Lease or Buy? - Tilted Forum Project Discussion Community

jorgelito · 08-30-2006, 08:14 PM

I'm looking into getting a car soon. I have graduated from college and looking for a job. What type of vehicle I get is dependent on my salary. But I want to go ahead and start looking around I guess. I live in LA but I haven't used a car in 6 years I lived here.

I'm looking into either buying or leasing. So far, leasing options look great, i.e. - no money down $100-200 a month. 2-3 years (especially for US cars - PT Cruiser). I can't really find a downside. I figure in 2-3 years I will have more money to work with and buy a car then. What do you all think?

Deltona Couple · 08-31-2006, 04:08 AM

The biggest problem I have seen with leasing is restrictions. Some places have severe restrictions on things like mileage, maintenance requirements, insurance requirements, etc... My suggestion if you have just got out of college, and are looking for a job, wait until you get the job first. Some new jobs may require you to relocate, and if you are in a leased vehicle, you cannot relocate away from the dealer where it was leased from. These are just some of the things I have heard about from others, not personal experience, so take with a grain of salt.
Personally, I think leasing is a waste of money. I treat it as either renting a home, or buying one. Renting it, you don't have ANY ownership rights, and if you don't like it, you can't just "break lease" without severe penalties. With ownership, as long as you are smart in purchasing it, You can sell it at any time and go on.
If you chose to buy, make sure you put enough of a down payment to cover value loss when it comes off the lot, that way you won't be "upside down" on the note.

Cynthetiq · 08-31-2006, 05:23 AM

downside:

You put in money to something you don't own, it's like RENTING the car. At the end of the term you don't own anything but have put in thousands of dollars into a vehicle.

but a certified used car, look for the ones that have high resale value. You'll get a warranty and you'll own something.

BadNick · 08-31-2006, 06:43 AM

Every time I look at leasing, it seems to only be economically viable if you can write it off as a business expense; plus the restrictions mentioned by DC above never worked for me anyway.

But if you are "desperate" to have more car than you can really afford and the low upfront cash layout plays into your situation, you can do it but I wouldn't consider it economically logical.

The_Jazz · 08-31-2006, 06:47 AM

Here's a question for everyone - are there circumstances where leasing is the better option?

More details - we own two cars now, but mine is pretty much just a beater that I use to get back and forth to work. Since I really have never cared about cars beyond their ability to provide reliable transportation, it's never been an issue. However, while the car still runs well, it's starting to show it's age, and I have no intention of putting more money into repairs than the car's worth. So we're discussing buying or leasing a new one.

We only plan on keeping whatever we buy for 2 or 3 years, and it will primarily be driven by my wife to chauffer the baby around. In other words, it won't be driven hard or have a lot of miles on it. I'll take her car. Insurance isn't an issue since I'm most likely over-insured. I think that we're a prime candidate for the lease option, but what am I missing?

Cynthetiq · 08-31-2006, 08:50 AM

Quote:

Originally Posted by The_Jazz

Here's a question for everyone - are there circumstances where leasing is the better option?

More details - we own two cars now, but mine is pretty much just a beater that I use to get back and forth to work. Since I really have never cared about cars beyond their ability to provide reliable transportation, it's never been an issue. However, while the car still runs well, it's starting to show it's age, and I have no intention of putting more money into repairs than the car's worth. So we're discussing buying or leasing a new one.

We only plan on keeping whatever we buy for 2 or 3 years, and it will primarily be driven by my wife to chauffer the baby around. In other words, it won't be driven hard or have a lot of miles on it. I'll take her car. Insurance isn't an issue since I'm most likely over-insured. I think that we're a prime candidate for the lease option, but what am I missing?

what happens at the end of 2-3 years? she walks? you lease another vehicle?

again, it's just renting a vehicle. If you don't want to own or have the vehicle as an asset, then leasing your way of "renting" long term. Maybe you should look into a long term rental, some places now do this and you can rent a car and change it every week if you like...

magictoy · 08-31-2006, 10:34 AM

There are times when leasing makes sense. As someone said, business is one of them.

However, there's another situation that bears examination. I bought a car three years ago, and since the interest rate was about 4%, I financed it over six years. Figured I could always pay it early if I wanted to.

It's now three years down the road, and my son wanted a different car. Upon reviewing the situation, even though I bought it for $18K used, I'm still underwater. An equivalent one at a dealer will sell for about what I owe, $9k or so. I'm likely to take a hit if I sell it.

My son, in the impatience of youth, leased a 2006 Subaru Impreza WRX. I'll post pics one of these days. His lease payments are less than they would be if he bought the car.

The point I'm making is that after three years of payments, I basically don't own anything either. That's okay, because I keep cars forever, and I will eventually own something, although the value won't be much.

