leasing vs buying

[Anonymous]

Leasing costs almost 2 times buying a car over the long-term.
It should be for business owners only -who get an expense deduction.

[Anonymous]

Anonymous wrote:At then end of the lease the dealership has your money and they have the car. You have nothing. How is that a good deal financially?

Or you negotiate a good deal upfront and make a decision at the end to buy [the car you leased] or not.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'd buy a used car coming off a three year lease. They generally have low mileage (20,000?) and if certified pre-owned by the dealer it should be in very good shape. You can usually get a good car for about 60-65% of the cars original cost and it can last for years.

Op here, thank you! I had not thought of this option. This sounds like it may be the best way to go.

This is what I do. My current car was turned in early for an upgrade so 16k miles and about 18 months old. Prior car was used by the dealorship’s owner to tool around in so only had about 4k miles. Both were a great deal.

[Anonymous]

It depends on commute. If it's 5-7 miles commute then I would buy something with 150,000 miles, comfortable midsize sedan, under 5k. For 15-20 miles commute I would get something with 40,000-50,000 miles. For a longer commute I would go with a new car that I enjoy driving (e.g. Mazda 3 from the cheaper end), I would not get Hyundai or Kia, they are just not fun to drive.
I would lease only if I am in an area for a defined period.

[Anonymous]

Always buy never lease

[Anonymous]

Anonymous wrote:It depends on commute. If it's 5-7 miles commute then I would buy something with 150,000 miles, comfortable midsize sedan, under 5k. For 15-20 miles commute I would get something with 40,000-50,000 miles. For a longer commute I would go with a new car that I enjoy driving (e.g. Mazda 3 from the cheaper end), I would not get Hyundai or Kia, they are just not fun to drive.
I would lease only if I am in an area for a defined period.

This is a financial discussion. Fun isn't a factor

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At then end of the lease the dealership has your money and they have the car. You have nothing. How is that a good deal financially?

It might be a good idea bcs you kept a lot more of your money to start-- it might be 8k to lease for 3 years and $25k to buy.

What car can you lease for $8k including down payment for 3 years?

Three years ago I leased a Civic for a total of $6760 over three years. If I could find a deal like that, I'd do it again. Basically 20,000 over 9 years for a car. Could you do better buying a cheap car and keeping it forever? Perhaps. But factoring in long term maintenance costs that aren't a consideration for three year leases, I'd bet you will end up paying more. And yes, you'll have a car in year 10 - but it's a 10 yo car that was cheap to begin with.

The key to this is not caring what you get on the lease. No frills - you go to the dealership and ask for the special you saw advertised on TV, and don't be persuaded to get one model up because it's just $30/month more. That's an extra grand over the term of the lease.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At then end of the lease the dealership has your money and they have the car. You have nothing. How is that a good deal financially?

It might be a good idea bcs you kept a lot more of your money to start-- it might be 8k to lease for 3 years and $25k to buy.

What car can you lease for $8k including down payment for 3 years?

Three years ago I leased a Civic for a total of $6760 over three years. If I could find a deal like that, I'd do it again. Basically 20,000 over 9 years for a car. Could you do better buying a cheap car and keeping it forever? Perhaps. But factoring in long term maintenance costs that aren't a consideration for three year leases, I'd bet you will end up paying more. And yes, you'll have a car in year 10 - but it's a 10 yo car that was cheap to begin with.

The key to this is not caring what you get on the lease. No frills - you go to the dealership and ask for the special you saw advertised on TV, and don't be persuaded to get one model up because it's just $30/month more. That's an extra grand over the term of the lease.

Since the lease is up, what are your plans? That has to be factored into the decision to lease or purchase

[Anonymous]

Anonymous wrote:

Anonymous wrote:It depends on commute. If it's 5-7 miles commute then I would buy something with 150,000 miles, comfortable midsize sedan, under 5k. For 15-20 miles commute I would get something with 40,000-50,000 miles. For a longer commute I would go with a new car that I enjoy driving (e.g. Mazda 3 from the cheaper end), I would not get Hyundai or Kia, they are just not fun to drive.
I would lease only if I am in an area for a defined period.

This is a financial discussion. Fun isn't a factor

Fun is a big factor in a financial discussion. If I have a long commute then I want to enjoy it as much as possible otherwise I would start looking for a job, that will not pay me as much but shorter commute. It's the same factor as school quality when buying a house. Plus, there are trade offs like trunk space or automatic windows vs handling. It's not like Kia or Hyundai are cheap.

[Anonymous]

Leasing can make sense if you are:

1. Interested in a car that is likely to be unreliable down the road or expensive to maintain as it gets older. European or American cars, in other words.

2. Unsure that you will like the car. You are paying for the right to return it without having to resell it. For example, you want a minivan or pickup but are unsure you want such a car for ten years.

To be sure, leasing involves a financial trade off because you are only renting the car, not buying it. But it can be a good deal if you lease a car that depreciates more slowly. In a lease you only pay for the reduction in the car’s value over the term of the lease. Some luxury cars retain their value surprisingly well. They may be good candidates for a lease, as they may also be the type of cars you wouldn’t want to keep for many years, because they are expensive to maintain and are not long-term reliable. I believe BMW and Mercedes fall into this camp.

[Anonymous]

OP here- thanks for all the advice. I've decided to buy a Honda coming off a lease. It seems to make the most financial sense.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:At then end of the lease the dealership has your money and they have the car. You have nothing. How is that a good deal financially?

It might be a good idea bcs you kept a lot more of your money to start-- it might be 8k to lease for 3 years and $25k to buy.

What car can you lease for $8k including down payment for 3 years?

Three years ago I leased a Civic for a total of $6760 over three years. If I could find a deal like that, I'd do it again. Basically 20,000 over 9 years for a car. Could you do better buying a cheap car and keeping it forever? Perhaps. But factoring in long term maintenance costs that aren't a consideration for three year leases, I'd bet you will end up paying more. And yes, you'll have a car in year 10 - but it's a 10 yo car that was cheap to begin with.

The key to this is not caring what you get on the lease. No frills - you go to the dealership and ask for the special you saw advertised on TV, and don't be persuaded to get one model up because it's just $30/month more. That's an extra grand over the term of the lease.

Since the lease is up, what are your plans? That has to be factored into the decision to lease or purchase

Haven't decided yet. Still have a few months. If I can get a similar deal, I may do the same thing. But, if someone has the math that convinces me that I'd be better off buying, I would reconsider.

[Anonymous]

I always hear that buying is better than leasing but at year 7 or 8 of each purchased vehicle, tons of crap starts breaking and needs repairs. Plus, I had a down payment at the beginning and larger payments. If I can get a car with no money down for three year leases, it's a break even if I drive <12,000 miles per year.

[Anonymous]

Anonymous wrote:I always hear that buying is better than leasing but at year 7 or 8 of each purchased vehicle, tons of crap starts breaking and needs repairs. Plus, I had a down payment at the beginning and larger payments. If I can get a car with no money down for three year leases, it's a break even if I drive <12,000 miles per year.

Not even close. But its your money.

[Anonymous]

It floats, f4cks or flies, rent---don't buy.