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Author Topic: Can I save money leasing a car, then buying it? Back to Topics
mastermariner

Champion Author
Texas

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Message Posted: Sep 30, 2013 3:40:13 PM

My husband and I are shopping for a new car. Previously, we've always bought our cars, but this time we are thinking of leasing a car for two reasons. First, our family may be expanding in a few years, and we might need a bigger car than the model that suits us now. Second, there is a great lease deal on the car we are looking at with zero down and a low monthly payment.

We are wondering if we decide we want to buy the car at the end of the lease, is there any way it is possible to actually pay the same or less than if we commit to buying a car upfront?
It is possible, though only if you are getting a great deal on both the lease and the payoff amount. Generally speaking, automakers' promotional lease deals are created by adjusting the primary factors: initial sale price, interest rate
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REPLIES (newest first) Post a Reply
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millerin
Champion Author Orlando

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Message Posted: Oct 1, 2013 11:54:44 PM

good to know.
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drobbbb
Champion Author Maryland

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Message Posted: Oct 1, 2013 11:45:15 PM

in the long term you wont save money
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SRcyclist
Champion Author San Diego

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Message Posted: Oct 1, 2013 1:14:16 PM

Unlikely
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sciotosix
Champion Author Dayton

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Message Posted: Oct 1, 2013 11:57:59 AM

Never been in favor of leasing.
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dudleydog
All-Star Author New Hampshire

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Message Posted: Oct 1, 2013 8:55:15 AM

no, no, no...
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jeffbone
Champion Author Virginia

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Message Posted: Oct 1, 2013 8:08:40 AM

"zero down and low monthly payment"...the siren song for the suckers...
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NilesBishop
Champion Author Philadelphia

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Message Posted: Oct 1, 2013 7:17:16 AM

I used to work for a leasing company. Basically they figured the lease price to be the vehicle depreciation plus the interest cost of the loan they will take out to finance the car plus $15 to $20 a month profit. As you can see if you buy it outright you are getting rid of the leasing companies profit. The dealership may waive their lease profit to sell the car but why bother. The article also forgot to factor in that once the car is off lease you will probably have to finance the balance so you will have to figure in THAT interest as well. Best bet is to get preapproved by your lender and then negotiate a cash deal with the dealership. Or buy an off-lease vehicle where the first owner has paid for all the heavy initial depreciation costs.
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Straitliner
Champion Author Illinois

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Message Posted: Oct 1, 2013 6:12:38 AM

Never lease a car. This topic has been covered already.
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werich44
Champion Author California

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Message Posted: Oct 1, 2013 3:30:45 AM

Has nothing to do with the price of gas.
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LostInNY
Champion Author New York

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Message Posted: Oct 1, 2013 2:27:51 AM

nope...
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carloco75
Champion Author Richmond

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Message Posted: Oct 1, 2013 1:39:22 AM

Interesting "debate"...
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comprof
Champion Author Houston

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Message Posted: Oct 1, 2013 1:10:57 AM

Jeff4U: I agree.
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kkimes
Champion Author Illinois

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Message Posted: Oct 1, 2013 1:02:32 AM

What they didn't address is the difference between states. In Illinois, when you lease a car it is taxed as if you bought the car. You pay sales taxes on the full price of the car, even though you don't own it! It's a real stumbling block for most.
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Jeff4U
Champion Author Atlanta

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Message Posted: Oct 1, 2013 12:57:54 AM

Leasing and renting guarantees your money evaporates in the end.
I suppose that's fine if you have money to burn.
.

