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I've taken great care of all my cars. I don't do a whole lot of driving. And I like to easily be able to change cars every few years. So leasing is good for me. My current car is a lease and I didn't put any money down.
As far as wear and tear. I get those types of things fixed whether I owned the car or not. A lot of people say leasing is dumb because you never own the car, but you actually have the option to buy it if you wanted.
Buying a 5 year old car with cash might look like a cheaper option, but a lot of times you have no idea what that car has been through. It could turn into a money pit over the years. With a new car, maintenance is very minimal and I like having the peace of mind that my car has never been abused.
I'm leasing.
Free maintenance. No major engine work will be required (it all comes after I turn it in).
For my situation, for your preferences, leasing is OK.
Financing would've been a horrible deal for me as my number one thing was no time in the shop/mechanics, and I know for sure I'll want to "try out" a new car in the future.
Neither is wrong, but I don't like seeing statements like "don't lease, you don't own the car" as if 1. "Owning" is everything (it's overrated in a lot of aspects) and 2. You "own" a car in any situation unless it's given to you as a gift or you pay in full in cash.
I'd say though leasing is the best deal for young professionals, the 25-35 year old age group. You get to play around with a couple of cars (that's 3 new cars over that time frame).
By the time you have kids or feel like investing elsewhere, then finance or by an old mini-van, SUV, etc etc then you get rid of car payments.
Leasing can be advantageous for you if it's being subvented through special offers from the manufacturer, usually through inflated residual percentages but also rebates or dealer cash or marketing incentives. BMW & MB are famous for this. That's why you see these luxury brands flooding the streets even in strictly middle-class suburbs.
Granted there are cheaper options like keeping your vehicle for more than 5 yrs, paying in cash or purchasing a used car. But if you're turning over a brand new car every 3 or 4 yrs, the cost differential between leasing & financing really is only a few hundred dollars--as long as you choose a model with a subsidized lease.
I would say no to a lease and if you can't afford new a car paymnet just save up $5K buy a nice 6-8 year old low mileage, well maintained certified pre-owned honda civic and then you will be debt free and own a decent car that seats 5 and gets pretty decet fuel mileage.
and in 3-4 years when you save up a bit more money for a newer car you can sell it for pretty much what you paid for it.
A "nice 6-8 year low milage" is not easy to find and in most cases will cost more then average. Same with the certified stuff. When you resell it, you lose money. There are many maintenance issues which cost a ton of money (like @ 100K miles) that you don't deal with when owning a new car. Even buying new tires, new brakes, etc is expensive.
Quote:
Originally Posted by jtur88
If the dealers are trying to sell you leasing, do you think it is a better deal for them, or for you?
Dealers usually make more money on pre-owned and certified cars than on new models. Personally, I never encountered a car dealer who "pushed" leasing.
Car dealers make more profit off of you if you lease..That should tell you something.
But. I. Don't. Care.
I don't live my life 100% on financial perspective. It's one of the many considerations I use, but the dollar is not the be and all.
It might be cheaper for me to drive to work every day, but I'll pay the money for the metro, no problem, I don't want to be stuck in traffic.
etc.
In "real" terms and "long-term" maybe I lose money*, but I like that I get to drive a new car, I find it thrilling and I'm willing to pay a premium for that. I like the option to try out a new model car in a few years, and I like the relative ease of transaction and reduced paper work vs. financing. Oh, free maintenance and no worries about engine issues or the car not starting on a winter morning.
*I'm still not convinced that financing is any better than leasing anyway. Especially as probably one is financing an older car.
I don't live my life 100% on financial perspective. It's one of the many considerations I use, but the dollar is not the be and all.
It might be cheaper for me to drive to work every day, but I'll pay the money for the metro, no problem, I don't want to be stuck in traffic.
etc.
In "real" terms and "long-term" maybe I lose money*, but I like that I get to drive a new car, I find it thrilling and I'm willing to pay a premium for that. I like the option to try out a new model car in a few years, and I like the relative ease of transaction and reduced paper work vs. financing. Oh, free maintenance and no worries about engine issues or the car not starting on a winter morning.
*I'm still not convinced that financing is any better than leasing anyway. Especially as probably one is financing an older car.
Yo ,If cost is no issue to you why did you even ask...Its just money . Maybe buy one to drive and lease another one to keep in your yard....lol Oh yea when you return the lease car they inspect it and even a few scatches will cost extra.... and heave help you if it has a shopping cart dent in it. That would cost several hundred more right then and it will be cash ...but thats the fun of leasing when the cost doesnt matter.
Downside of leasing: You lose anywhere from 2-$4000. just on your down payment. Then you pay for 2-3 years on something you wont even own at the end.
The upside: You can return it and get into something new.
I have never seen the point in leasing, I don't like giving my money away, but to each's own.
#1. I have never (nor do I ever plan to) put a down payment on a lease. You don't have to at all.
#2. No point in owning a depreciating asset...the only thing that makes buying a car smarter than leasing it is if you plan on owning it forever and/or running it into the ground.
#3. I have a 54 mile round trip commute and I still haven't been able to put 12,000 miles a year on my lease. In fact, I am returning it this week, and I have put less than 32,000 of my 38,000 allowed miles on it.
#4. Financially (maybe bc of the economy or whatever), what I wound up paying actually worked out to be almost the same as if I had bought the car and then sold it for blue book...except that I don't have the headache of trying to sell it now.
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