Compare the Costs of Buying vs. Leasing vs. Buying a Used Car

Edmunds.com

Compare the Costs of Buying vs. Leasing vs. Buying a Used Car

Which auto financing method is cheapest over the long run? We compare the long-term costs of buying a new car, buying a used car, and leasing.

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irg2

I didn't realize this article was so old. Anyway, I sort of agree with rbdeli61 here. This article is skewed in several ways, location and the price of the vehicle used. I live in Upstate NY, and winters can be hard on cars. A used vehicle can be a crapshoot (and one I've lost on before). At the end of the loan, let's say 5 years, plus the age of the car in the first place, 3 years, you now have a car that's 8 years old. Depending on the condition and mileage, there may be little equity left in it. Used car loans are the most expensive, whereas the financing on new and leased vehicles will be better. But always negotiate a lease, just like a new or used car. I pay $240 for a Camry LE, nothing down at all, including NYS taxes. That's about half of what buying it would cost. Plus lately the cost of good used cars are not much less than a new one. I think the 3 options are a lot closer than what is being mentioned here, but it depends on many factors which aren't being taken into account here.

nuslcar

Bottom line; it depends on the car you are wanting to drive and your current needs in a vehicle financially and personally. If you do lease then you need to look for a deal that has a high residual value and a low money factor (lease interest charge). Thru my years of leasing vs. buying if you can not save more than $90 per month doing a 36 month lease compared to a 60 month purchase you should buy. If it is $90 or higher than carefully weigh the lease option.