Car, lease or buy?

[Newblet]

I recently sold my srt8 magnum because it was costing me way too much (gas, depreciation, rediculous). So now I’m in the market for a car and I can’t make up my mind between a new lease or buying pre-owned certified. Right now I’m mainly looking at audi a4s, but I’m in no rush to buy because I have a beater in the meantime.

The pre-owned one’s cost 23-24k
They lease new for 750 down 454 a month

[Raybyrnes]

That’s a lot of money for a used car when someone is just starting out and trying to build wealth.

I have no bias towards leasing, buying, or financing. All have benefits and drawbacks. In general when someone is starting out you are probably better off to finance a vehicle that is proportionate to your income.

The reason I say this is that your mileage patterns can change dramatically, your job can change, you can relocate, so leasing has constraints.

If you had cash and used it towards a car you would lose valuable liquidity and opportunity costs of holding the cash. Additonqally you may not have 23K sitting around to pay for the car.

Financing is a good option if you have GOOD credit. right now interest rates for new cars are around 5.5% to 6% on 60 months of financing. The payment is higher than a lease but you have a greater amount of flexibility at the end of the finance as to whther you wnat to keep the car, seel it trade it in etc without the dealership dictating the terms.

[Raybyrnes]

That’s a lot of money for a used car when someone is just starting out and trying to build wealth.

I have no bias towards leasing, buying, or financing. All have benefits and drawbacks. In general when someone is starting out you are probably better off to finance a vehicle that is proportionate to your income.

The reason I say this is that your mileage patterns can change dramatically, your job can change, you can relocate, so leasing has constraints.

If you had cash and used it towards a car you would lose valuable liquidity and opportunity costs of holding the cash. Additonqally you may not have 23K sitting around to pay for the car.

Financing is a good option if you have GOOD credit. right now interest rates for new cars are around 5.5% to 6% on 60 months of financing. The payment is higher than a lease but you have a greater amount of flexibility at the end of the finance as to whther you wnat to keep the car, seel it trade it in etc without the dealership dictating the terms.

[Raybyrnes]

That’s a lot of money for a used car when someone is just starting out and trying to build wealth.

I have no bias towards leasing, buying, or financing. All have benefits and drawbacks. In general when someone is starting out you are probably better off to finance a vehicle that is proportionate to your income.

The reason I say this is that your mileage patterns can change dramatically, your job can change, you can relocate, so leasing has constraints.

If you had cash and used it towards a car you would lose valuable liquidity and opportunity costs of holding the cash. Additonqally you may not have 23K sitting around to pay for the car.

Financing is a good option if you have GOOD credit. right now interest rates for new cars are around 5.5% to 6% on 60 months of financing. The payment is higher than a lease but you have a greater amount of flexibility at the end of the finance as to whther you wnat to keep the car, seel it trade it in etc without the dealership dictating the terms.

[Raybyrnes]

That’s a lot of money for a used car when someone is just starting out and trying to build wealth.

I have no bias towards leasing, buying, or financing. All have benefits and drawbacks. In general when someone is starting out you are probably better off to finance a vehicle that is proportionate to your income.

The reason I say this is that your mileage patterns can change dramatically, your job can change, you can relocate, so leasing has constraints.

If you had cash and used it towards a car you would lose valuable liquidity and opportunity costs of holding the cash. Additonqally you may not have 23K sitting around to pay for the car.

Financing is a good option if you have GOOD credit. right now interest rates for new cars are around 5.5% to 6% on 60 months of financing. The payment is higher than a lease but you have a greater amount of flexibility at the end of the finance as to whther you wnat to keep the car, seel it trade it in etc without the dealership dictating the terms.

[Raybyrnes]

That’s a lot of money for a used car when someone is just starting out and trying to build wealth.

I have no bias towards leasing, buying, or financing. All have benefits and drawbacks. In general when someone is starting out you are probably better off to finance a vehicle that is proportionate to your income.

The reason I say this is that your mileage patterns can change dramatically, your job can change, you can relocate, so leasing has constraints.

If you had cash and used it towards a car you would lose valuable liquidity and opportunity costs of holding the cash. Additonqally you may not have 23K sitting around to pay for the car.

Financing is a good option if you have GOOD credit. right now interest rates for new cars are around 5.5% to 6% on 60 months of financing. The payment is higher than a lease but you have a greater amount of flexibility at the end of the finance as to whther you wnat to keep the car, seel it trade it in etc without the dealership dictating the terms.

