Leasing VS Buying

[Anonymous]

I need to switch to a bigger vehicle as I have 3 kids now. I cannot afford to pay 500-600 a month. I was told that leasing a vehicle would be a lot cheaper. Any thoughts? what are the pros and cons of leasing a car? It is worth it? Or better buy a second hand? TIA.

[Anonymous]

You really, really need to educate yourself about this topic by reading a reliable car buying site. The pros and cons have been discussed ad nauseum.

[Anonymous]

Run the numbers. How much do you have to put down, payment and mileage costs? And remember at the end of your lease term you won't have a car since you returned it. I would buy used. That way you can have the car for 10 years.

[Anonymous]

Anonymous wrote:Run the numbers. How much do you have to put down, payment and mileage costs? And remember at the end of your lease term you won't have a car since you returned it. I would buy used. That way you can have the car for 10 years.

+1 OP, you can buy a pre-owned SUV--like a 2010 Acura with low miles--and have a payment around $400 or a bit less.

[Anonymous]

Honestly, if you get a very reasonably priced vehicle, I don't think it matters all that much. Lease = constant monthly payments but probably no repairs and a new vehicle every two years. Buying = depleting a significant amount of savings plus lots of repairs after the first few years for a rapidly depreciating asset. Long term, buying is usually cheaper, especially if you buy a newer used vehicle. But, when I ran the numbers in my own case, if I had done a lease that was 200-300/month, I would be spending almost exactly the same amount of money.

[Anonymous]

Op here, i will mainly use the car driving my kids to school and activities and driving to work, my work about 25 miles drive. If I will find an SUV that is 250-300 month lease, is that reasonable?

[Anonymous]

Anonymous wrote:Honestly, if you get a very reasonably priced vehicle, I don't think it matters all that much. Lease = constant monthly payments but probably no repairs and a new vehicle every two years. Buying = depleting a significant amount of savings plus lots of repairs after the first few years for a rapidly depreciating asset. Long term, buying is usually cheaper, especially if you buy a newer used vehicle. But, when I ran the numbers in my own case, if I had done a lease that was 200-300/month, I would be spending almost exactly the same amount of money.

I've always been concerned that with a lease you have to worry about your kids not damaging the car. Are dealerships not picky when you turn it in?

[Anonymous]

Anonymous wrote:Op here, i will mainly use the car driving my kids to school and activities and driving to work, my work about 25 miles drive. If I will find an SUV that is 250-300 month lease, is that reasonable?

You are not going to find that. They may advertise it, but anything big enough for you will be closer to 400 /mo. (Taxes,etc). And gas in an SUV is more -- bad mileage. Gas prices are low now, but no one knows how long it will continue.

You would be better off with a midsize sedan -- some can get two car seats and a booster, or get a 3 year old minivan.

[Anonymous]

Anonymous wrote:I need to switch to a bigger vehicle as I have 3 kids now. I cannot afford to pay 500-600 a month. I was told that leasing a vehicle would be a lot cheaper. Any thoughts? what are the pros and cons of leasing a car? It is worth it? Or better buy a second hand? TIA.

stupid advice

[Anonymous]

Anonymous wrote:Run the numbers. How much do you have to put down, payment and mileage costs? And remember at the end of your lease term you won't have a car since you returned it. I would buy used. That way you can have the car for 10 years.

and if you go over mileage cap or your kids tear up the car you will have to come out of pocket plus you will be in the market for a car again

[Anonymous]

Anonymous wrote:Op here, i will mainly use the car driving my kids to school and activities and driving to work, my work about 25 miles drive. If I will find an SUV that is 250-300 month lease, is that reasonable?

Stupid thing to do

[Anonymous]

Leasing a car is a huge risk. I had a leased car (business paid the lease) and was caught in a hailstorm -- they wouldn't take the car back because of the damage.

And you will have to put down several thousand dollars at signing -- read the fine print on those TV ads.

Buy a used SUV from Carmax, finance it if you have to. Drive it into the ground.

[Anonymous]

Anonymous wrote:Leasing a car is a huge risk. I had a leased car (business paid the lease) and was caught in a hailstorm -- they wouldn't take the car back because of the damage.

And you will have to put down several thousand dollars at signing -- read the fine print on those TV ads.

Buy a used SUV from Carmax, finance it if you have to. Drive it into the ground.

Duh! You should have claimed this damage under your car insurance or home owners. It's the same thing as getting in a wreck.

[Anonymous]

It's not easy finding a good used car. The problem is, the better cars do not depreciate that much. If a new SUV is $45K and a used one is $39K but the vehicle's life span has been cut by two years, what are you really saving?

No such thing as something for nothing.

[Anonymous]

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.