Purchasing Vs Leasing

DJDamage

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I keep hearing that its better to own a car then lease a car, because you save money. However if you do not have a great amount of cash and can only afford 8-7 year old car knowing fully well that you will be paying the expenses out of your own pocket when things break down, which one will you go for?!

Brand New Leased Car - fairly good monthly rate 4 years contract, while things like maintenance (in case there is damage to the car) are taken care of....

Or Same car 7-9 years old - where maintenance come out of your own pocket but you don't pay monthly rate and you own the car?

Which is better?!
 

sfalexi

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Depends on what you're going to use it for, and if you want to do anything to it. Keep in mind that leasing means limited mileage, no modifications to the car (no new stereo, no upgraded engine, wheels, etc. etc.) And after however many years, you have to give it back and lease something else or pay a lot to buy it off.

If you're using it for low mileage daily driver to/from places, I don't see a problem with leasing. Keep in mind though that if you ever want to drive some long trip somewhere (like a vacation or something), you have to watch your miles. And you have to be very careful with accidents and everything.

If you want a car of your own to build up and maintain and drive however long and far you want, then buy one.

Alexi
 

Bonhomme

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Do the math

Figure out the down payment (upon lease or buy), the monthly payment, how long you intend to keep the car, anticipated maintenance cost, and the likely resale value when you intend to sell or turn it in.

Bear in mind the downpayment when you lease is just money down the drain, and any current model new car loses a large % of its value as soon as you drive it off the lot.

Pick your poison.
 

DJDamage

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Figure out the down payment (upon lease or buy), the monthly payment, how long you intend to keep the car, anticipated maintenance cost, and the likely resale value when you intend to sell or turn it in.

Bear in mind the downpayment when you lease is just money down the drain, and any current model new car loses a large % of its value as soon as you drive it off the lot.

Pick your poison.
Good points.

Now I heard that Honda's or Toyota require the least amount of maintenance ( I am not a car savy).

Lets say the lease is around $200 a month for 4 years for a new 2005 Honda , and if you are purchasing a used Honda around 8-5 years old with about 120,000-150,000 mileage in decent condition, which will cost more in the duration of the 4 years?

The monthly payment to the lease (I do not need to pay maintenance for damaged parts -its part of the lease contract) or the the actual repairs that will cost me from a used vehicle??!

If I take the secure route with the lease I could lose more monthly because of other payments such as insurance and gas, however if I purchase the used vehicle, I won't pay a monthly rate but if there is a big damage I could pay less, the same or more.
 

Albion4

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I've leased a car and will never do it again. I ended up getting the standard 12000 mile a year plan and it f<beep>ked me in the end. I ended up having to pay for the milage I went over, the little damage to the car (Trust me, wear and tear is not what they tell you it is), and the tires on the car. In the end I had to fess up $5000+ to get out at the end of the lease. I will never do it again. Now if you can be POSITIVE that you will not go over the milage (12000/year = 33 miles a day), not put any damage on the car (door dings, scuffs, dents), or care about buying new tires at the end, then go with a lease. Otherwise it is far more productive to purchase.

-Al
 

K B

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For me, the choice was easy: BUY! And I will tell you why.

With a lease, you will have INFINITE car payments. That means having a car payment FOREVER.

I don't really care too much about a car being "brand new." What you are essentially paying for is that new car smell.

I have had a used car that was a nighmare before. Constantly breaking down, towing fees, etc. But, the difference is, I bought that car that SOMEBODY ELSE had. You never know what that previous owner did/didn't do to the vehicle before you buy it.

That is why I suggest buying new or almost new and just have a little higher payment over leasing for a few years. Get something you REALLY like, and keep up the maintenance. Remember, even a new car will come with a 3-year warranty. After the warranty is up, your car should still be under 5 years old, and you should still be trouble-free for a while. Maintencance is key. My vehicle is going on 8 years old now, and I paid it off 3 years ago, and because I have kept it up, and I am good to it, I haven't had a car payment nor a repair bill since.

If you like to have a newer car, or if you get bored and like to trade in every three to four years, and don't mind INIFINITE car payments, leasing might be the way for you to go. Remeber, though, the car you lease is NEVER going to be "yours."
 
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