Leasing VS Buying

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are also debating leasing vs buying. We own our car outright and the dealership said we should expect 2-3k a year in repair costs.

We could lease a new 3 series for 3k down and 300 a month. So for around 1,500 more a year we could drive a new car and not face any repairs or maintenance costs.

I understand how some think buying is better financially but at the end of the day it seems both options suck. When you buy you're investing in a depreciating object. You face repairs on a car, especially the older it is. When you lease you're just renting a car but avoiding the maintenance costs.

I'm at a loss as to what to do.

What year is your Ferrari? Seriously, what normal car has 2-3k a year in expenses, that dealer is fleecing you. I have an older BMW and even that doesn't go past $1200 a year on its worst years.

A bmw. We had 2k in repairs last year alone. We've had it taken to different shops too. It's not like we only went to one dealer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:paid $20 k for certified SUV...2 years old....100k mile warranty

Where?

We got a certified 2013 Honda CRV EX-L AWD w/ Nav in March 2015 (so driven 3 years before we bought it) for $20K. Financed through Maryland State Employees Credit Union for 1.9% and our monthly payment is around $300/month for 5 years. Planning to drive it at least 3 years after we're done paying it off.

I'd want a bigger car if I had more than 1 kid, though.

I got a brand new 2014 Honda CRV AWD (Base model, not the EX-L) for $24K out the door (including taxes, tags, etc.) in October 2013. Nav is such a ripoff in cars.

[Anonymous]

In 2005, I bought a 5 year old Camry for 8500. I've had it for 11+!years, and my repairs have been a battery, tires, brakes, and a timing belt. probably something I'm forgetting.

So let's say I'm in for $12.5k and I can sell it for $1.5k. That's $1000 a year I've paid. You guys are spending at least $3600/year leasing, plus whatever your down payment was. Over 11 years that's $40,000+ to my $11k.

Just buy a used Toyota or Honda sedan for under $15k and drive it until it's so old you're embarrassed to be seen in it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:We are also debating leasing vs buying. We own our car outright and the dealership said we should expect 2-3k a year in repair costs.

We could lease a new 3 series for 3k down and 300 a month. So for around 1,500 more a year we could drive a new car and not face any repairs or maintenance costs.

I understand how some think buying is better financially but at the end of the day it seems both options suck. When you buy you're investing in a depreciating object. You face repairs on a car, especially the older it is. When you lease you're just renting a car but avoiding the maintenance costs.

I'm at a loss as to what to do.

What year is your Ferrari? Seriously, what normal car has 2-3k a year in expenses, that dealer is fleecing you. I have an older BMW and even that doesn't go past $1200 a year on its worst years.

+1. Seems like the sales guy did a great job of convincing people that leasing is better because of "repair cost" of owning a car. but I guess they also fail to talk about the MANY years of no car payments (few maintenance bills) which is still better financially than a living with a car note for the rest of your life.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are also debating leasing vs buying. We own our car outright and the dealership said we should expect 2-3k a year in repair costs.

We could lease a new 3 series for 3k down and 300 a month. So for around 1,500 more a year we could drive a new car and not face any repairs or maintenance costs.

I understand how some think buying is better financially but at the end of the day it seems both options suck. When you buy you're investing in a depreciating object. You face repairs on a car, especially the older it is. When you lease you're just renting a car but avoiding the maintenance costs.

I'm at a loss as to what to do.

What year is your Ferrari? Seriously, what normal car has 2-3k a year in expenses, that dealer is fleecing you. I have an older BMW and even that doesn't go past $1200 a year on its worst years.

+1. Seems like the sales guy did a great job of convincing people that leasing is better because of "repair cost" of owning a car. but I guess they also fail to talk about the MANY years of no car payments (few maintenance bills) which is still better financially than a living with a car note for the rest of your life.

We haven't asked anyone in sales about the repair costs or even talked to a single person at the dealership about leasing or buying a car. Fwiw we own our car outright and have for quite some time. I've done the math and in many situations, the cost can be the same. Sure, you might not have a car payment for a number of years, but this car payment was significantly higher than a lease payment while you had it.

I'm not convinced I should sign up for a car payment of $700 a month when I can lease a car for $350 a month. I'd rather invest that extra $350 in the stock market. Sure, you'll eventually have a paid off car but it's still a car - barely an asset and one that requires repairs.

