FrogBreath

Eesh. Some pretty weird thoughts in here. Lease vs buy both have their positives & negatives. Financially there are many factors that can impact your outcome. As long as you understand what you're doing you should be fine. I typically buy cars since I mod like crazy but whether you lease or buy I could care less.

jeremyp111

Leasing vs buying is an individual choice that should be made based on your own personal situation. There are a lot of questions to ask yourself...How long do you intend to keep the car? What's more important...low or no payment vs amount of money down? How many miles do you drive each year? How is your credit? etc, etc, etc.

I had NEVER considered a lease until I bought my 2015 Tahoe LTZ. I also hadn't bought a brand new car since 1994! I have done really well with Certified Pre Owned cars that were1-2 years old with low miles and long warranties. I only keep cars 2-3 years before trading in and drive about 30-35k miles per year split between two cars. Each car gets about 15-17k each. For my situation and at the interest rates we've seen for the last several years it doesn't make sense to do short term financing or pay cash. Cash is king! LOL

The big thing with leasing is that it is more difficult to figure out if you're getting a good deal. With a standard car loan the interest rate is the interest rate. When leasing you are sold on the payment...But what is the lease term? How many miles per year? Down payment inclusive of tax, title and fees? What is the money factor (cost of money)? Dealers NEVER tell you the money factor...you have to ask them for it. And just like financing a loan they will try and sell you a higher money factor than you would otherwise qualify for to make more money on the deal. It can be difficult to compare deals due to all of these factors.

Here's why leasing made sense for me when I bought my Tahoe and RC350. I only keep cars short term. I only drive 15k+ miles per year, per car. I have excellent credit (very important when leasing). When doing the math of my last couple vehicle purchases I would have made out better if I had leased AND I would have been able to drive a brand new vehicle vs a 1-2 year old vehicle. When the lease term is up I can decide to keep it or drop it off and buy something new.

One other thing with leasing that helps tremendously are the usage of MSDs (multiple security deposits). Most leasing companies allow MSDs to buy the money factor down. Instead of putting money down to reduce the capital cost and thus your monthly payment you can put that money toward MSDs. Each MSD is equal to 1 month payment rounded up. The big thing is that you get to lower your payment by putting money down BUT when your term is up you get it back. That money can then be used on your NEXT new car.

There's a TON of excellent information about leasing out there. Do a search here and check out Edmunds. When your next car purchase comes up keep an open mind and do your homework. Your situation may point to one or the other being the best way to acquire it but you won't know unless you look into it closely.

Hope this helps!

JP

Canesguy

My decision to lease some of my cars is done by a VERY simple method. After buying multiple cars through the years I know about what it costs me to drive a particular car for 1,2, or 3 years. Knowing that I like to have a new car every 1 1/2 to 2 years, when I lease it has always been for 24 mos. Depending on how upscale the car I'm leasing is, I know what I want to spend in order to drive that car for the 2 years. At the end of the lease, after the 2 years, I simply walk away from it not worrying about selling or trading the car. Also, it is rare with the short lease term that I've had any maintenance issues, or have had to replace the tires for wear.

I understand most of these factors are unique to me, but i don't really worry about money factors and other variables of the lease, only what the total amount it will cost me to drive the car. I have not had to pay additional costs such as for excessive wear or damage at lease turn-in, but desposal fees of $350-500 are taken into account if I choose not not lease or buy the same make the next time around.

Here's an interesting comparison. A 2 yr. lease on a new 2016 Maxima Touring, top of the line, with all the bells and whistles, would have cost a total of $24k, for a car with a MSRP of about $42.5k. This is in contrast to an RC F-Sport listing for $53k costing about $8k LESS to drive for the two years. Interesting, huh?

So, for my purposes, leasing works for me.

