To lease or to buy?

[NewJersey]

Hi all,

Looking into getting a new car! (jetta, acura tsx, camry, passat, altima...etc clearly, not sure yet! )

My parents always pay cash for their cars but I don't have that luxury. I would have to finance it and since I just graduated and don't start work until August, I have nothing saved really. My job requres that I commute by mass transit into NY so I won't have to drive for work, which makes a lease more appealing. And I wouldn't have to put much down. My parents are really against leasing and I've always been skeptical. What are your thoughts?

Thanks!

 

[goofy4tink]

My dh has wanted me in a new car since we had my dd, 12 years ago. We are on our 5th or so lease. I never come close to the 12 thousand miles a year. We've done both 2 and 3 yr. leases. In fact, my Escape's lease ends in Sept. But, I'm tired of leasing at this point...thinking of buying this car. It's so below the expected milage, about 12, 000 or so, that it is actually a pretty good deal.
My ds and dd both are in leases right now. My yankee father thinks I might just as well throw money down the toilet...he hates leasing. But, for some people it's not such a bad thing. Lease for a bit, try not to over-lease. If you get something that is really affordable, you can still save something toward buying when you lease is up.

 

[SC Minnie]

We leased DH's car fro 3 yrs to keep the payments lower. We didn't go over the miles since he only has a 5 mi commute. We then bought the car once the lease was up. It worked for us at the time since we had a large payment on the car I was driving but by the time the lease was up my car was paid off so we could take on a larger payment.

 

[F1Julie]

Leasing is a great option if you can stay within the mileage constraints. You will get more car for less money than you would if you financed it. Cars are not an investment (unless you are talking collectibles/exotics). All they do is depreciate, so buying one is only a good deal if you intend to drive it for a really long time (after it is paid off). If you like getting a new car every 2-3 years, leasing is a much better way to go.

 

[Bob Slydell]

I hate leasing. My parents started leasing their cars a while ago and the last time their lease came up they wanted to buy their next car -- problem was, with no car to trade-in they didn't have nearly enough down payment to get the loan amount down to a reasonable payment. So they're, in essence, stuck in leasing for life (unless they fall into money).

 

[Jennifer S]

BUY BUY BUY We buy our cars then after they are paid off we get at least 5 years w/ no payments at all!! I agree w/ Bob(steve) it's hard to get out of the lease thing once you start. I know buying isn't an investment but it is a smarter move - unless you like getting a new car every three years or so. Which is nice but I love the 5 years we have no payments- then we do more fun stuff w/ the money we save.

 

[DVC Sadie]

We buy our cars outright and then drive them for years or until the wheels fall off. Leasing a car for us would be like taking money and throwing it away, it just doesn't make sense.

 

[mtemm]

Buy! After the 4 or 5 years of your loan term, your car should still be in great shape since it will be low mileage. Then, even though your payments are done, continue making them to yourself...sock them away in a cd or some other acct and you'll be able to buy your next car either outright or pretty close to it.

 

[RitaZ.]

We have never leased before, but many people seem to like it. When we purchased our last vehicle in Nov., one dealership really tried to push the lease.

My brother has always leased his cars. He always exceeds the mileage and has to pay for the penalties, which also makes it harder to get a decent price. He wants to get another car right now, but has several months before his lease is up, he is well above the mileage, too. He knows that the dealerships have him and he is at their mercy. However, he likes having a new car every 3 years or so and wants nothing to do with repairs, so he is willing to take the $ loss.

Check out Edmunds.com and good luck!

 

[Kitty 34]

We buy our cars and like other DISers, drive them until a wheel goes rolling off or something!!