To lease or not to lease a car in Delaware? (insurance, to buy)

[Mr_Geek]

My lease isn't any more expensive than buying. I'm leasing a $20,000 car for 3 years at $200/month with 0 down. So after 3 years I'd have paid $7,200. At the end of my lease I have the option of purchasing the car for $12,800. So total if I lease for 3 years then buy = $20,000. Just gotta do the math when you lease to see if it works.

[sirtiger]

Originally Posted by Mr_Geek

My lease isn't any more expensive than buying.

that always depend on the deal....how much you paid for the car or what is the deal on the lease. Dealers are throwing dirt cheap lease deals for outgoing 2015 model now....its probably cheaper to buy. Just a educated guess.

[bpollen]

Originally Posted by sirtiger

not always. Everyone is different. This sub forum loves to preach buying used cars in cash. There is no one size fit all.

As noted, I paid cash for my car over 10 years ago. The car is not worth a lot today despite very low mileage. I can afford to pay cash all over again but leasing works for me since I drive very little and keep my car garaged in great shape. I made money from buying out a lease & selling it once...and yes, I consider myself financial savvy

Yes, always. Leasing costs more for individuals in the long run. It saves money up front, and costs more at the end.

And that's a cold hard fact.

The thread isn't about paying cash for used cars. It's about leasing.

I'll put it this way: Are dealers pushing leases? You know why they are? It's not because they want you to come back. Nope. It's because the dealership makes more money on a lease than a sale.

[bpollen]

Originally Posted by sirtiger

that always depend on the deal....how much you paid for the car or what is the deal on the lease. Dealers are throwing dirt cheap lease deals for outgoing 2015 model now....its probably cheaper to buy. Just a educated guess.

It's always cheaper to buy, in the long run, unless you pay waaay too much to buy a car.

[sirtiger]

Originally Posted by bpollen

Yes, always. Leasing costs more for individuals in the long run. It saves money up front, and costs more at the end.

Originally Posted by bpollen

It's always cheaper to buy, in the long run, unless you pay waaay too much to buy a car.

typical narrow view of the leasing world. Keep on preaching

I assure you my 10+yr old car I paid all cash brand new didn't save me in the long run. I just keep on fixing all the minor stuff with not a lot of resale on it.

[bpollen]

Originally Posted by Mr_Geek

My lease isn't any more expensive than buying. I'm leasing a $20,000 car for 3 years at $200/month with 0 down. So after 3 years I'd have paid $7,200. At the end of my lease I have the option of purchasing the car for $12,800. So total if I lease for 3 years then buy = $20,000. Just gotta do the math when you lease to see if it works.

Yep. At the end of three years, what do you have? Nothing. (An option to buy a used car is always available to everyone. That has nothing to do with the lease. Except in the lessee's case, he has los the ability to cost shop and set his own price. The price of the car was set when the lease began, which may no longer be the right price several years down the road, esp if it's a gas guzzler and gas prices have risen...or vice versa.)

Don't let the low lease payments fool you. You are paying for a higher finance rate, which does not go toward paying for the value of the car, since it's not a loan. That's why at the end of several years, when the car would have been paid off if you were buying, it's made just a fraction of a dent in the initial sales price of the car (which was set without your negotiating a great deal). Then there are fees and such tacked on. If you don't re-lease from that dealer, or buy the car you leased, it's likely you'll be hit with "extra wear and tear" charges (they won't charge you these, if you re-lease, though).

Consumer Reports:

Does it make sense to lease?
The financial workings of leasing are so confusing that people don’t realize that leasing invariably costs more than an equivalent loan. And even if they did, the extra cost is difficult to calculate. Still, many people can’t afford the higher payments of a typical loan, at least not without putting a substantial amount down. If payments are an issue, consider buying a lower-cost vehicle or a reliable used car.

Opting for a longer-term loan of, for example, six years, could result in roughly the same low monthly payments as a three-year lease. But longer loans make it easier to get “upside down” on your loan, where you owe more than the vehicle is worth. So, if you decide to get rid of the car early on or if it’s destroyed or stolen—the trade-in, resale, or insurance value likely will be less than you still owe on the loan. Indeed, if you want to drive a new car every cou*ple of years, taking out a long-term loan but trading in early will leave you hav*ing paid so much in finance charges compared to principal, that you might as well have leased. If you can’t pay off the difference on an upside-down loan, you can often roll the amount you still owe into the new loan. You end up financing both the new car and the remainder of your old car.

If you decide on a long-term loan, hold on to the vehicle until it’s paid off. If low monthly payments and the opportunity to drive a new vehicle every few years with little hassle are worth the extra cost, consider leasing. Be sure, however, that you can live with all the limitations on mileage, wear and tear, vehicle modifications, and the like. Finally, keep in mind that you should be able to afford the lease for the entire period, since the early termin*ation penalties can be costly.

Like I said in an earlier post, people often lease when they want to drive a car they can't really afford, or if they're wealthy and want to always be driving a newish car. They will always have a car note, but since they're wealthy, they're fine w/that.

[sirtiger]

the whole lease vs buy in this forum as old as it gets. Again, there is no one size fits all.

[Mary2014]

Originally Posted by Rynldsbr

Back to the original question. Registration for a lease will be the same as registration for a vehicle you buy. A quick review shows, as others mentioned, the fee referenced in DE is for vehicles brought in from out of state. A vehicle purchased or leased in the state will pay the same fees regardless of the method of acquisition. It looks like DE registration is $40 which is actually pretty low compared to many.

The $40 fee is a registration fee in DE, but, the OP was asking about the fee when you bring an out of state vehicle into DE and re register/ get new title registered in DE. That fee (which is in addition to the $40 fee) is about 4% of the book value of the vehicle. This 4% fee applies only to out of state vehicles being brought into DE. If you buy the vehicle in DE this 4% fee does not apply.

[LeagleEagleDFW]

I'm sure everyone contributing to this thread will be unbiased, fair, and open-minded.

[Electrician4you]

Originally Posted by LeagleEagleDFW

I'm sure everyone contributing to this thread will be unbiased, fair, and open-minded.

Of course.