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 167204 times)

Offline MarkS

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Re: Car Lease v. Buying
« Reply #260 on: July 14, 2014, 11:08:35 PM »
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
Keep in mind that the first 5 minutes is a few grand....

Offline Ergel

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Re: Car Lease v. Buying
« Reply #261 on: July 15, 2014, 12:41:04 AM »
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.
That's a bunch of mularkey
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Offline AJK

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Re: Car Lease v. Buying
« Reply #262 on: July 15, 2014, 12:52:12 AM »
How is that calculated. I have had a used oddesey for close to four years, and I have not paid anywhere close to that

Includes depreciation.
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Offline yid

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Re: Car Lease v. Buying
« Reply #263 on: July 15, 2014, 01:24:23 AM »
After reading the entire thread, anyone mind sharing some good car buying negotiation points?
have a leasing company negotiate for you

Offline Chaikel

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Re: Car Lease v. Buying
« Reply #264 on: July 15, 2014, 05:34:53 AM »
Includes depreciation.
Doubt it. Its added to the cost of the car for total cost of ownership
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Offline lunatic

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Re: Car Lease v. Buying
« Reply #265 on: July 15, 2014, 06:00:02 AM »
Includes depreciation.
Nope. My car did not depreciate close to that.  Bought it used (2-3 years old )

Offline ChaimMoskowitz

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Re: Car Lease v. Buying
« Reply #266 on: July 15, 2014, 06:33:43 AM »
How is that calculated. I have had a used oddesey for close to four years, and I have not paid anywhere close to that
things like:
depreciation
insurance
financing
taxes & fees
fuel
maintenance
repairs
and I am sure some other stuff.





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Offline lunatic

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Re: Car Lease v. Buying
« Reply #267 on: July 15, 2014, 07:03:42 AM »
things like:
depreciation
insurance
financing
taxes & fees
fuel
maintenance
repairs
and I am sure some other stuff.
Many of those apply equally to leasing

Offline ChaimMoskowitz

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Re: Car Lease v. Buying
« Reply #268 on: July 15, 2014, 07:21:37 AM »
Many of those apply equally to leasing
ok but that was not your question.  ???
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Offline lunatic

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Re: Car Lease v. Buying
« Reply #269 on: July 15, 2014, 07:30:31 AM »
ok but that was not your question.  ???
I guess we would need to look at cars.Com to see how they calculate

Offline ChaimMoskowitz

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Re: Car Lease v. Buying
« Reply #270 on: July 15, 2014, 07:36:50 AM »
I guess we would need to look at cars.Com to see how they calculate
maybe this will help you: http://www.cars.com/ford/fiesta/2014/costofownership
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Offline Baruch

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Re: Car Lease v. Buying
« Reply #271 on: July 15, 2014, 09:34:13 AM »
If someone has a lot of savings, is there any reason why buying a 1 year old car with 15k miles wouldn't be the best financial decision. It would be within the warranty, you can extend the warranty, and flip it when it's 5 years old and has 90k miles.

Offline alpicone

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Re: Car Lease v. Buying
« Reply #272 on: July 15, 2014, 09:45:07 AM »
maybe this will help you: http://www.cars.com/ford/fiesta/2014/costofownership

Cost Item   Year 1   Year 2   Year 3   Year 4   Year 5   Total
 
Depreciation $6,360    $1,077    $853    $836    $808    $9,934
Maintenance $179    $352    $1,237    $514    $179    $2,460
Repairs         $0    $0           $244    $505    $626    $1,376

Every other category was materially equal throughout the 5 year period. Repairs and maintenance do not even come close to the depreciation in year 1. Depreciation is the same whether you buy or lease.

Offline cozmohoot

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Re: Car Lease v. Buying
« Reply #273 on: July 15, 2014, 09:45:15 AM »
Very good financial decision imo. You can even get a 2 or 3 year old one for less and get a warranty, then sell if a few years...

