What is everyone’s opinion regarding leasing vs. buying cars? I love leasing but I know more “financially sound” folks always purchase. Is there really a big upside to buying? I feel like only buying a Honda or Toyota (high resell value) are worth it. With leasing you don’t have to worry about all the problems and tune ups. Am I thinking about this all wrong?
It’s only financially sound to buy if you’re buying something that is cheap/retains its value and you plan to keep it for a long time. Basically it’s similar math for buying or renting a place to live.
It really depends. Sometimes a lease is better, sometimes purchasing is better. You gotta see what dealerships are offering, negotiate terms, and know what you want. Some lease terms can be incredible deals
I am in the same dilemma but from what I have read leasing is more expensive although it is convenient.
Some leases can be very good when a dealer is trying to move a car or a manufacturer is trying to push into a new market or promote a new car (e.g., Jaguar, Alfa Romeo, Infiniti, Volvo). In these cases, you would incur a smaller cost leasing than taking the depreciation hit on a purchase, but it also depends on how well you can do your research and negotiate
Leasing is better in two scenarios - 1. You want to change a car often. 2. You want to drive an expensive car which would be expensive to purchase. Any brand new car, leased or purchased has the highest depreciation in the first 2 years of its life. From a pure financial sense, I would buy a 3 years old car if I'm not going to change it after 2-3 years.
I bought my car with cash. No lease. No financing.
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⭐️ there is your gold star for the day
First off never get a car you can’t afford to pay cash. But do get a 36m lease, invest the rest of the amount in the stock market. Have your money work for you while enjoying the benefits of leasing.
If you can get a better deal by paying cash than an expected rate of return from stocks (present value), then buy it all cash! Else spending a chunk of money up front is never wise
It really depends on the numbers of the lease vs purchase and how long you intend to keep it. With leasing, you are almost always upside down when you want to purchase at the end of the lease.
So first things first, what are your desires with getting a car? I'm happy to help and break down options for you. How long you plan on keeping the car? Car you are considering to drive? Price point/ budget? How many miles do you drive a year? Are you picky and need certain features on the car?
Want a decent-looking suv with safety features like lane assist, blind spot, front collision warning, etc b/c we’ll be driving our son around in it. Looking into the Ford Explorer and Toyota Hylander. I’d like to stay below $50K. I know Toyota has a better resell value, but the explorer is better looking. I’m looking at a sport explorer with everything I mentioned PLUS 0% APR for 72 months for $45K. That’s the one I’m leaning on pulling the trigger, but of course leasing a more luxurious car also sounds more appealing. The goal is to drive this car (if we purchase) into the ground or sell after 10 years or so if we can get a decent return. If we lease, obviously we’d just keep swapping new beatific SUVs after our child(ren) destroy the interiors :)
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I'm big on lease but I change cars frequently. I will never have the same car for 10 years unless I'm getting a collectors or a car that I truly admire. Check out Fair.com for flexible lease options!
Compared to cpo?
I'm not a big fan of buying. But when you lease with Fair, you get similar amenities like a new car and more, free oil change, free tire rotation, free cabin air filter changes, limited warranty, and you can keep the car for 3 months to 3years, just however long you see fit for you to hold the vehicle. It's neat!