new suv - financing vs leasing?
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Depends to some degree on your cost of capital compared to the leasing company. And your estimation of the vehicle's value at the end of the term.
I'm w/ you mmouse, and I'd advise not paying a premium for 'new'. A fresh from the factory lemon's still alemon, and that enticing smell disapears long before your dismay at what you paid for it.
Go for low-mileage used with a known repair record.
Go for low-mileage used with a known repair record.
While I agree somewhat with mmouse and oldjones, sometimes it's just not practical to get a decent used car with cash. Sometimes you have to finance (I agree with what's said above about leasing - it should be a business thing, not a personal one).
Personally i'd rather pay the extra for a new car. Having owned a few used cars over my time and 2 new ones, I've found the premium paid for new worth it. That's not something you can really quantify, it's just my personal take on it.
Personally i'd rather pay the extra for a new car. Having owned a few used cars over my time and 2 new ones, I've found the premium paid for new worth it. That's not something you can really quantify, it's just my personal take on it.
Agreed.
Up until Age 40 I had always bought or wrangled one used POS or another.
I bought my first new car at Age 40. (How sad is that?) I had a warrantee for 4 years and it was very nice. A new car is new everything, there are no "little issues", there is no fretting over the damn thing leaving you in a lurch.
Any way you cut, cars are money pits - they bleed you of money. (Unless I buy that 66 corvette - which is not going to depreciate, but is highly impractical)
I fully intend to buy another new car. I'm through fixing used cars.
If you can use a lease as a write off, I would go in that direction. You don't have to deal with the whole depreciation issue.
I can't get my head around that you lose 30% of a new car's value by driving it off the lot.
I'm also not a fan of long term leases. I have gone through leasebusters.com for shorter lease takeovers with great success.
I can't get my head around that you lose 30% of a new car's value by driving it off the lot.
I'm also not a fan of long term leases. I have gone through leasebusters.com for shorter lease takeovers with great success.
I'm not a financial guru but I'm not following your logic. A lease is basically financing the depreciated value of the car between the time you drive it off the lot and the value when you return the car. That is why you have penalty payments based to insure that the car has the anticipated lease value at the end of the lease (mileage, dents, etc). Financing a purchase pays for the entire price of the car over an agreed period of time. Since at the end, you own the car - there are no penalties.
There are some good leasing options that make outright financing of purchases more expensive. If I took a 0% financing (got it for my Hyundai 18 months ago) and put the $10K lease payments a savings account - I can end up paying less net than the 'I pay cash boys'. If my thinking is wrong - please straighten me out.
Amen. I agree completely. I just figured out my car has cost me $7000 to drive it for less than a year. Makes me sick. I would have rather purchased brand new.
Yep cheapest thing is to keep your old ride...if you don't get ripped off on repairs
It all depends on circumstances. I use to buy cash only and what I can afford. Now I lease on very short term because I can write off a very nice car for business. Why not write it off if you are allowed to do it?
Depends on what your budget is. You can't go hobby for a 300/hr when your wallet has 100 in it.
Same thing. Financing vs leasing. Two completely different things.
Overall long term, financing is better for your since its cheaper .
If you dont care about money and care about keeping new cars and not worry about maintenance, go for leasing.
Regarding which car, many small suvs fall within same price range.
Go drive them, see what options you like and compare the prices. Whatever car licks your balls the best, go for it.
Reliability, they are all the same these days. Go for what you can afford and what you like.
Same thing. Financing vs leasing. Two completely different things.
Overall long term, financing is better for your since its cheaper .
If you dont care about money and care about keeping new cars and not worry about maintenance, go for leasing.
Regarding which car, many small suvs fall within same price range.
Go drive them, see what options you like and compare the prices. Whatever car licks your balls the best, go for it.
Reliability, they are all the same these days. Go for what you can afford and what you like.
Except then it would cost you the $7000 to drive it from the dealer's lot onto the road.
Best advice: Any number of cars, taxis oand or transit wil meet your transportation needs. Consider it entertainment and buy what you enjoy.
It's good to consider your annual cost. In my case I bought I pretty nice car 10 years ago for 15k. Spent an average of 1k a year in fixes (I know that's a lot). Car's value today is effectively zero since I put many miles on it. So in my case it works out as 2.5k/year for driving an ok car.
If I say lease and pay 400/month for 4 years (I can't write it off), plus say $200 in maintenance, my cost is $5k/year - that's for a lower end but newer car.
Personally, the value of "new" isn't worth double the cost.
If I say lease and pay 400/month for 4 years (I can't write it off), plus say $200 in maintenance, my cost is $5k/year - that's for a lower end but newer car.
Personally, the value of "new" isn't worth double the cost.
I'm not directly familiar with the studies but when I was driving a fleet (company) car, the fleet manager told me that most studies suggest the most economical car expense is using a car for two years and then buying a new one. This gives the biggest return on used car and balances out the expected repair costs as the car ages. Their calculations might have tax benefits I'm not familiar with but I have heard the same about private ownership.
I found this out when my two year lease expired on a fleet car I liked and they absolutely refused to give me another year with it. (I could buy it out privately but didn't)
I found this out when my two year lease expired on a fleet car I liked and they absolutely refused to give me another year with it. (I could buy it out privately but didn't)
