most posters here don't have a car

[Sol Aristatel]

 Dealers are making more money off of leased cars. 

 

No doubt about it.  There is a reason why they try to push buyers into leasing. 

[MonkeyF0cker]

You can lease a 45k car for $359 with zero down. Finance that car and you are looking at $849 for 5 years. Trade that in after 3 years and have negative equity.

 

Leasing is better if you like driving nice new cars

 

You might want to run the numbers to see what's worse.  Zero equity with higher insurance or negative equity.

 

You can also get a 0% loan at some places.

[MonkeyF0cker]

And if you buy a new car who is absorbing the depreciation?  Who is profiting off the transaction?  

 

Like I said, buying or leasing a new car isn't optimal.  But buying will at least net some equity in the long run.

[WVU]

You might want to run the numbers to see what's worse. Zero equity with higher insurance or negative equity.

 

You can also get a 0% loan at some places.

Insurance difference is minimal (10%ish) unless your insurance company makes you put all your cars under lease minimums. Geiko has that policy. I stand firm on leasing being cheaper. I'm only talking about new 40k cars and up.

[rito]

Like I said, buying or leasing a new car isn't optimal.  But buying will at least net some equity in the long run.

 

I don't want equity in a car.  It isn't an asset.  

 

I don't want to own anything, car, house, women.  Zero.

[bookbraker]

No doubt about it. There is a reason why they try to push buyers into leasing.

Agree.... they also make commison from the banks if you finance through them.

 

I bought a used truck over a year ago. I told them I had a business line of credit. 3.25 %. They said we can get you 2.9 save your business line. If I said 4% they would have said 3.75%.

[MonkeyF0cker]

I don't want equity in a car.  It isn't an asset.  

 

I don't want to own anything, car, house, women.  Zero.

 

Hmm.  Well, if it's a choice between leasing and owning, I'd rather have the equity than not.

[MonkeyF0cker]

Insurance difference is minimal (10%ish) unless your insurance company makes you put all your cars under lease minimums. Geiko has that policy. I stand firm on leasing being cheaper. I'm only talking about new 40k cars and up.

 

Not if you're buying in cash.  Comp and collision necessary.

 

10% is still a significant amount over the course of a lease anyway.

 

Put 25k miles on a car in a year and tell me how cheap leasing is.  Or take a road trip - but you'd rent a different car instead.  Right?

[mikeman]

No doubt about it.  There is a reason why they try to push buyers into leasing. 

Yup, every car I've bought since the 80's(and i only buy new), they've desperately tried to get me to lease. Now if you were going to buy a NEW car every 3 years, yea, then I'd lease, but if you keep cars longer than that, buying will save you big time.

[Sol Aristatel]

Leasing vs buying is not a one size fits all.  But in many cases, leasing is a rip off.  

 

For most people, buying a car is the more fiscally responsible thing to do.  Especially if you drive the car a lot.  

 

Either buy a new car and keep it for 8 years.  Or buy a 2-3 year old car will low miles and keep it 5+ years.  

[mikeman]

Leasing vs buying is not a one size fits all.  But in many cases, leasing is a rip off.  

 

For most people, buying a car is the more fiscally responsible thing to do.  Especially if you drive the car a lot.  

 

Either buy a new car and keep it for 8 years.  Or buy a 2-3 year old car will low miles and keep it 5+ years.  

Yup, not to mention who only drives 12K, unless if you're an old lady you have to be driving more than that.

[joeybagadonuts]

Yup, not to mention who only drives 12K, unless if you're an old lady you have to be driving more than that.

Or you live in or around a large city. I drive less than 1k miles a month no problem.

[mikeman]

Or you live in or around a large city. I drive less than 1k miles a month no problem.

If you drive 10 miles to work, that's 5 k right there, 20 miles is 10K, just to work and back, you are an exception. if you lease and only go over by a couple thousand, you're getting killed.

[MonkeyF0cker]

Or you live in or around a large city. I drive less than 1k miles a month no problem.

 

I don't.  And I live in a fairly large city.

 

I drove 19k miles last year.  About 52 miles per day.  Basically two trips from Henderson to the strip and back every day on average.

[joeybagadonuts]

If you drive 10 miles to work, that's 5 k right there, 20 miles is 10K, just to work and back, you are an exception. if you lease and only go over by a couple thousand, you're getting killed.

Yes my commute is like 8 miles each way. SF is only maybe 15 miles from me as well. Drive around 800 miles a month.

[MonkeyF0cker]

I went to LA twice and the Phoenix area three times last year.  That's about 3000 miles in five trips.

 

Definitely would have needed to purchase a rental car if I had a leased vehicle (which to me is an added cost of leasing a car).

[joeybagadonuts]

Should have said densely populated area rather than "large city "

 

Was trying to point out the opposite as someone like merlin who lives in the sticks of Minnesota and drives 60 miles round trip to Walmart a few times a week.

[MonkeyF0cker]

That's kind of the point though.  You have to go nowhere if you lease a vehicle.

 

While it sits there depreciating, you can't even use it.

[MonkeyF0cker]

I'm glad that people lease cars though.  Those are usually the cars I buy after a big chunk of the depreciation is gone.  Certified pre-owned.

[joeybagadonuts]

Yup would never and have never bought a new car.

 

Huge waste of money.

[MonkeyF0cker]

Right on.

[FISHHEAD]

Have bought new, bought used, leased, rented, borrowed.

 

ALL can be +EV or -EV.

 

Translation, LEASING is a very good option at times, to think not is incorrect thinking.

[FISHHEAD]

Having said that^^^^........the best option strictly from a financial standpoint, imo, for most MIDDLE class individuals is to purchase a used VG-EX used car with 10-20k miles.

[Guest boatboatboat]

I'm glad that people lease cars though. Those are usually the cars I buy after a big chunk of the depreciation is gone. Certified pre-owned.

And I am glad there are people like you who want to take my used things because of that the manufacturer subsidizes my new car because they know they have a waiting buyer for my used car and the dealer sells it to me or in this case lease is it to me for Less because they know they don't have to go to an auction to purchase one because they have somebody waiting who wants my used thing

[WVU]

If you think you are going to go over the 12k miles per year when you buy a lease then buy extra miles.  With Mercedes, if you build the extra miles into your payment you are only paying 13 cents per mile over the 12k.  I generally put 18-20k miles on my leases and buy the extra miles up front.  

 

This is much cheaper than buying.  Those of you who think it isn't must have never leased and bought a nice car.

 

 

You can get a high mileage lease from Mercedes for $499 which will cover 20k miles per year.  This is on a 45k car.  As I stated earlier buying this same car will run you $849/month.  So let's do the real math assuming 20k miles per year on both the lease and purchase.

 

Lease (3.5 years):

 

499 x 42 = $20,958

lets add the $599 lease return fee and $25 per month ($1050) in extra insurance.

total $22,607

 

Purchase (5 year loan):

 

$849 x 42 months = $35,658

at 20k miles per year your 45k car will be worth about 15k after 3.5 years.  The balance owed will be about 12-15k.  Let's assume best case scenario so you will have 3k in equity in this car.

 

$35,658 - 3k = $32,658 = cost of ownership.

 

 

So the cost of ownership for the lease is $22,607 and the cost of ownership for the purchase is $32,658.  That is a difference of 10k saved by leasing.