Anonymous
Post 08/03/2022 14:13     Subject: Is i stupid to lease cars?
Anonymous wrote:
Uhh, I feel like some of these questions were getting are for someone's homework or research paper... same with the leasing a car question. 🤔

Op never gives details about themselves, just continues to ask "why?" or "why not?" or "in what way were you thinking?" when people reply...

It seems pretty obvious.

https://www.dcurbanmom.com/jforum/posts/list/1074121.page




"Is it stupid to lease cars?"

Yeah, I don't know many DCUM'ers who would title a thread about financing a car with "stupid" in the title, especially in the (sometimes) haughty "money & finances" forum, lol.

Inadvisable/ill advised... imprudent... unwise... even, foolish... but stupid??




Anonymous
Post 08/03/2022 14:06     Subject: Is i stupid to lease cars?

Uhh, I feel like some of these questions were getting are for someone's homework or research paper... same with the leasing a car question. 🤔

Op never gives details about themselves, just continues to ask "why?" or "why not?" or "in what way were you thinking?" when people reply...

It seems pretty obvious.

https://www.dcurbanmom.com/jforum/posts/list/1074121.page


Anonymous
Post 08/03/2022 14:04     Subject: Re:Is i stupid to lease cars?
Anonymous wrote:
Anonymous wrote:DH and I have been discussing this recently. DH will need a new car next year, most likely. We are thinking EVs, but we think EV tech will change in 3 to 5 years as more and more companies move to EV.

So, DH is thinking of leasing for 3 years, EV or hybrid, then seeing what's on the market afterwards.


You don't get the federal tax credit if you lease. The dealership retains the tax credit. Something to consider.

I'd probably lease a hybrid right now then switch to EV in three years. They are extending the tax credits until 2032 in the new legislation.


Yes, but there are income limits for the extended tax credits.
Anonymous
Post 08/03/2022 13:22     Subject: Re:Is i stupid to lease cars?
Anonymous wrote:DH and I have been discussing this recently. DH will need a new car next year, most likely. We are thinking EVs, but we think EV tech will change in 3 to 5 years as more and more companies move to EV.

So, DH is thinking of leasing for 3 years, EV or hybrid, then seeing what's on the market afterwards.


You don't get the federal tax credit if you lease. The dealership retains the tax credit. Something to consider.

I'd probably lease a hybrid right now then switch to EV in three years. They are extending the tax credits until 2032 in the new legislation.
Anonymous
Post 08/03/2022 13:08     Subject: Re:Is i stupid to lease cars?
I know that I'm in the minority on this subject, but for me, a car is a box that gets me from point A to point B. I want a car that I rarely have to think about (i.e. no fussy makes), or when I do have to think about it, I want it to be super simple to deal with (no specialty shops or parts needing to be imported from European mountain towns). For this reason, I buy totally boring, fuel-efficient cars new and keep them for 12-15 years. Getting a new car every 3 years is just not something that I care about, so leasing makes no sense for me other than not having to worry about maintenance. It doesn't make financial sense to lease based solely on that.
Anonymous
Post 08/03/2022 12:40     Subject: Re:Is i stupid to lease cars?
Anonymous wrote:I don’t think it’s necessarily stupid, but I don’t think it’s a great idea if you’re trying to build wealth. It depends on financial goals and where you are in life. Most people are leasing because it’s a lower monthly payment and easier to afford. The problem is that the payment never ends as you move from one lease to another. You never get rid of having a car payment. When I look to buy a car, the dealership always pushes a lease which I assume means it’s a better deal for them. Most people I know leasing cars aren’t savers. They are the families with large mortgages, spending most of their take home pay, and spending the full amount they can afford via monthly payments.



+1

People who lease usually have no clue what they are actually paying for and can't manage to compare the costs of owning vs leasing. It's all about fronting.
Anonymous
Post 08/03/2022 11:18     Subject: Is i stupid to lease cars?
Anonymous wrote:If the car depreciates less than the agreed amount then leasing costs more (but then you can often get that money back by buying out the lease)

If a car depreciates more than the agreed amount then leasing was cheaper.

There is no inherently better or worse method, leasing or buying. They are financial mechanisms.


