- Thread starter Spudm
- Start date
That depends on the individual. I have a BIL who lives in the county seat who leases. He winds up parking the leased car and driving their other one that they own every year because he runs out of miles. I don't think leasing for someone in a rural county is going to be a good deal for most people. Even living in town but having to drive the extra miles with family and friends living 20-30 miles away really eats into the allowed mileage. Now someone living in a large city area with family close or too far for a 2 day weekend trip leasing may be the way to go.
Rick
Brendon-KS
Well-known Member
- Location
- Goessel, KS
My opinion is that leasing is usually just a ploy to get people into vehicles they can't afford in the first place. Just my 2 cents. If a person feels the need to always be driving a current-model vehicle and would buy new every two or three years anyway it might be cheaper but to me this in itself makes no financial sense at all, regardless of which option you choose.
accumulator
Member
Having written leases for years, I would say it's only good for the leasing company. Buy it by all means.
Pair-a-dice farm
Well-known Member
I guess your meaning a long term lease? I never thought they were as good as buying. However if I'm taking a long trip I usually rent a car. I can get a nearly new one for about $50 a day unlimited mileage and I don't have to worry about my old clunker breaking down. For anything less than a week it works for me. A few years ago I rented a new SUV for a little over $500 for 2 weeks. I put over 6000 miles on it. I couldn't drive my own for that.
rustred
Well-known Member
don't even get mixed up in a lease. when you return it you will be charged for the windshield, and any extra mileage on it, and so on. basically any damage will be charged to you. for the average person it is a joke. only good if your running a company. and in the end you own NOTHING.
Geo-TH,In
Well-known Member
If you have a business I think there is a tax advantage for leasing, you can write off as an expense. If it's for personal, get a new last years' model, pay cash, get an extended warranty if you are worried about repairs. Find a dealer who wants to deal. Take quotes form one dealer to the next. Ask, what's the out the door price, including taxes, prep, everything.
I leased company vehicles back when I could deduct the lease over three years with a mileage limit so I leased for three years. I had to pay for the extra mileage above the limit when I turned the vehicle in. I quit when they changed it to five or seven I bought outright. I could never justify a lease on a new car that could not be used as a business expense. A constant payment with no end for just personal use long term use.
Brad Buchanan
Member
If you are using it for business it pays to lease. You can write the payments as expenses.
For private use a lease is usually not a good deal unless your credit rating is nonexistent or really low.
Brad
For private use a lease is usually not a good deal unless your credit rating is nonexistent or really low.
Brad
Bob Harvey
Well-known Member
If you take into account the long term warranties and service packages some Companies offer, there is no maintenance costs for quite a while. By then you could do it again. my $.02
Bruce from Can.
Well-known Member
- Location
- Woodville, Ontario, Canada
If I buy new , I will keep it and I, or one of my family will drive to the end of its days. Used cars are a constant drain just like new car payments. But car payments come on a schedule , and you can plan for them. And new cars come with some warranty , used cars on the other hand are your baby , and can start to need repairs any time after you by them , all on your dime. Also new car finance rates can be 0% , but used car rates are always higher. I have had both, if you can buy new , go for it . Leased cars are not a good deal for a private car.
Well, I'm certainly in the minority, but we just leased our first vehicle last May. We specified our mileage ahead of time and it is written in our agreement. I already know what my buy out
price is at the end of the lease if I so choose. My buy out price is $19,500 on a vehicle that will be two years old with 40,000 or less miles on it. I'll know the history of the vehicle from day one. A comparable two year old vehicle with 40,000 miles was $28,000+ when we were looking to buy one. We leased it from a local dealer who many of our friends have dealt with. I called several of them before making the deal, and all highly recommended the transaction. Maybe when it's over I'll say never again, but as of now I'm satisfied. Yes I have a monthly payment of $300, but I pay nothing else. Vehicle is under complete warranty, I don't pay for any maintenance, I don't even pay for car washes. It is all part of my lease and customer benefit package. I don't know if it really makes any difference or not, but we leased this vehicle on May 31st about a half hour before closing time. The sales manager really wanted the deal for his monthly quota. I guess time will tell if I'd do this again or not.........
