Buy or Lease?
- Thread starter KD00LS
- Start date
nearlyhalfamile
Active LVC Member
The answer to that really depends on your specific needs. When you lease a car, generally you are just paying the depreciation of the cars value. So when you turn the car back in a a couple years, you basically paid the amount of the value that the car has decreased and the dealership gets back a car that they aren't out anything on and can sell and make some profit on. Some of the downs sides of a lease are that you have to be really careful with the car and you can't modify stuff. In my opinion, I would buy a used car that is 1 or 2 years old. Value wise that is a good deal since someone else has paid a good bit of the depreciation and you can still have a car that is newer and reliable.
owlman
Dedicated LVC Member
Depends how long you're keeping it, and on the car.
mharrison
Dedicated LVC Member
Yep if you're keeping it for a year or less and want a new car, the lease is the way to go. Unless of course you rack miles up like a trucker.
IIRC, I think it starts getting shaky right around 2 years as far as a lease being a good/bad deal as far as $ output and what you have left when you're done. Right around 2 years and after, the purchase is the way to go.
That is putting aside a complete inability to mod the car any.
IIRC, I think it starts getting shaky right around 2 years as far as a lease being a good/bad deal as far as $ output and what you have left when you're done. Right around 2 years and after, the purchase is the way to go.
That is putting aside a complete inability to mod the car any.
MDavis0424
Active LVC Member
New car or used car?
Manufacturers often offer special deals on a new car lease which are not available for a purchase. You may be able to get a "capitalized cost reduction" on a lease of $3,000 when they are only offering a rebate of $1,000 on a purchase. You may also get a lower money factor on a lease than the comparable interest rate on a loan would be. So, you might end up spending less if you get a two year lease, then purchase the car on a three year loan than you would have if you bought the car outright on a five year loan.
The trick is that a loan is pretty straightforward, you know what you are paying now, you know what you are paying each month, and you know you get to keep the car at the end of the loan. With a lease it's easy to get a nice car at a low payment, but not only do you have to give the car back at the end you also have to write the lease company a huge check.
Manufacturers often offer special deals on a new car lease which are not available for a purchase. You may be able to get a "capitalized cost reduction" on a lease of $3,000 when they are only offering a rebate of $1,000 on a purchase. You may also get a lower money factor on a lease than the comparable interest rate on a loan would be. So, you might end up spending less if you get a two year lease, then purchase the car on a three year loan than you would have if you bought the car outright on a five year loan.
The trick is that a loan is pretty straightforward, you know what you are paying now, you know what you are paying each month, and you know you get to keep the car at the end of the loan. With a lease it's easy to get a nice car at a low payment, but not only do you have to give the car back at the end you also have to write the lease company a huge check.
I have found that a lease isnt all that great of a deal. The money you may save on a down payment and monthly payments dont equal the "potential" costs when returning a lease. You get raped on the mileage if your over, you get raped on any blemish or dent, you always owe something at the end of a lease which usually just gets added on to your new purchase. You cant change anything, you cant tint the windows. I wouldnt lease a car for more than two years regardless of the circumstances. BMW has a pretty good lease program though.
FYI: I have never leased a vehicle myself but have had plenty of friends and family that have. Not one of them had good results when it came time to turn in the lease.
FYI: I have never leased a vehicle myself but have had plenty of friends and family that have. Not one of them had good results when it came time to turn in the lease.
eastcoastLS
Dedicated LVC Member
+1 on that
I've leased my last 3 LS's and like any loan, everything is negotiable. Down payment, number of months, total mileage allowed, end of lease costs and so on. For me it's always been a win-win. You just have to go in knowing how the game is played.
Oh and by the way.... I always mod my LS and turn it back in with no problems. Check out out my photo gallery. I keep all the stock parts and just change everything back before the lease is up. As long as everything is just bolt-on, what's the big deal and my dealer doesn't mind. They do custom work themselves on many of the cars and trucks on their lot. Most times they are sorry that I didn't keep the mods on the LS.
The springs, wheels, tail lights and exhaust were on my '03 and now they are on my '06. When this lease is up, if I don't keep the LS, I'll have a fire sale and get some cash back.
Like I said... win-win.
Oh and by the way.... I always mod my LS and turn it back in with no problems. Check out out my photo gallery. I keep all the stock parts and just change everything back before the lease is up. As long as everything is just bolt-on, what's the big deal and my dealer doesn't mind. They do custom work themselves on many of the cars and trucks on their lot. Most times they are sorry that I didn't keep the mods on the LS.
The springs, wheels, tail lights and exhaust were on my '03 and now they are on my '06. When this lease is up, if I don't keep the LS, I'll have a fire sale and get some cash back.
Like I said... win-win.
nickandersonLS01
Dedicated LVC Member
The only reason I would lease a car is if it was a brand spankin new first of the line product. I would lease it for a year to see if there are any major flaws and then purchase it/dump it depending.
If I'm not mistaken, most or all lease agreements allow you to use the cash you have spent on the car to purchase it. This is my understanding, I could be wrong though.
If I'm not mistaken, most or all lease agreements allow you to use the cash you have spent on the car to purchase it. This is my understanding, I could be wrong though.
leasing is good for if you like to change cars like me, never leased though but almost did a couple of times. One time they wanted to do 4 year and I walked cause they were not working w/ me and I could of had the car paid off in that period
nickandersonLS01
Dedicated LVC Member
T Man if you are dumping the latest LS u have, please let me know, at LEAST lemme get those sexy ass rims.
Nick.... Check back with me in 21 months!
