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I don't like leasing because I keep my cars for 6 years and almost 20k/miles a year on it.
BUT, you can make the argument:
Buy car for $30,000, keep for 8 years, sell it for $7,000. Cost you $23,000 to drive it for 8 years (96 months), which turns out to be $240/month. The car is out of warranty for about 5 years, so you probably are dumping another $1,500 in general maintenance and repairs, which is pretty conservative. So that's another ~$15/month. The math favors a lease even more the least number of years you keep the car, obviouslly.
So, with that being said, it's not so much a bad idea if you are leasing a nice car for $300/month every 3 years, assuming you can get deals with $0 down (sign and drive), assuming you don't put more than 10k miles a year on it.
I don't like leasing because I keep my cars for 6 years and almost 20k/miles a year on it.
BUT, you can make the argument:
Buy car for $30,000, keep for 8 years, sell it for $7,000. Cost you $23,000 to drive it for 8 years (96 months), which turns out to be $240/month. The car is out of warranty for about 5 years, so you probably are dumping another $1,500 in general maintenance and repairs, which is pretty conservative. So that's another ~$15/month. The math favors a lease even more the least number of years you keep the car, obviouslly.
So, with that being said, it's not so much a bad idea if you are leasing a nice car for $300/month every 3 years, assuming you can get deals with $0 down (sign and drive), assuming you don't put more than 10k miles a year on it.
I guess you never researched leasing? You can find leasing options for 15k/yr.
Why is this forum/blog HAVE SO MANY RULES? WHY ARE POST MOVED AND DELETED AND YOU CAN'T POST REPLIES AS A JUNIOR MEMBER?
This is so frustrating that I will not be using this site anymore.
Why is this forum/blog HAVE SO MANY RULES? WHY ARE POST MOVED AND DELETED AND YOU CAN'T POST REPLIES AS A JUNIOR MEMBER?
This is so frustrating that I will not be using this site anymore.
No, they don't. The buy-out price is fixed in the contract.
Subject to deductions for needed repairs. And the dealer, rebuying the car, can set those repair costs pretty arbitrarily, and the re-seller has little power to object. Theoretically, the dealer can require the complete replacement of every single component that shows any wear and tear associated with normal usage, and the reseller would bear the burden of proving that they are not reasonable charges.
Subject to deductions for needed repairs. And the dealer, rebuying the car, can set those repair costs pretty arbitrarily, and the re-seller has little power to object. Theoretically, the dealer can require the complete replacement of every single component that shows any wear and tear associated with normal usage, and the reseller would bear the burden of proving that they are not reasonable charges.
That's not quite how it works.
The buy-out price fixed in the contract is the price you pay if you want to purchase the car at the end.
If you want to turn it in, the leasing company (not the dealership) assesses any charges.
The dealer is simply a drop-off point, they aren't "rebuying" the car. They may purchase it later from the leasing company or bank, but any and all punitive charges come from the entity that leased the car, not the dealership.
Leasing is great for people who want a new car every few years and want to stay under warranty. You get the same experience of driving the car as someone who pays cash or who is financed for five years. I like to modify my cars so I don't lease, I buy but it is a great option for my wife.
yea your borrowing the car aswell as the money makes no sence to me unless you get a high end car for bussiness and can write it off. i would not lease and everyday car it's cheaper to buy it. and in a lease they want the max insurance
Yes. We do lease 1 car.
I don't tie up my savings and invest in a bond and make $$.
If the car gets hit/ totaled the car and the lease go away.
Hail storm damage, insurance fixes it and I move on.
Carfax when selling? Don't care.
Sudden acceleration or big SUV and the value plummets?
Don't care. It will be going back soon.
AND
Yes we do own a car. A 2005 Thunderbird with under 3K miles and so the car has depreciated some; lost investment interest at roughly $1.600/ per year and the cost to maintain it out of warranty.
We used to own and keep them during their warranty period then trad in.
The numbers worked out the same for us whether buy or lease except now I don't deal with trading in and what the value is.
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