Reply
Established Contributor
electra
Posts: 573
Registered: ‎10-21-2012
0

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?



Starting Score: TU:584 | EQ 584
Current Score: TU FICO: 711 | EQ FICO 713 | EX (USAA FAKO) 779
Goal Score: 780 across the board


Take the FICO Fitness Challenge
Valued Contributor
tooleman694
Posts: 2,296
Registered: ‎08-25-2011
0

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.

Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012
0

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.

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Valued Contributor
tooleman694
Posts: 2,296
Registered: ‎08-25-2011
0

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.

Moderator Emeritus
webhopper
Posts: 7,230
Registered: ‎09-16-2011
0

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!


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge
Valued Contributor
tooleman694
Posts: 2,296
Registered: ‎08-25-2011
0

Re: Buy vs. Lease?

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

Established Contributor
electra
Posts: 573
Registered: ‎10-21-2012
0

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!  :smileyhappy: 

 

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!



Starting Score: TU:584 | EQ 584
Current Score: TU FICO: 711 | EQ FICO 713 | EX (USAA FAKO) 779
Goal Score: 780 across the board


Take the FICO Fitness Challenge
Valued Contributor
tooleman694
Posts: 2,296
Registered: ‎08-25-2011
0

Re: Buy vs. Lease?

Leasing typically requires scores in the upper 600s.

Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012
0

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.

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012
0

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.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+