Lease V.S. Buy

[No6thGear]

Hey guys Im between leasing a new Ms6 or buying it.
350 a month lease with 1k down
and figuring i get the car for 24k after rebates would be 448.55 after tax,financing at 2.9 etc.
Or i could get a GT leased for about the same or little cheaper than finance. I would like a GT heated leather i like and that keyless entry. Anyone have any comments or suggestions?
The lease looks attractive....and i seem to change cars often, though i like paying to own i hate "renting" lol

 

[Mikey444]

If you live somewhere that the car will get eaten away by salted roads I reccomend leasing and changing cars every 4 years. When you get to that 5th 6th year of a winter driven car that goes thru salted roads, repairs are very expensive.

 

[gone_fishin]

I've known several people who have leased vehicles and their chief complaints are:

1.) Monthly mileage limitations-- most leases have restrictions on how many miles you can put on your vehicle each month. For every mile you go over your allotted mileage, you have to pay.

2.) No modifications allowed-- the dealers as far as I know will not let you modify the car in any way shape or form.

3.) More expensive in the long run to keep leasing vehicles than it would be to buy one.

Keep in mind that last one-- leasing a car is like taking out a loan, you'll end up paying more in the long run for the immediate convenience. Do the math. I don't know about you but, I have enough monthly payments to take care of. I wouldn't want another one on top of that. And the worst part is, you're paying money for a car you don't own. With that in mind, if you miss a payment for whatever reason it can be reposessed and you'll be stuck without wheels. It doesn't leave a whole lot of room for an untimely layoff or a paycut, etc. If your financial circumstances change, you're still locked into the lease.

Also I've heard that the dealer will not give you a good deal if you're interested in purchasing the car after the lease is up. I've heard what they ask for is ridiculous. Overall I think purchasing a vehice is the more financially responsible way to go. Buy a car that's within your budget and remember, the less money you owe, the better.

 

[psi365]

Leasing allows someone who wants that more expensive car but can't afford to buy it a way to get it. With leasing you can put a small down payment on, and most of the time you will not be leasing it out of warranty. Plus if at the end of the lease you didn't like the car you are no longer tied to it.

However with leasing you have to make sure when you turn it in that wear items (tires, brakes, etc) are still in good shape or you get penalized. Any body damage, or interior problem, over the alloted mileage you all get penalized. At the end if you really like the car and you decide you want to keep it sometimes the buyout amount is more then market value for the car. So let's say you owe $17,000 on the car, but MS6's with similiar mileage are going for $14,000 you still have to pay the $17,000 and that is most times nonegotiable.

There are goods and bads to either way.

 

[No6thGear]

well they tell you upfront how much you can buy it out for...17k for the sport. I wouldnt be modifying it, i have a 91 toyota mr2 turbo for that i just want something new, reliable,awd,and fun to drive(quick) Id probably only want the mazdaspeed intake. Mileage isnt an issue, i drive under 1k miles a month on average lease i 24k miles 24 months....AND i have the summer car (mr2) so that will take care of my trips to vermont for skiing. I live in Connecticut also btw.

 

[Newf]

1. Will you want to mod? don't lease if so
2. How far do you drive monthy? alot? Don't lease if so
3. How often do you trade cars? 3 yrs or less? Then lease. You'll always have a car payment anyways unless you are very $$$. So might as well have a lower payment and a nicer car.
4. Do you already have a home? If so, doesn't matter if lease or purchase. If not, a lease will not show up as a deficit like a loan on a car will. A car loan actually will hurt you when getting a home.

Are you usually brand loyal? most companies have lower lease rates for return customers.

Remember, you can always sell a lease like any other car at any point during the lease period. You do not need to keep it for the entire lease term. Actually, when you go to sell it, you can either sell it for your remaining buyout, or just get someone to take over the lease payments.

I usually wait for that time where I can sell the car and make a grand or more off of it because the book value is just a little more then my buyout. Then take that money and use it towards my next car.

If you can afford to purchase everytime, and make lots of money anyways, you will always be better off purchasing. But leases are good for some people

 

[rkitek]

I did a 15k mi/year lease for a different reason all together...company car allowance. Negotiated it when I started here a few months ago knowing I would be needing a new car soon. Works out pretty good for both of us...my boss gets a tax deduction, I don't have to pay income tax on what I'd spend on a car payment, and since it's leased through the company it doesn't show up my credit (debt:income ratio).

 

[No6thGear]

Does anyone know if i have to pay the yearly city tax on a leased car? I cant find it on the dmv website for my state (connecticut) anyone in other states or with any knowledge on subject have any idea?