Car Lease v. Buying

[ushdadude]

Move to boston. My commute is about 4 miles. OTOH, my rent is 55 miles one way.

lol
I happen to know a dentist up there who's moving and might want to sell his practice 

[YankyDoodle]

Called my guy and he told me it's better to discuss in person...not sure what he has in mind.

Wants you to use some more miles to get to him 

[alpicone]

Is buying the lease out an option? This way miles shouldn't matter.

[henche]

lol
I happen to know a dentist up there who's moving and might want to sell his practice 

I don't have a dentist yet. If you move up, I'll come to your dentisting, and even invite you for a shabbos meal at which there may or may not be homebrew (more likely may not)

[12HRS]

Is buying the lease out an option? This way miles shouldn't matter.

+1 if you factor in spending another 5k it may make the cost of buying out the lease more worth it

[Yehoshua]

After reading the entire thread, anyone mind sharing some good car buying negotiation points?

[Cw3323]

Is buying the lease out an option? This way miles shouldn't matter.

sometimes it would be cheaper to lease and then buy it off then buying it to begin with. Because there is sometimes better rebates on leasing, and sometimes the percent (money factor) you will pay for leasing will also be cheaper, usually on new models that reg financing is expensive 

[ariIs]

One more factor to consider is the sales tax (in states like NY, where it's pretty high).
If you buy, you pay sales tax on the entire purchase price. Even if you finance, you're paying that tax, financed over your term.
If you lease, you only pay sales tax on the monthly payments (laws differ by state though).
So that moves the breakeven point, as you're paying ~ 1/2 the tax on the lease (assuming lease works out to 1/2 of purchase price)

Certainly in the long run, if you're keeping the car for 5-6 years or more, you'll be ahead by buying. But if you plan to sell sooner, you might be better off with a lease.

[YankyDoodle]

One more factor to consider is the sales tax (in states like NY, where it's pretty high).
If you buy, you pay sales tax on the entire purchase price. Even if you finance, you're paying that tax, financed over your term.
If you lease, you only pay sales tax on the monthly payments (laws differ by state though).
So that moves the breakeven point, as you're paying ~ 1/2 the tax on the lease (assuming lease works out to 1/2 of purchase price)

Certainly in the long run, if you're keeping the car for 5-6 years or more, you'll be ahead by buying. But if you plan to sell sooner, you might be better off with a lease.

Once you trade it in for another lease, you will be paying the sales tax on the new monthly payments? Not sure I follow the logic.

[3yummyboys]

Biggest benefit to leasing is no down payment. It also gives you a high chance of saving on costly repairs, many people don't have thousands extra for a new transmission or something like that. It gives you some peace of mind. Some people would rather spend a little bit more each month to know that no unexpected big expenses may come up that must  be dealt with right away. Although obviously you may have to do some work on the car, most big things are covered.
It really depends on what deals are being offered. Sometimes you can get a lease where you would actually not spend much more in the long run.

[cozmohoot]

Biggest benefit to leasing is no down payment. It also gives you a high chance of saving on costly repairs, many people don't have thousands extra for a new transmission or something like that. It gives you some peace of mind. Some people would rather spend a little bit more each month to know that no unexpected big expenses may come up that must  be dealt with right away. Although obviously you may have to do some work on the car, most big things are covered.
It really depends on what deals are being offered. Sometimes you can get a lease where you would actually not spend much more in the long run.

extended warranty could be bought on used Cars as well. Whatever works. Also, you don't have to pay a down payment on other cars too.

[ariIs]

Once you trade it in for another lease, you will be paying the sales tax on the new monthly payments? Not sure I follow the logic.

The logic is for the case where one buys the car, keeps it for the same length as the lease, then sells it.
In the lease case, you've avoided paying tax on the resale value of the car.
In both cases you'll have to take up another lease or buy another car.

The one exception is if you trade in your (bought) car, the dealer subtracts the value of the trade-in from the new car, and you save on taxes.
However dealer trade-in valuations are notoriously bad.

[Ergel]

The logic is for the case where one buys the car, keeps it for the same length as the lease, then sells it.

I don't think that is what anyone is comparing here

[YankyDoodle]

The logic is for the case where one buys the car, keeps it for the same length as the lease, then sells it.
In the lease case, you've avoided paying tax on the resale value of the car.
In both cases you'll have to take up another lease or buy another car.

The one exception is if you trade in your (bought) car, the dealer subtracts the value of the trade-in from the new car, and you save on taxes.
However dealer trade-in valuations are notoriously bad.

Yeah... Why would someone buy a car for 3 years to sell it?

I don't think that is what anyone is comparing here

+1

[ariIs]

I was just tiring to illustrate the breakeven point between buying vs leasing. If u buy and then drive it for 10 years of course you'll spend less. But you'll have to deal with repairs etc.
As with many other things, with leasing you pay for time/convenience

[WhyAich]

So i went to a Used car dealer today

sample offer:
Toyota Sienna 2011
$16,000
55k miles on it.

got me thinking

why lease a sienna for $300 a month + fees for pickup and deductable, over 3 years you pay ~$14,000 and then you have nothing

Here with the buying a used car, 1. after 3 years the car is worth ~$10,000 so you spent ~$6,000

Yes, having a leased car is a benefit as it's new etc. and you dont have to worry about any issues

BUT

1. Saving $8,000
2. How many issues will you have with a 3 year old car
3. You have the power to buy cheaper insurance as you don't need full coverage

your thoughts?

[cozmohoot]

4, you can get an extended warranty for peace of mind

[rots5]

dont buy a mini van. there not built to last. i would say buy any other possible car besides that. in 10 yrs if ur lucky ur mini van might be around.... ur camry forsure will be though.

[Chaikel]

Average cost for first 5 years of ownership according to cars.com: $15,382. I can only imagine what th next 5 years would be

[lunatic]

Average cost for first 5 years of ownership according to cars.com: $15,382. I can only imagine what th next 5 years would be

How is that calculated. I have had a used oddesey for close to four years, and I have not paid anywhere close to that