Poll

Do/Would you Lease or Buy?

Only Lease.
71 (21.9%)
Only Buy.
91 (28.1%)
I judge both options and usually lease.
64 (19.8%)
I judge both options and usually buy.
74 (22.8%)
I don't have a car.
24 (7.4%)

Total Members Voted: 324

Author Topic: Car Lease v. Buying  (Read 167217 times)

Offline Dan

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Car Lease v. Buying
« on: November 02, 2013, 10:29:01 PM »
Overheard: "He didn't actually buy that $95,000 car, he just leased it."

IOW: He's just paying more than half of that price for the privilege of driving it with limited miles and having absolutely nothing to show for it after 3 years.
« Last Edit: November 03, 2013, 09:29:14 AM by jj1000 »
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Offline yuneeq

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Re: Master Thread of Pet Peeves
« Reply #1 on: November 02, 2013, 11:27:27 PM »
@Dan Not sure why it bothers you. Sure, he could've bought the car, but you're talking about a rich guy. He has the money, so why should he not enjoy the luxury of driving a brand new gorgeous car every 3 years?

Would it make more sense for him to buy and sell it 3 years later? I'm not sure you'd save any money that way either.
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Offline Dan

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Re: Master Thread of Pet Peeves
« Reply #2 on: November 02, 2013, 11:47:12 PM »
@Dan Not sure why it bothers you. Sure, he could've bought the car, but you're talking about a rich guy. He has the money, so why should he not enjoy the luxury of driving a brand new gorgeous car every 3 years?

Would it make more sense for him to buy and sell it 3 years later? I'm not sure you'd save any money that way either.
You completely missed my point.

People speak about a lease as if they're saving lots of money by leasing.  I know a guy with serious credit card debt who recently leased a $45,000 car.
When he was called out on it he said it was just a lease anyway, he didn't actually buy the car.

As if that makes it better?!?
People need to stop thinking in monthly payments.  Be honest, you've bought that car with an agreement to sell it at a big loss after using it for just a few years.
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Offline yuneeq

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Re: Master Thread of Pet Peeves
« Reply #3 on: November 03, 2013, 12:05:11 AM »
@Dan
Agreed.

I think the average leaser doesn't have that problem though. I hope.
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Offline Dan

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Re: Master Thread of Pet Peeves
« Reply #4 on: November 03, 2013, 12:10:13 AM »
@Dan
Agreed.

I think the average leaser doesn't have that problem though. I hope.
Lots of people who can't afford it lease fancy cars.
Kol hakavod to someone who leases a $100K car and can afford it, but people need to realize that they are paying a premium to lease. 

If you wouldn't buy a $45K car then you have no business leasing it.  Get the idea of it being more affordable to lease out of your head.  It's just a marketing trick.
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Offline yuneeq

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Re: Master Thread of Pet Peeves
« Reply #5 on: November 03, 2013, 12:15:07 AM »
Maybe if you have time, write a post about it. People take your word seriously when it comes to saving money.
« Last Edit: November 03, 2013, 12:45:18 AM by yuneeq »
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Offline DovtheBear

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Re: Master Thread of Pet Peeves
« Reply #6 on: November 03, 2013, 12:19:39 AM »
Lots of people who can't afford it lease fancy cars.
Kol hakavod to someone who leases a $100K car and can afford it, but people need to realize that they are paying a premium to lease. 

If you wouldn't buy a $45K car then you have no business leasing it.  Get the idea of it being more affordable to lease out of your head.  It's just a marketing trick.
Take an Odyssey for example:
You will have paid the full price of the Odyssey in 8 years.
How long would you keep the car for anyway?
People are willing to pay the difference to have a new car every 3 years and not have to spend on repairs.
Makes a decent amount of sense to me.
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Offline Super Speed

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Re: Master Thread of Pet Peeves
« Reply #7 on: November 03, 2013, 12:21:32 AM »
Take an Odyssey for example:
You will have paid the full price of the Odyssey in 8 years.
How long would you keep the car for anyway?
People are willing to pay the difference to have a new car every 3 years and not have to spend on repairs.
Makes a decent amount of sense to me.
+100 For a lot of people having a car every 3 years without having to be in the mechanic and then not busy at the end selling it is worth the extra money. @yuneeq I don't think anyone who leases thinks its cheaper than buying. 


Offline Dan

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Re: Master Thread of Pet Peeves
« Reply #8 on: November 03, 2013, 12:25:53 AM »
Take an Odyssey for example:
You will have paid the full price of the Odyssey in 8 years.
How long would you keep the car for anyway?
People are willing to pay the difference to have a new car every 3 years and not have to spend on repairs.
Makes a decent amount of sense to me.
8 years?
With taxes and fees you pay more than half the price of a car by the time you're done with a 3 year lease.
For the Ody I calculated a breakeven point of 65 months.  If you keep it longer than 65 months then even if you throw it away you still come out ahead.

