like money isn’t an issue for you.
I would lease a new id4 and be worry free.
360/month + 4k down -> ~21k spent after 4 years. I would pick that over purchasing the end of lease car for 20k. The car is probably out of warranty by now and would be a mess after 4 years. You would only win if you plan to keep the car beyond those 4 years.

The battery warranty on these cars is for eight years, fwiw.