Car, lease or buy?

[bubble_contagion]

If you like to change car every few years, it is better to lease. Go to carbuyingtips.com and download the lease and the finance calculators. What you want to do is to find out the details of the lease like how much you are paying for financing vs. depreciation and what the residual value of the car will be. If you know those details you can compare the lease vs. buy more clearly.

[Diego Mamani]

From a financial point of view, I’d get a used Lexus, Accura, Toyota, or Honda, and pay cash for it.

But car purchases can be emotional and few of us can be rational. In 2001 I bought a brand new Mustang, mostly because I liked its shape. I thought (or “knew”) that a Toyota, even a used one, may have been more reliable.

My car was a newspaper ad special at $14.9K (a V6) and it came with 0% APR for 60 months. I put only $500 down (!) I made my last payment over a year ago, the car now has only 52K miles, and looks/runs like new. Never any problems. I do take care of it, though.

A similar story with my wife’s Subaru. Both cars are paid in full, and they are well maintained. No thanks, no car payments for me!

[Diego Mamani]

From a financial point of view, I’d get a used Lexus, Accura, Toyota, or Honda, and pay cash for it.

But car purchases can be emotional and few of us can be rational. In 2001 I bought a brand new Mustang, mostly because I liked its shape. I thought (or “knew”) that a Toyota, even a used one, may have been more reliable.

My car was a newspaper ad special at $14.9K (a V6) and it came with 0% APR for 60 months. I put only $500 down (!) I made my last payment over a year ago, the car now has only 52K miles, and looks/runs like new. Never any problems. I do take care of it, though.

A similar story with my wife’s Subaru. Both cars are paid in full, and they are well maintained. No thanks, no car payments for me!

[Diego Mamani]

From a financial point of view, I’d get a used Lexus, Accura, Toyota, or Honda, and pay cash for it.

But car purchases can be emotional and few of us can be rational. In 2001 I bought a brand new Mustang, mostly because I liked its shape. I thought (or “knew”) that a Toyota, even a used one, may have been more reliable.

My car was a newspaper ad special at $14.9K (a V6) and it came with 0% APR for 60 months. I put only $500 down (!) I made my last payment over a year ago, the car now has only 52K miles, and looks/runs like new. Never any problems. I do take care of it, though.

A similar story with my wife’s Subaru. Both cars are paid in full, and they are well maintained. No thanks, no car payments for me!

[Diego Mamani]

From a financial point of view, I’d get a used Lexus, Accura, Toyota, or Honda, and pay cash for it.

But car purchases can be emotional and few of us can be rational. In 2001 I bought a brand new Mustang, mostly because I liked its shape. I thought (or “knew”) that a Toyota, even a used one, may have been more reliable.

My car was a newspaper ad special at $14.9K (a V6) and it came with 0% APR for 60 months. I put only $500 down (!) I made my last payment over a year ago, the car now has only 52K miles, and looks/runs like new. Never any problems. I do take care of it, though.

A similar story with my wife’s Subaru. Both cars are paid in full, and they are well maintained. No thanks, no car payments for me!

[Diego Mamani]

From a financial point of view, I’d get a used Lexus, Accura, Toyota, or Honda, and pay cash for it.

But car purchases can be emotional and few of us can be rational. In 2001 I bought a brand new Mustang, mostly because I liked its shape. I thought (or “knew”) that a Toyota, even a used one, may have been more reliable.

My car was a newspaper ad special at $14.9K (a V6) and it came with 0% APR for 60 months. I put only $500 down (!) I made my last payment over a year ago, the car now has only 52K miles, and looks/runs like new. Never any problems. I do take care of it, though.

A similar story with my wife’s Subaru. Both cars are paid in full, and they are well maintained. No thanks, no car payments for me!

[DaCounselor]

Be sure to investigate and compare insurance costs for a leased car versus a used car. Leases often require substantial amounts of coverage that go beyond what you may normally select, and any extra costs should be factored in your analysis.

I will say, for whatever it’s worth, that I have been lured to at least consider leasing by the thought of driving a new luxury car every few years. However, after crunching the numbers I always come back down to earth and end up purchasing a late model used (uh, excuse me, I mean “pre-owned”) car. I can say that over the past 12 years I have saved a large sum of money by going used while still driving excellent cars.

[DaCounselor]

Be sure to investigate and compare insurance costs for a leased car versus a used car. Leases often require substantial amounts of coverage that go beyond what you may normally select, and any extra costs should be factored in your analysis.

I will say, for whatever it’s worth, that I have been lured to at least consider leasing by the thought of driving a new luxury car every few years. However, after crunching the numbers I always come back down to earth and end up purchasing a late model used (uh, excuse me, I mean “pre-owned”) car. I can say that over the past 12 years I have saved a large sum of money by going used while still driving excellent cars.

[DaCounselor]

Be sure to investigate and compare insurance costs for a leased car versus a used car. Leases often require substantial amounts of coverage that go beyond what you may normally select, and any extra costs should be factored in your analysis.

I will say, for whatever it’s worth, that I have been lured to at least consider leasing by the thought of driving a new luxury car every few years. However, after crunching the numbers I always come back down to earth and end up purchasing a late model used (uh, excuse me, I mean “pre-owned”) car. I can say that over the past 12 years I have saved a large sum of money by going used while still driving excellent cars.

[DaCounselor]

Be sure to investigate and compare insurance costs for a leased car versus a used car. Leases often require substantial amounts of coverage that go beyond what you may normally select, and any extra costs should be factored in your analysis.