[cr]

I personally would buy used. Since you have a car check prices constantly, and hold out for the right price. Then buy it outright unless you can pay less interest than you’d gain on the money somewhere else.

IMO leasing caters to the insatiable appetite Americans have developed for constantly needing something new. I’m sure some people here do and have good reason to, it’s just never appealed to or made sense to me.

A 2 year lease would cost you half of what it is to buy, but at the end of those 2 years you’re back to square one, and I’m willing to bet it’s more than the other half to buy it at that point.

[cr]

I personally would buy used. Since you have a car check prices constantly, and hold out for the right price. Then buy it outright unless you can pay less interest than you’d gain on the money somewhere else.

IMO leasing caters to the insatiable appetite Americans have developed for constantly needing something new. I’m sure some people here do and have good reason to, it’s just never appealed to or made sense to me.

A 2 year lease would cost you half of what it is to buy, but at the end of those 2 years you’re back to square one, and I’m willing to bet it’s more than the other half to buy it at that point.

[cr]

I personally would buy used. Since you have a car check prices constantly, and hold out for the right price. Then buy it outright unless you can pay less interest than you’d gain on the money somewhere else.

IMO leasing caters to the insatiable appetite Americans have developed for constantly needing something new. I’m sure some people here do and have good reason to, it’s just never appealed to or made sense to me.

A 2 year lease would cost you half of what it is to buy, but at the end of those 2 years you’re back to square one, and I’m willing to bet it’s more than the other half to buy it at that point.

[cr]

I personally would buy used. Since you have a car check prices constantly, and hold out for the right price. Then buy it outright unless you can pay less interest than you’d gain on the money somewhere else.

IMO leasing caters to the insatiable appetite Americans have developed for constantly needing something new. I’m sure some people here do and have good reason to, it’s just never appealed to or made sense to me.

A 2 year lease would cost you half of what it is to buy, but at the end of those 2 years you’re back to square one, and I’m willing to bet it’s more than the other half to buy it at that point.

[cr]

I personally would buy used. Since you have a car check prices constantly, and hold out for the right price. Then buy it outright unless you can pay less interest than you’d gain on the money somewhere else.

IMO leasing caters to the insatiable appetite Americans have developed for constantly needing something new. I’m sure some people here do and have good reason to, it’s just never appealed to or made sense to me.

A 2 year lease would cost you half of what it is to buy, but at the end of those 2 years you’re back to square one, and I’m willing to bet it’s more than the other half to buy it at that point.

[sd_t2]

The depreciation on the Audi will be bad as well. A few years ago I got a used A4 (2001) for about $24k OTD (TTL included).

It had only 30,000 miles on it but was an electrical nightmare and in the shop alot for any number of sensors tripping.

I eventually traded it in at an approx. 10,000 dollar depreciation loss because I was getting sick of the dealer trips.

If you do buy used, be sure there is lots of residual warranty. You’ll be needing it.

[sd_t2]

The depreciation on the Audi will be bad as well. A few years ago I got a used A4 (2001) for about $24k OTD (TTL included).

It had only 30,000 miles on it but was an electrical nightmare and in the shop alot for any number of sensors tripping.

I eventually traded it in at an approx. 10,000 dollar depreciation loss because I was getting sick of the dealer trips.

If you do buy used, be sure there is lots of residual warranty. You’ll be needing it.

[sd_t2]

The depreciation on the Audi will be bad as well. A few years ago I got a used A4 (2001) for about $24k OTD (TTL included).

It had only 30,000 miles on it but was an electrical nightmare and in the shop alot for any number of sensors tripping.

I eventually traded it in at an approx. 10,000 dollar depreciation loss because I was getting sick of the dealer trips.

If you do buy used, be sure there is lots of residual warranty. You’ll be needing it.

[sd_t2]

The depreciation on the Audi will be bad as well. A few years ago I got a used A4 (2001) for about $24k OTD (TTL included).

It had only 30,000 miles on it but was an electrical nightmare and in the shop alot for any number of sensors tripping.

I eventually traded it in at an approx. 10,000 dollar depreciation loss because I was getting sick of the dealer trips.

If you do buy used, be sure there is lots of residual warranty. You’ll be needing it.

[Author]

Posts