leasing vs buying

[Anonymous]

I've been living without a car in DC and relocating to out of state. I'm going to be driving to work and minimal errands and am trying to decide if leasing makes more sense than buying a vehicle. Can anyone help me out with pros/cons/ or other info about leasing I may not be thinking of?

[Anonymous]

A lot of it depends on how long you expect to own the car. Leasing is good for people who like to have a new car every three years. It doesn't make sense if you're willing to drive a car after it's paid off. Also, leases might have restrictions on annual mileage, and might require you to get all maintenance done at the dealer (although maintenance costs might be included in the lease).

Personally, I'd rather buy a reliable commuter car--it's a depreciating asset, but it's still an asset. Once you've paid for it, you own a car.

[Anonymous]

I had the same question when I went to shop for a car earlier this year.

I thought leasing would be cheaper and a way to trade up more often, but when I ran the numbers, it is not a good deal.

We ended up buying.

[Anonymous]

Permanent relocation? So a permanent need for a vehicle? Math says buy and hold vehicles. Lease only if you want new, and you understand it's not financially optimal.

Temporary relocation? Buying may still be worth it, but if it's like a military move where you're in a new place for 3 years then back to DC, then leasing may make sense, that way you have minimal drama when it comes time to move.

I'm not a fan of leasing not for the $$ aspect, but for the damage/security deposit aspect. Depending on the dealership, you could see them really scrutinize every single ding, and charge you an unexpected amount at the end of the lease, unless you buy the car out, but then you're buying a damaged used car for probably more than it's worth.

[Anonymous]

Leasing is always a terrible option. A well equipped Hyundai Elantra can be had brand new for $18,000 and will last 200,000 miles with minimal maintenance. Much better option

[Anonymous]

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.

[Anonymous]

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?

[Anonymous]

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.

[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.

+1. Or just buy a 4-5 year old Honda/Toyota.

[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 a great way to go. My husband and two kids both have done this and it's worked well. When it comes time for me to make a change I will do the same thing.

[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.

There is a great website called Car Guru to help you track down a good deal on a used car. My DH used it recently.

https://www.cargurus.com/Cars/spt_used_cars

[Anonymous]

Used car prices fluctuate and sometimes the difference between used and new is not that much. Also sometimes there good deals on leases which make it cheaper than buying if you assume you would get rid of the car after 8+ years.

[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?

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.

[Anonymous]

Buy the $18k Hyundai referenced above. After the lease is up what do you do? Another lease? Buying and driving it until it turns to dust is always the best answer when it comes to cost.

[Anonymous]

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?