Leasing or Buying a new car? Opinions.......

[butterfly 17]

Hi everyone,
well, I should be getting my new car soon and I always thought I would be buying one, we have always bought our cars (financed of course with a down payment), but now I am thinking or at least entertaining the idea of leasing. Most of my neighbors lease and I never considered it an option because I always felt like it would never really be "my car", but I kind of like the fact that I would get a new car every few years.

The thing is, I know absolutely nothing about leasing.

So for any one out there who can enlighten me on leasing and the pros and cons, or for any one out there who has an opinion on either leasing or buying and why one better outweighs the other, please post and let me know why!

 

[decodelighted]

I''m going through the same thing right now ... & leasing seems tempting ''cause I could get a plusher car w/ lower payments.

The only thing I keep wondering/worrying about is ... it''s great the 1st time, when you have a trade in (as a down payment) ... but when you turn it in you have nothing to trade in NEXT time. You have to also save up a down payment for your next car at the same time you''re making lease payments. If money is no object, or you''re a disciplined saver it''s probably a non-issue ... but for me ... haven''t decided yet.

Good luck though! I''ll be interested to hear what others say & what you decide!

 

[Mara]

we are going to lease a car for me this year, probably..if i ever get around to it, i am SO lazy about big decisions like that and as long as my car keeps running i figure why bother....but this year probably.

we went to the auto show last nite...i want to get a mini and they had them there so we sat in them, played around with them and loved them. also there was SO nothing else out there that could compare IMO in terms of price, quality and the fun factor. i also don't want a convertible.

here's the deal, i love nice cars but i don't like paying for them AT ALL. i would love a bmw or a benz but i am not paying $500-1000 for a car payment a month, to me that is a total waste of money. we have friends who have lovely cars and that's a priority for them, they don't mind the payment at all. for them their car is like my diamonds. they probably think buying diamonds is a waste too! all about priorities, everyone's are different.

so that said, i want a car that is small, zippy, fun but not too 'youngish', something that is 'me', and not expensive. we will only lease this car because my darling husband is a car hoarder aka collector and will NEVER let a car die or go, so if we bought one he would want to keep it FOREVER..part of what we are experiencing with my old 14 year old car right now!

i figure that this type of car will fit my lifestyle and last me a few years til we have a kid or something or want a larger car, so the plan is to lease it for ~3 years, i don't drive that many miles at all on average, and with a few thousand down, a decently-loaded mini is about $200-250 a month in our area...not bad at all!

so lucky for me i don't feel the driving need to have a big SUV or a cool mercedes or anything like that, i like small cars (i drive a 4 door sedan which is smallish now) and i want something fun, peppy etc...i'm also in sales so i figure this would be a fun car to take clients out in and stuff, esp when my job can be fun and creative as well so it fits.

so for us leasing this upcoming car is the right way to go. after this we'd probably buy our next car if it was a long-term thing, like a SUV or something for a 'family'...but for now i just want something that lasts a few years, that Greg can fix and take care of and we can have fun with that is not breaking the bank OR encroaching into other areas of our lifestyle.

so that's my thoughts on leasing vs buying. if we were KEEPING this car or leasing it for 5 years or more i would probably want to buy it because it would make more financial sense IMO.

 

[diamondlil]

I think this topic came up for heated debate a year or so ago.

Personally, I own. I tend to keep my cars for a long time so I get my money out of them in the end. Leasing (like rent) seems like throwing my money into something and having nothing in the end. It would be completely different if it was a business write-off, but I''m just talking about my own personal use vehicle.

My way of getting a much plusher vehicle is to purchase a luxury vehicle that has been previously leased for 2 years. It''s already taken the biggest depreciation hit, and it''s still what I consider a new vehicle. My Lexus was one of my dealership''s fleet of loaner vehicles that they sell after 2 years use. It still smelled brand new, had all the maintence done, and it was so clean, I don''t think anyone had ever sat in the back seat. What a steal that was.

