Found this interesting article: http://lifehacker.com/5858640/should-i-buy-or-lease-a-car
Why the fuck would you want to buy a deprecating asset? That's why. You rent things that's DEpreciate you buy things that APpreciate
Not if renting costs the same as buying
Nice try
Best option is to buy a used car (2-3) years, they are under manufacturer warranty (up to certain milage) . The price will be off 40% of a new car, still under warranty and you will not lose much when u are selling
Agreed. I would say private sale is better to but it can be hard to find private sale cars in that age range. They seem to be all sucked up by dealerships and I have dealing with that scum.
For me I lease because weather I lease or buy I get bored after 3 to 4 years and will want a new car anyway. I do not drive a ton so mileage is not an issue. And when you say it is the same price you are incorrect, a monthly payment may be similar based on how long you finance and how much you put down but with a lease you generally pay for about half the cars value (depreciation cost plus some profit for the company) at the end of the lease you have the option to buy at a price you can negoitate up front. This is nice protection if you fall in love with the vehicle or go over on miles. I always get a quote from CarMax on value before a trade in as sometimes there can be more value on the car than buy out. Bottom line what I have learned is if you hold on to a car 5 years and are not crazy on miles lease vs buy is about a wash. Keeping a car longer or driving more miles and buying is the better deal. Switching cars anything less than 4 years leasing is your best option.
I think leasing a car would have better cash flow on month to month basis. Hear me out and correct if I am wrong. (Also apologize if someone already pointed this before in this discussion) If I buy a 50K car for 5 year loan , I pay 10k ( assuming I get 0 apr) If I lease that same car under the assumption that at the end of the lease I can buy that car for the residue value ( original value - the amount paid as part of l3 year lease) I am buying that car worth of 50k for 8 year ( again assuming I get 0 apr after 3 years) In other words my monthly payment is spread across 8 years as oppose to 5 years . I am taking advantage of the fact that the value of $1 today is higher than the value of $1 , 8 years from now . ( FIN 101) Thought / comment ?
Get a dave ramsey car.
I get a new car every few years but it's cheaper for me to buy than lease because of the mileage I put on my car (20k+ a year).
holy shit, does salesforce have a ground mapping operation or something
Hah, no, but we do several road trips to Seattle and Disneyland per year (6-9 depending on the year) and tend to do random road trips for fun
I generally buy new and run it until the wheels fall off. This ensures that I'm the only owner and I know I take care of the maintenance. Yes I make payments but once it's paid off I'm done. Leasing every 2-3years is a perpetual car payment. I'd argue that my maintenance for years 4-10 is less than 6 years of lease payments :) Not to mention lower insurance and registration on an older car. But hey like everything else in life to each their own.
I just use car share 🙊
Things I listed before I leased a car. 1. A car value depreciates over time. 2. Maintenance of older cars are expensive 3. With technology moving faster, cars move up generations in few years. I don't want to be driving an old car.
Point 1, as long as you get more value out of owning it than you lose, you should still buy. Point 2: not all older cars are expensive to repair. An older Honda is about as cheap as you can get on parts, and they last forever. Point 3: fair point, when it comes to safety features. Otherwise, who cares?
Point 3: the electrical car market is going through significant activity. 70miles per charge 5 years down the line would be golf carts. It's worth leasing them, as the car would be worth way less when you try to sell.