Leasing a car

[sirrahved]

Missy, we got a GREAT car (2002, 30,000 miles!) For around 8k. We only pay $175 a month. You might want to talk to your bank and see what they can do.

[Catlady711]

Well every decent financial thing I've ever read says you are money ahead buying a USED low milage car rather than buying new or leasing.

That said...

My current vehicle I leased in the fall of 2001. This was shortly after 9-11 and the discounts were terrific, plus I have a relative that can get great manufacturer discounts as well. I couldn't afford to outright buy the vehicle new and I had to get rid of my old one before I'd end up paying someone to tow it away.

Leases have some pretty steep requirements on milage, who can service the vehicle and exactly when you have to have it serviced. In my case I planned on buying it when the lease was up from the get go so the 'rules' didn't really apply for me. I had the thing rust proofed, paint protected, and fabric protected from day 1 (dealer thought I was nuts doing that with a leased car) and also had the radio DOWN graded because they didn't have a CD/Tape combo it was either or and most of my music is on tapes (again dealer thought I was nuts). When the end of the lease came I bought it as a used vehicle and had to go with a 5 year payment option. At the time I didn't think I could afford a shorter term. Turns out I was able to pay it off 2 years early.

Point being I needed a vehicle and this was the only way I could afford the monthly payments on a new one that fit my needs. I figure if you can't make the monthly payments it doesn't matter what the total cost is if they take it away from you for non payment.

Long term leasing or buying new WILL cost more money in interest, fees, taxes, depreciation etc.

However in my case that's not a totally bad trade off for a vehicle that is reliable and doesn't have to go in the shop costing me $$ every couple weeks which is what was happening with the old one. Granted the old one had 140,000+ miles on it and was 10 years old (bought new, paid off 3 months early).

If you buy a used car that was a lease turn in you would come out money ahead in the long run.

If you lease you have no vehicle at the end of the contract to drive and you're back at square one with no vehicle for a trade in even unless you buy it used at the end of the lease. (I never could figure out how people afford to keep getting a brand new lease car every 2 years)

Just my thoughts and experience.