leasing vs. buying

kuulani

kuulani

New Member
my husband and i are talking about getting a new car. we've always bought, but are interested in learning about leasing. i know all of you must have some kind of opinion over which is better ...

so which is it? :lloyd:
 
Never lease. The monthly cost may be a little lower, but the penalties for things like going over the mileage, not having 4 matching tires at turn-in, not having a full tank of gas, etc will eliminate any savings you have by buying outright. Then there's the maintenance angle, which will set you back a good chunk of change. Most leases specify your maintenance schedule for you. Go over that schedule, or use 'unapproved' items, and you get charged for it. To top it all off, at the end of your lease, even without penalties, you don't own a thing. If you're not planning on keeping a vehicle more than two years, then maybe a lease is for you. More than two years, and the lease is no longer an economically viable choice.
 
I agree with Gato. There are a lot of little things to consider. You can always buy the car after the lease is over, but you end up overpaying for it big time. You're better off buying.
 
Professur said:
Leasing is theft by another name. HL will be along shortly to expand on that position.
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Very good! You know me sooo well.

Where they get you is in the residuals, and the contract terms. Mileage limits are a killer, as are the penalties for any slight amount of damage, and you have kids. Instant interior damage.

95% of leasers end up owing soooo much at the end of the term thatit's cheaper to take the buy-out option, and pay it off over 4 MORE years. I'd rather do that up front, and get more of the residual value of the car in my own pocket.

Leasing CAN make sense if:
1) You drive very limited and predictable amounts of mileage,
2) You want a new car every 3 years, and
3) You don't smoke, eat or drink in the car, or have kids, OR

4) You're a corporation.

Otherwise, the smarter move is to just buy the damned thing, and look for an excellent financing deal. BTW, unless your credit sucks, 5% is as high as you wanna go on a brand new car, and don't finance for more than 4 years if you can swing it. DO NOT get talked into credit insurance.
 
Good advice.

Another thing to consider is that leasing requires high limits of liability on your car insurance. Is mucho costo expensivo.
 
Also, with the summertime sales craze from the big manufacturers doing the 'employee discount' incentives, there has been a massive turnover of people getting out of used cars faster than they normally would. The fair market value of used cars has dropped 10% plus over the last 6 weeks alone. There are some mighty good deals to be had... if you wanted a 2+ year old model.
 
Leasing is the most expensive way to drive a car.

Do not fool yourself into thinking you can stay under X number miles per year. 99% of the time, you can't, and they nail your ass on that alone.
 
Look at it this way. The deals are so restrictive that most folks end up having to take the buy-out option. So, what you're really doing is paying a monthly charge for the priveledge of buying a used car in three years, at really inflated prices, since that's set by contract.

I think I'd rather buy the car now, at market prices, and simply own it in 4 years.
 
HomeLAN said:
Leasing CAN make sense if:

2) You want a new car every 3 years, and
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That's the ticket. don't won't, never (I want something to call my own in exchange for cash)
 
mucho mahalo everybody!
that's pretty much what i figured leasing was.

we're going to visit some dealerships tomorrow.
now i need "how to negotiate with a car salesman for dummies" :lloyd:
 
You: We'll pay you XXX for that car.

Salesman:No can do.

You: Ok, the guy down the road can. BuhBye.
 
Gonz said:
You: We'll pay you XXX for that car.

Salesman:No can do.

You: Ok, the guy down the road can. BuhBye.
Click to expand...

That's pretty much how I buy mine. I know what I want. I know what I am willing to accept. I know what I must have in/on a vehicle. I know what I am willing to pay. I have walked over a three dollar/month difference.

Ideally, the way to go is to pay off what you have now, and save enough (by paying yourself your monthly car payment) to be able to offer cash. You'd be surprised how often $8000 cash laid out on the hood of a car will get you a $14,000 priced car.

I'm gonna drive me little truck til the wheels fall off, buy new wheels, and keep driving it until I can do just that, barring anything unforseen. Then I'll find what I want, keep me little truck for farm use, bad weather, etc, and drive the bigger truck the rest of the time. Oh, and pocket the $300/month.
 
SouthernN'Proud said:
Ideally, the way to go is to pay off what you have now, and save enough (by paying yourself your monthly car payment) to be able to offer cash. You'd be surprised how often $8000 cash laid out on the hood of a car will get you a $14,000 priced car.
Click to expand...

Really?, as in you only pay $8000 for it?
*Will never work over here. :shrug:
 
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