To lease or to buy

[iggyoi]

The problem with leasing is you're taking on a vehicle during its high depreciation years, with a forced return on it on a set date. It's like renting a house, you always get evicted at the worst possible time!

[oilyfan]

Originally Posted by iggyoi

The problem with leasing is you're taking on a vehicle during its high depreciation years, with a forced return on it on a set date. It's like renting a house, you always get evicted at the worst possible time!

You are not forced to return the car, you can easily buy it out and sell it for profit. The house analogy does not work.

And frankly when you buy a new car you are taking it over it high depreciation years as well. Leasing just allows you to have a convenient outlet if you are upside down after a few years.

[Rathji]

Originally Posted by iggyoi

The problem with leasing is you're taking on a vehicle during its high depreciation years, with a forced return on it on a set date. It's like renting a house, you always get evicted at the worst possible time!

This thread is (mostly) discussing the pros and cons of buying Vs leasing of a brand new car and only keeping it for a few years. In both situations, you are paying for the most depreciating years of the vehicles.

Buying an older vehicle, in comparison to buying (or leasing) a brand new vehicle is an entirely different discussion.

[bizaro86]

Originally Posted by photon

Oh and the other factor for buying if you are in the drive it into the ground camp is repairs. I've had my VW Passat for 11 years now, and with the amount of repairs we've had to put into it over the past 3-4, it's almost like having a small car payment.

Not every car is like that, but most cars need at least some work after a while.

The other factor with this is budgeting. It's easy to budget for a car payment, because you know it'll be the same amount every month at the same time. If you took that same (say $300) and make it one big repair per year, you have to have the discipline/means to come up with the $3600 (or whatever) when the transmission decides to go, so you may not get a ton of warning.

[Sliver]

Originally Posted by Rathji

This thread is (mostly) discussing the pros and cons of buying Vs leasing of a brand new car and only keeping it for a few years. In both situations, you are paying for the most depreciating years of the vehicles.

Buying an older vehicle, in comparison to buying (or leasing) a brand new vehicle is an entirely different discussion.

I think it's always relevant to point out buying a car 2-3 years old is better than both financing or leasing a new car in these discussions.

[pylon]

Originally Posted by Sliver

I think it's always relevant to point out buying a car 2-3 years old is better than both financing or leasing a new car in these discussions.

Again, only if you want a used car. Some people do not. The discussion is about leasing vs. buying a new car.

I know a lot of people think that people are dumb ######s for buying a new car because of depreciation etc....

Some people are not cheap, have a few bucks to burn and want the latest and greatest, and are willing to pay for it regardless of depreciation etc. And I am in that camp as well. I don't want 3 years worth of farts in my seat, and boogers wiped under it. I don't know how the guy treated the thing. I want a brand new out of the box smell and feel. If it wasn't for all of us ######ed new car buyers, that you guys thumb down your noses at, you wouldn't have used cars to buy.

[albertGQ]

^^^
the people that make fun of others that buy brand new cars are probably the same ones that buy $300 jeans, $100 t-shirts, brand new 3D TVs, and get in line for the newest iPhone and ipads.

[pylon]

Originally Posted by albertGQ

^^^
the people that make fun of others that buy brand new cars are probably the same ones that buy $300 jeans, $100 t-shirts, brand new 3D TVs, and get in line for the newest iPhone and ipads.

I am a new car buyer, but I am guilty of the bolded..lol.

[Maritime Q-Scout]

Originally Posted by albertGQ

^^^
the people that make fun of others that buy brand new cars are probably the same ones that buy $300 jeans, $100 t-shirts, brand new 3D TVs, and get in line for the newest iPhone and ipads.

I grew up in a household that never owned a new car, always used ("let someone else eat the depreciation" as my father would say)

I also say that my parents (nor I) have ever bought $300 jeans, $100 t-shirts, or brand new 3D TVs, I also have a second hand 3G iPhone (which does what I need it to do).

So some of the used car camp isn't completely hypocritical.

[pylon]

Originally Posted by Maritime Q-Scout

I grew up in a household that never owned a new car, always used ("let someone else eat the depreciation" as my father would say)

I also say that my parents (nor I) have ever bought $300 jeans, $100 t-shirts, or brand new 3D TVs, I also have a second hand 3G iPhone (which does what I need it to do).

So some of the used car camp isn't completely hypocritical.

I have nothing against people that buy used cars. Financially they are usually a lot more sensible. But to me a car, is more than just a thing to get around in, and I am willing to pay more. Some people are not. Each to their own.

I just see it a lot where you get the used buyers, even when they are sitting in front of me in my office, ragging on new car buyers, and thinking they are so much more enlightened than the rest of us. Most new car buyers know all of the disadvantages, they simply don't care, they just want a new car.

[bizaro86]

Originally Posted by albertGQ

^^^
the people that make fun of others that buy brand new cars are probably the same ones that buy $300 jeans, $100 t-shirts, brand new 3D TVs, and get in line for the newest iPhone and ipads.

There's a difference between making fun of somebody and pointing out a 3rd option. Buying a car a few years old every 3 years instead of a new car every three years is practically guaranteed to cost less money over the long haul to get you from A to B.

Some people like to pay extra for new car smell, which is fine. I bought my vehicle new, and will probably keep it for another 5-6 years. (It's an '08) That's also likely to work out cheaper than buying new every 3 years, but there will be times when I'm driving an 8 year old vehicle.

The buying versus leasing argument as presented here only works if you're planning to get a new car every few years. In that situation, leasing might be cheaper, but the choices on vehicle use are much wider than that, so they're not really that off topic.