 

[sslkrissi]

Hello,
It really does all come down to whether or not you are going to be keeping the car for a long time. Otherwise, even if you do "purchase" it with financing, instead of leasing it, it is never really your car anyways until it is paid off b/c the bank who is doing the financing has an ownership interest in it. I have always bought my cars. This time, I decided to lease. It just made sense to me. I really wanted the car that I got, and wouldn''t have been able to afford the payment if I was purchasing it. And in reality, I will be sick of the car in three years whether or not I had bought it or leased it. This way, I am done with the car in three years and do not have to worry about selling the car and having to pay off the reast of the financing, which will likely leave me with not very much. If money isn''t an issue, then it is a different story. But, for me it was. Also, as far as the down payment thing is concerned, most dealerships now allow you to get into a lease with paying nothing more than tax, tag and title fees. One other thing to point out, that was a huge selling point for me, was that the car brand that I leased offers a pull ahead program. That means that anywhere from 6-12 months before your lease ends, they will send you a letter telling you that you can bring the car in and they will pay off the rest of your lease, so long as you lease another one of their cars.

Another important consideration is how much you drive. Remember that with a lease, you have limited miles and the more miles you want in your package, the more the monthly payment will be. For me, I commute far to work so I had to lease the car with 15K miles per year. This added about $50 more a month to my payment. If you go with a 10K mile per year lease, there are much better deals available.

It is a judgment call that needs to be made on an individual basis. For me, leasing was the right choice. Hope this helped a little bit.

Kristin

 

[sslkrissi]

Oops, I forgot to mention too that many times, you can get great deals on leasing luxury cars that are a few years old. I know for a fact that Jaguar does this. They are currently leasing 2002-2004 models for way less than leasing a brand new one. Just another option to think about!

 

[aljdewey]

Date: 1/8/2006 6:06:44 PM
Author: diamondlil


My way of getting a much plusher vehicle is to purchase a luxury vehicle that has been previously leased for 2 years. It''s already taken the biggest depreciation hit, and it''s still what I consider a new vehicle. My Lexus was one of my dealership''s fleet of loaner vehicles that they sell after 2 years use. It still smelled brand new, had all the maintence done, and it was so clean, I don''t think anyone had ever sat in the back seat. What a steal that was.

EXACTLY!

 

[ame]

I am more in favor of buying depending on the type of car. There is more "stress" in a lease as you have to worry about body damage, maintenance and mileage. I feel it''s REALLY only worthwhile in higher-end vehicles.

 

[moremoremore]

Hehehe...I'm the anti-christ of this thread! LOL....

I lease. And I go luxury SUV!
Well, the lease part for me is easy. It may be wasting a bit of $ in the long run but I'm always in the car and SUCH a nervous nelly. I hear the slightest noise and I get nervous...so I really want a new car every three years. Even if the gently used car has a warranty, i get nervous. What a fruit cake I am.

I'm definitely a suv gal...Big tall gal. Big car. Well, not too big. I don't want a monster. I'm due for a new one in September and am looking at the Volvo, Lexus or I like the new Infiniti. I also have bad knees and it hurts to go in and out in a low car...

I can't help it. I want a "luxury" car...But I think I'm not going to get a BMW or Lexus. I can't see spending more than $550 per month. And I think I'm just going through a "thing" right now where it just feels I feel teeny bit pretentious even though they are all over the road...Maybe it just looks pretentious when I'm in one b/c I feel like i should be in a pinto LOL... I'll probably go cute little Volvo....

..But I do love the Lexus SUV b/c it's so cute and such a great car! We shall see.

BTW, I'm watching 60 min and I'm a downhill ski fan...as of now Mr. Bode Miller.

http://www.bodelicious.net

 

[littlelysser]

I''m a big fan of leasing...and like others that have posted, I like the idea of a new car every couple years...And you can definitely get way more car for your money if you lease...so it is a tough call...

And although it is a little like renting a house as opposed to buying one, houses only go up in value, whereas a car goes down in value as soon as your drive it off the lot...

 

[butterfly 17]

Well, I kind of narrowed down what I want to two to three cars-
Acura MDX
Lexus GX470
Toyota Sequia ( not sure which model)
Toyota 4Runner (but this is an iffy)

I definitely need an SUV with a third seat, as with the two car seats in the back, there is absolutely no room for anyone else to fit.


