Buy vs Lease

[347Mike]

So break it down for me by pros vs cons.

I have ALWAYS been against leasing but over the past 3-4 years and 4 cars later I find myself barely breaking even or even losing money. Simply put, I do not like having the same car forever and like to change it up. I have been looking around a bit more and see that most places want a few grand up front and then a monthly payment. I am also aware that you are restricted to how many miles and all that other stuff with a lease too.

Does anyone lease currently, opinions, suggestions, etc?

[78X]

So break it down for me by pros vs cons.

http://www.investopedia.com/articles/pf/05/042105.asp#axzz1dGMSlp6T

http://www.investorguide.com/igu-article-520-cars-pros-and-cons-of-leasing-vs-buying-a-vehicle.html

http://www.leaseguide.com/lease03.htm

http://www.bankrate.com/finance/auto/pros-and-cons-of-leasing.aspx

http://www.edmunds.com/car-leasing/should-you-lease-or-buy-your-car.html

http://www.dmv.org/buy-sell/new-cars/leasing-vs-buying.php

http://www.carseek.com/articles/leasing-vs-buying.html

http://www.money-zine.com/Financial-Planning/Leasing-or-Buying-a-Car/Lease-vs.-Buying-a-Car/

http://www.carsdirect.com/car-lease/car-lease-or-purchase-pros-and-cons

[TEAMJACOB]

It depends on how you are. Many people will continue to trade in and get new cars every other year thus will always have a car payment which is fine. If that's the case, lease and save some money. Others pay off their cars and drive them until they die. I have 4 cars registered to me and all are paid for. They both have their pros and cons as you mentioned.

[SMKR]

I have always purchased in the past but my next vehicle im thinking about doing a 1 year lease and customize the mileage as I dont keep anything long at all.

[Cobra86]

I've been in the car business for my entire career and it's very rare that leasing is a better option. It sounds great, but as always, the devil is in the details. Do a little more research about resale next time you buy something. I'm at the point that I can buy whatever vehicle I want, but I always drive something that has a good residual value.

[347Mike]

I've been in the car business for my entire career and it's very rare that leasing is a better option. It sounds great, but as always, the devil is in the details. Do a little more research about resale next time you buy something. I'm at the point that I can buy whatever vehicle I want, but I always drive something that has a good residual value.

I had a 2008 Honda Civic with a very low interest rate and put 4-5k down and still didn't get what I wanted for it. Granted there were some stipulations to that and a few other critical factors but that was sort of the final straw. I bought the car because Honda has great resale, blah blah blah but come to find out it didn't...

[Binky]

Think of leasing as long term renting wih limitations.

I'll probably lease again, but the trick is going to be to only lease what i could afford to buy and stay within the mileage limits. I'm currently paying off my Edge and will prolly keep it for a few years afterwards. I always thought the feeling of no car payment was a great feeling.

[Cobra86]

I had a 2008 Honda Civic with a very low interest rate and put 4-5k down and still didn't get what I wanted for it. Granted there were some stipulations to that and a few other critical factors but that was sort of the final straw. I bought the car because Honda has great resale, blah blah blah but come to find out it didn't...

Interesting that a lot of folks go for the gas mileage, looks, etc. Could have bought an '08 gas guzzling Silverado, F150 or Ram for a lower net holding cost. Also an Accord or Camry traditionally holds a higher cost/resale factor.

There is a reason that Dave Ramsey refers to leasing as "fleecing" LOL!

[SMKR]

I've been in the car business for my entire career and it's very rare that leasing is a better option. It sounds great, but as always, the devil is in the details. Do a little more research about resale next time you buy something. I'm at the point that I can buy whatever vehicle I want, but I always drive something that has a good residual value.

what vehicles are holding the residual best currently?

[bcoop]

I had a 2008 Honda Civic with a very low interest rate and put 4-5k down and still didn't get what I wanted for it. Granted there were some stipulations to that and a few other critical factors but that was sort of the final straw. I bought the car because Honda has great resale, blah blah blah but come to find out it didn't...

I thought you had an absurd interest rate on that Civic (lack of credit, not bad credit), put a lot of miles on it, and wrecked it a couple times? All of which affect resale.

Fuck leasing, and fuck buying new. If things go according to plan, I'll never have another car payment in my life. Cash is king. It helps in negotiations (because I'll always buy used), and fuck having a payment. It's nice not having to shell out $350+ every month for a vehicle. Sure, it's not the newest (03), and is about to roll 200,000 miles. But everything still works, has only required minor maintenance, and has never left me stranded anywhere. And I drive this fucker all over the place for work. I recently bought a 93 Concorde that was pristine prior to the hail storm, and only has 43,000 miles on it for a mere $200. It's not optimal, and it's by no means baller. But it will give me a chance to take some time on getting some preventative maintenance done on the Expedition, and quite frankly, mileage just flat out doesn't come as cheap as what I got that car for. I don't need to impress anyone, and I'm not the "get bored, forever unsatisfied" type. I'll still have the Expy for dates, taking clients out, etc. But the large majority of the miles I put on my vehicles, I'm burning up the highways in North and East TX by myself.

[TENGRAM]

New cars are for suckers. These things depreciate astronomically until they are about five years old then they start to level out.

[onemeangixxer7502]

So break it down for me by pros vs cons.

I have ALWAYS been against leasing but over the past 3-4 years and 4 cars later I find myself barely breaking even or even losing money. Simply put, I do not like having the same car forever and like to change it up. I have been looking around a bit more and see that most places want a few grand up front and then a monthly payment. I am also aware that you are restricted to how many miles and all that other stuff with a lease too.

Does anyone lease currently, opinions, suggestions, etc?

Gotta buy em right, i've had prob 20-25 cars in the last 5 years and I've never lost a dime.

[slow99]

Ideally, you'd just compute the 2 projects' cost of financing to get NPV/IRR and compare the two. Project 1 = buying, project 2 = leasing. I'd wager that >99% of people don't know how to do that.

[red95gts]

Ideally, you'd just compute the 2 projects' cost of financing to get NPV/IRR and compare the two. Project 1 = buying, project 2 = leasing. I'd wager that >99% of people don't know how to do that.

We can't all be CPAs....

[Cobra86]

what vehicles are holding the residual best currently?

Almost any 1/2 ton crew cab gas V8 short box pickup holds the best residual.