Leasing VS Buying

[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've gotten the short end of the stick. If a bland mid size family sedan from Honda/Toyota satisfies your needs, you'll end up paying about $1k a year if you buy it new and sell it right before the warranty expires. You get the benefit of driving a newer car with better features/safety/economy/comfort, and warranty.

[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.

Audi/Bimmer PP here. We've already addressed the cost issue. Paying cash for Japanese cars is cheaper no matter how you slice it. As for the hassle, well, that can go both ways. I had an S4 for a while (3 year lease) and it left me stranded once and had to be towed once from my home due to a coolant bottle recall issue that Audi called me about and warned me not to drive it (they sent a tow truck). Know how many times my Japanese cars have left me stranded? I made more trips to the dealer with the Euro cars than I have to a mechanic with my Japanese cars due to stuff like the above or endless recalls, technology problems, new tires every 20k due to the fancy sticky low profile racing tires, etc. To me it's just as much of a hassle to drive to the dealer or meet a tow truck for a fancy new European car as it is to take a Japanese car into a mechanic on the rare occasion something goes wrong. I think you are trying to justify your wish to drive a fancy car and appear like a big shot using financial and reliability metrics, but they simply don't work out that way. You make a decent income so if you want to drive a fancy car go right ahead. Just acknowledge it for what it is - a bad financial decision that you are willing to make to appear wealthy.

[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.

Unfortunately like your home, there is maintenance required every year as it is a wear item. You can defer it for a year or two when new, but its something that requires some hassle/repairs to maintain its condition. Your requirements scream a Japanese car so just test drive some Subarus/CRVs or pre owned Lexus RX350s/Toyota Highlanders.

[Anonymous]

If you want near zero maintenance, get a Tesla.

[Anonymous]

Anonymous wrote:If you want near zero maintenance, get a Tesla.

LOL. Yeah, if you get one of those definitely lease it. That's top of the list in cars you should never pay cash for and plan to keep a long time.

[Anonymous]

Anonymous wrote:

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.

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.

Audi/Bimmer PP here. We've already addressed the cost issue. Paying cash for Japanese cars is cheaper no matter how you slice it. As for the hassle, well, that can go both ways. I had an S4 for a while (3 year lease) and it left me stranded once and had to be towed once from my home due to a coolant bottle recall issue that Audi called me about and warned me not to drive it (they sent a tow truck). Know how many times my Japanese cars have left me stranded? I made more trips to the dealer with the Euro cars than I have to a mechanic with my Japanese cars due to stuff like the above or endless recalls, technology problems, new tires every 20k due to the fancy sticky low profile racing tires, etc. To me it's just as much of a hassle to drive to the dealer or meet a tow truck for a fancy new European car as it is to take a Japanese car into a mechanic on the rare occasion something goes wrong. I think you are trying to justify your wish to drive a fancy car and [b]appear like a big shot using financial and reliability metrics, but they simply don't work out that way. You make a decent income so if you want to drive a fancy car go right ahead. Just acknowledge it for what it is - a bad financial decision that you are willing to make to appear wealthy.

Huh? This is not what's going on. I just told you I make 400-450k with no debt except a mortgage and we have a paid off car. One car. We have a 15 year mortgage and I will be retiring in my late 40s. If we truly wanted to show off we'd already drive two expensive cars, a nicer house with a larger mortgage etc.

We need a new car because our car won't work for a baby and we are trying to decide between buying and leasing. I've just been surprised by the maintenance cost of an older car and it's made me consider possibly leasing. In the past I didn't think I would ever lease but it is looking more and more appealing. Fwiw this will be our only car as my husband bikes to work.

The best suggestion I've received on here is to buy a Japanese car and I think that's what we need to do.

[Anonymous]

Anonymous wrote:

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.

Audi/Bimmer PP here. We've already addressed the cost issue. Paying cash for Japanese cars is cheaper no matter how you slice it. As for the hassle, well, that can go both ways. I had an S4 for a while (3 year lease) and it left me stranded once and had to be towed once from my home due to a coolant bottle recall issue that Audi called me about and warned me not to drive it (they sent a tow truck). Know how many times my Japanese cars have left me stranded? I made more trips to the dealer with the Euro cars than I have to a mechanic with my Japanese cars due to stuff like the above or endless recalls, technology problems, new tires every 20k due to the fancy sticky low profile racing tires, etc. To me it's just as much of a hassle to drive to the dealer or meet a tow truck for a fancy new European car as it is to take a Japanese car into a mechanic on the rare occasion something goes wrong. I think you are trying to justify your wish to drive a fancy car and appear like a big shot using financial and reliability metrics, but they simply don't work out that way. You make a decent income so if you want to drive a fancy car go right ahead. Just acknowledge it for what it is - a bad financial decision that you are willing to make to appear wealthy.

There is no car with a $500 monthly payment that will make anyone look wealthy.

[Anonymous]

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.

Most leases do not include maintenance costs. You'll be under warranty for most of a lease, but you'll still pay day to day maintenance.

[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.

Most leases do not include maintenance costs. You'll be under warranty for most of a lease, but you'll still pay day to day maintenance.

