Not Logged In Log In   Sign Up   Points Leaders
Follow Us    10:10 PM

Message Forum - Read Message

Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Can I save money leasing a car, then buying it? Back to Topics
mastermariner

Champion Author
Texas

Posts:12,209
Points:924,910
Joined:Jun 2011
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
Visit Bank rate for full article
REPLIES (newest first) Post a Reply
Profile Pic
millerin
Champion Author Orlando

Posts:3,939
Points:870,070
Joined:Jan 2012
Message Posted: Oct 1, 2013 11:54:44 PM

good to know.
Profile Pic
drobbbb
Champion Author Maryland

Posts:5,418
Points:1,247,155
Joined:Dec 2010
Message Posted: Oct 1, 2013 11:45:15 PM

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

Posts:1,891
Points:1,307,060
Joined:May 2010
Message Posted: Oct 1, 2013 1:14:16 PM

Unlikely
Profile Pic
sciotosix
Champion Author Dayton

Posts:4,876
Points:1,115,100
Joined:Apr 2011
Message Posted: Oct 1, 2013 11:57:59 AM

Never been in favor of leasing.
Profile Pic
dudleydog
Champion Author New Hampshire

Posts:1,152
Points:558,125
Joined:Aug 2008
Message Posted: Oct 1, 2013 8:55:15 AM

no, no, no...
Profile Pic
jeffbone
Champion Author Virginia

Posts:2,642
Points:679,380
Joined:Mar 2011
Message Posted: Oct 1, 2013 8:08:40 AM

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

Posts:1,900
Points:414,155
Joined:Feb 2013
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.
Profile Pic
Straitliner
Champion Author Illinois

Posts:3,705
Points:681,620
Joined:Sep 2012
Message Posted: Oct 1, 2013 6:12:38 AM

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

Posts:4,011
Points:917,780
Joined:Jun 2011
Message Posted: Oct 1, 2013 3:30:45 AM

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

Posts:3,822
Points:1,095,450
Joined:Apr 2011
Message Posted: Oct 1, 2013 2:27:51 AM

nope...
Profile Pic
carloco75
Champion Author Richmond

Posts:5,887
Points:1,040,785
Joined:Oct 2010
Message Posted: Oct 1, 2013 1:39:22 AM

Interesting "debate"...
Profile Pic
comprof
Champion Author Houston

Posts:9,173
Points:1,805,200
Joined:Jul 2009
Message Posted: Oct 1, 2013 1:10:57 AM

Jeff4U: I agree.
Profile Pic
kkimes
Champion Author Illinois

Posts:2,443
Points:1,905,370
Joined:Sep 2005
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.
Profile Pic
Jeff4U
Champion Author Atlanta

Posts:10,938
Points:2,299,525
Joined:Nov 2004
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]
Profile Pic
1GhettoWhipper
Champion Author Indianapolis

Posts:2,008
Points:1,425,645
Joined:Mar 2009
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.........
Profile Pic
FlatulenceOdor
All-Star Author Maryland

Posts:648
Points:621,200
Joined:Sep 2012
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.
Profile Pic
gcalleja
Champion Author Miami

Posts:2,707
Points:976,325
Joined:May 2011
Message Posted: Oct 1, 2013 12:05:12 AM

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

Posts:2,172
Points:567,300
Joined:Nov 2012
Message Posted: Sep 30, 2013 11:56:53 PM

Interesting question and article
Profile Pic
lesndave
Champion Author Texas

Posts:5,046
Points:1,144,155
Joined:May 2011
Message Posted: Sep 30, 2013 11:14:24 PM

Leasing best serves the dealer.
Profile Pic
hoopitup2000
Champion Author Virginia

Posts:1,093
Points:308,050
Joined:Jul 2013
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.
Profile Pic
Punai
All-Star Author Lansing

Posts:625
Points:255,475
Joined:May 2013
Message Posted: Sep 30, 2013 9:32:54 PM

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

Posts:2,589
Points:617,895
Joined:Oct 2012
Message Posted: Sep 30, 2013 8:48:56 PM

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

Posts:11,680
Points:2,273,230
Joined:Mar 2008
Message Posted: Sep 30, 2013 7:56:33 PM

Stay away from leasing.
Profile Pic
Lugi1967
Champion Author Ohio

Posts:6,694
Points:1,434,570
Joined:Jun 2010
Message Posted: Sep 30, 2013 7:52:08 PM

Lease is a fleece
Profile Pic
andy1024
Champion Author Allentown

Posts:3,775
Points:856,830
Joined:Dec 2011
Message Posted: Sep 30, 2013 7:31:35 PM

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

Posts:6,540
Points:744,770
Joined:May 2012
Message Posted: Sep 30, 2013 6:49:10 PM

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

Posts:12,534
Points:2,429,285
Joined:Oct 2007
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.
Profile Pic
philbh
Veteran Author Cleveland

Posts:343
Points:445,795
Joined:Oct 2008
Message Posted: Sep 30, 2013 6:10:06 PM

no
Profile Pic
mastermariner
Champion Author Texas

Posts:12,209
Points:924,910
Joined:Jun 2011
Message Posted: Sep 30, 2013 5:55:44 PM

Never leased, never will
Profile Pic
squintz13
Veteran Author Ohio

Posts:399
Points:72,625
Joined:Sep 2013
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.
Profile Pic
Tacodan
Champion Author Cincinnati

Posts:4,474
Points:1,092,275
Joined:Apr 2011
Message Posted: Sep 30, 2013 5:11:37 PM

No .........
Profile Pic
rcornel
Champion Author San Diego

Posts:1,592
Points:549,055
Joined:Jun 2012
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.
Profile Pic
SUNOIL
Champion Author Toledo

Posts:7,368
Points:2,363,760
Joined:Jul 2007
Message Posted: Sep 30, 2013 5:06:14 PM

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

Posts:53,136
Points:2,821,835
Joined:Mar 2006
Message Posted: Sep 30, 2013 4:50:06 PM

leasing is for losers
Profile Pic
cisson
All-Star Author Sarasota

Posts:538
Points:477,760
Joined:Jul 2010
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.
Profile Pic
samk2012
Veteran Author Michigan

Posts:426
Points:167,330
Joined:Mar 2012
Message Posted: Sep 30, 2013 4:35:40 PM

ok
Profile Pic
moose21040
Veteran Author Baltimore

Posts:256
Points:364,640
Joined:Jan 2011
Message Posted: Sep 30, 2013 4:19:57 PM

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

Posts:2,691
Points:1,220,670
Joined:Apr 2010
Message Posted: Sep 30, 2013 4:17:46 PM

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

Posts:4,340
Points:1,056,535
Joined:May 2009
Message Posted: Sep 30, 2013 3:51:28 PM

Short answer: no

Profile Pic
Patriots9
All-Star Author Naples

Posts:533
Points:281,035
Joined:Sep 2013
Message Posted: Sep 30, 2013 3:41:32 PM

ok thanks
Post a reply Back to Topics