re: Questions on Leasing a Vehicle

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Corkfather

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There's a lot of misinformation in this thread.

I've owned, financed and leased. I currently lease and will continue to do so for many reasons. I no longer have to worry about a depreciating asset, I get a loyalty discount from my dealer which drastically reduces the monthly payments, all maintenance is included, and most importantly I will never have to deal with a used car salesman again. I turn in my keys for a brand new car every 1.5-2 years, yes it's that simple. If you know for a fact that you will not go over the annual mileage then leasing should be a no brainer. Hope this helps negate the nonsense most of the people in this thread are spewing. Good luck with your move.

I definitely understand the argument, not that I agree, but I get it. I also agree with your sentiment that too many people just look for the easiest route to what they want, without enough consideration about what they really need and/or can afford. Or if they do consider it enough, they still don't care.

When looking at these decisions alot needs to be factored and weighed by the buyer (other spending habits, vacations, families, other debt, etc etc etc) and in the end, the add'l cost may just come down to a personal choice.

Like, I'll choose a long weekend in Gulf Shores as my vacation with my new King Ranch over a week in wine country and my used Honda. At the end of the year both people may have spent the same money on cars and a vacation, but what did each person want the most.

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. I no longer have to worry about a depreciating asset,

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you just pay for depreciation + profit margin each month

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what i said...he will never listen. Cork comes into these threads with his mind made up just wanting some validation.

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I haven't made a decision yet. I just don't see how I'm going to buy a car and be able to put $10k down and then pay a note on top of that right now. Like I said, I have to buy a car by April 1st, I have no choice. I could go buy a old Honda or something but then I'm stuck with a beater when I make good money and have zero expenses aside from the rent I'm about to add on.

Spending the same, probably more, on a girl is throwing money away; but it makes you happy, right? Anyone who says they won't spend $15,000+ on a long-term relationship within 3 years is a liar.

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Why do you keep saying you'd have to put 10k down?

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Because I'm not going to do one of those 0 down deals and pay a ridiculous note every month. It's smarter to pay a lump sum and have a smaller note because if something were to happen the bills are easier to cover.

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Why do you keep saying you'd have to put 10k down?

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This. I bought a used vehicle with no money down before.

I wouldn't recommend it, but it is certainly doable. Just make sure you are paying more than the minimum each month to get out of the red on it. Also, make sure it is something you will no regret purchasing and immediately get rid of.

That spreadsheet only really works if you plan to get rid of the vehicle purchased at the end of the lease term.

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I just don't see how I'm going to buy a car and be able to put $10k down and then pay a note on top of that right now. Like I said, I have to buy a car by April 1st, I have no choice. I could go buy a old Honda or something but then I'm stuck with a beater when I make good money and have zero expenses aside from the rent I'm about to add on.

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If you're in this great of shape financially that you're only expenses are rent and a vehicle, why not pay $10k cash for a vehicle then sell it when you save up the cash for something nicer? Won't take you long to save up and a $10k vehicle that you keep in good shape won't lose but a few k over that period of time.

Plenty of people make good money and don't drive brand new vehicles. They are usually the people retiring earlier and with more money later on.

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If you're in this great of shape financially that you're only expenses are rent and a vehicle, why not pay $10k cash for a vehicle then sell it when you save up the cash for something nicer? Won't take you long to save up and a $10k vehicle that you keep in good shape won't lose but a few k over that period of time.

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Because I only have 25 days.

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That spreadsheet only really works if you plan to get rid of the vehicle purchased at the end of the lease term.

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It's just a comparison term to determine the value at a common time. Again, assumption is you want a new vehicle and only decision is lease vs buy (meaning you will change cars often regardless of finance option). However, I also mentioned you can extend it all the same to a 5 year lease, or two consecutive 3 year leases vs 6 year ownership. I've done it.

What most people don't realize is that when you finance, you're paying for the full value of the vehicle, with tax and interest, over the finance term. That vehicle will still depreciate and be worth much less than you bought it for. You will never come out "ahead" on a new vehicle.