+1000 THIS. Do your research - come cars are CHEAPER to lease (cars that hold their value well) and some are CHEAPER to buy (cars that depreciate very quick after you drive off the lot) -- use this lease vs finance calrulator: https://leasehackr.com/calculator

It is also a very weird time to buy --- technology on EVs is moving quick. I have no interest in owning a LOW MPG SUV for the next 10 years, but there are also very few EV options on the market with a third row --- so I will lease for three years and then reassess.
Anonymous
Post 08/03/2022 10:48     Subject: Is i stupid to lease cars?
Anonymous wrote:Leasing a car is like buying a new car every three years. Financially it is stupid. The best financial choice is to typically buy a 3-5 year old car and then drive it into the ground.

+1
Even buying a new car and keeping it for a long time (8+years) is so much more financially beneficial than leasing
Anonymous
Post 08/03/2022 08:01     Subject: Is i stupid to lease cars?
Anonymous wrote:
Anonymous wrote:Leasing a car is like buying a new car every three years. Financially it is stupid. The best financial choice is to typically buy a 3-5 year old car and then drive it into the ground.

Not always. If you are a business owner, it is financially stupid to buy instead of lease. Leasing offer multiple tax benefits.


Accountant here: No it doesn’t.

Having a car used exclusively for business has tax benefits (for the business). If anything, expensing the purchase in year one under section 179 has more benefits tax-wise, but leasing in and of itself doesn’t convey some special tax status.
Anonymous
Post 08/03/2022 07:58     Subject: Is i stupid to lease cars?
Anonymous wrote:Why or why not?


Yes, you is.
Anonymous
Post 08/03/2022 07:57     Subject: Re:Is i stupid to lease cars?
I don’t think it’s necessarily stupid, but I don’t think it’s a great idea if you’re trying to build wealth. It depends on financial goals and where you are in life. Most people are leasing because it’s a lower monthly payment and easier to afford. The problem is that the payment never ends as you move from one lease to another. You never get rid of having a car payment. When I look to buy a car, the dealership always pushes a lease which I assume means it’s a better deal for them. Most people I know leasing cars aren’t savers. They are the families with large mortgages, spending most of their take home pay, and spending the full amount they can afford via monthly payments.

Anonymous
Post 08/03/2022 07:50     Subject: Re:Is i stupid to lease cars?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:I’m thinking about leasing exclusively once I hit a certain age. Maybe 65 or 70.


why?


I’m a drive the car into the ground type, but I’ve had them break down at inconvenient times. I think I will reach a point where that scenario is undesirable.


This was my parents' path. They kept cars until they didn't drive anymore, and used old cars for multiple cross-country trips. But as they neared their 80s, they (my father) realized that if something happened to him, he didn't want my mother to have to deal with that, so they have leased two new cars. They intended to keep leasing, but the supply chain issues have led them to consider buying the cars outright once the leases are up.
Anonymous
Post 08/03/2022 06:49     Subject: Re:Is i stupid to lease cars?
Anonymous wrote:For what it’s worth I buy very nice cars coming off a three year lease. Someone else eats the depreciation, mileage is generally low and the dealer guarantees it and extends the warranty. I will keep it for 5-7 years and do it again.


We did this with our last car and it was the best car deal we ever got. It was garage kept, like new wit exactly 15,000 miles on it.
Anonymous
Post 08/03/2022 06:42     Subject: Is i stupid to lease cars?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Leasing a car is like buying a new car every three years. Financially it is stupid. The best financial choice is to typically buy a 3-5 year old car and then drive it into the ground.

Not always. If you are a business owner, it is financially stupid to buy instead of lease. Leasing offer multiple tax benefits.


PP. Even with tax deductions, leasing is not going to be cheaper than buying a 3-5 year old car and then driving it into the ground.


You are incorrect. See section 179 of the irs code.
Anonymous
Post 08/03/2022 04:37     Subject: Re:Is i stupid to lease cars?
Anonymous wrote:For what it’s worth I buy very nice cars coming off a three year lease. Someone else eats the depreciation, mileage is generally low and the dealer guarantees it and extends the warranty. I will keep it for 5-7 years and do it again.


This is what we do. Cars are still between 70-100k used.