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Cheflife15

Leasing vs buying

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The price of the car at the end of the lease is determined by the residual cost from new not the value of a used version of the same car. They might give you a break on the buy out if it is a particularly huge difference but if used cars are at a premium like it was a year ago, you won’t be getting a deal. 
 

I will never lease a car that I may want to buy again. If you have a 3 year lease, it’ll probably cost $100 or less a month more to buy it over 60 months. If you buy it out after the lease ends, you usually won’t go for less than 48 months on it so it’ll take a year or more longer to get the car and that’s not even counting the extended warranty you’ll need because the factory warranty will be expired long before the car is paid for.  
 

If you are going to lease, just get something you will want to get rid of every few years.

JMHO

-Jim

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These are strange times we live in.  

Traditionally it's been a much better use of money to purchase a reliable used car (3-5 years old) and let the first owner take the hit on the majority of the depreciation.  And then keep that car well mantained and drive it for years and years and few more years.  Most cars are not investments.  They are a rapidy depreciating "asset".  

In the current environment we are in used cars are OUTRAGOUSLY priced.  As is just about everything else.  Those prices are not sustainable or realistic in the long run.  If you buy a used car now you could very well be underwater or upside down on it once prices normalize.  Unless you pay cash for it.  Then you are just out that cash.  In the crazy inflationary world we are living in your cash is worth less and less each and every day as inflation decreases your purchasing power.

It could make more sense to lease now.  And I am a VERY against leasing.  But you need to look at how many drives you will be driving each year and make sure you don't go over what is allowed in your lease.  

if you have an older car that needs repairs, but it's a reliable car, then get it fixed.  The prices I'm seeing for pre-owned vehicles are CRAZY.  I really feel sorry for someone who has to buy a car right now.

Think of leasing like is going to the gun range to rent guns and paying gun range prices for ammo versus buying your own firearms and buying ammo online or at Walmart (if you could do that).  Leasing hardly EVER makes sense.  

 

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I had 2 reliable but older cars. One was totaled on the way to my rehearsal dinner (might have been a sign). The other is a 2003 honda accord with 215k miles. I'm in food sales so always having a car is imperative.

 

I think the best plan is to take my wife's Honda crv (68k miles or so) and lease for her. She drives about 12k miles a year. I think I could get a decent lease for her and then we'll buy something in 3 years when the market has hopefully subsided.

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My current lease ends in September.  Not sure what I’ll do.  I love the car but since going down to a single vehicle we need something bigger (3-row suv or van).   My thought was just to take advantage of the used market to try to get a deal on a new lease.  Let the dust settle on the market for a few years and reevaluate.  
 

Ideally I’d buy out the lease, sell it used at a profit, and sink that into financing another car.  Since we are single vehicle I can’t do all those steps separately.  

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1 minute ago, voyager9 said:

My current lease ends in September.  Not sure what I’ll do.  I love the car but since going down to a single vehicle we need something bigger (3-row suv or van).   My thought was just to take advantage of the used market to try to get a deal on a new lease.  Let the dust settle on the market for a few years and reevaluate.  
 

Ideally I’d buy out the lease, sell it used at a profit, and sink that into financing another car.  Since we are single vehicle I can’t do all those steps separately.  

Curious what type of car? Miles ? Maybe I can take it off your hands.

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4 minutes ago, Cheflife15 said:

Curious what type of car? Miles ? Maybe I can take it off your hands.

19 Jeep Grand Cherokee Trailhawk w/26k or so.  Has the v8.  Love the thing.  
 Probably can’t sell it third party though. Just for logistical reasons.  When we bought/sold my wife’s car two years ago it took a month to go through the process (buy it, transfer title, sell it) and I can’t be without a car.  

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6 minutes ago, voyager9 said:

19 Jeep Grand Cherokee Trailhawk w/26k or so.  Has the v8.  Love the thing.  
 Probably can’t sell it third party though. Just for logistical reasons.  When we bought/sold my wife’s car two years ago it took a month to go through the process (buy it, transfer title, sell it) and I can’t be without a car.  