[bizaro86]

Originally Posted by pylon

I have nothing against people that buy used cars. Financially they are usually a lot more sensible. But to me a car, is more than just a thing to get around in, and I am willing to pay more. Some people are not. Each to their own.

I just see it a lot where you get the used buyers, even when they are sitting in front of me in my office, ragging on new car buyers, and thinking they are so much more enlightened than the rest of us. Most new car buyers know all of the disadvantages, they simply don't care, they just want a new car.

If someone can afford and wants a luxury item, I don't see the problem with that. I could afford to buy a new car every few years, but I don't. Instead, I spend that money on travel. All I get out of that is memories, but it's worth it to me. Interesting that I almost never get flack from anyone about that expense (and it's significant relative to my income) but others of similar incomes get flack about buying new cars.

[lazypucker]

Some people like to spend their fortune on photography equipment, others like to spend on golf clubs. There are others who like to spend it on traveling, while others spend it on new cars, yet someone likes to spend them on Flames season tickets year after year. Different strokes for different folks. If you can afford to do them all, more power to you...

[pylon]

Originally Posted by lazypucker

Some people like to spend their fortune on photography equipment, others like to spend on golf clubs. There are others who like to spend it on traveling, while others spend it on new cars, yet someone likes to spend them on Flames season tickets year after year. Different strokes for different folks. If you can afford to do them all, more power to you...

Exactomundo.

[Maritime Q-Scout]

I didn't mean to come across that buying a new car is stupid (if that's how I came across). New cars just not my thing, I'm one of the odd few people that doesn't really care what kind of car they drive as long as it's economical.

I like another poster above would prefer to spend my extra money on travel. That said, to each their own, like pylon said, if it weren't for those who like to buy new cars ever few years then there wouldn't be any used cars for the rest of us.

[Table 5]

I just wish more of you new car buyers these days would buy good cars instead of ######ed CUVs, so those of us too cheap to buy new have a better pool to pick from in a few years!

Remember, manual, wagon, AWD....all things I'd appreciate if you would consider.

[pylon]

Originally Posted by Table 5

I just wish more of you new car buyers these days would buy good cars instead of ######ed CUVs, so those of us too cheap to buy new have a better pool to pick from in a few years!

Remember, manual, wagon, AWD....all things I'd appreciate if you would consider.

I have a beautiful 08 328xi 6 speed wagon sitting on my lot right now.

[Table 5]

Originally Posted by pylon

I have a beautiful 08 328xi 6 speed wagon sitting on my lot right now.

Would actually love to see the details on that! Pm?

[pylon]

Originally Posted by Table 5

Would actually love to see the details on that! Pm?

D'oh, 6 speed.... TIPTRONIC. The receptionist isn't up on her transmission lingo when she stocked it in. So close, yet one pedal away from what you want.

Nice car though. White, on clay leather, panorama roof....classy ride.

[Sliver]

Originally Posted by pylon

Again, only if you want a used car. Some people do not. The discussion is about leasing vs. buying a new car.

I know a lot of people think that people are dumb ######s for buying a new car because of depreciation etc....

Some people are not cheap, have a few bucks to burn and want the latest and greatest, and are willing to pay for it regardless of depreciation etc. And I am in that camp as well. I don't want 3 years worth of farts in my seat, and boogers wiped under it. I don't know how the guy treated the thing. I want a brand new out of the box smell and feel. If it wasn't for all of us ######ed new car buyers, that you guys thumb down your noses at, you wouldn't have used cars to buy.

What you see as a discussion about buying a new car, I see as a discussion about buying a car.

People who call other people cheap are often under achievers of wealth, I've noticed.

Originally Posted by pylon

I have nothing against people that buy used cars. Financially they are usually a lot more sensible. But to me a car, is more than just a thing to get around in, and I am willing to pay more. Some people are not. Each to their own.

I just see it a lot where you get the used buyers, even when they are sitting in front of me in my office, ragging on new car buyers, and thinking they are so much more enlightened than the rest of us. Most new car buyers know all of the disadvantages, they simply don't care, they just want a new car.

A car is a lot more than just something to get around in to me as well, so I don't think new-car buyers can stake a claim to that sentiment. In fact, used car buyers typically get more value and better vehicles by buying used given the same budget as a new-car buyer.

As an example, I bought a 340hp AWD 300c used with 55,000 kms for the same price my mom bought a Nissan Versa. Pretty sure she's not more of a car person than me for choosing an appliance over a powerful sedan for the same price.

Take the price of a GTI - not sure what it is but say it's $32,000. If I had that money to spend on a car, I would get a two-year old Audi, BMW, Infinity or any number of cars that are better in every way for the same price.

Finding a way to spend the same money but getting something better is enlightened.

Originally Posted by bizaro86

If someone can afford and wants a luxury item, I don't see the problem with that. I could afford to buy a new car every few years, but I don't. Instead, I spend that money on travel. All I get out of that is memories, but it's worth it to me. Interesting that I almost never get flack from anyone about that expense (and it's significant relative to my income) but others of similar incomes get flack about buying new cars.

I agree with you that people should be able to buy a luxury item if they can afford one. The thing is, people who lease new cars often can't afford them. To me, you can afford to buy a $32,000 car if you have $32,000 in the bank, not if you have $400/month.

Your travel example would only be a good comparison against leasing if you were travelling first class on debt, staying in hotels beyond your means and not having any memories to show for it in the end. Then people would question your judgement in the same way they question leasing.