Car Lease

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  • #1545585

    icemelter
    Participant

    Leasing vs Buying. What are the benefits to both? If leasing is considered not financially wise,why do so many do it? At the end of the day, what is the best method leasing,financing, or buying used? And why?

    #1545663

    Joseph
    Participant

    Buy what you can afford and do not lease what you cannot afford to buy.

    Be smarter and buy used.

    #1545677

    icemelter
    Participant

    Joseph-“Buy what you can afford and do not lease what you cannot afford to buy.”
    -If you cant afford to buy it doesnt mean you cant lease it.

    “Be smarter and buy used.”
    -Why is it smarter? You end up paying upfront, or in payments likely amounting to more than the lease,and all mechanical problems are your own responsibility. With a used car you are always taking somewhat of a risk unless you really know the owner or are referred by a friend. And dealers are your worst enemy.

    #1545744

    jakob
    Participant

    Don’t lease. You pay more each month and end up with nothing at the end.

    Of you can’t afford a used car then save up money for a few months until you can afford it otherwise but it with financing which is still costly but much better then leasing a car and ending up with nothing

    Hatzlacha

    Note: sure buying a home cost tons and requires a mortgage which accounting says at the end of 30 years a person pays approximately DOUBLE the amount he bought the house for.

    So if you don’t NEED to buy a house now it might be wiser to save up money and wait longer and then when you need it have more then the minimum %20 required to buy the house
    Versus buying now as a young new couple with just the minimum needed to close and pay DOUBLE what the house is bought for.

    Hatzlach

    #1545765

    icemelter
    Participant

    jakob-“Don’t lease. You pay more each month and end up with nothing at the end.”

    -yes but you can buy a used car and it might last a year without issues and then you have to invest money for it to run and if it totally breaks down you are also left with nothing.

    In a way you can think of a lease as a very inexpensive long term rental. And you get to switch out cars every few years. Question is if its worth more to finance a new car. How long would it last in comparison to how many cars you could have leases in the same amount of years?

    #1545813

    CTLAWYER
    Participant

    There is no blanket answer, each case is different.
    I own, but I drive less than 6K miles per year and pay cash for my car and keep it an extremely long time (my current car is now 14 years old with 76K miles on it and I’ll probably drive at another 6 years,

    Mrs. CTL prefers a lease. She drives about 15K miles per year, wants a new model every three years and 100% warranty with roadside assist and the dealer picking up and delivering the car for each/service. Everything but gas/insurance is included in her lease.

    Our firm leases cars for our senior staff. It is a set monthly amount and deductible as business expenses.

    My 21 year old wanted to buy a new car this year for commuting to work. She wanted a Nissan Altima. Due to the high residual value, the cost per month was much cheaper to lease than buy with the promotional low/no interest deals.
    She won’t be keeping the car more than 3 years, by then she expects to need a larger family car. Her husband bought his car using a 0% loan from the manufacturer.

    There is an adage that you don’t make capital investments into things that depreciate in value, and that is true of most cars. Sit down and do a financial analysis. How much can you afford to pay in total car expense each month and how much of a car can you buy or lease for that amount?
    Then consider the peace of mind that comes with knowing you are under warranty and won’t have large surprise bills.
    By the first half of 2016, 32% of all new cars delivered in the USA were leased not sold. If it didn’t make economic and/or emotional sense for many people the number would be much lower. I leased a car the first time back in 1977 and the market share of leases was less than 5%. Things have changed, as have car prices. Today an average new car costs more than I paid for our first 3 bedroom home in 1976.

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