Purchase vs Leasing Auto

Whistlin'Dixie · Post by **Whistlin'Dixie** » Mon Jul 30, 2007 5:50 pm

Any thoughts????

M

Coffee · Post by **Coffee** » Mon Jul 30, 2007 6:06 pm

The first car I owned was a 1977 LTD II. Banana yellow. The interior was still in good shape. The exterior was sparkly-clean, no rust, no scratches. There were no leaks in the fuel, coolant, power steering, or oil systems. In short, despite having been several times around the world mileage-wise, it was still in good shape. It was my sister's care before I got it and I think she inherited it from our step-dad. It would probably still be my car except, like a newbie driver, I'd wrecked it. My point? Cars can last long enough to be the same year model as your kid when s/he's old enough to drive it. Why bother leasing?

DCrom · Post by **DCrom** » Mon Jul 30, 2007 6:10 pm

I've heard (warning: anecdotal evidence!) that leasing makes sense only in limited contexts (you can write it off as a business expense, or you tend to trade in frequently).

I do know several people who didn't meet these criteria (friends and family) who've tried leasing. None of them want to do it again - though it's a bit less expensive up front, at the end of the lease they all ended up wishing they'd gone with a purchase plan (and would own the still-drivable, still-fairly-new, car).

Since I tend to be of the "buy a mid-priced car and drive it as long as it stays reliable" school, I've never been tempted to lease. (I just got my first new car in 10 years - and my old car, after a thorough going over by a good mechanic, is now with my daughter at college)

I've been told "check with your accountant first - and if you don't have an accountant, you probably aren't the target demographic."

cowtime · Post by **cowtime** » Mon Jul 30, 2007 6:18 pm

one word-

NO!!!!!

Here's a link you might find interesting. Go here and click "play video"-

http://www.daveramsey.com/etc/lms/drive_free/

djm · Post by **djm** » Mon Jul 30, 2007 6:22 pm

I would agree that you have to do a bit of homework to see if leasing is right for you, especially lease-to-own versus lease-to-rent. For myself, I fell into a sweetheart deal through work at the same time I inherited a small sum for a down payment, so it just worked out great for me to lease-to-own.

The deal? That I would get a slightly reduced rate, and I could pay the 5-year lease off one year early without incurring any penalties. That was thirteen years ago, and I am still driving that vehicle today. But as I noted, it was a special deal that would not normally be made available to the average shopper.

djm

Redwolf · Post by **Redwolf** » Mon Jul 30, 2007 6:24 pm

I agree with the others. I can see no point in leasing, unless you can write it off as a business expense. In fact, you often end up paying more in the end to lease...and you don't even have the car to show for it! And heaven help you if you find yourself in a position where you can't make the payments!

I honestly prefer to buy a car that is a few years old (either from a dealer like CarMax or from a rental agency)...you've got a car that looks and smells brand new, that's just broken in, and that will run reliably for years and years...for a fraction of the price you'd pay to be the first one to ever drive it!

Redwolf

missy · Post by **missy** » Tue Jul 31, 2007 3:59 am

since we drive cars until they literally die (we have a '79 pickup still going strong - our other vehicles are a 92 van, a 96 Ford, and a 2007 Sonata - but that replaced my 98 when it blew the head gasket and warped the head) we buy. It's really nice to not have a car payment for however many years.

Whistlin'Dixie · Post by **Whistlin'Dixie** » Tue Jul 31, 2007 5:15 am

Points well taken, i guess that's about what I was thinking. I know what y'all mean about driving a car until it dies ~ we still have "Vanny", our '90 Dodge Caravan ( 3 transmissions and a rebuilt engine later) the doors are starting to stick closed, the windows have been almost impossible to crank open for years now, and the AC is dying. She has always leaked something or other, so she has to be parked over a large sheet of cardboard in the garage. Still, she just had her brakes fixed and passed the emissions test, and the boys drive her, so that's that.

I have a nice '01 Camry Solara that I love ~ just had her 95,000 mile oil change ~ just a great comfortable car to drive. Still, my work has recently picked up a couple of outlying hospitals to cover, and now I am potentially going to be driving 75-100 miles a couple of days per week, instead of just driving to the nearby hospitals. So I was figuring I should opt for a newer car in order to have something hopefully very reliable. I was surprised that the dealership went right away with the figures for leasing as opposed to buying, a new vehicle (I have never had a new car before). Re: purchasing: so surprising was the monthly payment amount, after giving a down-payment of what almost amounts to one half of the cost of the car.

True, I was just having them run a few numbers for me so I could give my hubby a general idea ~ But I was so surprised at the monthly payment amount, that's all..... I was therefore wondering if most people out there actually lease rather than own!

Thanks for the replies
M

edited to add: I am NOT trading my Solara!!!!!!!!!

avanutria · Post by **avanutria** » Tue Jul 31, 2007 5:23 am

I bought my 98 Ford Taurus wagon in 2000, it had been a leased car and was still in great shape. I think it's best to purchase a used car that had been leased by someone else, that way you're not paying the premium of a brand new vehicle but you still get something pretty new.

rebl_rn · Post by **rebl_rn** » Tue Jul 31, 2007 6:01 am

The dealerships go with the lease price right away because, for most people, the bottom line in car buying/leasing is the monthly payment - even if you end up paying more in the long run, if you can pay a $100 less a month or whatever it seems like a good deal.

My problem with leasing is the mileage limitations. I also have to drive a lot for work - around 400-500 miles a month not counting to and from the place - and I put a lot of miles on fast.

If you are considering buying new, shop around for financing too. You can get good deals through the dealership's financing - especially when they are offering the 0 interest and stuff like that - but sometimes you can do better through a bank or credit union.

fearfaoin · Post by **fearfaoin** » Tue Jul 31, 2007 6:02 am

The thing that gets me about leasing is the mileage limit. My
Carolla just turned a year old this month, and I took it in for
its 20,000 mile oil change. There's no way I could keep the
miles low enough to avoid absorbitant charges at the end of
a lease.

EDIT:

rebl_rn wrote:My problem with leasing is the mileage limitations...

Cross-post... you beat me to it, mate.

Whistlin'Dixie · Post by **Whistlin'Dixie** » Tue Jul 31, 2007 6:19 pm

I didn't realize there was a mileage limitation! That would be just so bad!

It's like trying to estimate how many text messages your kids will require per cell phone per month, or estimating how many minutes will be needed when you're signing up for a new plan ...... (duh ~ unlimited

)

M

Redwolf · Post by **Redwolf** » Tue Jul 31, 2007 7:44 pm

avanutria wrote:I bought my 98 Ford Taurus wagon in 2000, it had been a leased car and was still in great shape. I think it's best to purchase a used car that had been leased by someone else, that way you're not paying the premium of a brand new vehicle but you still get something pretty new.

Yep...I agree. My Toyota and my Sable were both retired program cars...the Toyota from a company's lease fleet and the Sable from the Budget rental fleet. Both were less than two years old when I got them; still looked, smelled and felt brand new, and had very low mileage (22,000 for the Sable and 30,000 for the Toyota). They've been great cars. We drove the Toyota from North Carolina to California in 1999, and the Sable's been on so many long road trips I can't even keep count.

Redwolf