[Anonymous]

Anonymous wrote:paid $20 k for certified SUV...2 years old....100k mile warranty[/quote
American or Korean?

[Anonymous]

Anonymous wrote: In 2005, I bought a 5 year old Camry for 8500. I've had it for 11+!years, and my repairs have been a battery, tires, brakes, and a timing belt. probably something I'm forgetting.

So let's say I'm in for $12.5k and I can sell it for $1.5k. That's $1000 a year I've paid. You guys are spending at least $3600/year leasing, plus whatever your down payment was. Over 11 years that's $40,000+ to my $11k.

Just buy a used Toyota or Honda sedan for under $15k and drive it until it's so old you're embarrassed to be seen in it.

You can't really compare the two when you are driving a junker, and they are driving new cars every 3 years.

[Anonymous]

Anonymous wrote:

Anonymous wrote: In 2005, I bought a 5 year old Camry for 8500. I've had it for 11+!years, and my repairs have been a battery, tires, brakes, and a timing belt. probably something I'm forgetting.

So let's say I'm in for $12.5k and I can sell it for $1.5k. That's $1000 a year I've paid. You guys are spending at least $3600/year leasing, plus whatever your down payment was. Over 11 years that's $40,000+ to my $11k.

Just buy a used Toyota or Honda sedan for under $15k and drive it until it's so old you're embarrassed to be seen in it.

You can't really compare the two when you are driving a junker, and they are driving new cars every 3 years.

This is true. The Camry analogy was a bad one. Of course anyone can save money driving a 5 year old car for 11 years. Doesn't take a genius to figure out that one.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are also debating leasing vs buying. We own our car outright and the dealership said we should expect 2-3k a year in repair costs.

We could lease a new 3 series for 3k down and 300 a month. So for around 1,500 more a year we could drive a new car and not face any repairs or maintenance costs.

I understand how some think buying is better financially but at the end of the day it seems both options suck. When you buy you're investing in a depreciating object. You face repairs on a car, especially the older it is. When you lease you're just renting a car but avoiding the maintenance costs.

I'm at a loss as to what to do.

What year is your Ferrari? Seriously, what normal car has 2-3k a year in expenses, that dealer is fleecing you. I have an older BMW and even that doesn't go past $1200 a year on its worst years.

A bmw. We had 2k in repairs last year alone. We've had it taken to different shops too. It's not like we only went to one dealer.

When I had a Mercedes SUV, I paid way more than $2k a year on repairs and maintenance. Easily paid double, or triple on a bad year. I now have a Japanese car that's much cheaper to maintain, but not as nice.

[Anonymous]

Anonymous wrote:

Anonymous wrote:paid $20 k for certified SUV...2 years old....100k mile warranty[/quote
American or Korean?

Toyota

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are also debating leasing vs buying. We own our car outright and the dealership said we should expect 2-3k a year in repair costs.

We could lease a new 3 series for 3k down and 300 a month. So for around 1,500 more a year we could drive a new car and not face any repairs or maintenance costs.

I understand how some think buying is better financially but at the end of the day it seems both options suck. When you buy you're investing in a depreciating object. You face repairs on a car, especially the older it is. When you lease you're just renting a car but avoiding the maintenance costs.

I'm at a loss as to what to do.

What year is your Ferrari? Seriously, what normal car has 2-3k a year in expenses, that dealer is fleecing you. I have an older BMW and even that doesn't go past $1200 a year on its worst years.

A bmw. We had 2k in repairs last year alone. We've had it taken to different shops too. It's not like we only went to one dealer.

When I had a Mercedes SUV, I paid way more than $2k a year on repairs and maintenance. Easily paid double, or triple on a bad year. I now have a Japanese car that's much cheaper to maintain, but not as nice.

This. Had a couple of Audis and a BMW. They were nice and fun to drive, but real pieces of shit and cost a lot to maintain (that's how German cars are). Bought a couple of Japanese cars for cash and got 15 years out of one. Subtract what I sold it for from what I paid for it and I ended up spending about 4-5k for those 15 years plus a few grand in repairs. I have another Japanese car that I have 11 years in now and it hasn't needed anything beyond routine maintenance other than a rusted out heat shield ($600). Bought another Japanese car in 2014 that I expect to last for at least 10-15 years. Argue all you want, but you simply can't beat paying cash for Hondas or Toyotas and then driving them for a decade plus. If you are so caught up in appearing ghetto rich then, by all means, keep leasing the European cars, but don't try to convince the rest of us that your strategy makes any kind of sense. It's a way for you to appear wealthy and is nothing but a waste of money.

