Lease or own? (luxury car, SUV, best, mileage)

[mpope409]

I have recently began to wonder if I would be interested in leasing, but I'm very uncertain about which way to go, so I was hoping to hear from you users about your experiences and what you do or don't suggest.

[Bummer]

Originally Posted by mpope409

I have recently began to wonder if I would be interested in leasing, but I'm very uncertain about which way to go, so I was hoping to hear from you users about your experiences and what you do or don't suggest.

Good question, mpope.

A very wise, as well as very wealthy, Financial Advisor told me the primary reason to lease a vehicle nowadays is so you are able to drive more vehicle than you can actually afford. He did add a footnote that there may be an exception due to a very few professions.

[Rita Mordio]

They say that your car is an extension of yourself. Some people don't want to settle with an economy car (Like my Focus!) they can afford - so they lease to drive a vehicle that would normally be way out of their budget (like an SUV).

Leasing is silly and a huge waste of money. If you can't afford the financing of a vehicle, don't get it. Get something within your budget, pay it off - and use it as a trade-in.

I've paid off two vehicles. An SUV and a car. And I'm only 20. If I really felt the need to get an "ego booster" vehicle, I could trade both in easily. I won't though. I'm kinda happy with my two babies.

[pennquaker09]

I understand that some people feel that they need to lease, but I think it's idiotic. Now, I will admit that I've never a bought a car, but I'm getting ready to and my partner and I are just paying for it in full. And I suspect that we will always pay for our cars in full. I don't ever want a car payment.

And since it's the end of the year, now is one of the best times to buy a car. We went to Mercedes, Lexus, Infiniti, and Cadillac and they were all offering incentives (including leasing).

I personally know someone that is leasing a Toyota Sequoia and I think they pay like 700 a month. That's completely ridiculous.

[Greatday]

It depends on your situation.

If the car is strictly for personal use, and you tend to drive a lot of miles, then leasing is not for you. Leasing limits your mileage and it can cost you a lot if you exceed those miles.

On the other hand, if the car is for business, then leasing may be the way to go - little up front costs, the entire lease payment may be deductible and any excess mileage costs are a write off.

[Bummer]

Very valid point, Greatday

However, the "write off" advantages has diminished over the years while the penalties has increased.

[mpope409]

Originally Posted by Greatday

If the car is strictly for personal use, and you tend to drive a lot of miles, then leasing is not for you. Leasing limits your mileage and it can cost you a lot if you exceed those miles.

That I have heard about. Fortunately for me, I usually do as less driving as possible, and it's rare that I travel long distances by car.

Right now, the only thing that's really holding my interest is not having to keep the same car for years and years. I'm not going to lie about the fact that I like new cars and the new technology that comes with them, but I just wanted to hear the opinions of others that would help me decide if it's really worth it or not.

[kanatastar]

I have thought about leasing for a while as well. The thought of having a new car every 2 or 3 years is a great thought. There are also a lot of dealers that will add in maintenance and oil changes to your monthly payment so that if something comes up that needs to be taken care of on your leased car (oil changes, or any other thing that your maintenance fee would cover) you won't technically have to pay out of pocket.

I personally wouldn't go that route if I were to lease. I would have a shorter lease (depending on the payments and miles) and trade it in before any major maintenance needed to be done.

With knowing that I am going to get more money if I were to sell my car privately, I am going to sell the car (hoping that I can get $5000) and use that money as a down payment on a new purchase. There's no sense of putting that kind of money done on a lease...it would basically be throwing money away.

Not only that, but if you buy a car that appreciates instead of depreciates, you are going to get screwed when it comes time to turn in the vehicle...meaning paying the difference in value.

Hope this helps!

[mpope409]

I'm really unstable right now because so far no one has recommended it.

[Nashcash23]

Originally Posted by mpope409

I'm really unstable right now because so far no one has recommended it.

I lease my cars and I absolutely love it! I enjoy having a new car every two or three years. One of the advantages of me leasing is that I don't have as big a car note as I would if I had financed the car. I am currently leasing a 2008 Nissan Armada LE and I am also about to lease a 2008 Nissan Versa as well to save a little on gas. To me, leasing is fun. I love that nice, new car smell and I never have to worry about my cars breaking down because they are always new. Another thing I do not have to worrry about is not liking the vehicle anymore. If I don't like the vehicle any more all I have to do is wait till the lease is over. One thing that you should avoid when leasing is long lease terms. By long, I mean those that last for more than three years. If you lease a car for four years, then you might as well buy it. I recommend a two or three year lease. Also, the better the lease rates you pay usually depend on the brand of the car. Cars with higher residual values usually have better lease rates than those with lower residual values. Cars such as Honda, Toyota, Lexus, Mercedes, BMW, and Land Rover typically have the highest residual values, while cars such as Ford, Chrysler, Dodge, Hyundai, Kia, Jeep, Suzuki, and all other brands have the lowest residual values. Have you ever noticed how you see all those BMW 3 Series for those really cheap lease rates on television and advertisements? That is because they have higher residual values, which means that the car manufactuer will not want you to pay as much for the monthly lease rate. When you lease a car, you are paying for the depreciation of the car. Cars like Honda, Toyota, and the luxury cars do not depreciate as fast as, for an example, a Ford Taurus would or a Mitsubishi Galant would. Since you pay for the depreciation of the car, the one with that depreciates in value the quickest will be the one that the manufactuer wants you to pay the highest rate for. The car that has the least depreciation value, however, will be the one that you pay the least amount of money a month for. In other words, to find the best lease rate, find the car with the slowest depreciation rate and you will be sure to find a good deal that you won't regret afterwords.