price is at the end of the lease if I so choose. My buy out price is $19,500 on a vehicle that will be two years old with 40,000 or less miles on it. I'll know the history of the vehicle from day one. A comparable two year old vehicle with 40,000 miles was $28,000+ when we were looking to buy one. We leased it from a local dealer who many of our friends have dealt with. I called several of them before making the deal, and all highly recommended the transaction. Maybe when it's over I'll say never again, but as of now I'm satisfied. Yes I have a monthly payment of $300, but I pay nothing else. Vehicle is under complete warranty, I don't pay for any maintenance, I don't even pay for car washes. It is all part of my lease and customer benefit package. I don't know if it really makes any difference or not, but we leased this vehicle on May 31st about a half hour before closing time. The sales manager really wanted the deal for his monthly quota. I guess time will tell if I'd do this again or not.........
Dave H (MI)
Well-known Member
Back in the day, I only purchased cars. Modern cars I do not care to own. Expensive to repair, too many things to go wrong. I buy used cars for cash and if they break I do a cost/benefit analysis and either fix it or scrap it. I have one new compact car that I keep around. I lease them for a good rate, two year leases. I never go to the dealership. They find me a new one and bring it to the house and take the old one back. Never pay for repairs...just one flat, fairly low monthly payment.
rustred
Well-known Member
ya, they tried telling me the high cost of maintenance and repair so lease is better. I told them that's why I am buying new and if it don't last 10 years then the vehicle is no dam good. why would I buy a vehicle that is only good for 3 years as the lease is good for. then when it comes time to buy it out the lease vehicle is not worth the money they want on the buy out. its way higher on the buy out. better off just keep making reg. payments till loan is payed.
I don't know if this makes sense this day and age, however I worked at a GM dealer a looong time ago and a business customer came in to return and lease a new car. The dealer / sales person tried to get them to buy instead of lease.
This was a small AG/ related family owned business, Dealer showed them they could buy outright and lease to the business and "make " money. Something about tax deductions and all that. At the end of the lease still had the car and deducted all expenses, trade in for another and do it all over again. I don't know if this will work on today's tax laws or not.
This was a small AG/ related family owned business, Dealer showed them they could buy outright and lease to the business and "make " money. Something about tax deductions and all that. At the end of the lease still had the car and deducted all expenses, trade in for another and do it all over again. I don't know if this will work on today's tax laws or not.
Goose
Well-known Member
I've never been a big fan of leases for private individuals, I've always felt a lease worked better for business vehicles that could be a tax write-off.
That being said, our daughter leases her car and for her it makes sense. Young single gal, never has to worry about repairs or breakdowns. driving a new car helps her image in her job, etc.
That being said, our daughter leases her car and for her it makes sense. Young single gal, never has to worry about repairs or breakdowns. driving a new car helps her image in her job, etc.
notjustair
Well-known Member
Back when I owned the bus company I personally owned the buses and the business leased them from me. My accountant said that was the way to go.
Brendon Warren
Well-known Member
Ifn you need the tax write off and can make it work for you lease. I'm lucky if I drive enough to change oil twice a year. I drive used, if you rack up miles it might be worth it.
I lease and would never buy. sales tax saving is huge! I always purchase the vehicle at the end of the lease and sell it. If your state allows that without paying sale tax, it's a no brainer. other little benefits like always leasing the top of the line model instead of stripped down. first lesson I learned was don't add anything to vehicle, buy the model with everything installed. I had heated seats added once; all on my dime!
jon f mn
Well-known Member
I leased our new car about 16 months ago. It's a 2 year lease. Payments are quite a bit less on the lease than to purchase, but you never own. Haven't decided what we will do in the fall when the lease is up. Having a nice new vehicle is nice, but having one with no payments would be nice too.