I was wondering how one finds out what kind of lease programs are out there and how can I tell if I am getting a good deal or not? What do they base the monthly payment on?

I have about $750 to $800 to spend on a monthly payment, but obviously, I would prefer my payments to be around $550 or less.

 

[butterfly 17]

Date: 1/8/2006 6:20:35 PM
Author: sslkrissi

Another important consideration is how much you drive. Remember that with a lease, you have limited miles and the more miles you want in your package, the more the monthly payment will be. For me, I commute far to work so I had to lease the car with 15K miles per year. This added about $50 more a month to my payment. If you go with a 10K mile per year lease, there are much better deals available.

It is a judgment call that needs to be made on an individual basis. For me, leasing was the right choice. Hope this helped a little bit.

Kristin

I would estimate that I would drive this car about 15k miles or less each year, but I can''t really say.
We currently have two cars and I noticed that we only put about 10k miles on the smaller car last year, but it could be that if we get a newer bigger SUV, we will want to drive it more.
We already own one SUV and have put 86K miles on it in 5 years.

 

[butterfly 17]

Date: 1/8/2006 6:06:44 PM
Author: diamondlil
I think this topic came up for heated debate a year or so ago.

Personally, I own. I tend to keep my cars for a long time so I get my money out of them in the end. Leasing (like rent) seems like throwing my money into something and having nothing in the end. It would be completely different if it was a business write-off, but I''m just talking about my own personal use vehicle.

My way of getting a much plusher vehicle is to purchase a luxury vehicle that has been previously leased for 2 years. It''s already taken the biggest depreciation hit, and it''s still what I consider a new vehicle. My Lexus was one of my dealership''s fleet of loaner vehicles that they sell after 2 years use. It still smelled brand new, had all the maintence done, and it was so clean, I don''t think anyone had ever sat in the back seat. What a steal that was.

This sounds like a great idea, Diamondlil,

ran over to edmunds.com after seeing your post last night and looked up PReowned Certified CArs in the makes and models I wanted and the prices were good.
Also, they came with full warranties and offered new car financing options.
This may be the way for me to go!

 

[sslkrissi]

Date: 1/9/2006 1:01:30 PM
Author: butterfly 17
Well, I kind of narrowed down what I want to two to three cars-
Acura MDX
Lexus GX470
Toyota Sequia ( not sure which model)
Toyota 4Runner (but this is an iffy)

I definitely need an SUV with a third seat, as with the two car seats in the back, there is absolutely no room for anyone else to fit.


I was wondering how one finds out what kind of lease programs are out there and how can I tell if I am getting a good deal or not? What do they base the monthly payment on?

I have about $750 to $800 to spend on a monthly payment, but obviously, I would prefer my payments to be around $550 or less.

The way that they figure out the payment is kinda complicated. They take the total price of the car (if it is new) and determine how much of the value will be left after you are done with the lease. Then they subtract that from the total price and factor in your lease term by months and your credit score, to come up with your monthly payments. To find out about lease promotions, you can go onto the websites of the car brands that you like and most of them will have the specials listed somewhere on there. As far as payment goes, you can get a pretty nice lease for around $550. Using my car as an example... my payment is $535 and the total value of the car was about $38,000. If you have great credit, or have a down payment, it would lower the payment even more. Hope this helps a little!.

 

[diamondlil]

Date: 1/9/2006 1:08:37 PM
Author: butterfly 17

Date: 1/8/2006 6:06:44 PM
Author: diamondlil
I think this topic came up for heated debate a year or so ago.

Personally, I own. I tend to keep my cars for a long time so I get my money out of them in the end. Leasing (like rent) seems like throwing my money into something and having nothing in the end. It would be completely different if it was a business write-off, but I''m just talking about my own personal use vehicle.

My way of getting a much plusher vehicle is to purchase a luxury vehicle that has been previously leased for 2 years. It''s already taken the biggest depreciation hit, and it''s still what I consider a new vehicle. My Lexus was one of my dealership''s fleet of loaner vehicles that they sell after 2 years use. It still smelled brand new, had all the maintence done, and it was so clean, I don''t think anyone had ever sat in the back seat. What a steal that was.

