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Discussion Starter · #1 ·
We've been looking at new cars and I know some people lease instead of buy. I just wondered what the advantages of leasing might be. I have a 1999 auto with less than $55,000 miles so I don't put a lot on there. And what about wear and tear- with 2 labs would I get penalized at turn in for over and above? I'd most likely want to buy at the end - don't want a car payment forever but a reduced one for a while would be nice. TIA
 

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Suze Orman recently put leasing a car instead of buying on her list of the ten biggest financial mistakes you can make. I can't remember why exactly but you might google her name and see if you can find it.
 

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I personally don't understand why people lease cars. It's just wasting money away, IMO. You keep paying and paying and never own anything. I much prefer buying a less expensive car which I can finance and afford to make payments on, paying it off as soon as possible, then driving it for another 2-5 years. There is nothing better than not having a car payment (I miss it since I recently got a new car).

If you're a business, there are some tax breaks for leasing, but even then, I don't think it's a good choice. Many people choose to lease fancier cars than they can afford to buy outright or to finance.
 

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My daughter leases against my advice.She still had to pay for repairs and maintenance.I don't think she is money ahead at all.

You don't put a lot of miles on the car so purchasing a lower mileage used car seems reasonable. I like that point in car ownership when I have NO payments.
 

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I leased and will never do it again. This was right out of high school. They took my beat up trade in plus $2000 down payment. You don't get your down payment back and you don't own the car and when it comes time to turn it in you have to put down another down payment. Not worth imo.
 

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i lease only because the payments are cheaper, i can usually negotiate for more miles, i get an upgraded model i could never afford to buy and i love getting new cars every 2 years. usually car dealerships will pay off your last 3 months of payments and give you extra money towards a new lease or buy another vehicle (new or used) on their lot. it's usually a cheaper down payment and i can afford a car with lots of extras. the dealership i deal with will overlook excess wear and tear on the vehicle (my lease says anything that can be covered by a credit card is normal wear and tear) if they know i'm buying from them again and i really watch my mileage every month and after leasing 5 vehicles, i have NEVER gone over mileage. my Nitro now would have cost me well over 400.00 a month payment because i got it with 4 wheel drive and an upgrade model but with a lease, i'm paying 310.00 a month and belive it or not, an extra 90.00 with the payment would not have been feasible.
 

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If you put a lot of miles on, they leasing isn't for you. I did leasing many years ago; other than low payments, there really wasn't an advantage. I didn't keep either car very long, so it worked out okay, but I would not do it again. I have found buying a Premier Used Car is a better deal. If you can find one with low miles and a warranty, you can "own" and still keep your payments low.
 
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We've never been fans of leasing. It does help keep payments down - and if you are in need of swapping a vehicle out every two years or so - say for business purposes of keeping a new, clean car, it makes some snese. But, as has been pointed out, you make payments and end up with nothing in the end. We've always bought.
 

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I leased the Jetta and would nver do it again. They tell you can trade it in two years but that was a killer hassle. It was wrecked on the Mass pike and the lease was released from there. I bought a used Blazer after that paid it off and have a "dog" car. I bought the Altima and like that arangement better.
 
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When you lease a car you are basically paying for the use of a vehicle, not buying it. When you buy a vehicle you are "losing" a lot of the original price/value in the first 12 months due to depreciation anyway.

I think there is nothing wrong with leasing if you view it as paying for usage and you do not need to put a lot of miles on the car and want to always have a new car.

That said - all my cars are paid for and I have not entered into a lease in 10 years.
 

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I think it depends what you want.... My friend leases, because she likes to drive newer cars that she doesn't have to worry about, and the payment is lower for the same vehicle. She's a single gal with a good job, and knows nothing about cars so is more comfortable with this arrangement. For us, we buy older cars and DH keeps good care of them. We haven't had a car payment in years because we've been driving old cars. Sure they aren't pretty, but they are paid for! We'll be buying a used minivan soon, so will have to swallow the payment again, but then we'll be able to sell it or trade it in whenever we wish.
 

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There's no advantage to leasing vs buying, especially if you want to own at the end. Best thing you can do is pick a good used car and make payments you can afford. Or find a deal with low apr or 0% financing (generally an american car). That's a stopgap solution, though, because you pay a lot more taking that route through depreciation.
 

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I lease and have done for years. I like it but it isn't for everyone. I get a better car for lower payments and only pay for regular maintenance which I would if I bought. I also get a new car every few years.

The last car I turned in I had to replace the hub caps because I have a habit of losing at least one within days of picking up the car, 3 cars running. Went to Pep Boys got a matching set and the dealer was happy. I turned it in for an SUV with no hub caps! The first thing I said to DH was - no hubbies! We cracked up and the dealer looked at us as if we were nuts! Which we are.

Again it isn't for everyone, but I like it. Maybe the next time I'll buy.............
 

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I'm neurotic. I'd be too afraid of the mileage issue. I'd be calculating my trips to the grocery store to combine them with picking up my mail at the community box which is blocks away, etc. etc. I know I should probably do that anyway with the rising cost of gas, but I'd lose sleep trying to figure out my route for the next day.
:-\
 

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my son sells cars in princeton, NJ & is pretty **** good at it
but he swears that leasing is the way to go

he prolly makes more $$ when he sells a lease *giggle*
 

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I think a lot of it depends on your needs.

We have leased three times. Twice- vans for me. Those leases have worked out great. I just need something to drive around our city and for a family vehicle to drive to visit family and such. We've always come in under in our mileage.

DH leased his car. Dumb. He puts entirely too many kms on his car. He went into the leash planning to buy it out at the end. Again, dumb idea. In hindsight, we shouldn't have done it with his car. But you live and learn.

Our lease on our van is up in December and I think we'll be buying our next van, just so we can pay it off and not have a payment for a few years. But it is really nice to have a new car every few years. Our first lease was 3years. Perfect time frame, imo! Our current lease is 4yrs and I'm not happy. We need to put new tires on it- had to pay for new brakes.. Stuff we didn't have to do with a 3yr lease. So in that sense, it does bite. I'd rather pay for something I"m going to keep, hence the reason we are looking to buy this time around.
 

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Like someone else said...leasing isn't for everyone and for various reasons. I am too much of a cheapo to not own what I am paying for. Even if it means I can get a brand spanking new car every two years.

Also...I develop an attachment to my vehicles lol.

I saved up for the car I really wanted then I went ahead and bought it. I still needed to take a loan out on it but I had a enough in downpayment to make my monthly payments pretty low. I also did my best to pay off the car early.

Here's a link to an article I found about the pros and cons of leasing vs. buying...

http://www.investopedia.com/articles/pf/05/042105.asp

hope it helps :)
 

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I have leased 2x. We honestly drive too much to lease and plan on lease pull ahead. We got nailed this time. We bought our last car in January. We like to get new cars every few years and figure it's a wash either way. We owe more than it's worth or over on mileage, to me there is no difference. We decided to buy this time and got 0% so it made it a little better. The truck will be paid for in 2 years and we have along 5 for my new Trailblazer. I hope I don't get sick of it too soon.
 

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Discussion Starter · #20 ·
thanks so much everbody- you've been very helpful. Thinking I will be checking into the "previously owned" premier, low mileage, with possible warranty option.
 
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