I’m expecting suggestions on Toyota Rev4 and Honda CRV
Don't necessarily have to go with certified pre owned. You can pay a mechanic to do a full inspection before you buy, for cheaper than the premium a dealer would charge for certified.
Any new car loses about a quarter of its value the second you drive it off of the lot. I find that 2 years is the prime point to purchase a used car to get the maximum value. Leasing is okay but might carry a lot of hidden fees like you're not allowed to go above a certain mileage.
You hear the “lose x % the second you drive off the lot”. I really don’t think it’s true. Go find a car < 2 years old with few miles for 25% less than you could get it new.
Losing money when you drive a new car off the lot is true for many models and brands. Some are better than others. It’s also true for used cars, just usually less so. Usually though the biggest hit you take is that selling a car private party or trading it back in to the dealer is a lower market value than buying from a dealer. The good news for OP is that Toyotas, Hondas, and the majority of Japanese and Korean brands don’t take as big of a hit, and sometimes not much at all depending on the model.
I suggest compute total cost of ownership per year of use for both options. Then you can directly compare. Leasing is usually the most expensive way to own a car but you also get a newer car.
Leasing vs. buying depends more on how long you plan to keep the car and how much mileage you’re going to put on it than anything else. If you want it longer or you’re going to rack up a lot of mileage, you probably want to buy. If not, then lease, but do it knowing that you are essentially renting the car and not building any equity in it, even if it is a depreciating asset (if you’re going to put a low down payment and your trade isn’t worth much, then you might be upside down and one of that matters at that point then anyway). If you plan to buy the car after your lease is up, then you may also want to look at residual values. The unconsidered value in a certified used car is not really that it’s had a multi-point inspection which someone else mentioned you can get from a mechanic, but instead that buying certified gives a better warranty than simply buying used, depending on the manufacturer. If you want, you could also buy used and buy an aftermarket warranty, but a certified warranty backed by the manufacturer is better in that you can take it to any dealership of that brand and the onus is on a more reputable brand a bit more focused on customer satisfaction than your average aftermarket warranty company. You will pay some markup for a certified used vehicle vs a regular used vehicle, but you’re essentially paying for the inspection and additional warranty. Then again, you should also consider how badly you’re likely to need that certified warranty... with a Toyota or Honda, you very well might not, so it might not be worth the extra money unless you really want the peace of mind.
It really just comes down to how often you drive. If you drive a ton, don’t get a lease (> 12k miles/year) as there are lease limits on mileage. I’d buy used if you plan on driving more. Check out us(Carvana), Shift, Vroom and CarMax. You can get a fair ballpark price on what you can look at pay. If you need to sell your current car (if you have one) look again at us (Carvana), Vroom and CarMax. Depending on each model you’ll get more or less from each our the companies on the trade-in.
I tried Carvana and other option as suggested, seems expensive than the dealer price. Is there a way to get discount??
You can usually find a $500 discount code on Reddit. I’m surprised we’re higher than the dealer price. Usually spec for spec we are cheaper but a good deal is a good deal, so if you found one at the dealer I’d look there.
I'm all about not being in debt. I'd rather buy a newish vehicle that's still in good condition and reliable and pay cash. At the end of a lease you don't have anything to show for it. Payments and debt suck to me. It's a matter of preference though. Some people like that they never have to worry about car issues or repairs with a lease.
So, I always buy new and always keep for 5ish years. You can buy a new car from a dealer for below invoice. This means you’re almost never upside down in the car. You don’t have that luxury with used unless it’s exotic. Leases are almost always a bad idea.
Christ neither car!!!
Depends on how you feel about cars. If you view a car as a technology expense of modern life, get a lease and get the latest new tech every year. If you view a car as a box with 4 wheels to transport you, buy used certified and pay the thing off ASAP. I think buying used has always been the best bet up until recently. That’s because for the most part cars didn’t change or innovate much at all. Now with adaptive cruise control with auto stop, lane guidance, and all kinds of self driving precursor tech, a car is being an advance piece of technology. So I personally see leasing as an increased advantage. But it all comes down to how you view the car. I sat in a Ford Explorer recently that had AC/heated leather seats with built in massage. Pretty amazing what they’re coming out with. In a few years more and more of this tech will be standard.
depends how many yrs you want to own lease good if u want a new car every 2 yrs own better for most other scenarios own gets infinitely cheaper if you keep the car 10+ years.
It really isn’t “infinitely” cheaper. It might be something like 2x cheaper if you’re willing to go for 10+ years. Few people do that though. You gotta do the actual math though. Driving a 10+ year old car has its own risks. If you put a value on your time, it can start getting more expensive than it might seem.
I disagree... it depends on the car you have but regardless, you end up paying about the same as leasing the longer you hold. Run some simple math: You buy a car for 20k new and hold it for 10 years. Let’s say on average you spend $750/year for average repairs (a random number that I found after googling “average vehicle repair cost”). You won’t spend $750/year the first few years on maintenance but the longer you hold it, repairs will start costing more. Repairs include: oil changes, new tires, engine repairs (spark plugs, belts, gaskets), bulbs, batteries, fluid changes, etc. These are normal wear and tear items over time. So at this point, you end up paying $27,500 for the vehicle + maintenance. Now, let’s say you lease (a 20k equivalent vehicle every 2-3 years). Like a Honda civic for example. The Honda website says $200/month. Let’s say you buy the newest Civic everytime you sign a new lease paying $200/month. It ends up being 24k total for leasing at a $200/month rate (200 * 120 months). On top of this, let’s say on average, you spend $300/year on repairs, mainly oil changes since new vehicles are covered with warranties (so you don’t need to pay for engine repairs if it’s broken). So total is about 27k. There are other influencing factors that could sway it in either direction (like leases charge more for going over the miles/year, you can’t modify lease vehicles, insurance is more expensive since it’s a new car, you can save money by doing repairs yourself, etc.). On the other hand, it becomes more expensive to repair older vehicles, engines could die, parts don’t exist for the vehicle anymore, emissions are not up to date, if you own a luxury vehicle (like a volvo, benz, cadillac, lincoln), it becomes insanely expensive to repair because parts are more rare (compared to a civic). The entire point of this was to show that owning vehicles isn’t always the cheapest option, especially the longer you own it. Hope this helps give a different perspective.