This sounds like a great idea, Diamondlil,

ran over to edmunds.com after seeing your post last night and looked up PReowned Certified CArs in the makes and models I wanted and the prices were good.
Also, they came with full warranties and offered new car financing options.
This may be the way for me to go!

Oh yea, I forgot to mention those other little perks like full warranty and excellent financing. I cannot say enough about the white-glove service at Lexus. Personally I like excellent service, so this is really important to me and worth the extra money on the vehicle. At our Lexus dealer (don''t know if this is for all), I get a loaner vehicle (also a Lexus, and they have let me pick which model) whenever I bring my car in for service -- even if it''s just an oil change. And if I cannot bring my car in for service, they will come and get my car, leave me with the loaner, and return my car when the service is done! Not to mention free washing whenever I stop by.

My husband drives an Acura RL, and his dealer can''t come close to the butt kissing I get at Lexus.

 

[HOUMedGal]

Date: 1/8/2006 6:06:44 PM
Author: diamondlil

My way of getting a much plusher vehicle is to purchase a luxury vehicle that has been previously leased for 2 years. It''s already taken the biggest depreciation hit, and it''s still what I consider a new vehicle. My Lexus was one of my dealership''s fleet of loaner vehicles that they sell after 2 years use. It still smelled brand new, had all the maintence done, and it was so clean, I don''t think anyone had ever sat in the back seat. What a steal that was.

Diamondlil, you''re speakin'' my language here!!! This is the kinda deal I LOOOOOOVE.

I''m young (23), so I haven''t had much experience in the buying vs. leasing arena. But, I will say that when the car I''d been driving since I was 16 got totaled back in 2003 (this girl rear-ended me going soooo fast that it totaled my car!!!), I looked and thought hard about what to do. I ended up going with a very slightly used VolvoS40. My family has driven Volvos for years, so it was a natural choice, and I had wanted an S40 ever since they first came out when I was about 17 or 18! I came across a 2001 S40, fully loaded with all the options I wanted, like leather, moon/sunroof, CD player, spoiler, woodgrain on the interior...and even in the color I wanted!!! It was 2 years old at the time, had 35,000 miles, and was pristine. So that''s what I got!! It was as good as new, to me, because I honestly couldn''t tell that it was 2 years old. It even still smelled new!! And I got it for about $10,000 less than it would have cost new.

I agree that it''s a judgement call that you have to make yourself, after considering your situation. I will likely always look first for barely used cars, ones where someone else has taken the major depreciation hit by driving the car for its first year or two.

Next up on my car want list...the Volvo XC90. That''s what I want for my mommy-mobile, when it comes to be that time. Not for SEVERAL years, though.

 

[diamondlil]

HOUMedGal,
We have owned brand new cars, but after getting the deal on my Lexus and my husband's Acura, I don't think I will EVER go with a new car again. Like you, we saved $10,000 off the cost of new.

I'm glad you have had good luck with Volvo. Here's my Volvo story(heehee):

That was the last *new* car we purchased in 1993. It was a brand spankin' new, fire engine red, 850 GLT

. To us at that time in our young lives, that was luxury.

I really loved that car . . . until the transmission dropped out after only 8 years!!!!!! For a Volvo, it was just getting broken in mileage-wise (140K mi.). Unfortuntaely, after we did some internet research, it turned out that the 1993 transmissions were a problem, and they changed to a different type in 1994. The 1994 would not fit the 1993 car. We could not get a new transmission, only a refurbished 1993. Putting it in was going to cost nearly $4,000 (which was not much less than the blue-book value of the car!), and I was afraid if it was rebuilt, we could eventually have another problem with it. We ended up donating that car, and my husband got his Acura RL. That Volvo was the SHORTEST amount of time we have owned a car!!! We tend to keep them a good 10 years. When I hear people swear by Volvo, I always laugh. Sorry to ramble.

No matter what car someone buys, there is always the risk of getting a lemon.

 

[Dancing Fire]

Date: 1/8/2006 6:06:44 PM
Author: diamondlil
I think this topic came up for heated debate a year or so ago.

