**** CARS: LEASE versus BUY ****
 

I soon will be in the market for a new car...I'm looking for something nice but not looking to spend lots of $$ on DP and maintenance.

would leasing be a better option for me?

I guess there are good arguments for both...

please convince me

Re: CARS: LEASE versus BUY
 

buy.

Re: CARS: LEASE versus BUY
 

I'll add a poll

Re: CARS: LEASE versus BUY
 

I'm not a fan of leasing and all the garbage that's entailed with it . . . technically not yours, mileage restrictions, etc.

Re: CARS: LEASE versus BUY
 

surfin, I've leased 2 cars in the past and bought my most recent one. I've got opinions about both, but it's situation dependent. PM me if you want a breakdown for both options.

Re: CARS: LEASE versus BUY
 

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PM me if you want a breakdown for both options.

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yes, that's one route. or he could just post a thread to the general forum.

bwana

Re: CARS: LEASE versus BUY
 

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PM me if you want a breakdown for both options.

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If you're going to bother typing it out in any case, why not just post it?

EDIT: whatever, I'm sure the advice won't be very good in any case.

Re: CARS: LEASE versus BUY
 

[ QUOTE ]
[ QUOTE ]
PM me if you want a breakdown for both options.

[/ QUOTE ]
If you're going to bother typing it out in any case, why not just post it?

[/ QUOTE ]

I'll copy and paste

Re: CARS: LEASE versus BUY
 

I've been in the car business for almost 5 years now, so I can offer a professional viewpoint. While this question is somewhat dependant on your needs and future plans, in general, leasing is the better option. Here's why.

1. A car is a depreciating asset. In general, you want to own things that are going to appreciate and rent (lease) things that are going to depreciate. This is why you buy your home.

2. The "garbage" that nincomepoop mentions is irrelevant. If you plan to finance the vehicle, it belongs to the bank anyway. The good thing about leasing is that the bank is taking all the risk for the future market value, yet you are still able to capitalize on a profitable future situation. If you buy, the risk (1:1) of depreciation is all yours.

3. Most manufacturers offer leasing programs that charge a lower rate of interest than is commonly available for traditional financing (buy) options.

What vehicles are you considering? Why? PM me if you want any further help. I'll answer any questions you may have.

Re: CARS: LEASE versus BUY
 

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What vehicles are you considering?

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Infinity G35
BMW 3 series
H3

a few others as well but you see where I'm going

Re: CARS: LEASE versus BUY
 

edmunds.com is your friend.

Re: CARS: LEASE versus BUY
 

[ QUOTE ]
[ QUOTE ]
PM me if you want a breakdown for both options.

[/ QUOTE ]
If you're going to bother typing it out in any case, why not just post it?

EDIT: whatever, I'm sure the advice won't be very good in any case.

[/ QUOTE ]

that's why I told him to PM me. my suggestions were only my opinions based on my previous expeiences...

Re: CARS: LEASE versus BUY
 

lol, the H3 is the gayest car on the road.

Re: CARS: LEASE versus BUY
 

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lol, the H3 is the gayest car on the road.

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always helpful

Re: CARS: LEASE versus BUY
 

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lol, the H3 is the gayest car on the road.

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Surf, I have to agree. Go with the Infiniti or BMW.

Re: **** CARS: LEASE versus BUY ****
 

buy vs lease at bankrate.com

Re: CARS: LEASE versus BUY
 

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3. Most manufacturers offer leasing programs that charge a lower rate of interest than is commonly available for traditional financing (buy) options.


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why does the interest rate really even come into play? youre dealing w/ two entirely different entities? i dont understand. why would a 5% interest rate on a lease be better when you dont own anything be better than a 6% finance when you own a $10k car at the end? you dont pay 10k in interest.

it seems most of what you wrote doesnt take into account a more critical factor such as how long someone is planning to own the car.

bwana

Re: **** CARS: LEASE versus BUY ****
 

[ QUOTE ]
I soon will be in the market for a new car...I'm looking for something nice but not looking to spend lots of $$ on DP and maintenance.

would leasing be a better option for me?

I guess there are good arguments for both...

please convince me

[/ QUOTE ]

It sounds like leasing would be better for you. Leasing allows you to purchase more car than you could otherwise afford. Basically, with a lease, all you're paying for is the part of the car that you use. Buying, you pay for the whole thing - and over a pretty short period of time (5 years is standard). Plus, by leasing you get (1) a new car every 2-4 years that won't break down and (2) is still covered by its warranty. I like the cost certainty at this point in my life.

Cars are sinkholes. The only way to really get a good value is to buy and drive it forever. Since I can't afford to buy something now I want to drive for 10 years, I leased.

Hope that helps.

PS - as someone mentioned, edmunds.com is your friend.

Re: CARS: LEASE versus BUY
 

I think a lot of it depends on how many miles you're planning on putting on the vehicle.

Re: **** CARS: LEASE versus BUY ****
 

id recommend buying a car thats going to last a minimum of 10 years for sure. toyota corolla anyone?

Re: **** CARS: LEASE versus BUY ****
 

IF your goal is minimizing costs assiciated with a car, buy a used car. If you value convenience, never having to deal with repairs, a lower monthly payment, the benefit of being able to have the latest model every 3 years, then lease.

