Lease or Buy? Why or Why Not?

Lotus · ‎03-09-2010

I'm thinking of purchasing a new SUV. I haven't bought a new vehicle since 2006 and I don't even know where to start.

I know what I want and I went to a dealer today and listened to an hour and a half of BS. JUST CUT TO THE CHASE AND GIVE ME THE BEST DEAL YOU CAN!!!

Well......it appears that unless you are a rocket scientist, it's hard to read between the lines and know what the best deal really is. It's as bad as buying a mattress and trying to price compare.

Things have really changed since I bought my Explorer.

Any advice?

Would you buy or lease? And why?

TIA

"People with closed hearts will always feel as though they are at war with the world." ~My friend Nancy

JustJazzmom · ‎03-09-2010

Lease if you plan on not keeping the car more than 4 years.

Try to get 0% financing if you are buying a car.

☼The best place to seek God is in a garden. You can dig for him there. GBShaw☼

MyGirlsMom · ‎03-09-2010

Hi Lotus,

Since you know what you want, no need to suggest going to Consumer Reports.

A lot depends on how you use your vehicle. If you lease, you're 'boxed in' with a lot of parameters. If you can abide by their rules, by all means lease.

Personally, i would buy because I can't abide by a lot of things the lease requires.

Keep Your Face To The Sunshine and You Will Not See The Shadow

Bird mama · ‎03-12-2010

I leased cars from 1996 through 2008.

Because I stayed with Nissans after the first time - I only put down a downpayment of like $300 which I got back the first time.

I never paid another down payment after the first time and never had excess wear and tear on my car.

Pros:

If a big downpayment is not required, leasing gets you in a car you may not otherwise be able to afford

As a woman, it ensures you are driving something new usually 2-3 years

The car is usually covered under warranty the entire time

Cons:

Because you are always in a newer car, insurance can remain high

Constant car payment

Depending on how much you drive, mileage caps and risks of paying for mileage above the allowance

I bought my current car in 2010 and paid it off in 3 years - got no interest that way. Then again, I had a hefty downpayment so monthly payments were manageable.

I loved having no car payments after three years.

There are times when you must speak, not because you are going to change the opposing side, but because if you do not speak, they have changed you.

Desertdi · ‎03-13-2010

I put money away in a "car fund" just as if I was making a payment. When I have enough CASH......I buy a car.

♥Surface of the Sun♥

Mominohio · ‎08-08-2010

The most important things I can thing to offer up here are

Leases have mileage limits, and many people can't stay within those and use the car the way they want/need to.

At the end of a lease, you can buy the car (not really the best deal, but I did it once in a pinch) or turn it back in, so you get to test run it, or if it turns out to not be what you want, you aren't stuck with it forever.

With a lease, you do have to be very careful about the way you take care of the car, it has to go back in good condition. If you are hard on a car, or don't take care of them well (and there are many out there that don't, just a fact, no judgement), then a lease might end up costing you big at turn in time.

If you lease, you will turn in the car before major repairs start up and get a new one. I always thought leasing was good for folks that don't know how to work on a car, or aren't interested in making 6 years of payments, and repairs that will start to be needed near the end of that loan time. Repairs can be very costly, and it can save stress and money to just trade a leased car in every few years.

If you buy you will be able to take the cost of that car and average it out over many years, if you tend to keep a car a long time. We always keep a new car for at least a decade, so leasing is really never for us at this stage of life. My husband is a mechanic, so we always buy, as he can fix them much cheaper than a dealership or other garage.

DiAnne · ‎09-22-2010

Whenever I buy a car I always feel like I am somehow being cheated. The last car I bought was through Costco's car buying service.

Deb1010again · ‎05-28-2013

Check out an online site called "True Car" (truecar.com) it'll show what people are paying for the exact same car in your area. We used it once we figured out what car we wanted and made the dealer give us a specific price and showed a print out from True Car. Be firm with the dealer and they'll match the deal.

I'd never lease because it ends up being too expensive and they make money on mileage overage and any little ding on the car at the end of the lease.

tansy · ‎01-02-2011

@Deb1010again wrote:
Check out an online site called "True Car" (truecar.com) it'll show what people are paying for the exact same car in your area. We used it once we figured out what car we wanted and made the dealer give us a specific price and showed a print out from True Car. Be firm with the dealer and they'll match the deal.

I'd never lease because it ends up being too expensive and they make money on mileage overage and any little ding on the car at the end of the lease.

I was going to suggest that site, too, as well as Edmunds and Kelly Blue Book.

Deb1010again · ‎05-28-2013

@tansy wrote:
@Deb1010again wrote:
Check out an online site called "True Car" (truecar.com) it'll show what people are paying for the exact same car in your area. We used it once we figured out what car we wanted and made the dealer give us a specific price and showed a print out from True Car. Be firm with the dealer and they'll match the deal.

I'd never lease because it ends up being too expensive and they make money on mileage overage and any little ding on the car at the end of the lease.
I was going to suggest that site, too, as well as Edmunds and Kelly Blue Book.

GREAT Good to know others agree. Lotus didn't ask about price, but TrueCar really helped us figure out what was a good deal for the particular car in our area and charted out what other people paid. You can't argue with that when you share it with the dealer. It really levels the playing field.

If the dealer won't honor the Truecar price I'd just call another nearby dealer or those Truecar suggests. The way I negotiated our car (Honda Odyssey) was to call the closest dealer, mention I was using Truecar and stating the price I would pay and what features it included. They ended up not having one in stock but found one in a town a few hours away and had it brought to the dealership the next day. DH went, test drove it and bought it on the spot for the Truecar price. So easy.