Okay, hubby and I are getting a new car and we both usually finance, not lease, but since cars depreciate so much, I'm thinking leasing might actually be the better option. Anyone with experience or knowledge in this field? Is leasing a bad idea? Thanks!
september2004
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Re: Cars: To Lease or To Buy, that is my question???
as of now we plan to do both.
i bought my car last year. we just moved and fortunately we don't need a second car JUST yet. when we do, we will most likely lease. i will drive my 'family car' into the ground (or until deemed unsafe) and DH will get to drive whatever he wants, aka our 'going out car'.
for me, buying is best but it depends on cash flow and personal preference...
luvsun27
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Re: Cars: To Lease or To Buy, that is my question???
It depends on how much you drive...are you concerned with mileage with a lease? I leased my last car...and thought nothing of the mileage...until I had a year left, and only a few thousand from the maximum (without having to pay additional).
I decided to buy my next car...and I got the dealer to buy out my last few payments of my lease so I could turn it in early (I still was over mileage). It's really a personal decision.
DjPiLL
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Re: Cars: To Lease or To Buy, that is my question???
The main problems with leases are... mileage... and interest rates.
Many people don't realize that when you lease... you are still bound by a set interest rate and thats how they calculate the payment.
Most lease interest rates are somewhere between 4-7%... and its very common to get car financing between 2-4% (and sometimes even cheaper).
BMD'sPeanut
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Re: Cars: To Lease or To Buy, that is my question???
I thought that you could not lease in NY anymore...?
marymoon
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Re: Cars: To Lease or To Buy, that is my question???
They're trying to get away from leasing (liability) and so they're all introducing this driver's option/smartbuy thing. this is what we did with Fh's new car.It's like a hapy medium between a lease a finance. You pay monthly payments for 36 or 48 months. It depends on mileage, etc, and there's an interest rate. Our rate turned out to be lower than the 'special rate' for financing, It was like 2.3%! At teh end of the 3-4 years you can either 1) turn the car in just like a lease 2) Pay the final 'balloon payment' to buy the car, or 3) refinance the rest of the payments/keep paying the same payment.
Why this worked for us is that it gives us much smaller payments than financing would, so for now while we're saving for a wedding and getting established we can pay less, and then after the 3 year term if we like the car, we can just refinance the rest and pay higher payments then to pay it off in another 2 years. (so it's the equivalent of a 5 year finance, we're just backloading it).
What this means to the dealer.car company/lease company is that you're not leasing, you hold the title so you are liable for damages. Also, it's better than a finance also because there's a greater chance you will be turning in the car in 3 years and buying a new one. So it has the turnaround advantage of leasing without the liability. Also since the payments are smaller if you decide to keep the car and you don't refinance, you just keep paying teh same payment, it drags it out to 6 years instead of the usual 5, so they get more interest out of you.
For the buyer it gives a lot of options. You can turn it in in 3 years or you can keep it, the choice is yours. Also, it's good if you don't want to spend a lot now. Another advantage over leasing is that should you decide to pay ahead or double up you can. With a lease, it just means you pay off your 36 mos sooner, but with a SmartBuy, you're actually paying down your payoff.balloon payment amount so that when the term is up, you'll owe less.
HTH
Kel
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Re: Cars: To Lease or To Buy, that is my question???
I would never lease .. and I think 'Smart Buys' or whatever they want to call them .. are just plain stupid.
Blu-ize
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Re: Cars: To Lease or To Buy, that is my question???
I lease all the time..I buy appreciative things, I rent depreciative things.
marymoon
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Re: Cars: To Lease or To Buy, that is my question???
I don't know SmartBuy seems to work out perfecty for us. We can't afford a $450 car payment right now, but in 3 years we will and then we can pay it off.
The problem with leasing, even though you're saying you rent the things that depreciate and buy things that appreciate, is that in a lease you're paying the depreciation cost anyway. But it just depends on what you want out of a car. I don't like to lease because I don't want to pay forever. I love that my car is almost paid off and I can drive around in it with no payments. Also I get really attached to cars and I wouldn't want to turn it in after 3 years. However, some people just love to be in a new car every 3 years, which does seem like a LOT of fun!