I have leased twice in a row and really like it. The feature of always driving a car under warranty is pretty sweet.

Re: CARS: LEASE versus BUY
 

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it seems most of what you wrote doesnt take into account a more critical factor such as how long someone is planning to own the car.

[/ QUOTE ]
It sounds like you didn't read my post. I said "future plans"

The H3 is not the gayest car on the road. That is the HHR in that lavender color. 2nd is the Aztek. Third is the H3.

Buying a high line car is really -EV. You are better off leasing and using the exra cash to stake me to move up to 5/10. They depreciate faster than most other cars. Maintenance and repair costs can become astronomical as you reach higher mileages.

Above poster (bwana?) is misssing the point. Yes, after 5 years you own your 10k car. but if you lease, after 2-4 years you own the option to buy the car. If the option is better than market value then it's a good buy. If not, well that's obvious. Say at the maturity of the lease your residual on your G35 is 22k. Say the car is worth 18k. turn in the keys and the bank eats 4k. Go buy a similar one for 18k. leasing is the equivalent of the free card play.

BTW if that's how you wanna roll check out the Acura RL.

Also, edmunds.com can be your friend. Keep in mind their business model. They make money by getting you to request a quote and then selling your info to dealers. They are really [censored] towards dealers (their customers).

Re: CARS: LEASE versus BUY
 

thanks big,

you've been awesomely helpful

now if you can now teach dbaggery how to not be a tool...

Re: CARS: LEASE versus BUY
 

[ QUOTE ]
[ QUOTE ]
it seems most of what you wrote doesnt take into account a more critical factor such as how long someone is planning to own the car.

[/ QUOTE ]
It sounds like you didn't read my post. I said "future plans"

The H3 is not the gayest car on the road. That is the HHR in that lavender color. 2nd is the Aztek. Third is the H3.

Buying a high line car is really -EV. You are better off leasing and using the exra cash to stake me to move up to 5/10. They depreciate faster than most other cars. Maintenance and repair costs can become astronomical as you reach higher mileages.

Above poster (bwana?) is misssing the point. Yes, after 5 years you own your 10k car. but if you lease, after 2-4 years you own the option to buy the car. If the option is better than market value then it's a good buy. If not, well that's obvious. Say at the maturity of the lease your residual on your G35 is 22k. Say the car is worth 18k. turn in the keys and the bank eats 4k. Go buy a similar one for 18k. leasing is the equivalent of the free card play.

BTW if that's how you wanna roll check out the Acura RL.

Also, edmunds.com can be your friend. Keep in mind their business model. They make money by getting you to request a quote and then selling your info to dealers. They are really [censored] towards dealers (their customers).

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Not entirely: Although the bank does take the risk of the residual being higher than market value, it protects against this by front loading the residual percentage. So, just like a "free card" in poker, you still pay for it.

Re: CARS: LEASE versus BUY
 

do you need higher liability limits with leases?

Re: CARS: LEASE versus BUY
 

Surf - why not buy a relatively semi new "used" car. Seems to me to be the best of both worlds. You get into a car that has low miles and most of the initail keller depreciation is off.

I'm suprised more people didn't mention this option.

Re: CARS: LEASE versus BUY
 

"font loading" ??? The lessor has to balance the risk vs. the salability of the lease. If they set the residual too low, the payment is then too high and nobody signs up.

liability limits: not usually, but read the contract. BTW manufacturer leases are usually much more friendly than independent banks. Manf. finance arms exist to help sell cars. Banks exist to make $$

Re: CARS: LEASE versus BUY
 

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"font loading" ??? The lessor has to balance the risk vs. the salability of the lease. If they set the residual too low, the payment is then too high and nobody signs up.



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Yes, I think "front loading" is an appropriate term. I am not stating there is anything wrong or deceptive here, its just common sense.

Yes, a savvy consumer will not take a lease if the residual is too low. By such terms, you are paying for more of the car than you will use. However, the bank is not going to offer the general public a true freeroll (if you will). The number is set as a forcasted arbitrage against what the real market should be.

In other words, the consumer pays for this up front, thus the appropriation of the real risk is "front loaded."

In the long run, the bank is not going to lose ... it has a built in pad.

Re: CARS: LEASE versus BUY
 

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In the long run, the bank is not going to lose ... it has a built in pad.

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Call up the folks at GE Capital and ask them why they are no longer in the consumer auto leasing business.

I don't see what your point is. I never said leasing was a freeroll. Just that it was, in most cases, +EV. FWIW, YMMV, SIIHP, etc. (I've always wanted to add SIIHP to a post!)

Re: **** CARS: LEASE versus BUY ****
 

[ QUOTE ]
IF your goal is minimizing costs assiciated with a car, buy a used car. If you value convenience, never having to deal with repairs, a lower monthly payment, the benefit of being able to have the latest model every 3 years, then lease.

I have leased twice in a row and really like it. The feature of always driving a car under warranty is pretty sweet.

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Yeah, it all sounds great...unless you would prefer to not have to make a car payment every month for the rest of your life.