[Anonymous]

Anonymous wrote:

Anonymous wrote: In 2005, I bought a 5 year old Camry for 8500. I've had it for 11+!years, and my repairs have been a battery, tires, brakes, and a timing belt. probably something I'm forgetting.

So let's say I'm in for $12.5k and I can sell it for $1.5k. That's $1000 a year I've paid. You guys are spending at least $3600/year leasing, plus whatever your down payment was. Over 11 years that's $40,000+ to my $11k.

Just buy a used Toyota or Honda sedan for under $15k and drive it until it's so old you're embarrassed to be seen in it.

You can't really compare the two when you are driving a junker, and they are driving new cars every 3 years.

Do you think someone who can't afford a $500 monthly payment should be driving new cars every three years? I didn't see the part where OP mentioned she was flush with cash and was too good to drive an older vehicle.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: In 2005, I bought a 5 year old Camry for 8500. I've had it for 11+!years, and my repairs have been a battery, tires, brakes, and a timing belt. probably something I'm forgetting.

So let's say I'm in for $12.5k and I can sell it for $1.5k. That's $1000 a year I've paid. You guys are spending at least $3600/year leasing, plus whatever your down payment was. Over 11 years that's $40,000+ to my $11k.

Just buy a used Toyota or Honda sedan for under $15k and drive it until it's so old you're embarrassed to be seen in it.

You can't really compare the two when you are driving a junker, and they are driving new cars every 3 years.

[b]Do you think someone who can't afford a $500 monthly payment should be driving new cars every three years? I didn't see the part where OP mentioned she was flush with cash and was too good to drive an older vehicle.

Op here. We can afford a $500 payment. We make close to 400-450k with no debt except a mortgage. I would like to avoid driving an older vehicle (unless it's our curent one) because I don't want to deal with the hassle or cost of repairs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: In 2005, I bought a 5 year old Camry for 8500. I've had it for 11+!years, and my repairs have been a battery, tires, brakes, and a timing belt. probably something I'm forgetting.

So let's say I'm in for $12.5k and I can sell it for $1.5k. That's $1000 a year I've paid. You guys are spending at least $3600/year leasing, plus whatever your down payment was. Over 11 years that's $40,000+ to my $11k.

Just buy a used Toyota or Honda sedan for under $15k and drive it until it's so old you're embarrassed to be seen in it.

You can't really compare the two when you are driving a junker, and they are driving new cars every 3 years.

This is true. The Camry analogy was a bad one. Of course anyone can save money driving a 5 year old car for 11 years. Doesn't take a genius to figure out that one.

OP's question was: is it cheaper to lease a vehicle or buy second hand? So I laid out the costs of leasing versus buying second hand. Scenario 1: She always drives a new car. Scenario 2: She has an extra $30-40k in her pocket after a decade. In both scenarios, she gets from point A to point B. In scenario 2, she can use the $40k to buy a brand-new car to last her another 10-15 years. No car payment. In scenario 1, she still has a car payment and has to come up with yet anther down payment fro the lease.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote: In 2005, I bought a 5 year old Camry for 8500. I've had it for 11+!years, and my repairs have been a battery, tires, brakes, and a timing belt. probably something I'm forgetting.

So let's say I'm in for $12.5k and I can sell it for $1.5k. That's $1000 a year I've paid. You guys are spending at least $3600/year leasing, plus whatever your down payment was. Over 11 years that's $40,000+ to my $11k.

Just buy a used Toyota or Honda sedan for under $15k and drive it until it's so old you're embarrassed to be seen in it.

You can't really compare the two when you are driving a junker, and they are driving new cars every 3 years.

[b]Do you think someone who can't afford a $500 monthly payment should be driving new cars every three years? I didn't see the part where OP mentioned she was flush with cash and was too good to drive an older vehicle.

Op here. We can afford a $500 payment. We make close to 400-450k with no debt except a mortgage. I would like to avoid driving an older vehicle (unless it's our curent one) because I don't want to deal with the hassle or cost of repairs.

OK, I guess I misunderstood the part where you said "I cannot afford to pay 500-600 a month."

Do whatever the heck you want with your $$$$.