Buy New Cars or Lease?

Uptosnuff

Uptosnuff

Member
Location
Great Plains, USA
Marie's thread about her flat tire made me think about whether it's better to buy or lease a car. I have always bought cars, both new and used and have never leased. I know many people that do, though. What are your experiences with leasing over buying? Which do you think is better?
 

Uptosnuff said:
Marie's thread about her flat tire made me think about whether it's better to buy or lease a car. I have always bought cars, both new and used and have never leased. I know many people that do, though. What are your experiences with leasing over buying? Which do you think is better?
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There are Pro's and Con's to either option...the best choice between owning and leasing varies greatly with individual needs and wants. Here are a couple of good sites that list the reasons...both for and against...

https://www.consumerreports.org/buying-a-car/pros-and-cons-of-car-leasing/

https://www.edmunds.com/car-leasing/should-you-lease-or-buy-your-car.html

Personally, I have pretty much given up on flushing money down the drain by changing vehicles every 2 or 3 years. We only drive about 6 or 7 thousand miles/yr., anymore, and both of our vehicles are in nice shape, and I can keep them going for a few dollars/yr. for normal maintenance....far cheaper than spending thousands/yr. on purchases, sales tax, depreciation, etc., etc....but, then, everyone's needs are different, and doing some careful research is always a good idea before spending money on cars.
 
I have been leasing since 1996. I prefer the low down payment & the no-hassle trade in. I have a new car every 2-3 years that has the latest safety equipment & never needs repairs; just minor service. That means not having to trust rip-off mechanics & never being without a car. As a retired person, I don't drive as much, so the 15,000/year mileage limitation means nothing to me. I have turned in a 3-year lease car after 2 years & not lost any money.
 

My philosophy on vehicles is buy new, keep it well maintained, and drive it till it's ready for the junkyard.

My 2009 Accord has 120,000 miles on it and shows no signs of giving up the ghost (knock on wood). Since I'm 72 it might very well outlast me.
 
I buy new, every three years. I very much like the warranty coverage, and since I'm a fierce negotiator when I trade in what I'm driving, I never experience jaw-dropping depreciation woes. It works out to about $400/mo. to drive my new vehicles for three years. I could lease an OK new car for that, I know, but I need pickup trucks. Also, with leasing, I could never shake the feeling that I'm borrowing someone else's vehicle, so I'll never lease, most likely.
 
To buy or rent? I just never could warm up to leasing. At the end of a lease period, you've spent money renting your transportation, and outside of the salesman's handshake what do you have? The dealer is the one, who determines your indebtedness at the end of the lease period- a totality unbiased, scrupulous arbitrator????? Plus you've signed your rights away with leasing contracts. I'm not that trusting. Leasing costs more and you never stop paying for a car.
 
Trade said:
My philosophy on vehicles is buy new, keep it well maintained, and drive it till it's ready for the junkyard.
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This is exactly my philosophy too. When I am done with a car, there is no real trade-in value left. My last car that I bought new was a 2003 Ford Explorer. I put 286,000 miles on that baby. It was my most dependable car. I really wanted to get 300,000 but the engine just gave out. And since I have to drive 40 miles to and from work, I needed a reliable car. Ended up buying a used 2010 Ford Explorer. The last year they made a true 4 wheel drive.
 
We have leased since 2012. Two cars each time, until last year when Rick retired, and we turned in mine when the lease ended last June. It did make it easy to "unload" the car at that point.
My current car, has its lease expire in June 2020. I was talking with a sales rep at the Chevy dealer when I had it in for its inspection last month. He basically told me that since it is an electric car, it is in high demand and I could basically turn it in any time for a good deal on a trade for a new lease or purchase. The car is well under the allowed mileage under the lease.
I said I would think about it and get back to him. Firstly, it was only a month since Rick died and I was not in the right state of mind to make such a decision without the proper research to know what car I want to go into next.

I said all that to say this....I have two reasons for the extended thought process. One..I think I may want to buy my next car rather than lease. Also, the DElectric was Rick's dream car. I can take it or leave it. So, I am seriously debating whether I want another electric or go back to gas. Lots of things to think about, that I won't go into in this thread, as I want to stay with OP theme.

So, having leased, and bought, there are pluses to both. I just cannot decide right now.
 
fuzzybuddy said:
To buy or rent? I just never could warm up to leasing. At the end of a lease period, you've spent money renting your transportation, and outside of the salesman's handshake what do you have? The dealer is the one, who determines your indebtedness at the end of the lease period- a totality unbiased, scrupulous arbitrator????? Plus you've signed your rights away with leasing contracts. I'm not that trusting. Leasing costs more and you never stop paying for a car.
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To me, leasing a car is like renting a house. You get to use it for a while, but at the end of the day, you have nothing to show for it.
 