Offline alpicone

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Re: Car Lease v. Buying
« Reply #274 on: July 15, 2014, 09:48:38 AM »
If someone has a lot of savings, is there any reason why buying a 1 year old car with 15k miles wouldn't be the best financial decision. It would be within the warranty, you can extend the warranty, and flip it when it's 5 years old and has 90k miles.

Even if you dont have a lot of savings, if you can qualify to lease you can qualify to finance.

Offline zale

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Re: Car Lease v. Buying
« Reply #275 on: July 15, 2014, 11:07:02 AM »
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?

The real answer is one word: Mazel.

The car can be in pristine condition and give you five full years of perfect riding and no trouble, OR it can already be on its way to becoming a lemon, and you will have nothing but trouble.

Unfortunately, there is absolutely NO way of knowing if you will end up in the former category or the latter.

So, if reliability matters very much to you, i.e. if you can't afford to wake up in the morning every once in a while and have to deal with your car not starting, or your brakes not working properly, it is a safer bet to lease. However, if you can handle trouble every now and then, like your car overheating on the highway or not starting up in the morning, you will indeed save money buying.

One last thing: Extended warranties are BULL. See here for reference: http://www.consumerreports.org/cro/news/2013/07/is-it-worth-buying-an-extended-car-warranty/index.htm

Offline moko

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Re: Car Lease v. Buying
« Reply #276 on: July 15, 2014, 11:12:44 AM »
The real answer is one word: Mazel.

The car can be in pristine condition and give you five full years of perfect riding and no trouble, OR it can already be on its way to becoming a lemon, and you will have nothing but trouble.

Unfortunately, there is absolutely NO way of knowing if you will end up in the former category or the latter.

So, if reliability matters very much to you, i.e. if you can't afford to wake up in the morning every once in a while and have to deal with your car not starting, or your brakes not working properly, it is a safer bet to lease. However, if you can handle trouble every now and then, like your car overheating on the highway or not starting up in the morning, you will indeed save money buying.

One last thing: Extended warranties are BULL. See here for reference: http://www.consumerreports.org/cro/news/2013/07/is-it-worth-buying-an-extended-car-warranty/index.htm
if you're buying a reliable car with a good track record, then chances are in your favor, and if your leasing a car with a bad track record, even though you don't have to pay for the repairs you still need to deal with them yourself especially when leasing from 3rd parties who are alot less likely to give you a loaner

Offline AJK

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Re: Car Lease v. Buying
« Reply #277 on: July 15, 2014, 11:31:50 AM »
Nope. My car did not depreciate close to that.  Bought it used (2-3 years old )

I didn't say YOURS depreciated that much, I said the calculation above included depreciation.
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Offline zale

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Re: Car Lease v. Buying
« Reply #278 on: July 15, 2014, 11:39:47 AM »
if you're buying a reliable car with a good track record, then chances are in your favor, and if your leasing a car with a bad track record, even though you don't have to pay for the repairs you still need to deal with them yourself especially when leasing from 3rd parties who are alot less likely to give you a loaner

Nonsense. I know just as many people that have had trouble with used Hondas and Toyotas as people with Fords and VWs. There is no such thing as odds in your favor. Either the car is in good condition or it is not... you have no way of knowing (Unless you are buying out your own lease).

A brand new car, regardless of the manufacturer, is 95% guaranteed to give you no trouble for the first three years.

Also, every place I know of offers a loaner. I have never heard of a place that does not.

Offline moko

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Re: Car Lease v. Buying
« Reply #279 on: July 15, 2014, 11:55:20 AM »
Nonsense. I know just as many people that have had trouble with used Hondas and Toyotas as people with Fords and VWs. There is no such thing as odds in your favor. Either the car is in good condition or it is not... you have no way of knowing (Unless you are buying out your own lease).

A brand new car, regardless of the manufacturer, is 95% guaranteed to give you no trouble for the first three years.

Also, every place I know of offers a loaner. I have never heard of a place that does not.
so you're saying based on your anecdotal knowledge, that all track records put out by car and driver and otherrating groups are complete nonsense. Good to know