As awesome as that sounds, I drive about 800 miles per week and can't afford a v8 lol.

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On 7/12/2022 at 9:27 AM, Cheflife15 said:

Is there an advantage to leasing vs buying at this time? I'm thinking the value of the car will be less when the lease runs out so it'll be cheaper to buy but I'm probably missing something here. 

it depends. if it's for business, i think there can be some tax advantages.

 

 i also recommend to any of my customers that're looking at anything euro-trash.......if they really want it.....lease it. 'specially audi/vw products. do the 3 year lease. everything major will still be under warranty. samw with beemers. i've been hearing tons about them burning oil early. lease. after the 3 year lease is up, if ya still one one of those, then turn it in and lease another. saves you from the expensive repairs.

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Just now, 1LtCAP said:

it depends. if it's for business, i think there can be some tax advantages.

 

 i also recommend to any of my customers that're looking at anything euro-trash.......if they really want it.....lease it. 'specially audi/vw products. do the 3 year lease. everything major will still be under warranty. samw with beemers. i've been hearing tons about them burning oil early. lease. after the 3 year lease is up, if ya still one one of those, then turn it in and lease another. saves you from the expensive repairs.

I'm strictly looking at Honda, nissan, subaru, Mazda, Toyota. I need something with reputation going over 100k easily

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2 hours ago, JimB1 said:

 

If you are going to lease, just get something you will want to get rid of every few years.

JMHO

-Jim

such as any of the euro-trash junk. beemers, audi/vw and mercedes. well....maybe not mercedes. those are usually pretty rock solid.

Just now, Cheflife15 said:

I'm strictly looking at Honda, nissan, subaru, Mazda, Toyota. I need something with reputation going over 100k easily

looking at that.......1) toyota

                                   2) honda

                                     3)subaru(if you're looking for AWD, move subaru to #1)

                                    4) mazda

                                       5) nissan

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On 7/14/2022 at 9:25 AM, 1LtCAP said:

05 towncar with a 4.6 liter.

Man those are the plushest black car rides ever! Never owned one but they would always have these cars for the ride home. Nice and roomy too! To bad they got discontinued. Heard working on the MKT were the worse. 

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On 7/13/2022 at 8:35 PM, Cheflife15 said:

As awesome as that sounds, I drive about 800 miles per week and can't afford a v8 lol.

800 miles a week is 41,600 a year. Or 125,000 for three years, a typical lease term.

The most common lease is three years and 36,000 miles TOTAL. So I don't think you're a lease candidate.

When I had a business, I bought a brand new car with a loan from the factory for three years, paid the loan off from my business (I leased it to my business), and then drove the car almost another eleven years to about 160,000 miles. When I sold the car, the total net cost of that car over 163 months (initial cost plus load charges, repair and maintenance) came out at $295/month or $.0.30/mile.

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7 minutes ago, 45Doll said:

800 miles a week is 41,600 a year. Or 125,000 for three years, a typical lease term.

The most common lease is three years and 36,000 miles TOTAL. So I don't think you're a lease candidate.

When I had a business, I bought a brand new car with a loan from the factory for three years, paid the loan off from my business (I leased it to my business), and then drove the car almost another eleven years to about 160,000 miles. When I sold the car, the total net cost of that car over 163 months (initial cost plus load charges, repair and maintenance) came out at $295/month or $.0.30/mile.

What kind of car?  

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3 minutes ago, gleninjersey said:

What kind of car?  

2000 Olds Intrigue. Was about $32K new and loaded. I LOVED that car! And I took good care of it.

BTW the repair cost included a new transmission around ten years. Funny thing was, I also ran the numbers just up to the trans going bad, and if I had bailed out then it STILL would have cost around $295/month. I found that very surprising.

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