Whats better leasing or buying a car

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Joined Jul 26, 2012
Im about to take a big loss on a car i bought in 06 for 30k, now only worth 2k to dealership. Basically got screwed on an accident that wasnt my failt. Should have sued for more money.
 
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Joined Apr 8, 2005
You can get more than what the dealership is offering.

BTW, you should NEVER EVER buy a car brand new. Makes absolutely no sense.

If you really want to drive a brand new car, always lease. Make sure your terms are solid too. Meaning, low leasing period (24 months) and putting next to nothing down. Also, make sure the car you're leasing has a high residual value.

If you're financing a car, I suggest your financing period shouldn't be any longer than 36 months. Make sure the interest is low too. Anything more than 4% is a rip off.
 
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Joined Feb 7, 2013
I think it really depends on your intentions....like do u plan on switching cars often or do you plan on keeping it for a while.

short answer is buy tho
 
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Joined Mar 13, 2008
You can get more than what the dealership is offering.

BTW, you should NEVER EVER buy a car brand new. Makes absolutely no sense.

If you really want to drive a brand new car, always lease. Make sure your terms are solid too. Meaning, low leasing period (24 months) and putting next to nothing down. Also, make sure the car you're leasing has a high residual value.

If you're financing a car, I suggest your financing period shouldn't be any longer than 36 months. Make sure the interest is low too. Anything more than 4% is a rip off.
Depends on the car. Them Hondas and Toyotas are ok to buy brand new because of the high resell on them. When you factor in the extra wear and tear and less warranty along with less favorable financing terms, new isn't a bad deal.

Lease luxury cars, buy Hondas/Toyotas, and get used domestic cars.
 
12,910
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Joined May 4, 2005
You can get more than what the dealership is offering.

BTW, you should NEVER EVER buy a car brand new. Makes absolutely no sense.

If you really want to drive a brand new car, always lease. Make sure your terms are solid too. Meaning, low leasing period (24 months) and putting next to nothing down. Also, make sure the car you're leasing has a high residual value.

If you're financing a car, I suggest your financing period shouldn't be any longer than 36 months. Make sure the interest is low too. Anything more than 4% is a rip off.
Depends on the car. Them Hondas and Toyotas are ok to buy brand new because of the high resell on them. When you factor in the extra wear and tear and less warranty along with less favorable financing terms, new isn't a bad deal.

Lease luxury cars, buy Hondas/Toyotas, and get used domestic cars.
if you always want the newest car out there, then lease.. if you plan on having a car for the long term then buy.... i plan on keeping my 2 current cars for the long run, even though i get the urge to trade them in.. i would rather have my cars paid off and get a boat or wave runners..
 
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Joined Jun 13, 2013
Short answer: it depends.

Longer answer: you can always calculate the present value of the lease if you know the interest rate, term, and buyout value. You can calculate the present value of the annuity (lease payments) and add it to the present value of the lump-sum payment/buyout value at end of lease term (assuming you would buy the car at the end of the lease). Compare this amount to the cost of purchasing the car straight up. Whichever is lower is the better deal.

It's a different story depending on if you plan on only keeping the car for x amount of years. You can still do similar calculations but you would have to estimate the resale value (which could be easy or hard depending on predicting estimated mileage and factoring in the risk of accidents/other damages that will reduce value of car).

Buying a brand new car is known to be one of the worst possible investments because it instantly depreciates the second you drive it off the lot. Unless you are in a position financially where the money is not an issue, I think that money should be saved and used towards something like a down payment on a house.
 
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Joined Apr 30, 2005
It all depends on your preference. But if I was making decent money I'd lease a luxury car and own a non luxury vehicle. The non luxury vehicle would have to be a year old and older though.
 
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Joined Dec 30, 2006
I'd say generally a lease is a better deal... You only pay for the time that you use it. When you include the time value of money and the fact that cars are GENERALLY a depreciating asset, it makes absolutely no sense to tie up a lot of equity into a car in my opinion.
Basically:


Leasing > Buying Used > Buying new

Leasing makes even more sense if you have a business to use it as a write off for as well...
8)

Edit: Also if you aren't fully buying in cash (new or used) then it really is a no brainer...
 
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70,132
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Joined Aug 1, 2004
Leasing is a waste of money unless u can get

A Write off for it, then its fantastic.
 
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Joined Nov 14, 2007
Leasing is acceptable if you want a new model and have the funds. 

But if you are a normal middle class person and you're buying a car new. You don't have a clue, sure there might be exceptions, but buying used is the way.
 
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Joined Jun 13, 2013
FYI, even if you purchase the car, you can capitalize it and take depreciation expense. You just have to be aware that if you subsequently sell it, you might be subject to depreciation recapture rules.
 
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