But how much maintenance should the car require?

[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.

Most leases do not include maintenance costs. You'll be under warranty for most of a lease, but you'll still pay day to day maintenance.

But how much maintenance should the car require?

With a Hobda, very little. But watch out for dealer service departments....

[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.

Most leases do not include maintenance costs. You'll be under warranty for most of a lease, but you'll still pay day to day maintenance.

But how much maintenance should the car require?

With a Hobda, very little. But watch out for dealer service departments....

So you have to pay to service the car?

[Anonymous]

Anonymous wrote:

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.

Most leases do not include maintenance costs. You'll be under warranty for most of a lease, but you'll still pay day to day maintenance.

But how much maintenance should the car require?

With a Hobda, very little. But watch out for dealer service departments....

So you have to pay to service the car?

YES. You have to pay for Oil Changes, tires, breaks, any damage to the car. They expect the car to be in 100% functional condition upon return. Some leases allow some low threshold of required work.

In my case, I had a 2012 VW Golf TDI I turned in last fall. It got ugly -- it was right after dieselgate broke. Car had no damage, was under mileage. All maintenance. But, I had replaced the tired with non-oem tires; the tires were the same size, and same quality, but different. They did not want to take the car back. Frankly, they did not want the car back. In the end, I ended up paying for new breaks ($600), and they took the car.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

Most leases do not include maintenance costs. You'll be under warranty for most of a lease, but you'll still pay day to day maintenance.

But how much maintenance should the car require?

With a Hobda, very little. But watch out for dealer service departments....

So you have to pay to service the car?

YES. You have to pay for Oil Changes, tires, breaks, any damage to the car. They expect the car to be in 100% functional condition upon return. Some leases allow some low threshold of required work.

In my case, I had a 2012 VW Golf TDI I turned in last fall. It got ugly -- it was right after dieselgate broke. Car had no damage, was under mileage. All maintenance. But, I had replaced the tired with non-oem tires; the tires were the same size, and same quality, but different. They did not want to take the car back. Frankly, they did not want the car back. In the end, I ended up paying for new breaks ($600), and they took the car.

At lease end, the leasing company will inspect the car. Sometimes they send someone, sometimes you bring it to dealer. You are allowed a specific amount of wear and tear - minor door dings, paint scratches, a certain amount of wear on the tires, etc. Excessive wear and tear is charged to you - so you cannot turn the car in with bald tires, a muffler dragging, etc.

As far as taking the car back, it's their car and has been the entire time, just like a rental car. They don't have any choice. They would have taken it as is, but you would have paid dealer cost for the repairs you did yourself.

[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.

I had a BMW X5 on lease (company car) a few cars ago. I think the lease included repairs, or it had a very long warranty. That thing was in the shop every two months, thankfully covered by warranty. The one thing that stuck in my mind in my many trips to the service department was sitting in the waiting room and hearing the service reps come in and walk people through repair estimates. Seemed like they were always well north of $1K. Made me decide to never own a BMW.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

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.

Audi/Bimmer PP here. We've already addressed the cost issue. Paying cash for Japanese cars is cheaper no matter how you slice it. As for the hassle, well, that can go both ways. I had an S4 for a while (3 year lease) and it left me stranded once and had to be towed once from my home due to a coolant bottle recall issue that Audi called me about and warned me not to drive it (they sent a tow truck). Know how many times my Japanese cars have left me stranded? I made more trips to the dealer with the Euro cars than I have to a mechanic with my Japanese cars due to stuff like the above or endless recalls, technology problems, new tires every 20k due to the fancy sticky low profile racing tires, etc. To me it's just as much of a hassle to drive to the dealer or meet a tow truck for a fancy new European car as it is to take a Japanese car into a mechanic on the rare occasion something goes wrong. I think you are trying to justify your wish to drive a fancy car and [b]appear like a big shot using financial and reliability metrics, but they simply don't work out that way. You make a decent income so if you want to drive a fancy car go right ahead. Just acknowledge it for what it is - a bad financial decision that you are willing to make to appear wealthy.

Huh? This is not what's going on. I just told you I make 400-450k with no debt except a mortgage and we have a paid off car. One car. We have a 15 year mortgage and I will be retiring in my late 40s. If we truly wanted to show off we'd already drive two expensive cars, a nicer house with a larger mortgage etc.

We need a new car because our car won't work for a baby and we are trying to decide between buying and leasing. I've just been surprised by the maintenance cost of an older car and it's made me consider possibly leasing. In the past I didn't think I would ever lease but it is looking more and more appealing. Fwiw this will be our only car as my husband bikes to work.

The best suggestion I've received on here is to buy a Japanese car and I think that's what we need to do.

Do you have to parallel park? How many kids do you plan to have? If you are the type of people who drive your cars for years, then buy. If you want a new car every 2-3 then lease. It will definitely cost you more. You'll have to pay sales tax on the cars 3x if you lease for a 10 year period but only once if you buy.
My suggestion is to buy a Hinda or a Totoya if you want it to last. Not a Nissan.