(Closed) What's the advantage between leasing and buying a car?

posted 4 years ago in The Lounge
Post # 46
Member
541 posts
Busy bee
  • Wedding: June 2016

i almost leased a car. I drive way to much. in one year i had put 20k on my car. there is no lease that covers that many miles. if you drive a lot do not do it. i bought a car and just have to worry about the normal wear and tear repairs etc. dont have to worry about my mileage but that is my opinion. 

Post # 47
Member
982 posts
Busy bee
  • Wedding: August 2014

passthepeas:  You’te definitely right, there’s a time where cat repairs are so expensive that it doesnt make sense anymore. But usually there a point between paying it off, and needing a new one. Especially if you’ve been the only owner, you know the history of the car. Unlike buying used, you dont really know how much wear and tear has been on the car. 

Post # 48
Member
346 posts
Helper bee

My leasing story (I have a 2015 Hyundai Elantra so this may be unique to my situation).

Fiance and I needed a car to run errands. We both Metro to work and work about 15 miles away from home. After calculating the cost of owning vs. leasing, leasing was the most financially prudent decision.

1. We don’t drive much. 

2. No downpayment, no sales tax, low monthly payment. At the end of 3 years, we’ll have spent around 7,000.

3. We can purchase our car at the end of the lease for a decent buy out rate or alternatively seek the car to Carmax and make a profit.

4. No wear and tear on the car since we drive so little (well except for one scratch that I’ll have fixed on my next trip to NY).

I’m glad we leased as I hate dislike the Elantra. My Fiance doesn’t mind it and plans to buy it out/ carmax it at the end of the lease. My only negative is dealing with tickets. Hyundai never notifies us when we have a ticket and tacks it onto the bill.

Post # 49
Member
1019 posts
Bumble bee
  • Wedding: August 2014

I think I’m more or less “over” buying in most cases. Cars are now built in a way that makes repairing them yourself difficult, and paying for repairs very costly, with computer technology controlling so much of the car’s performance. I have no desire to own a car out of a warranty period. 

Add to that that I’m a business owner, and leasing is more advantageous for me from a tax perspective (in Canada anyway), and I can’t ignore the kind of sad fact that the image of having a newer model higher end car leaves a good impression upon my clients.

Since I do drive quite a bit, I just purchase an additional package of KMs at the beginning of the lease. I get the car detailed regularly (write off!) so I haven’t been charged for anything after turning the car in at the end of the lease.

I’ve always managed to negotiate free maintenance, at the very least oil changes, into the lease agreement too. 

Post # 50
Member
1837 posts
Buzzing bee

Well, I’m glad I bought my car … because it has been paid off for years. So I’ve been free of car payments for years. That’ll never happen with leasing. 

Post # 51
Member
891 posts
Busy bee
  • Wedding: March 2015

I personally wouldn’t lease. I just bought a brand new car in February and I’ll have it paid off in about 3.5 years. I plan on taking good care of it and keeping it for 10 years, so I’ll have several years without any car payments at all. 

Post # 52
Member
969 posts
Busy bee

Leasing seems like a better idea at first because the payments to lease can often be cheaper than purchasing a car, but there are hidden fees/stipulations that you need to keep in mind before agreeing to leasing a car.

There are usually only a certain amount of miles allowed per lease, so if you go over said allotment, even by a fraction, you’ll pay.  You also have to cover the costs it takes to regularly maintain and repair the vehicle just as if you actually own it, so all that money you put into it both with the lease and with the cost of maintenance/repairs is money down the drain bc you don’t actually own it. At least when you own the vehicle, the maintenance and repairs you have to deal with improve an asset – but with a lease there is no asset/investment bc the car is not yours.  Also, after the lease is up, then what?  Sure, you can “just switch it out” for a new lease or a new car, but if there is any wear and tear or damages, that’s even more money out of your pocket for something you don’t even own and won’t be using any longer. And trust me, dealerships will look for the tiniest thing wrong with the car so they can charge you.  Plus with leasing, you always have a car payment, but when you buy, you eventually stop paying and own the vehicle and can use that asset however you wish.  But with leasing, when finally buying a new car, you won’t have anything for a trade-in, which means more out of pocket for you when it comes to a down payment.

 

 

Post # 53
Member
1709 posts
Bumble bee
  • Wedding: November 2016 - Garden

lanvin19:  I agree. My typing that was because of thinking she meant buying it out in full, then your credit score won’t boost up like how it would with monthly payments. But I indeed corrected myself 🙂 thanks bee for the info.

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