My son, on the other hand, will go through a lease period (I don't know how long it was for), and at the end of it, he won't own anything, but he will have been paying substantially less than I have.

It appears that if you aren't planning on keeping the car forever, a lease could work.

The_Jazz · 08-31-2006, 10:37 AM

Quote:

Originally Posted by Cynthetiq

what happens at the end of 2-3 years? she walks? you lease another vehicle?

again, it's just renting a vehicle. If you don't want to own or have the vehicle as an asset, then leasing your way of "renting" long term. Maybe you should look into a long term rental, some places now do this and you can rent a car and change it every week if you like...

Yep, at the end of 2-3 years, we either walk completely, buy the car at a greatly reduced price or lease a new car from the same dealer. I have never viewed cars as a true "asset" since they only appreciate in value in very rare circumstances. I don't like the renting option because of the kid and the fact that I'd have to be swapping out car seats whenever she wants a new ride.

newtx · 08-31-2006, 09:26 PM

To me leasing only makes sense if you plan on always having a car payment. (or lease payment) Why not buy a lower priced vehicle and it will be yours. You will probably have some repairs but it sure beats having a bill due each month.

KeyserSoze · 08-31-2006, 10:22 PM

LEASE!! If you're in Lost Angeles then you should lease as they are CLOSED END leases so everything must be disclosed to you up front, cap cost, residual...etc.

Now whatever you do don't go thruogh a leasing company as they will FUCK YOU with a open ended lease, don't disclose shit up front and fuck you in the end.

If you're using the car for business then you can write that portion off, example:

I lease my 06 GS300 for 583.00 a month and use my car for work, about 80% so I get to write off that much of my payment. I put 1000.00 TOTAL out of pocket. Now don't think you're going to get this kind of deal at any Lexus dealership....I'm in the business and ripped this car

If you decide to Lease a car make sure you lease one with a good residual as you will be paying the depreciation. Honda, Toyota, Lexus, Acura, BMW etc are great for leases, Fords, GM and most Amercian cars depreciate waaaay too much so the payments are as high as if you were to buy it.

DO NOT!! I repeat DO NOT lease for 60 months no matter what the fucking dealer tells you, or if it lowers your payment by 20.00 you are better off buying it then.

NEVER lease a vehicle for longer then the warranty!

It's like this, if you buy a 16oz soda and only drink half you still paid for the whole soda but only drank half, now leasing is the same as you are using the good half and dumping the bad half(Out of warranty vehicle)

If you'd like some help and since you're in Lost Angeles I will be glad to help you find the right car, and the right payment for your budget, just get back to me.

Any questions? Just ask.

KS

08-30-2006, 08:14 PM	#1 (permalink)
jorgelito All important elusive independent swing voter... Location: People's Republic of KKKalifornia	Lease or Buy? I'm looking into getting a car soon. I have graduated from college and looking for a job. What type of vehicle I get is dependent on my salary. But I want to go ahead and start looking around I guess. I live in LA but I haven't used a car in 6 years I lived here. I'm looking into either buying or leasing. So far, leasing options look great, i.e. - no money down $100-200 a month. 2-3 years (especially for US cars - PT Cruiser). I can't really find a downside. I figure in 2-3 years I will have more money to work with and buy a car then. What do you all think?

08-31-2006, 04:08 AM	#2 (permalink)
Deltona Couple Addict Location: Spring, Texas	The biggest problem I have seen with leasing is restrictions. Some places have severe restrictions on things like mileage, maintenance requirements, insurance requirements, etc... My suggestion if you have just got out of college, and are looking for a job, wait until you get the job first. Some new jobs may require you to relocate, and if you are in a leased vehicle, you cannot relocate away from the dealer where it was leased from. These are just some of the things I have heard about from others, not personal experience, so take with a grain of salt. Personally, I think leasing is a waste of money. I treat it as either renting a home, or buying one. Renting it, you don't have ANY ownership rights, and if you don't like it, you can't just "break lease" without severe penalties. With ownership, as long as you are smart in purchasing it, You can sell it at any time and go on. If you chose to buy, make sure you put enough of a down payment to cover value loss when it comes off the lot, that way you won't be "upside down" on the note. __________________ "It is not that I have failed, but that I have found 10,000 ways that it DOESN'T work!" --Thomas Edison

08-31-2006, 05:23 AM	#3 (permalink)
Cynthetiq Tilted Cat Head Administrator Location: Manhattan, NY	downside: You put in money to something you don't own, it's like RENTING the car. At the end of the term you don't own anything but have put in thousands of dollars into a vehicle. but a certified used car, look for the ones that have high resale value. You'll get a warranty and you'll own something. __________________ I don't care if you are black, white, purple, green, Chinese, Japanese, Korean, hippie, cop, bum, admin, user, English, Irish, French, Catholic, Protestant, Jewish, Buddhist, Muslim, indian, cowboy, tall, short, fat, skinny, emo, punk, mod, rocker, straight, gay, lesbian, jock, nerd, geek, Democrat, Republican, Libertarian, Independent, driver, pedestrian, or bicyclist, either you're an asshole or you're not. What's the best nation in the world? DO-NATION!