I will say, for whatever it’s worth, that I have been lured to at least consider leasing by the thought of driving a new luxury car every few years. However, after crunching the numbers I always come back down to earth and end up purchasing a late model used (uh, excuse me, I mean “pre-owned”) car. I can say that over the past 12 years I have saved a large sum of money by going used while still driving excellent cars.

[DaCounselor]

Be sure to investigate and compare insurance costs for a leased car versus a used car. Leases often require substantial amounts of coverage that go beyond what you may normally select, and any extra costs should be factored in your analysis.

I will say, for whatever it’s worth, that I have been lured to at least consider leasing by the thought of driving a new luxury car every few years. However, after crunching the numbers I always come back down to earth and end up purchasing a late model used (uh, excuse me, I mean “pre-owned”) car. I can say that over the past 12 years I have saved a large sum of money by going used while still driving excellent cars.

[cooperthedog]

Cars are depreciating assets.

I’ve noticed that used car lots are full of high-end cars vs. a few years ago, and I would expect prices to fall further as people who can’t afford those cars start returning them, credit dries up, etc.

As for a new car purchase or lease, I would let someone else take the bulk of the depreciation (i.e. buy a used car that is at least a few years old). I’ve never leased a car, but I’m pretty sure the dealership will structure it so you pay all the depreciation (and then some).

It sounds like you are well ahead of the game w/ 100k saved at 24 years old. Why not focus on adding to that and growing it, while keeping your current (paid) car?

With that said, when I was in my twenties I purchased a Porsche, and later on an M3 (both slightly used of course), which weren’t the best financial decisions in hindsight, but boy did I have a good time… You have to balance life now with fiscal responsibility.

It appears that you want something speedy, so I’d recommend buying a luxury/sports car that is older (late 90’s) from an original or 2nd owner, who is older (well maintained & not abused). You could pickup a nice BMW or some such for ~12k. In fact, you could drive it for a two years, throw it away, and buy another and do the same thing and end up the same financially as leasing the new car…

[cooperthedog]

Cars are depreciating assets.

I’ve noticed that used car lots are full of high-end cars vs. a few years ago, and I would expect prices to fall further as people who can’t afford those cars start returning them, credit dries up, etc.

As for a new car purchase or lease, I would let someone else take the bulk of the depreciation (i.e. buy a used car that is at least a few years old). I’ve never leased a car, but I’m pretty sure the dealership will structure it so you pay all the depreciation (and then some).

It sounds like you are well ahead of the game w/ 100k saved at 24 years old. Why not focus on adding to that and growing it, while keeping your current (paid) car?

With that said, when I was in my twenties I purchased a Porsche, and later on an M3 (both slightly used of course), which weren’t the best financial decisions in hindsight, but boy did I have a good time… You have to balance life now with fiscal responsibility.

It appears that you want something speedy, so I’d recommend buying a luxury/sports car that is older (late 90’s) from an original or 2nd owner, who is older (well maintained & not abused). You could pickup a nice BMW or some such for ~12k. In fact, you could drive it for a two years, throw it away, and buy another and do the same thing and end up the same financially as leasing the new car…

[cooperthedog]

Cars are depreciating assets.

I’ve noticed that used car lots are full of high-end cars vs. a few years ago, and I would expect prices to fall further as people who can’t afford those cars start returning them, credit dries up, etc.

As for a new car purchase or lease, I would let someone else take the bulk of the depreciation (i.e. buy a used car that is at least a few years old). I’ve never leased a car, but I’m pretty sure the dealership will structure it so you pay all the depreciation (and then some).

It sounds like you are well ahead of the game w/ 100k saved at 24 years old. Why not focus on adding to that and growing it, while keeping your current (paid) car?

With that said, when I was in my twenties I purchased a Porsche, and later on an M3 (both slightly used of course), which weren’t the best financial decisions in hindsight, but boy did I have a good time… You have to balance life now with fiscal responsibility.

It appears that you want something speedy, so I’d recommend buying a luxury/sports car that is older (late 90’s) from an original or 2nd owner, who is older (well maintained & not abused). You could pickup a nice BMW or some such for ~12k. In fact, you could drive it for a two years, throw it away, and buy another and do the same thing and end up the same financially as leasing the new car…

[cooperthedog]

Cars are depreciating assets.

I’ve noticed that used car lots are full of high-end cars vs. a few years ago, and I would expect prices to fall further as people who can’t afford those cars start returning them, credit dries up, etc.

As for a new car purchase or lease, I would let someone else take the bulk of the depreciation (i.e. buy a used car that is at least a few years old). I’ve never leased a car, but I’m pretty sure the dealership will structure it so you pay all the depreciation (and then some).

It sounds like you are well ahead of the game w/ 100k saved at 24 years old. Why not focus on adding to that and growing it, while keeping your current (paid) car?

With that said, when I was in my twenties I purchased a Porsche, and later on an M3 (both slightly used of course), which weren’t the best financial decisions in hindsight, but boy did I have a good time… You have to balance life now with fiscal responsibility.

It appears that you want something speedy, so I’d recommend buying a luxury/sports car that is older (late 90’s) from an original or 2nd owner, who is older (well maintained & not abused). You could pickup a nice BMW or some such for ~12k. In fact, you could drive it for a two years, throw it away, and buy another and do the same thing and end up the same financially as leasing the new car…

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