[Edited by: Jeff4U at 10/1/2013 12:58:33 AM EST]
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1GhettoWhipper
Champion Author Indianapolis

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Message Posted: Oct 1, 2013 12:48:35 AM

1. add up ALL your lease payments, 24 36, or 48 mos.
2. establish amounts you'll need to finance at end of
that period....
3. total the two together, then see how that compares.
4. REALLY too many unknowns for a comparison.........
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FlatulenceOdor
Veteran Author Maryland

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Message Posted: Oct 1, 2013 12:11:53 AM

Ill use the phrase made famous by John McEnroe...YOU CANNOT BE SERIOUS!!! With that title.
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gcalleja
Champion Author Miami

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Message Posted: Oct 1, 2013 12:05:12 AM

It makes sense if you can deduct the lease payment.
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gta_guy
Champion Author Toronto

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Message Posted: Sep 30, 2013 11:56:53 PM

Interesting question and article
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lesndave
Champion Author Texas

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Message Posted: Sep 30, 2013 11:14:24 PM

Leasing best serves the dealer.
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hoopitup2000
All-Star Author Virginia

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Message Posted: Sep 30, 2013 10:07:17 PM

Leasing is for fools who don't know how to manage money, or just have a lot of money to blow.
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Punai
All-Star Author Lansing

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Message Posted: Sep 30, 2013 9:32:54 PM

Buy used so you don't take the hit on depreciation!
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pleinyeux
Champion Author Montreal

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Message Posted: Sep 30, 2013 8:48:56 PM

Leasing ???? Never loll
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PathfinderSC
Champion Author South Carolina

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Message Posted: Sep 30, 2013 7:56:33 PM

Stay away from leasing.
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Lugi1967
Champion Author Ohio

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Message Posted: Sep 30, 2013 7:52:08 PM

Lease is a fleece
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andy1024
Champion Author Allentown

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Message Posted: Sep 30, 2013 7:31:35 PM

Lease-then-buy almost always costs more than up-front buy.
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Discovery02
Champion Author Colorado Springs

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Message Posted: Sep 30, 2013 6:49:10 PM

Must go into a lease with your eyes wide open and well-informed.
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jimgraham
Champion Author Akron

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Message Posted: Sep 30, 2013 6:36:27 PM

Only if you can get a tax expense deduction / write off on the lease payments and the over mileage charges. For all practical intents and purposes that means that you have it strictly for use in a business...

Other than that, it is almost always a fools game.
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philbh
Veteran Author Cleveland

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Message Posted: Sep 30, 2013 6:10:06 PM

no
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mastermariner
Champion Author Texas

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Message Posted: Sep 30, 2013 5:55:44 PM

Never leased, never will
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squintz13
Veteran Author Ohio

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Message Posted: Sep 30, 2013 5:35:24 PM

Leasing and renting are pretty close to the same thing. So why lease/rent when one can own? It may work for some folks.
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Tacodan
Champion Author Cincinnati

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Message Posted: Sep 30, 2013 5:11:37 PM

No .........
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rcornel
Champion Author San Diego

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Message Posted: Sep 30, 2013 5:09:20 PM

Leasing is only good for business use. This way you have a new car every so many years.
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SUNOIL
Champion Author Toledo

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Message Posted: Sep 30, 2013 5:06:14 PM

Buy, you're better at that
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humblepie
Champion Author Toledo

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Message Posted: Sep 30, 2013 4:50:06 PM

leasing is for losers
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cisson
All-Star Author Kentucky

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Message Posted: Sep 30, 2013 4:49:14 PM

We leased one and then during the last few months had to be careful we didn't drive over the limit. It was a headache and would never do it again.
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samk2012
Veteran Author Michigan

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Message Posted: Sep 30, 2013 4:35:40 PM

ok
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moose21040
Veteran Author Baltimore

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Message Posted: Sep 30, 2013 4:19:57 PM

I don't think leasing is a good idea.
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montpelier28
Champion Author Vermont

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Message Posted: Sep 30, 2013 4:17:46 PM

Never could see leasing as a good idea. Too many if's etc.
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doggod
Champion Author Anchorage

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Message Posted: Sep 30, 2013 3:51:28 PM

Short answer: no

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Patriots9
Veteran Author Naples

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Message Posted: Sep 30, 2013 3:41:32 PM

ok thanks
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