Im thinking about leasing a car for 3 years for around 350-$400/month. SUV type. but also considering buying an older SUV for around 8-10k.
Im thinking about leasing a car for 3 years for around 350-$400/month. SUV type. but also considering buying an older SUV for around 8-10k.
I've heard it makes more sense to lease if you feel the need for a new ride every 2-3 years. Leases also more plausible if you don't drive a lot...don't want to incur the mileage charges for going over on a lease.
My wife and I both lease vehicles and love it. We are in a solid financial situation where "renting" cars isn't a major loss. If you can do it, go for it. If you aren't saving money every month than you might want to get a car, pay it off, and put the extra money into savings.
student wrote:
Im thinking about leasing a car for 3 years for around 350-$400/month. SUV type. but also considering buying an older SUV for around 8-10k.
it depends on the car, but generally you are renting and will own nothing at the end. It will rarely make sense to buy out the lease - I actually think it never will, but, you'd have to do the math.
The time to lease is if it's a company car and you are writing off the lease payments as a business expense and need a new car ever three years. Otherwise, unless you can afford to rent cars (and have nothing to show for it at the end) buy used.
Buying new is also rarely a sound investment as the intimidate depreciation value will always result in a loss over simply buying a used car. do you research and buy a used car that rates well.
$400 is a lot if you are a student. Especially after a down payment. Do you need a SUV? I have a Prius with a hatchback and I can fit everything I need in it including my bike with room to spare. My Prius is a lease since I needed a co-signer. I intend to buy when the lease is up. 2500 down. 260 a month. There are deals too with leasing. They may give you an extra 1000 towards a lease.
if you are just looking for transportation, buying a quality second car is the way to go. I've leased and bought, when you lease you will have the mileage cap but you can usually get the dealer to cover that if you lease again from the same place. I just leased a 2015 chev Silverado rally 2 edition, love it!
I bet you have a sweet fixie and a scruffy beard
ps. why do you need to drive your car around?
if you cared about the earth, you would only ride your bike
If you don't drive alot of miles, and want a car to "be seen" it in, then leasing is a good idea.
NEVER!
It never makes sense financially. Cars these days last 10 years or more. I'm still driving one I bought new 15 years ago.
Just do the math. It is never a smart move financially. It's only for people who want to impress others with their new car every 3 years.
It makes more sense than buying if you want to get a car you can't actually afford. Don't lease, you might as well light money on fire.
But if you do lease, don't put any money down. It's unnecessary on a lease and don't let the dealer tell you differently.
When it's cheaper.
I bought a used Honda Pilot for a great price and owned it for 6 years. When I sold it, I did the math and figured out that it had cost me (including repairs) around $350 a month (even factoring in the money I got back by selling it). I noticed the local dealership was leasing brand new Honda Pilots for $270 a month. So I figured, why the hell would I own? With this deal, it's cheaper to lease, and every 3 years I get a brand new one so I never have to deal with the hassle of repairs, new tires, etc.
There are websites that people offer others to take over their car lease. Has anyone tried this?
A lot of people responding are painting with a broad brush.
When does it make sense to lease? It depends on a multitude of factors that could never be covered in a single post.
Leasing might make sense depending on incentives (federal tax, state tax, factory, dealer, financing, etc.)
Leasing makes sense if you value driving a new car. People "waste" money on tons of things. Fancy dinners, hobbies, etc. Why is it "wrong" to splurge on a new car lease compared to the other wasteful uses of money? And people discount the value of driving a new car. Several new cars have a bunch of safety features that older cars don't have.
And depending on how a dealer calculates the residual value, a lease might make sense, because they don't anticipate the future well. Most fuel-efficient leases that ended when gas prices were peaked ~6 years ago were actually worth a lot more than their residual value. So, you could buy them out and "win". At the same time, if the residual value was lower, you can dump it on the dealer. There are some built-in fees that help the dealer accept this risk, but it doesn't mean there aren't occasions where the dealer is wrong and you can carve out a better deal for yourself than if you had purchased.
If you change your car often, like the idea of driving a new car and can afford the deposit and monthlies, leasing might be the right idea.
I'm 2 months into a 24 month lease on a 2015 Golf R and I'm thoroughly enjoying it. I did the math and pulled the trigger. What helped was that I managed to get a fantastic deal on the Golf R but I did see some great deals on more economical cars too. I'm on a 10k per year mileage deal with 7p ( in the UK) excess mileage charge. I fully expect to go over my allowance but the charges are so low, I'm not too bothered. It would have been way more expensive to sign up to a 12k/15k deal.
Dial it up wrote:
Don't lease, you might as well light money on fire.
It's blanket statements like this that shows how much of a fuking retard you really are.
You might want to mention the upfront money due on signing. I would guess at least 2500. You are fooling yourself if you think you only pay 270. for a new car.
If you want to save money buy a used car for 5,000.
jack ass of all trades wrote:
Dial it up wrote:Don't lease, you might as well light money on fire.
It's blanket statements like this that shows how much of a fuking retard you really are.
Whatever you poor bast*rd, lease away.
2 x Around wrote:
You might want to mention the upfront money due on signing. I would guess at least 2500. You are fooling yourself if you think you only pay 270. for a new car.
If you want to save money buy a used car for 5,000.
If you want to compare lease deals, add the deposit to the monthlies and divide by the number of months in the lease.
You can usually negotiate a higher/lower deposit, depending on what suits.
Leasing is not complicated.
This might be a little of the subject, but I've been hearing and reading a lot about formal car sharing arrangements being the wave of the future. Its still not clear to me exactly how it would work. But in principal it makes a lot of sense. The great thing about it is that you could drive a hybrid or all electric vehicle around a city. But then if you go on a road trip you can go get a conventional car. Or if you need to haul stuff you can go get a truck.
The potential problem is that the bulk of Americans still want control over their cars. So if you are perpetually obligated to return a car it could be more of a hassle than what its worth. But I know at least one auto manufacturer - Ford - is seriously looking to push this idea. And Silicon Valley love the idea as well. That makes for a serious power block which could make car sharing widespread.