Most of the responses you're going to get here are going to say it's a bad deal, financially. And I think those responses are correct. But if finances aren't your top priority then the correct answer to the lease/buy question might be different. My wife has a friend who wants a new car every 2-3 years, and she's willing to pay for it. So for her the answer is: lease. YMMY...
Depending on your use. So please one of you anti -leasers tell me how my daughter is getting hosed.
She has a brand new Chrysler 200. pays 239 per month. Has zero maintenance costs,has 11k per year mileage allowance, (she drives about 8k).
At the end of 2 years she tosses them the keys and walks away.
Lease would never work for me,because I drive to hard and to far. Perfect for some one whose mileage is limited and does not want to deal with maintenance costs.
Like almost everything in life there is no pat answer,no black and white!
She has a brand new Chrysler 200. pays 239 per month. Has zero maintenance costs,has 11k per year mileage allowance, (she drives about 8k).
At the end of 2 years she tosses them the keys and walks away.
Lease would never work for me,because I drive to hard and to far. Perfect for some one whose mileage is limited and does not want to deal with maintenance costs.
Like almost everything in life there is no pat answer,no black and white!
Dean Olson
Well-known Member
Leasing costs more money long term. IF driving a new car every few years is important to you and you can afford it more power to you. Call that what it is, a hobby.
For me a vehicle is a tool, a necessary evil. I buy new and drive them till it wears out. Currently driving a 06 Dodge with 214k miles. Also have a 05 Peterbilt w 730k miles. Both have been pd for for a long time. So far repairs have been far less than payments. I could buy slightly used but like the new car experience once in a while.
For me a vehicle is a tool, a necessary evil. I buy new and drive them till it wears out. Currently driving a 06 Dodge with 214k miles. Also have a 05 Peterbilt w 730k miles. Both have been pd for for a long time. So far repairs have been far less than payments. I could buy slightly used but like the new car experience once in a while.
I think leasing is good if you want a new vehicle every other year and do not drive a lot. I drive about 35K per year, so it does not make sense for me.
I think in business the only advantage to leasing is if you do not have the cash to purchase. I always finance so I get the cash back, then either pay it off the first year and take the 179 deduction, or finance it for the depreciation period so they line up.
I think in business the only advantage to leasing is if you do not have the cash to purchase. I always finance so I get the cash back, then either pay it off the first year and take the 179 deduction, or finance it for the depreciation period so they line up.
Eldon (WA)
Well-known Member
Don't forget those "up front" fees....the ones I see are ridiculous!
Blackhole49
Well-known Member
- Location
- White Lake MI
Driving that type of mileage, that car will last 20 years (except it's a Chrysler). So tell me, who will be ahead after 20 years, someone paying 239 a month or someone with 14 years of ZERO payments?
jimg.allentown
Well-known Member
Leasing is a losing deal when the final tally is in. How do you think leasing companies make their money??? They buy the car, you pay it off, and then the residual is clear profit for them.
First let me comment on a few "myths" about leasing:
1) Leasing is advantageous for BUSINESSES because they can write of the ENTIRE expense. If a business purchases, tax laws require them to depreciate the cost over time.
2) Up front costs - usually a couple of thousand or more. This "buys down" the cost of the financing, and defrays some of the initial loss of value.
3) Maintenance. Many leases will require the lessee to pay for maintenance items like oil changes and brakes that are not covered by warranty. They may also require the lessee to pay for any warranty deductibles. Minor parking lot dings, chips in the windshield, and the like will usually be billed to the lessee.
4) Residual value. This is a predetermined number that is the projected value of the vehicle at the end of the lease. In the end, it is an imaginary number only relevant to the lessee that wants to purchase the vehicle at the end of the lease.
5) Total cost of the lease: Add up the total of payments, up front cost, maintenance cost (as applicable) and any other fees. This is what the lease really cost. Does it add up to the value of the car as new? Now add in the ACTUAL value of the car at the end of the lease. Keep in mind that leasing companies get huge up front discounts on the cars they buy.