Personally, I own. I tend to keep my cars for a long time so I get my money out of them in the end. Leasing (like rent) seems like throwing my money into something and having nothing in the end. It would be completely different if it was a business write-off, but I''m just talking about my own personal use vehicle.

My way of getting a much plusher vehicle is to purchase a luxury vehicle that has been previously leased for 2 years. It''s already taken the biggest depreciation hit, and it''s still what I consider a new vehicle. My Lexus was one of my dealership''s fleet of loaner vehicles that they sell after 2 years use. It still smelled brand new, had all the maintence done, and it was so clean, I don''t think anyone had ever sat in the back seat. What a steal that was.

DL
you''re smarter than i thought.

leasing is for suckers.no win situation.

 

[Dancing Fire]

Date: 1/8/2006 5:03:32 PM
Author:butterfly 17
Hi everyone,
well, I should be getting my new car soon and I always thought I would be buying one, we have always bought our cars (financed of course with a down payment), but now I am thinking or at least entertaining the idea of leasing. Most of my neighbors lease and I never considered it an option because I always felt like it would never really be ''my car'', but I kind of like the fact that I would get a new car every few years.

The thing is, I know absolutely nothing about leasing.

So for any one out there who can enlighten me on leasing and the pros and cons, or for any one out there who has an opinion on either leasing or buying and why one better outweighs the other, please post and let me know why!

B 17
all cons,no pros. just buy the car and you won''t be sorry.no contract,no mileage limit,no headache.

 

[butterfly 17]

Thanks for all the information on leasing and buying and the opinions too.

Okay, I think I may have found a CPO lexus GX 470 that I like.. It has 21K miles, 2003 model, black and fully loaded, leather panels, DVD entertainment system, navigation system, third row seats, heated leather seats, the woodgrained stuff (?).
The price is $39, 995.

NOw, the question is, can I negotiate? And how do I know I am getting a deal?
Another question is, once I find what I like, should I call on the phone or email or just go there in person?
Also, since it''s 2006, would this be considered a 3 year old car and therefore should be less than the asking price since technically it is a year older?

 

[butterfly 17]

Diamondlil,
I wished I could buy from your LExus dealership. IT sounds wonderful!

 

[Dancing Fire]

Date: 1/9/2006 1:01:30 PM
Author: butterfly 17
Well, I kind of narrowed down what I want to two to three cars-
Acura MDX
Lexus GX470
Toyota Sequia ( not sure which model)
Toyota 4Runner (but this is an iffy)

I definitely need an SUV with a third seat, as with the two car seats in the back, there is absolutely no room for anyone else to fit.


I was wondering how one finds out what kind of lease programs are out there and how can I tell if I am getting a good deal or not? What do they base the monthly payment on?

I have about $750 to $800 to spend on a monthly payment, but obviously, I would prefer my payments to be around $550 or less.

they''re all nice SUVs

i think the Sequia has the most room? i sat in my friend''s GX470 ,there isn''t enough room in the last row for adults. the GX 470 is a 5 passenger SUV.

 

[Dancing Fire]

Date: 1/12/2006 7:23:25 PM
Author: butterfly 17
Thanks for all the information on leasing and buying and the opinions too.

Okay, I think I may have found a CPO lexus GX 470 that I like.. It has 21K miles, 2003 model, black and fully loaded, leather panels, DVD entertainment system, navigation system, third row seats, heated leather seats, the woodgrained stuff (?).
The price is $39, 995.

NOw, the question is, can I negotiate? And how do I know I am getting a deal?
Another question is, once I find what I like, should I call on the phone or email or just go there in person?
Also, since it''s 2006, would this be considered a 3 year old car and therefore should be less than the asking price since technically it is a year older?

sounds like an EX price.

if you can negotiate $40k out the door.that''s another 10% off

wish i can afford a Lexus

never hear anyone complaining about a Lexus. good luck!!!

http://www.kbb.com/kb/ki.dll/kw.kc.ucp?kbb.CA;;CA067;&95831&;870533&;;uct;&4;LX;A1