BMD'sPeanut
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Re: Cars: To Lease or To Buy, that is my question???
Posted by Kel
I would never lease .. and I think 'Smart Buys' or whatever they want to call them .. are just plain stupid.
How come?
july06bride
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Re: Cars: To Lease or To Buy, that is my question???
i like leasing personally i like a new car every few years
Blu-ize
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Re: Cars: To Lease or To Buy, that is my question???
I also like a new car every three years or so. I will never drive a used car since I don't really know for sure what has happened to it. Also, leasing provides me with a lower payment than if I bought it. When you lease you pay depreciation for the amount of time you have it. ALso, some cars are better leased cars than others due to their residual value at lease end.
MCDO15
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Re: Cars: To Lease or To Buy, that is my question???
Posted by BMD'sPeanut
I thought that you could not lease in NY anymore...?
in addition to marymoon's post, companys pull out of NY cause of the liablity laws... (example... car drunk driver crashes car and makes a man lost both his arms and legs. turns around and sues (Chase because we owned the car responsible) for 20 Million and won)
so these companies that pulled out are trying to make a product like a lease but writen differently. Its really almost the same thing when you think about it. Every law except NY has change or already had a law saying finance company is not responsible for the liablity.
DjPiLL
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Re: Cars: To Lease or To Buy, that is my question???
A smart-buy loan or lease is nothing but a balloon payment loan.
MCDO15
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Re: Cars: To Lease or To Buy, that is my question???
Posted by DjPiLL
A smart-buy loan or lease is nothing but a balloon payment loan.
well, similar in payment where you have the option to buy at the end vs. this is the final payment. you can always work out a deal with the bank. all it is wording and who owns what at which point
Sassyz75
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Re: Cars: To Lease or To Buy, that is my question???
I wouldn't lease either. I think it's better to own the car... True- payments with a lease are less.. but I guess that's if you HAVE to have a glitzy car instead of having something that can be afforded. That's why most people with super expensive cars lease them- they wouldn't be able to afford them otherwise... I financed my car with 10k down- now I own it- and it's such a relief- to not have a car payment and to be able to carry less insurance on it saves us a lot of $$$
Mrs. dleeny
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Re: Cars: To Lease or To Buy, that is my question???
I personally don't like the idea of leasing. the way I see it is, it's a never ending car payment - unless you decide to buy one eventually. I know you get a new car every few yrs, but I haven't had a car payment in over 3 years - love it!! and I'm in no rush to buy a new one.
JMO
ETA: yes, I have had to replace a few things such as an alternator, battery, a power window motor. but its a fraction of what I would have been paying in car payments for the last 3 yrs.
103005FallBride
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Re: Cars: To Lease or To Buy, that is my question???
Posted by dleeny
I personally don't like the idea of leasing. the way I see it is, it's a never ending car payment - unless you decide to buy one eventually. I know you get a new car every few yrs, but I haven't had a car payment in over 3 years - love it!! and I'm in no rush to buy a new one.
JMO
ETA: yes, I have had to replace a few things such as an alternator, battery, a power window motor. but its a fraction of what I would have been paying in car payments for the last 3 yrs.
Ditto!
m&m
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Re: Cars: To Lease or To Buy, that is my question???
I thinkyou should always buy - I just read a great book by Suze Orman - and she had a chapter on this issue - her rationale was that if you buy and make payments for 3-4 years, you'll probably keep the car for a few years after that, during which time you won't be making payments and will have several hundred extra dollars each month to save. Now if you lease, and give your car back after the lease, you will have to make payments again right away - and they can also nail you for fees at the back end of the lease.
LaurenluvsTJ
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Re: Cars: To Lease or To Buy, that is my question???
It depends on what is best for you.. right now I am leasing or smart buy or whatever you want to call it. I did not have any money to put down and could not afford a payment to buy a car. I could afford the lease payment, and I do have the intention of buying the car at the end of the lease. And I do not have a high-end luxury car AT ALL. Quite the opposite. My parents have been leasing for years and they love it. Everyone does what is best for their situation..