6) Leasing does allow a customer to upgrade to a car that they could not otherwise afford. For example, if a customer can afford to buy a new Buick, a lease may allow that customer to upgrade to a Cadillac for a comparable payment. So, if you are on a Focus budget, leasing may allow you to get the Taurus instead.
In the end, you make the choice that makes the most sense to you.
First let me comment on a few "myths" about leasing:
1) Leasing is advantageous for BUSINESSES because they can write of the ENTIRE expense. If a business purchases, tax laws require them to depreciate the cost over time.
2) Up front costs - usually a couple of thousand or more. This "buys down" the cost of the financing, and defrays some of the initial loss of value.
3) Maintenance. Many leases will require the lessee to pay for maintenance items like oil changes and brakes that are not covered by warranty. They may also require the lessee to pay for any warranty deductibles. Minor parking lot dings, chips in the windshield, and the like will usually be billed to the lessee.
4) Residual value. This is a predetermined number that is the projected value of the vehicle at the end of the lease. In the end, it is an imaginary number only relevant to the lessee that wants to purchase the vehicle at the end of the lease.
5) Total cost of the lease: Add up the total of payments, up front cost, maintenance cost (as applicable) and any other fees. This is what the lease really cost. Does it add up to the value of the car as new? Now add in the ACTUAL value of the car at the end of the lease. Keep in mind that leasing companies get huge up front discounts on the cars they buy.
6) Leasing does allow a customer to upgrade to a car that they could not otherwise afford. For example, if a customer can afford to buy a new Buick, a lease may allow that customer to upgrade to a Cadillac for a comparable payment. So, if you are on a Focus budget, leasing may allow you to get the Taurus instead.
In the end, you make the choice that makes the most sense to you.
I'd say no vehicle is an investment, it's a tool to move yourself and goods around. We buy new because we have a 90 mile round trip a day to work (two people) and we value the peace of mind (and our employer appreciates us being there every day). We also get our money out of them, usually driving a car for up to about 160,000 miles. New works for us in many ways.
Worldpowerlabs
Member
My own personal philosophy (not trying to impose this on anyone else -- just on opinion): buy a good, used car outright. Pick a common model with relatively inexpensive parts and a reputation for solid reliability. It need not be only two or 3 years old. Five or even 8 is okay.
Take a small portion of the money you would otherwise spend on payments and put aside for potential repairs and/or eventual replacement. If no repairs are needed, then you're that much further ahead. My attitude is that ANYTHING mechanical will break, given enough time, and I accept that and will deal with it when it happens.
I've owned nothing BUT used cars, and they've all been very good to me. My 1991 Nissan was completely reliable until a deer killed it at 198k miles. My 1997 Lexus has NEVER broken down or needed ANY unplanned maintenance. Another is a 1999 Ford. Never broken down, no major repairs ever needed. Both have well over 100k miles on them. My wife has a 1998 Honda. Blew a headgasket at 200k miles and had a distributor fail at 235k... repairs were STILL cheaper than a few months' payments on a new car.
Take a small portion of the money you would otherwise spend on payments and put aside for potential repairs and/or eventual replacement. If no repairs are needed, then you're that much further ahead. My attitude is that ANYTHING mechanical will break, given enough time, and I accept that and will deal with it when it happens.
I've owned nothing BUT used cars, and they've all been very good to me. My 1991 Nissan was completely reliable until a deer killed it at 198k miles. My 1997 Lexus has NEVER broken down or needed ANY unplanned maintenance. Another is a 1999 Ford. Never broken down, no major repairs ever needed. Both have well over 100k miles on them. My wife has a 1998 Honda. Blew a headgasket at 200k miles and had a distributor fail at 235k... repairs were STILL cheaper than a few months' payments on a new car.
You're assuming that your #1 priority (cost of ownership) is everyone's #1 priority. May hard to believe, but it's not so. Some people get duped by leases thinking they're saving money. But there are some people who want a new car every 2-3 years and are willing to pay for it. Since that's their priority, *they* will be ahead in 20 years, 'cause they got exactly what they wanted.
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