Anonymous wrote:Buy a good used car coming off a 3 year lease with 20,000 miles on it. Be sure it’s certified pre-owned by the dealer which usually means an extended warranty.

Anonymous wrote:I returned an Elantra a few years back that the dealer quoted $300-$400 to fix. They offered to waive the repair fee if I leased another car from them.

Anonymous wrote:

Anonymous wrote:I hate leasing bc i feel like I’m “borrowing” a car. You have to be extremely careful with. If anything happens (damage, accident), you get dinged. And it really sucks to have to return a car you like. Did it once, but now finance cars.

You don’t get dinged for an accident. As long as you have it repaired at a reputable shop, you’re good. That’s one of the advantages, the bad Carfax is not your problem, not your car.

Anonymous wrote:

Anonymous wrote:What about leasing for an older person who wants to turn a car over every few years?

I think that's a reasonable scenario to consider leasing, though it really depends.

If it is someone who drives low miles (let's say 5,000/year) then leasing is still going to be more expensive. The cost of the lease has you effectively paying for 10-12,000 miles/year which you'll never use. In this scenario, I'd lean towards buying a new ultra-reliable car with lower depreciation (e.g. Toyota/Lexus) and it'll be so easy to keep it maintained and running for a while without headaches.

Also, some cars "lease well" in that manufacturers structure their lease programs to make lease offers fairly attractive alternatives to buying. BMW does this, and nowadays well more than half of BMW sales in the U.S. are leases. Other cars do not lease well. So you need to consider the car in question.

For an older low-ish to moderate mileage driver, I think buying is generally the smarter financial move and it offers more flexibility as long as it is a relatively reliable car that doesn't drop like a rock in value. Pandemic happens and you stop traveling so no longer need two cars? Well you can just sell it. Decide to travel much more than you anticipated? No need to worry about being charged for excess miles. Health conditions change and you drive fewer miles one year? You're not stuck in a lease where you've pre-paid for 10,000 miles whether you use them or not. At some point is it no longer possible to drive? You can sell it without having to wait out a lease or deal with the complexities of selling a leased vehicle. Older drivers also typically have fewer maintenance issues because on average they don't thrash the car around and are more timely about keeping it properly serviced at the right intervals. Does an older driver really need to switch vehicles every 24-36 months? I would only lease in that scenario if I was very confident I'd be driving 10k miles/year for the next 3 years and was going after a fun, gorgeous and expensive to fix german car, and I had the finances to do so comfortably.

Anonymous wrote:What about leasing for an older person who wants to turn a car over every few years?

Anonymous wrote:I hate leasing bc i feel like I’m “borrowing” a car. You have to be extremely careful with. If anything happens (damage, accident), you get dinged. And it really sucks to have to return a car you like. Did it once, but now finance cars.

Anonymous wrote:Buying is in most cases the best choice when:
--You plan to keep the car 4 or more years
--You are buying a car that is relatively reliable
--You like the idea of paying off the car after a few years and then not having a car payment for awhile

Leasing can be beneficial when:
--You're getting a car that is known to have major reliability problems after its first few years of ownership. Many people lease BMWs for example because 3, 4, 5 years into owning one they turn into money pits that cost a lot to repair (and they depreciate in value because of this). Leasing allows you to enjoy the good times with the car knowing you'll turn it in before big problems hit.
--You routinely want and are willing to pay extra to turn in your car for something brand new every 2-3 years.
--You own a business, use it for work and leasing has tax advantages that don't apply to a normal person.
--You can't really afford a car that would normally be out of your price bracket but don't care and are lured into a lease for the lower monthly payment
--You are getting a Tesla or other electric vehicle and don't want to commit to long-term ownership since that tech is changing so fast

Anonymous wrote:Buying is in most cases the best choice when:
--You plan to keep the car 4 or more years
--You are buying a car that is relatively reliable
--You like the idea of paying off the car after a few years and then not having a car payment for awhile

Leasing can be beneficial when:
--You're getting a car that is known to have major reliability problems after its first few years of ownership. Many people lease BMWs for example because 3, 4, 5 years into owning one they turn into money pits that cost a lot to repair (and they depreciate in value because of this). Leasing allows you to enjoy the good times with the car knowing you'll turn it in before big problems hit.
--You routinely want and are willing to pay extra to turn in your car for something brand new every 2-3 years.
--You own a business, use it for work and leasing has tax advantages that don't apply to a normal person.
--You can't really afford a car that would normally be out of your price bracket but don't care and are lured into a lease for the lower monthly payment
--You are getting a Tesla or other electric vehicle and don't want to commit to long-term ownership since that tech is changing so fast