Car leasing vs buying opinions wanted

There is no requirement to buy the car when the lease runs out. It’s an option, along with leasing another new car, or just turning it over to the dealer.

Pretty sure I covered all that in the thread.

If your mileage is that low, consider hiring cars and using taxis on an ad hoc basis.

This. Priuses are ridiculously dependable and if you only put 40,000 miles on it, you should still be able to trade in/sell that sucker for a decent amount of money in 2023. In your scenario, leasing is a major waste of money.

More likely you’re even on it, possibly even upside down.

I’m not an advocate of leasing, by the way. I’m not an advocate of touching any brand new car, really.

We didn’t have any problems but I knew some folks that had some with their lease.

In '96 we leased a Toyota Camry for 24 months @ $149 per month no money down. How crazy was that? 15,000 miles per year too.

In '98 we leased a Suzuki Sidekick for $169 per month, 24 months, no money down/no capitalization costs.

In 2000 we leased a Nissan Altima for $179/month, no money down, 28 months.

After that the lease deals went south. I’d love to be able to lease again for so cheap!

Leasing generally allows a lessee to drive a more expensive car than they could ordinarily buy because a lease allows one to pay only for the portion of a car used. If you’re only going to put 10,000 miles per year on a car and you sign a three-year lease, you only pay for three year’s worth of use for a total of 30,000 miles. For some, leasing is a great option.

BUT, you’re always limited by mileage in a lease, even if you want to increase your yearly mileage - by paying for it at lease signing - from 12,000, to 15,000 or 20,000. When you do that though, you’re paying more money for the privilege of putting more wear and tear on a depreciating item you don’t even own, but must pay to maintain. If you live in an area with great public transportation and you put minimum mileage on a car, leasing may be fine for you. Otherwise, it may not be so fine.

I live in a geographically dispersed metro area with so-so public transit, where the average driver puts 24K miles per year on his/her car, often times mores. Just commuting to and from work puts 200 miles per week on my vehicle, which means I put about 10,000 miles per year on my car just commuting to and from work. Public transportation is not an option for me, because it doesn’t go everywhere I need to go when I need to go and there’s no one else to drive me anywhere.

Many leases restrict mileage to about 12,000 per year. While some lessors may advertise 15,000 miles per year, because the cost of new cars has increased so much, I think many auto manufacturers and dealerships don’t promote leases with more 12,000 miles because they’d be more expensive and less attractive to their potential lessees. Luxury car leases often cap mileage at 10,000 miles per year. Of course, as I mentioned earlier, you can always buy additional mileage, but you’re increasing the amount of money you’re paying to rent an item whose value will depreciate quite a bit over the time you use it. Not a smart financial move.

For me, it makes no sense to lease a car; it would cost me almost as much money to lease a car as to buy one. For someone who doesn’t put that many miles on a car, or has decided they want to drive a new car every 24 or 36 months and doesn’t mind a recurring expense for that privilege, leasing might be a good option.

First, just because someone advertises an auto lease for a particular amount doesn’t mean you’re going to be able to lease that car for that amount. You have to qualify for a lease and a lease rate just as you do when you purchase a car. If your credit isn’t that great, you might not even be able to qualify for the lease advertised, or you might not be able to obtain that rate.

Second, leasing generally allows a lessee to get into a more expensive car cheaper than he/she could ordinarily buy it because a lease allows one to pay only for the portion of a car used. If you’re only going to put 10,000 miles per year on a car and you sign a three-year lease, you only pay for three year’s worth of use for a total of 30,000 miles. For some, leasing can be a great option.

BUT, you’re always limited by mileage in a lease, even if you want to increase your yearly mileage - by paying for it at lease signing - from 12,000, to 15,000 or 20,000. When you do that though, you’re paying more money for the privilege of putting more wear and tear on a depreciating item you don’t even own, but must pay to maintain. If you live in an area with great public transportation and you put minimum mileage on a car, leasing may be fine for you. Otherwise, it may not be so fine.

I live in a geographically dispersed metro area with so-so public transit, where the average driver puts 24K miles per year on his/her car, often times mores. Just commuting to and from work puts 200 miles per week on my vehicle, which means I put about 10,000 miles per year on my car just commuting to and from work. Public transportation is not an option for me, because it doesn’t go everywhere I need to go when I need to go and there’s no one else to drive me anywhere.

Many leases restrict mileage to about 12,000 per year. While some lessors may advertise 15,000 miles per year, because the cost of new cars has increased so much, I think many auto manufacturers and dealerships don’t promote leases with more 12,000 miles because they’d be more expensive and less attractive to their potential lessees. Luxury car leases often cap mileage at 10,000 miles per year. Of course, as I mentioned earlier, you can always buy additional mileage, but you’re increasing the amount of money you’re paying to rent an item whose value will depreciate quite a bit over the time you use it. Not a smart financial move.

For me, it makes no sense to lease a car; it would cost me almost as much money to lease a car as to buy one. For someone who doesn’t put that many miles on a car, or has decided they want to drive a new car every 24 or 36 months and doesn’t mind a recurring expense for that privilege, leasing might be a good option.

Calculate the daily/weekly fee for car rental. Do they have a zipcar service in your area? One of those options might be better than paying to lease/own a car right now. Although personally, if I were you, I’d buy a 10 year old reliable car that parts aren’t expensive for. Like a Toyota. You’d pay it off fairly quickly and wouldn’t feel guilty if you didn’t use it often.