Should You Lease or Buy Your Car?

Edmunds.com

Should You Lease or Buy Your Car?

Weigh the pros and cons of leasing vs. buying a car to make the right choice when you finance your next vehicle.

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ffactoryxx

Yea they seemed kind of high. Both cars are fully loaded however.

The big thing was the MSD program putting money in as a security deposit which would lesson the MF.

The more I think about it, is it even worth it to lease these things or save so i can buy?

cheated49

Leasing is not always the lowest cost over buying. Lease costs can vary dealer to dealer. Many times you cannot get out of a lease without a penalty. I.E. If you suffer financial hardship; if after signing the papers you decide you would like a lower payment. Watch for financial companies needs before you sign. In other words, make them give you, for example, a written need for insurance coverage. Make sure the dealer shows you. Otherwise, you can sign the papers thinking your insurance is all set, only to have the finance company come back and claim you need more coverage. A higher cost out of your pocket. Research the true value of the vehicle you're looking for. Unfortunately, a lot of sales staff, hear your needs, understand your needs and try to "sell" you a higher priced vehicle than you intended!!

micevans

I believe that leasing is better because you have the opportunity to find great deals that fit to your budget!

Mr_Shiftright

There are other factors to consider though, in a lease. You have restrictions on what modifications you can do and the miles you can accrue; also you have to return the car pretty much as you got it, with say tires of the same type that are serviceable, and with no excessive damage of any kind. Also, you are locked into a lease, and they aren't easy to bail out of if you have to.

micevans

Yes of course you have restrictions on modifications but I believe that every person has a different point of view There are people that have absolutely no problem with that and other that would like to modify the car at their convenience.

Mr_Shiftright

Well of course...but you'd be surprised how many people jump into leasing without considering those things.

micevans

hm.. yes.. this is true..that's why we should post articles like this one so people are not confused..

drivingdave

For me personally I prefer to buy because I keep my car until dies. I love cars but I have only purchased 3 in my life. And because they depreciate so quickly I buy used. Leasing I think works well if you like having a new car every few years

wintersun

Leasing only makes financial sense if one has a business and the GVWR of the vehicle is less than 6001 lbs and so does not qualify for Section 179 and so takes 11 years to fully write off the cost to buy the vehicle. With a lease the monthly payments are 100% tax deductible for a business on day one. For a private party the depreciation of 30% in the first 3 years of ownership with a new vehicle make it a dumb move to do this whether buying outright, financing the purchase, or leasing the vehicle.

Michaell

wintersun said:

Leasing only makes financial sense if one has a business and the GVWR of the vehicle is less than 6001 lbs and so does not qualify for Section 179 and so takes 11 years to fully write off the cost to buy the vehicle. With a lease the monthly payments are 100% tax deductible for a business on day one. For a private party the depreciation of 30% in the first 3 years of ownership with a new vehicle make it a dumb move to do this whether buying outright, financing the purchase, or leasing the vehicle.

I've leased plenty of vehicles.

I like the fixed investment, always having a car under warranty, and being able to swap out for something new every 3 years.

Leasing is just an alternative to traditional financing.

If you keep your car forever, leasing does not make sense - we are buying my wife's Outback, which has 32,000 miles on it after 4 years. Will have less than 50K when it's paid off, and we already have about $6000 in positive equity in it.

captarty

Buying and keeping the car for as long as it serves as transportation.

beepaj

How about older folks...leasing looks like a good option

pmw786

I’m in the market to purchase a home and begin a mortgage. Will leasing a car and having a hard pull on my credit as well as having a monthly payment for the next three years negatively affect the affordability or interest rates in purchasing a home? Should I buy a car instead if I’m able to to avoid having issues in purchasing a home?

Michaell

pmw786 said:

I’m in the market to purchase a home and begin a mortgage. Will leasing a car and having a hard pull on my credit as well as having a monthly payment for the next three years negatively affect the affordability or interest rates in purchasing a home? Should I buy a car instead if I’m able to to avoid having issues in purchasing a home?

A loan is a lease is a mark on your credit.

If you can defer the loan or lease until after you close, that would be the best.

becausecar

In my opinion, the big problem that I see in a lease is if you would have an accident.

kyfdx

becausecar said:

In my opinion, the big problem that I see in a lease is if you would have an accident.

That's the good part. You file an insurance claim and get it fixed properly, and when the lease is up, it is the bank's problem.

anapd57

My dad is 96 years old. His car gets driven at an average of 25 miles a month. He wants a new car, should he lease or buy. Financially he can pay cash for a new car. I don't know if buying a new car is the best choice considering the probability of the lord taking him in the next 2 to 3 years high.

Michaell

anapd57 said:

My dad is 96 years old. His car gets driven at an average of 25 miles a month. He wants a new car, should he lease or buy. Financially he can pay cash for a new car. I don't know if buying a new car is the best choice considering the probability of the lord taking him in the next 2 to 3 years high.

What does he drive, currently?

oldfarmer50

anapd57 said:

My dad is 96 years old. His car gets driven at an average of 25 miles a month. He wants a new car, should he lease or buy. Financially he can pay cash for a new car. I don't know if buying a new car is the best choice considering the probability of the lord taking him in the next 2 to 3 years high.

One thing to remember is that a lease must be paid even if the lessor passes away just like a car loan. I’ve read stories of older people leaving heirs with the balance of payments. Consider some sort of loan life insurance.

kyfdx

anapd57 said:

My dad is 96 years old. His car gets driven at an average of 25 miles a month. He wants a new car, should he lease or buy. Financially he can pay cash for a new car. I don't know if buying a new car is the best choice considering the probability of the lord taking him in the next 2 to 3 years high.

At 300 miles/year, he doesn't need a new car. He might need a different car, but buying a new car seems like a waste.

But, at only 300 miles/year, it would be silly to pay for the 10K/miles per year that a low mileage lease provides. Let him pay cash for whatever he buys, then sell it when the time comes.

qbrozen

Agree with the above. A lease is about buying miles. A new car is about warranty and peace of mind. He should buy a Nice, used example of something that will make him happy.

graphicguy

Yeah...buy something he wants and when the inevitable happens, it will be simpler to just put it on the market. Doable with a lease, but there’s a very good chance someone is going to have to add some dollars to buy out the lease, which can come with a hefty price.

I agree with sticking with something he wants. Better yet, show him how to UBER! Way easier, and much less expensive, plus he will probably like the door-to-door service.

MIGUY_2

I think that you kind of don't really know how to do math and I could easily do way better if you just let me do my math so stop interrupting me okay dood come onnnnnnnnnnnnn bro