When Does Leasing Make Sense? Pros and Cons? (lease, vehicle, best)
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I don't know a thing about leasing...other than many people don't think it's all that smart financially.
So what are your thoughts on the pros and cons of leasing? When DOES it make sense?
((I ask because a friend of mine is leasing a car (a Subaru Forester). I didn't ask about price or payments. She says she doesn't go over on mileage. But her work commute alone, 4 days a week, is 45 miles round trip.))
Personally, I buy cars, pay them off, and keep them until the doors fall off. I just alway had heard that you can get scre wed financially leasing a car.....
I don't know a thing about leasing...other than many people don't think it's all that smart financially.
So what are your thoughts on the pros and cons of leasing? When DOES it make sense?
((I ask because a friend of mine is leasing a car (a Subaru Forester). I didn't ask about price or payments. She says she doesn't go over on mileage. But her work commute alone, 4 days a week, is 45 miles round trip.))
Personally, I buy cars, pay them off, and keep them until the doors fall off. I just alway had heard that you can get scre wed financially leasing a car.....
The short answer is, a lease often makes sense if you can find one that matches the time and mileage you intend to keep the car. Otherwise buy.
If you keep cars short terms, want a new car, don't want to worry about maintenance, always want a car under factory warranty, and maybe drive very few miles, then leasing might be worth it for someone.
If you want to keep a car 10 years, then buy it...preferable 1-2 years old after the big depreciation hit.
As much as they say leasing isn't smart financially, what's worse is to finance a brand new car and then go trade it in 3-4 years later before paid off and finance another car...and keep doing that. I'd rather see a person lease a car vs doing that.
Boston Mike says it very well, and I totally agree.
We lease one car, own the other. They are, in fact, identical cars except for the color (leased one in August, purchased the next in October). We will keep the car we own until it reaches 100K miles or more, and get a new lease every three years.
Why? We are retired and don't drive more than 10K miles per year (often less). We like having one car that is in nearly perfect condition, always under warranty. The leased vehicle is a low payment because we chose a vehicle that had a high residual and leased during a big manufacturer sale. If one of us croaked, the remaining spouse would probably sell the owned car and continue to keep one leased vehicle.
When I was single, I nearly always leased. I didn't have somebody else's car for back up if mine was in the shop and I didn't want unexpected repair bills. The thing was always under warranty and I don't think I ever had a car breakdown in 15+ years of leasing. That's reassuring to a single woman. And I recognize I was paying for the privilege of reliability and a new car every three years.
Never do a cap reduction on a lease. Waste of money - it's prepaying for services.
I lease as I like to have new cars every 2-3 years. If you like to keep yours till the doors fall off, then purchased a preowned one about 1-2 years old.
OK thanks...I'm definitely a buy, and keep it -- in tip top shape until the doors fall off -- kind of person.
I don't think I ever had a car breakdown in 30+ years of buying new and owning.
It's interesting to hear when people think leasing makes sense for them.
To each his/her own....we all have our thing.....
And I guess the idea of not having a payment for DECADES ....even if not necessarily always driving a new car.... is my thing.
I never lease because my kids spill crap in my car, and sometimes my dogs puke. Even though I get it shampooed often, I can only imagine they will ding me big time on that. I don't want to feel like I am borrowing something.
A lease is never a good option for ordinary people that want a new car. Most, don't even know what they are actually paying for the car. Most just go into new car dealership and state "I can only afford $xxx per month". Absolutely wrong way. There are so many hidden fees. And most don't actually read all of the lease documents. And most even if they read the document don't understand what they are reading. I know of one dealership that charges the sales tax twice hidden away in the lease contract.
Best. If you can't afford a new car then get a used car.
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