08-31-2006, 06:47 AM	#5 (permalink)
The_Jazz Asshole Administrator Location: Chicago	Here's a question for everyone - are there circumstances where leasing is the better option? More details - we own two cars now, but mine is pretty much just a beater that I use to get back and forth to work. Since I really have never cared about cars beyond their ability to provide reliable transportation, it's never been an issue. However, while the car still runs well, it's starting to show it's age, and I have no intention of putting more money into repairs than the car's worth. So we're discussing buying or leasing a new one. We only plan on keeping whatever we buy for 2 or 3 years, and it will primarily be driven by my wife to chauffer the baby around. In other words, it won't be driven hard or have a lot of miles on it. I'll take her car. Insurance isn't an issue since I'm most likely over-insured. I think that we're a prime candidate for the lease option, but what am I missing? __________________ "They that can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety." - B. Franklin "There ought to be limits to freedom." - George W. Bush "We have met the enemy and he is us." - Pogo

08-31-2006, 10:22 PM	#10 (permalink)
KeyserSoze Psycho Location: Lost Angeles	LEASE!! If you're in Lost Angeles then you should lease as they are CLOSED END leases so everything must be disclosed to you up front, cap cost, residual...etc. Now whatever you do don't go thruogh a leasing company as they will FUCK YOU with a open ended lease, don't disclose shit up front and fuck you in the end. If you're using the car for business then you can write that portion off, example: I lease my 06 GS300 for 583.00 a month and use my car for work, about 80% so I get to write off that much of my payment. I put 1000.00 TOTAL out of pocket. Now don't think you're going to get this kind of deal at any Lexus dealership....I'm in the business and ripped this car If you decide to Lease a car make sure you lease one with a good residual as you will be paying the depreciation. Honda, Toyota, Lexus, Acura, BMW etc are great for leases, Fords, GM and most Amercian cars depreciate waaaay too much so the payments are as high as if you were to buy it. DO NOT!! I repeat DO NOT lease for 60 months no matter what the fucking dealer tells you, or if it lowers your payment by 20.00 you are better off buying it then. NEVER lease a vehicle for longer then the warranty! It's like this, if you buy a 16oz soda and only drink half you still paid for the whole soda but only drank half, now leasing is the same as you are using the good half and dumping the bad half(Out of warranty vehicle) If you'd like some help and since you're in Lost Angeles I will be glad to help you find the right car, and the right payment for your budget, just get back to me. Any questions? Just ask. KS __________________ THERE IS NO KEYSER SOZE!!

08-31-2006, 06:43 AM	#4 (permalink)
BadNick Riding the Ocean Spray Location: S.E. PA in U Sofa	Every time I look at leasing, it seems to only be economically viable if you can write it off as a business expense; plus the restrictions mentioned by DC above never worked for me anyway. But if you are "desperate" to have more car than you can really afford and the low upfront cash layout plays into your situation, you can do it but I wouldn't consider it economically logical.

08-31-2006, 10:34 AM	#7 (permalink)
magictoy Crazy	There are times when leasing makes sense. As someone said, business is one of them. However, there's another situation that bears examination. I bought a car three years ago, and since the interest rate was about 4%, I financed it over six years. Figured I could always pay it early if I wanted to. It's now three years down the road, and my son wanted a different car. Upon reviewing the situation, even though I bought it for $18K used, I'm still underwater. An equivalent one at a dealer will sell for about what I owe, $9k or so. I'm likely to take a hit if I sell it. My son, in the impatience of youth, leased a 2006 Subaru Impreza WRX. I'll post pics one of these days. His lease payments are less than they would be if he bought the car. The point I'm making is that after three years of payments, I basically don't own anything either. That's okay, because I keep cars forever, and I will eventually own something, although the value won't be much. My son, on the other hand, will go through a lease period (I don't know how long it was for), and at the end of it, he won't own anything, but he will have been paying substantially less than I have. It appears that if you aren't planning on keeping the car forever, a lease could work.

08-31-2006, 09:26 PM	#9 (permalink)
newtx Addict	To me leasing only makes sense if you plan on always having a car payment. (or lease payment) Why not buy a lower priced vehicle and it will be yours. You will probably have some repairs but it sure beats having a bill due each month.