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Buy vs. Lease?

Established Contributor

Buy vs. Lease?

Leasing seems somewhat complicated but the payments can be much lower on a lease.     I get that you don't own the car at the end of the lease but how should one decide whether to buy vs. lease?



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Message 1 of 18
17 REPLIES
Valued Contributor

Re: Buy vs. Lease?

I lease my cars because I get bored quickly and want a new car every 3 years.

 

Also leasing can be good if you can't afford to buy the car you need.

 

My Wife needed a Minivan, and the car payment on a 40k Minivan wasn't in the budget. So we leased it to get the payments in our budget.

Message 2 of 18
Valued Contributor

Re: Buy vs. Lease?


tooleman694 wrote:

I lease my cars because I get bored quickly and want a new car every 3 years.

 

Also leasing can be good if you can't afford to buy the car you need.

 

My Wife needed a Minivan, and the car payment on a 40k Minivan wasn't in the budget. So we leased it to get the payments in our budget.


::Cringe::

 

I plan on being delusional about my youth forever.

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Message 3 of 18
Valued Contributor

Re: Buy vs. Lease?

Not being delusional, our income is well over 100k a year. The lease fits in fine with our budget.

 

Most likely when the lease is up we will probably just pay off in cash whats owed.

Message 4 of 18
Moderator Emeritus

Re: Buy vs. Lease?


tooleman694 wrote:

Not being delusional, our income is well over 100k a year. The lease fits in fine with our budget.

 

Most likely when the lease is up we will probably just pay off in cash whats owed.


I think what he was referring to is that he wants to delude himself into thinking he will never need a minivan... that he will always drive a 2 door sports coupe!


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Message 5 of 18
Valued Contributor

Re: Buy vs. Lease?

My next lease will be a 2 door sports car hehe.

Message 6 of 18
Established Contributor

Re: Buy vs. Lease?

Thanks Tooleman.

 

LOL, Jutz.  I SWORE I'd never drive a minivan but when my son was a baby my ex got a really great deal on a minivan that I'm STILL driving almost 10 years later....ugh!!  Have to admit that it was VERY practical for olympic baby wrestling/diaper changes and changing him in and out of clothes, carrying little friends around, etc.

 

Now tho, I am SO ready to have something NOT a minivan!  Smiley Happy 

 

So, is it harder to qualify for a lease? My FICO isn't great right now but hoping a few more baddies should delete before Feb when I plan to buy or lease and that it will come up a bit.  I assume a lease is something you'd only get through a dealer?  I'm looking at an Audi Q5 or Volvo XC90.     I have a fairly high income (>144k).     Any ideas whether I'd be better off with buy vs. lease based on that?

 

Thanks!



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Message 7 of 18
Valued Contributor

Re: Buy vs. Lease?

Leasing typically requires scores in the upper 600s.

Message 8 of 18
Valued Contributor

Re: Buy vs. Lease?


webhopper wrote:

tooleman694 wrote:

Not being delusional, our income is well over 100k a year. The lease fits in fine with our budget.

 

Most likely when the lease is up we will probably just pay off in cash whats owed.


I think what he was referring to is that he wants to delude himself into thinking he will never need a minivan... that he will always drive a 2 door sports coupe!


Yup, spot on, lol.

 

For the record I'm currently shopping for a BMW 135i.  A compact sports coupe, haha.

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Message 9 of 18
Valued Contributor

Re: Buy vs. Lease?

Leasing a luxury car is a good way to buy if you can't afford or don't want to pay $700-$1000 per month on a car (like me). Reason why is because the residual value at time of buyout is often less than the price of the identical car on the lot selling used due to lower depreciation, I am considering buying out my lease after 36 months with a low APR on another 36 month term unless I really want something different.
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Message 10 of 18