Uptosnuff said:
To me, leasing a car is like renting a house. You get to use it for a while, but at the end of the day, you have nothing to show for it.
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Many people who finance a car, think they own it. Unless you paid cash for your car (unlike most people), you also don't own it until it's paid off & you have the pink slip. And by then, you've paid a lot in interest.
 
win231 said:
Many people who finance a car, think they own it. Unless you paid cash for your car (unlike most people), you also don't own it until it's paid off & you have the pink slip. And by then, you've paid a lot in interest.
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That's a good point. I hate paying the interest. When I bought my 2003 Explorer, I used 0% credit cards and kept rolling the balance from one card to another after the 0% expired. Didn't pay much interest that way, only the balance transfer fee. I don't get as many 0% credit cards as I once did, though.
 
Wife and I have owned 41 cars, of which 3 were new. We have paid cash for all that we have bought for the last 30+ years. Clean, late model used cars are a good value. We bought our present car in 2015 and it has 26000 miles on it. It is a 2012 and we expect to run it for a long time. I strongly dislike making payments.
 
IMO the only way to win at the car game is to drive junk and fix/maintain it yourself.

I've had a couple of friends over the years that always looked for cars that had been well maintained and were on the edge of becoming classics. They were able to own and operate interesting cars and pretty much break even when they sold them.

I usually buy new and drive them until they become totally unreliable.

My older sister always leases a new car every three years. Her logic for doing it is that she can't afford to pay a large maintenance/repair bill on her limited budget so it is easier to make the predictable monthly lease payment.

We all need to do what feels right for our own situation.
 
win231 said:
Many people who finance a car, think they own it. Unless you paid cash for your car (unlike most people), you also don't own it until it's paid off & you have the pink slip. And by then, you've paid a lot in interest.
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My husband kept his last car, an Acura, for 20 years. It had 350,000 miles on it. I'd say we got our money's worth. I've had my current car for 12 years, and the one before that for 10. Getting a new vehicle every couple of years seems unnecessary. And yes, we did pay cash for my car, so I owned it from day 1.
 
CarolfromTX said:
My husband kept his last car, an Acura, for 20 years. It had 350,000 miles on it. I'd say we got our money's worth. I've had my current car for 12 years, and the one before that for 10. Getting a new vehicle every couple of years seems unnecessary. And yes, we did pay cash for my car, so I owned it from day 1.
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That's the best way to do it IMO.
 
win231 said:
Many people who finance a car, think they own it. Unless you paid cash for your car (unlike most people), you also don't own it until it's paid off & you have the pink slip. And by then, you've paid a lot in interest.
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Exactly why I pay cash for my vehicles. I can't stand payments, and I know the finance company owns my vehicle, until it's paid off. That's similar to how I feel about "borrowing" a vehicle on a lease agreement.
 
Uptosnuff said:
To me, leasing a car is like renting a house. You get to use it for a while, but at the end of the day, you have nothing to show for it.
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Well if you invested the money you saved from buying you still have it. Also if you are using it for business use you can claim part of the expense on income tax.

Its a tough call. Say I have no money for a down payment but I want a hassle free car. If you drive low mileage it might be worth it. You are limited for mileage. Also you are responsible for damages. Right one I lease an apartment. I miss my house but I don't miss the work. I can lock the door and go on vacation .

Its a tough call. It needs much individual analysis.
 
It’s really just math. And risk tolerance. We do both.

I have always leased new Honda Accords or Civics for my wife, daughter and son. Did not want any concerns of any of them being out on the road somewhere and breaking down in some used car. You can negotiate. Zero money down, 15k annual miles, $300 per month. New vehicle, 36 months, latest tech, 24/7 emergency road service. No worries. Perfect for seniors! Keep your cash invested.

Now if you are a guy, who is handy...yeah, you can save money by purchasing a 3 year old vehicle and running it for 10 years. You also are taking on risk. Risk of breakdowns, higher maintenance costs..etc. I wouldn’t wish that on my 87 year old mother or any woman.

For me....I am on my 4th Mercedes in 32 years. Started with a 1987 260E. Then a 2002 E320. Then a 2013 C300 Sport. And two weeks ago a GLE 350.

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Uptosnuff said:
That's a good point. I hate paying the interest. When I bought my 2003 Explorer, I used 0% credit cards and kept rolling the balance from one card to another after the 0% expired. Didn't pay much interest that way, only the balance transfer fee. I don't get as many 0% credit cards as I once did, though.
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Another advantage to leasing. If I really like the car, I can negotiate a purchase price - either at the end of the lease or any time during. I did that back in 2002 with a new Toyota Camry I leased. My payment ended up under $200.00/mo. And the DMV paid the sales tax. Or, I can extend the lease & get a much-lower payment.
 
I guess I'm a anti-leasing critter. The cheapest transportation over time is buying a vehicle, and keeping it for 3-4 years, at least. While no one talks about "interest" with leased cars, it's built in. There's some strange quirk in the laws, that doesn't consider interest in leasing as reportable interest. But a duck's a duck, and interest is what you're paying. It's usually much more than a straight car loan. And I doubt car dealers would be offering it, if it wasn't a profitable part of their business.
 
Another advantage to leasing that seniors should consider: With a new car every 3 years, you don't have to worry about being stranded with a dead battery or any other mechanical problem. Waiting for help can end badly for anyone - especially seniors who are easier prey.
 

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