I agree with you post, Don, although I might change the last part to "when the mileage reaches a point where reliability problems may be expected. Today, compared to a few years ago, the mileage I add each year is minimal.Leasing probably has some positive aspects....especially for someone who drives quite a bit. However, I doubt that there is Any money savings by leasing, vs. purchasing...probably costs more, over time, to lease. At the rate most cars depreciate in value, about the only way a person gets good value out of a car is to pay cash at the time of purchase, then keep it until it begins to fall apart.
I agree with you post, Don, although I might change the last part to "when the mileage reaches a point where reliability problems may be expected. Today, compared to a few years ago, the mileage I add each year is minimal.
I've been leasing since 1996. It's a very cheap way to drive a new car every 3 years, with a very small down payment & small monthly payments...You may hear some people say, "But you never own the car." Neither does any buyer until he pays the car off & has the title. That usually takes 3-5 years & lots of interest.
LOL - "Put off buying a car until you can pay cash." That's fine for someone who has nowhere to go.The cheapest way to "own the car" is to pay cash. Then you avoid all interest charges and actually own it. If you don't have enough money, put off buying one until you save enough.
That's almost exactly what I do. I Pay Cash for my car then drive it until it's just good enough to part exchange for a new car, I get £1,000 or more off the new price!! No monthly payments.. No Interest, no panicking if you miss a monthly payment for whatever reason, and the first 3 years on all new cars in the UK is maintenace free ( No MOT) ... and I'm thinking of getting a Kia next due to their 7 year warranty!!!Leasing probably has some positive aspects....especially for someone who drives quite a bit. However, I doubt that there is Any money savings by leasing, vs. purchasing...probably costs more, over time, to lease. At the rate most cars depreciate in value, about the only way a person gets good value out of a car is to pay cash at the time of purchase, then keep it until it begins to fall apart.
HAHA, "Enjoying that new car smell." That's nice, but the more-important advantage is the upgraded safety features on new cars - lane assist, cameras, lane watch, collision-avoidance automatic braking, multiple air bags, etc. These become more important as we age.I buy an inexpensive vehicle and drive it until it becomes more trouble than it's worth, the last one was 13 years old when I traded it in.
You really need to run the numbers to decide if paying cash is cheaper than financing or leasing a vehicle. If your money is invested at a good rate of return it may be better to use other people's money rather than use your own.
My sister always goes for a low mileage lease because she can't handle any big-ticket repairs or maintenance expenses on her limited fixed income and prefers to have a set monthly payment with no surprises.
IMO leasing is worth considering. I believe that for me it would be a little more expensive but more convenient than owning a car it just depends on your personal situation and how much you enjoy that new car smell.
As I get older I believe that the best option for me and my location might be to go without a vehicle and use the various car services for my transportation needs. It would probably be the cheapest option but it would require a huge mental adjustment for me.
Good luck!
more gadgets to fail!!!HAHA, "Enjoying that new car smell." That's nice, but the more-important advantage is the upgraded safety features on new cars - lane assist, cameras, lane watch, collision-avoidance automatic braking, multiple air bags, etc. These become more important as we age.
As I get older I believe that the best option for me and my location might be to go without a vehicle and use the various car services for my transportation needs. It would probably be the cheapest option but it would require a huge mental adjustment for me.
Well, I don't know where you worked, but in 2002, I leased a new Toyota Camry. When the lease was up, I decided to purchase the car for the depreciated value on the contract. My payment went down by $150.00 and the DMV gave me a check for the tax.Worked at car dealerships for years. Most people want to buy the car after 3 years and find the price is more than they started with.
Yes, but the payments are much smaller than with a purchase & the down payment is way smaller. No repairs.We just bought a new car. The old one was a 2007 Honda CRV. Gave it to my SIL. Paid cash for the new one. The only reason we got a new car was because I wanted the new safety features -- backup camera, lane assist, adaptive cruise control, Apple car play. We drive our cars forever. I personally think it's silly to get a new car every 3 years. That just guarantees car payments forever and ever. But it's your money.