Lease or buy new car

[CHCRandy]

Just curious if you guys have any pros and cons between lease and buy.

I have never leased a car..seems like it is like renting it to me and still have to buy it, but I need to get a new car soon. I must admit the lease prices seem pretty cheap. It's for my wife and I doubt if it will be driven much. I tend to keep vehicles until they can't be used any longer......can anyon give me a good reason why I should lease and not purchase?

Thanks

 

[hooky]

I would never lease a car. But then I'll never buy another new one either.

You are renting it and then giving it back at the end of the term. At the end of the term, you'll have paid more than the value the car has lost. Plus you'e been on the hook to pay maintenance costs for someone else's property.

 

[eldirector]

If you want a new car every few years, and a car payment forever, then lease.

If don't mind driving the same car for a while, and don't want to have a perpetual car payment, buy.

I've never been able to justify leasing. Then again, it has been very rare for me to even buy new. Maybe someone on here has a good example of when a lease is a good idea?

 

[1911ly]

Someone talked my wife in to leasing a car before I met her. She ended up going over on the miles. They talked her in to leasing another car and financing the overage on the lease. When the smoke cleared she would have owned a car out right for what she paid. For a regular person I see no advantage to a lease. You walk away from a lease owning nothing. And maybe owing a debt.

 

[GodFearinGunTotin]

Before leasing, make sure you can live with the mileage limit. As was stated previously, if you go over the miles allowed under your lease, the extra charges can rack up. The good thing about leasing is that once you're done with the term, you can turn it in and walk away. The bad thing is, you have to find something else to drive. Back in the days we thought we had to have brand new cars and were content with having perpetual car payments, we leased a couple. We went in with our eyes open and felt like we got a decent deal. But since then, we've found that not having car payments means having a lot more disposable income available to do other stuff.

 

[slowG]

I would buy as close to new from an original owner.. Best bet

 

[9mmfan]

I think if you have pretty fair income and really like driving new cars, leasing would be the way to go. Otherwise buy new and drive it until the wheels fall off.
Or buy slightly used and drive until the wheels fall off.

 

[BogWalker]

I know it's not what you're asking for, but I will have to say buy used. It's just the most economically sound decision.

 

[MCgrease08]

Go pre-owned. Get one some other sucker leased and turned back in with low miles.

 

[PMR]

I live by the numbers and by the numbers leasing is the most expensive way to own/have a car. The most affordable way of ownership is to buy a car that's 1-3 years old, as stated above buy used and if it must be new, buy it.

Pat

 

[Leo]

PMR is correct. Leasing really does not work for an individual. It does work for companies, because of the price of venture capital and the way the tax laws allow the expense to be posted. Unless an individual is really making poor business decisions, you will certainly accumulate at least some equity in a car you are financing. You NEVER own any equity in a lease.

I would never vote for a lease for an individual, I look at it as a sucker bet. No monthly car payments in my house.

 

[indyjohn]

Go pre-owned. Get one some other sucker leased and turned back in with low miles.

This has been my formula for many years. I've had some really nice vehicles buying 3 year old lease turn ins. People tend to keep their leased vehicle in good condition in the hope to get better value when they turn it in. I'm driving a 4 year old SUV that was $50K+ new and I was able to buy for much, much less.

 

[CHCRandy]

Thanks guys......I think I am leaning the used route for now. I agree, no sense in taking the initial hit when someone else can.

 

[ModernGunner]

Buy it cash.

Whether new or used depends on individual financial situations, and irrelevant here.

With minor exception (some exotics and 'collectibles'), cars are a depreciating asset. How well it 'holds' its resale value may or may not be of relevance, depending on several factors. But, for the most part, when you finally sell it, it's going to be worth less than you paid for it.

It's a car (or truck). A tool. Buy it, use it until you're done with it, move on to the next one, get what ya can from the present one.

 

[indyjohn]

Off topic: I just want to point out how cool it is that I'm giving car advice to a guy from Hendricks county, that I don't know, but has MY front porch light as his avatar, because he is cool and supports IMPD.

Just sayin'

 

[Csquared]

My old man always told me "If you ever lease a vehicle, I'll disown you." I never have and never will. I'd personally choose to buy, but not buy new.. Buy a vehicle that is a year or two old and do your best to pay cash and or finance for the least amount possible.

 

[indykid]

Be careful of extra fees with leases. I cannot understand an "acquisition fee" especially when the vehicle is already on the lot!

They also like to tack on end of lease fees charging you again for them to acquire the vehicle from you.

And like others have said, you can only drive a set number of miles per year.

There are also damage fees, like the door ding you think is no problem, but incurs a fee on vehicle turn in.

Many lease deals seem really good until you see the fine print, then suddenly the total of payments plus fees plus residual is way more than the sticker price of the vehicle.

One point in the monthly payment total of payments, they include the 7% state tax which you pay as part of your monthly fee.

 

[Robert8252]

I lease my truck. Might buy it after the lease, might not. One things for sure. There was no way I could have afforded the payment buying the truck I wanted. Also if you lease car after car you do have the benefit of never having to worry about break downs and problems since generally warranties are longer than the lease. As far as going over, if you've been driving for any amount of time you should know what you need. I got a 16,500 a year lease but my mother has a Toyota leased with only 10,000 a year. Both of us are either under or just about right every month. All depends on your financial situation IMO. If you worry about saving and spending money buy used and reliable. If steady income and enjoy driving a new car every few years and not being stuck in one for half a decade or more lease. It also varies greatly by what you get, I have a ford and they will pay me for a 4-6,000 miles if I'm under at the end of my lease and I can walk away at lease end no questions. Toyota charges you if you don't buy it, won't refund any miles, etc. will vary by dealer I'm sure. Also when leasing treat it just like buying, the lower sale price the lesser the lease and lease end buyout if you choose.

 

[AngryRooster]

Don't rule out new for used without taking a look. When the wife and I were looking around early last year we checked out several dealers and decided on a Toyota of some kind. We tried the Toyota dealer in Muncie and were ignored several times. To make a long story short, we went to Richmond. They had a nice 4Runner that was a year old with 9k miles on it. It was $400 cheaper than a brand new one. We went with new ones for that little of a difference, negotiated a bit and had those crappy Duller HT tires replaced with Michelin MS/2. After the tire swaps and other discounts we got a better deal than the used one.

It does pay to shop around and talk to them.

 

[ultra...good]

Leasing cars is the best. Wait until stopped to shift gears, right.......
Worry about gravel or dust?? Why?? Run it through. Not mine for long.
Neutral drops??? Watch this!!!

anywho.............. Any of y'all want some beach front property just outside of Yuma??? (Bumpkins)..........