Those who have leased a car...

[OverVolt]

Because leasing is cheaper if you don't keep cars for a long time. I consider two and half to three years a long time to a car. Take my Outback for example: $535/month to purchase or $345 to lease. To me, it makes no sense to purchase unless you drive 20-30k miles annually.

If you don't put many miles on your cars you are WAY better off owning your own car because you will have alot less wear and tear maintenance to worry about.

They love it when you are easy on the car because they own the car and not you, lol.

After you work out all the manufacturer defects that hit you right after the warranty, up to around 100k miles is clear sailing and then sometimes stuff goes wrong at 100k miles. The car gets really broken in after the first 3 years. 3-8 years or so is when the maintenance costs are lowest IMO.

 

[Jumpem]

Car payment for life! Woohoo!!! So many savings.

I view it as just another monthly expense like every other bill. I save plenty, and a lease would allow me to save even more.

 

[Doppel]

Car payment for life! Woohoo!!! So many savings.

This is the kind of glib response that underscores what I wrote a few minutes ago.

To say such a thing intimates that you don't realize a car is always a depreciating asset. Always costs you money in maintenance, fuel, depreciation, and sometimes interest rate if leased or bought.

I view it as just another monthly expense like every other bill.

Unfortunately a lot of people who front-load the cost--taking out a loan and paying off the car well before it's "used up" think they are somehow ahead of the game simply because of that, even if their monthly payments for five years might have been as much as twice the lease payment.

My current cars the least rate is about half the finance over a 5 year note. So that five years of finance charges would cover 10 years of lease payments. And as we all know a 10 year old car isn't worth much, plus along the way it ended up looking older, missing out on newer safety items, cost more money in maintenance, had repairs.

If you can lease at around half the finance rate as I did on my last two cars, just do it.

 

[sundev]

My current cars the least rate is about half the finance over a 5 year note. So that five years of finance charges would cover 10 years of lease payments. And as we all know a 10 year old car isn't worth much, plus along the way it ended up looking older, missing out on newer safety items, cost more money in maintenance, had repairs.

If you can lease at around half the finance rate as I did on my last two cars, just do it.

People generally just don't do the math and buy into whatever they have been told by someone else or whatever fits their own views.

The fact is that for the majority of cars, if you are keeping it for < 4 years you're usually better off leasing. 4-6 years and it will be about even, and 6+ years is where financing finally starts to pull ahead.

 

[OverVolt]

Show me where I can buy the cars "just driven off the lot" for half the price

Leasing fell off a cliff in 2008 and right now everyone is looking at what a great deal it was to keep the car in 2011 for the lease offer and turn around and sell it for a profit (because very few leased used cars were hitting the market with something like 1/3rd the usual amount of leases issued in 2008) The people now leasing in 2012 will get ^&*%ed the hardest.

http://money.cnn.com/2011/06/21/news/economy/used_cars/index.htm

Don't extrapolate the good times into the future it will probably be the opposite. Cheap used cars (average fleet age is 11.3, everything used will be a lemon by 2014, 2015, etc. average car life is 15 years) and expensive new cars (everyone will HAVE to buy a new car) and then you will be dumping your overpriced lease contract offer and either getting a new more expensive lease or buying an expensive new car.

 

[TripleAAA]

Well after taking in the comments here and putting more thought into it, I'm leaning towards just holding on my '03 Accord with 115k miles on it and continuing to save.

I guess the hardest part of it is knowing that after 3 years, I will have spent around 12k on a car that I won't own or at least partially own outright.

 

[Murloc]

are suckers or own a corporation.


/thread unsubscribe, never coming back, no arguing people out of destroying their personal wealth.

This. Seriously there is nothing else to say, anyone who says otherwise is most probably rationalizing his risky situation or his unbalanced car budget.

 

[ichy]

Leasing makes sense if you have enough disposable income that you're willing to pay extra to always drive a relatively new car. For most people though switching cars every three years is a terrible financial decision. Most Americans have too much debt, too few retirement savings and little or no emergency fun and certainly have no business leasing a car.

 

[TripleAAA]

Leasing makes sense if you have enough disposable income that you're willing to pay extra to always drive a relatively new car. For most people though switching cars every three years is a terrible financial decision. Most Americans have too much debt, too few retirement savings and little or no emergency fun and certainly have no business leasing a car.

Well I wouldn't say I fall into the latter category, but definitly don't have an extreme amount of disposable income. I save, in invest, I do all the right things...and leasing just doesn't seem to fit.

 

[Jumpem]

Leasing makes sense if you have enough disposable income that you're willing to pay extra to always drive a relatively new car. For most people though switching cars every three years is a terrible financial decision. Most Americans have too much debt, too few retirement savings and little or no emergency fun and certainly have no business leasing a car.

I think they have more business leasing a car than ourchasing one. If their incomes are limited they are better off leasing something under $200, and having a warranty to cover repairs. Much better idea than them spending even more each month to purchase a vehicle.

 

[ichy]

Um no, if you have a limited income you should do what I did when I was younger and buy a used beater. It continues to serve me well. Now that I'm in better financial shape my next car will be new but I also intend to keep it for a decade and drive it into the ground.

 

[alkemyst]

I think they have more business leasing a car than ourchasing one. If their incomes are limited they are better off leasing something under $200, and having a warranty to cover repairs. Much better idea than them spending even more each month to purchase a vehicle.

most drive more than the limitations of a lease making it prohibitively expensive.

 

[Jumpem]

most drive more than the limitations of a lease making it prohibitively expensive.

Perhaps. I used to drive 30k, myself. For people that drive 15k, or less, I think leasing a reasonable car is a good way to go.

 

[Jumpem]

Um no, if you have a limited income you should do what I did when I was younger and buy a used beater. It continues to serve me well. Now that I'm in better financial shape my next car will be new but I also intend to keep it for a decade and drive it into the ground.

Yes. Because those on limited incomes can afford a $4k engine or transmisison repair easier than a $150 economy car lease payment.

 

[Insomniator]

Leasing is great if you don't drive over the limit and can afford X money a month just accepting that is 'the cost of a car'.

You get a brand new car every few years, always under warranty and often with whatever perks the dealer offers (oil changes, roadside assistance etc)

It is a pain in the ass to buy a used car properly. You need to find them, contact owners/dealers/shady people, get it checked out thoroughly... things that many people would never bother doing.

 

[TripleAAA]

Leasing is great if you don't drive over the limit and can afford X money a month just accepting that is 'the cost of a car'.

You get a brand new car every few years, always under warranty and often with whatever perks the dealer offers (oil changes, roadside assistance etc)

It is a pain in the ass to buy a used car properly. You need to find them, contact owners/dealers/shady people, get it checked out thoroughly... things that many people would never bother doing.

I didn't think about the maintenance aspect. Is it common to haggle over extra perks like oil changes and roadside assistance?