StellaBlue

I was about ready to quote about 10 different posts for all the good comments made. Instead, I'll tell you why I am in my first lease. I have always bought my cars new for nearly the last 30 years. For the first 15 of those 30 years, I was, on average, keeping the car about 5-6 years. Also, since I was getting good GM employee discounts (which don't exist anymore like they used to; e.g., I could usually get about 12-18% off MSRP), I was buying new cars for a low of $14,000 in the 80s to about $25,000 in the early aughts. Then I started noticing I was going through cars a lot more often. On top of that, cars were getting more expensive (or at least my taste in cars grew more expensive). Finally, a few years ago I decided to buy a barely used Cadillac CTS coupe. I was able to get it for a good deal less than the original MSRP (I know no one pays MSRP). I started running numbers and I was noticing that every time I went to trade I would take a bath. I have no problem selling outright and I have always done pretty well selling it outright in the past, but here in Florida you only get the sales tax break through dealers. So the last new car I bought in 2011, I paid $30k. I traded it in 8 months later for about $22k. So, that car cost me $1000/month. Well, you say, the first year is the worst depreciation. I agree which is why I tried something different in buying a barely used, but still used, Cadillac. Bought that car mostly in cash (btw, if and only if you can afford it, pay cash; if you can't afford it, then negotiate your price as if you're paying cash---don't let the dealer play numbers game with you). Anyway, I had that car for a little over 2 years. My loss was $17k. I had had enough. If I'm stupid enough to want a new car every couple of years (and I'll be the first to admit that I am), then why should I keep losing money. So I tried leasing and I'm loving it. No worries about anything. This is particularly true if you get into an accident with a car you own. You never recoup the lost value. If you lease, so what, you don't lose anything, you just keep making your payments, and the dealer has the issue with selling a car that's been in an accident. So on a 36 month lease, I am losing less money than if I had bought. I'm not paying sales tax on the full car, but only my payments (I understand not all states do it that way though).

Of course, leasing is not for everybody as many people have said. In my situation (a habitual new car buyer), it makes the most financial sense. If I were keeping the car 5+ years, I'm all about buying. Just about every article I've read said the smartest thing to do is buy a car and keep repairing it until it no longer makes sense, which would be a good 10 years or more. Buying a new car is frankly not "smart" but it is an emotional experience that is hard to duplicate. In short, do what works for your situation.

Pearlrider

iTrader: (1)

Have you tried your luck with Totota's or Lexus before?
They hold their value much better than domestic unfortunately.
(You won't have to pull your pants down at trade in time )
That's why purchasing one of these vehicles is much more lucrative than leasing.

RNM GS3

When Lexus, Bmw, etc are giving you leases with 3 year residuals of mid-60s% and low rates (2-3%) - it would be a poor financial decision NOT to lease - that is if you want to drive a Luxury car.

If you care nothing about cars, buy a Prius, Civic or Corrola in Cash and you will be set for next ten years easy.
You will def save a lot of money.

StellaBlue

Exactly. mic drop.

Pearlrider

iTrader: (1)

My bad. I thought he was complaining of losing money when purchasing from General Motors?
I didn't hear him say he lost money purchasing a Lexus product ????

StellaBlue

Pearlrider, I wasn't complaining about losing money because ALL cars lose money. My earlier point was that "back in the day" when you could buy a car for $25k, keep it for 5 years and then sell it for $17k, let's say, it made sense because you had an enjoyable car and in that example it cost you $8k. Nowadays, whether it's a Lexus, BMW, or any luxury brand, now you're paying $50k to buy, keep it for 3 years, then when you go to sell it, be happy if they give you $30k on a trade. So, math was catching up to me and instead of losing $8k, you are now losing $20k. That is where leasing makes sense. Buying makes sense for a lot of people which is why myself and others were saying that the decision depends on your situation, buying habits, etc.

Pearlrider

iTrader: (1)

$30,000 trade at a Chevy lot for a Lexus RC350 with your 10,000 x 3=30,000 mile car?
If I did that kind of math, guess I'd lease to!

chikindadd

Here is my opinion. We all die and rot, so why not drive a hot car that we enjoy regardless of lease of purchase? Again, just my opinion. But to me, it doesn't matter because like all of us, I'll one day die and rot in the ground the same way regardless of I leased my cars or bought them cash.

My 2 cents.

Pearlrider

iTrader: (1)

Sure is nice to hold a clean title though ��

FR500GT

iTrader: (7)

If any of you guys are still looking for a "screamin" lease deal or purchase, let me know if I can help. I have some of the best contacts around!

I love my RC and want to expand our RC and RCF community!

TTechLexus

iTrader: (3)

Preach