Though the truth is that the car still has great resale value even at that point. Of course if you leased you have nothing.
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Offline yuneeq

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Re: Master Thread of Pet Peeves
« Reply #9 on: November 03, 2013, 12:29:12 AM »
@Super Speed
I think everyone agrees that for some, it's a luxury well spent.

Dan claims there are many that think leasing is cheaper.  I haven't come upon that myself, but if it's true, it's a major problem that needs to be dealt with.
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Offline DovtheBear

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Re: Master Thread of Pet Peeves
« Reply #10 on: November 03, 2013, 12:31:12 AM »
8 years?
Yup.
Take a 2013 EX:
If you got a deal it was less, but for arguments sake let's say $330.
List price now is ~$32,000.
32,000/330=96+
That's over 8 years.
« Last Edit: November 03, 2013, 12:37:57 AM by DovtheBear »
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Re: Master Thread of Pet Peeves
« Reply #11 on: November 03, 2013, 12:35:46 AM »
Maybe if you have time, write a post about it. People take your word when it comes to saving money.
+1 that's he a cool main site series about common misconceptions when it comes to moneysaving/making.

MLM/Pyramid schemes would be a good one to. They are so common in many frum circles. And that's a pet peeve of mine, people sound so dumb explaining how this "one" is not a pryramid scheme because it has such big investors etc..
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Offline Dan

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Re: Master Thread of Pet Peeves
« Reply #12 on: November 03, 2013, 01:01:04 AM »
Yup.
Take a 2013 EX:
If you got a deal it was less, but for arguments sake let's say $330.
List price now is ~$32,000.
32,000/330=96+
That's over 8 years.
Nobody pays list.  And the numbers seem funny, I just did this comparison on a '14 Ody and it was very different.
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Re: Master Thread of Pet Peeves
« Reply #13 on: November 03, 2013, 01:06:22 AM »
Nobody pays list.  And the numbers seem funny, I just did this comparison on a '14 Ody and it was very different.
+1. Could have easily gotten '13 ody for under 30k. And please point to where you can can it for $330?
Also you are forgetting bank fee (and disposition fee/damages depending on which company you lease from...)
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Offline SamKey

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Re: Master Thread of Pet Peeves
« Reply #14 on: November 03, 2013, 01:08:11 AM »
Nobody pays list.  And the numbers seem funny, I just did this comparison on a '14 Ody and it was very different.
I was just offered a 36 month lease on an infinity sedan for ~$400 that's $14400 for 3 yrs I think that's pretty affordable...

Offline george

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Re: Master Thread of Pet Peeves
« Reply #15 on: November 03, 2013, 01:11:59 AM »
I was just offered a 36 month lease on an infinity sedan for ~$400 that's $14400 for 3 yrs I think that's pretty affordable...
14400 for three years as compared to what? When you buy a car, you expect it to last a lot longer than three years. So 14400 is less than list price, but list price gets you way more than three years.
So we need to compare apples to apples in order to really clarify this.
I spent almost exactly $14400 on a two year old Accord with 20,000 miles. I expect it to last me at least ten years. That's $120/month, plus it will still have done year in value after 10 years.
« Last Edit: November 03, 2013, 01:15:47 AM by george »

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Re: Master Thread of Pet Peeves
« Reply #16 on: November 03, 2013, 01:12:38 AM »
Mods can we spin this off into a buy vs. lease thread or s/t like that. Would love to follow that argument.
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Offline ayman

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Re: Master Thread of Pet Peeves
« Reply #17 on: November 03, 2013, 01:13:28 AM »
14400 for three years as compared to what? When you buy a car, you expect it to last a lot longer than three years. So 14400 is less than list price, but list price gets you way more than three years.
So we need to compare apples to apples in order to really clarify this.
and money that goes into maintenance? And when you lease, you not so worried about how you handling the car...
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Offline bubbles

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Re: Master Thread of Pet Peeves
« Reply #18 on: November 03, 2013, 01:16:24 AM »
14400 for three years as compared to what? When you buy a car, you expect it to last a lot longer than three years. So 14400 is less than list price, but list price gets you way more than three years.
So we need to compare apples to apples in order to really clarify this.
I spent almost exactly $14400 on a two year old Accord with 20,000 miles. I expect it to last me at least ten years. That's $120/month, plus it will still have done year in value after 10 years.

apples to apples then would be leasing a three year old car after the first lease, correct?

Offline SamKey

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Re: Master Thread of Pet Peeves
« Reply #19 on: November 03, 2013, 01:28:48 AM »
14400 for three years as compared to what? When you buy a car, you expect it to last a lot longer than three years. So 14400 is less than list price, but list price gets you way more than three years.
So we need to compare apples to apples in order to really clarify this.
I spent almost exactly $14400 on a two year old Accord with 20,000 miles. I expect it to last me at least ten years. That's $120/month, plus it will still have done year in value after 10 years.
I'm talking about an infinity
« Last Edit: November 03, 2013, 01:35:53 AM by SamKey »