Automotive Forums

Leasing vs. Buying

I never even thought about leasing a car before.  I did some reading on it and it doesn't sound like a bad idea for me.  I like driving new cars every few years, but there's a lot of details you have to be educated on to make sure you know exactly what you're paying for and so you don't get screwed over.  I think I will probably try to lease the next car I get, althought I'm planning on driving my current car till it won't let me anymore.

I currently lease my car, and I am very happy with it.  I don't drive much, except back and forth to work (which isn't far), and locally on the weekends.  I leased the car with 15K miles a year, and I am currently underneath the limit by a considerable amount.  The manufacturer's leasing program is fantastic too....all of the maintenance and service is covered.  Everything!  And, just like you said, in a few years I get to trade the car in and get a brand new one.  I can't be stuck with the same old car for too long. I will get bored with it.
 

if you have the luxury (or the wallet) of changing cars often then leasing can be a good thing. i think the problem is when teens and people who basically live outside there means end up leasing a car that they can't afford and put all this money into it and after 3, 5 or 6 years they're left with nothing. i think its a better idea to buy a decent car that works and take out a manageable loan and have something to show for it, than to lease something new and to get caught in that cycle.  

I am sure you've researched the various factors that make your decision of leasing vs. buying. One often ignored problem is that leases lack flexibility. I had a Jeep Grand Cherokee lease that I wanted to get out of a few years back because I no longer needed it. Chrysler required me to pay the balance of the lease which was not worth it for me.



With a  purchase, you can simple pay off the balance of a loan and sell the vehicle. With a lease, I was stuck until it ended. Of course, now there are lease transfer websites like http://www.easyrelease.com, http://www.swapalease.com etc for lease takeover that didn't exist until recently.  

I agree with tangjason, I enjoy the freedom that leasing a car allows me.  I don't want to feel pressured to watch my miles.  Also, if something happens to the car, such as a scratch or dent, you have to repair the car before returning it at the end of the lease.  It's all personal preference, but mine is on the side of buying a car.  I think there are far more benefits.
 

...other factors to consider in leasing vs. buying:

- do you own/run a business?  leasing a vehicle has some valuable tax advantages.

- type of car?  is it a 4x4 that you want to take off-road?  or is it a luxury car that you'll wipe down-daily with a diaper?  buying a car might be the better option if you think you'll go gangbusters on the car.

- what's the resell like for your vehicle of choice?  leases tend to weigh current value against a predicted value at the end of the lease to determine your payments.  if this gap is wide, buying might be better.  

I have leased three cars and vowed never to do so again. I leased a Ford F 150, a Dodge Ram and a Ford Expedition. With the Dodge Ram I  got the truck as a light duty work truck that gave me some flexibility for light hauling and moving and I owned my own business so it was just what I needed to get setup and off the ground with my business. Problem was that I also ran up the miles and got worked over on the charges when the lease was up - and I didnt particularly like the truck but like somone said I was stuck in it until the lease expired. Then I leased again the F 150 also to help me with this business and again I didnt want to own because having the business own the truck was a pain in the neck and there were some complications with getting insurance thru the business - so I leased again. This time it was even worse, my business had grown so I was driving more then ever, moving more goods and doing construction on new locations so the truck just got worked over- by the time the two years were up I was like $5000 in the hole on the truck and I had no funds to cover and as my lease was expiring I would also have no car - so I flipped the balance I owed into the Expedition and I was totally and completely screwed - I was stuck with that Expedition at $531 a month for five years and that Expedition was the worst SUV and the biggest gas guzzling POS that I have ever owned. I will never lease another car in my life unless I do something nuts like get a Porsche or Ferrari where the price is so high and the depreciation so great that the monthly payment equals out to less than if I sold the car used after the same period. But by the time I can afford a Porsche who knows - maybe I will get a spaceship instead