# New Car - Lease or Buy?

**URL:** <https://boards.straightdope.com/t/new-car-lease-or-buy/598232>\
**Category:** In My Humble Opinion\
**Created:** [October 1, 2011, 5:03am UTC](https://boards.straightdope.com/t/new-car-lease-or-buy/598232 "2011-10-01T05:03:03Z")\
**Posts on this page:** 3\
**Page:** 2

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**Author:** ![PunditLisa](https://avatars.discourse-cdn.com/v4/letter/p/4af34b/32.png) [@PunditLisa](https://boards.straightdope.com/u/PunditLisa)\
**Post date:** [October 3, 2011, 10:48am UTC](https://boards.straightdope.com/t/new-car-lease-or-buy/598232/21 "2011-10-03T10:48:59Z")

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> [@DrDeth](#):
>
> The whole _“buy a late model used car as a new car depreciates a bunch once you drive it off the lot”_ meme is outdated. True, it does. But that only effects how much the dealer will _buy_ your one year old used car for. It has little effect on how much the dealer **SELLS** a one year old used car for.

Unless I’m buying new, I buy from a private party.

I work for an international corporation and they have a digital employee bulletin board for selling used items. I’ve seen fantastic deals on newer used cars from managers who are being relocated overseas.

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**Author:** ![Mama\_Zappa](https://avatars.discourse-cdn.com/v4/letter/m/71e660/32.png) [@Mama\_Zappa](https://boards.straightdope.com/u/Mama_Zappa)\
**Post date:** [October 3, 2011, 12:56pm UTC](https://boards.straightdope.com/t/new-car-lease-or-buy/598232/22 "2011-10-03T12:56:23Z")

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> [@Ximenean](#):
>
> Leasing is no different to a car loan, really. It’s just that somebody else borrows the money, and charges you a bit extra on top. You do save the future cost of selling the car, and maybe for some people it’s easier than getting credit. But it’s still just a loan.

Not exactly. With a lease, your loan amount is based (partly) on the assumed resale value of the car at the end of the lease - as some columnists explain it. you’re just borrowing the depreciation amount. E.g. car worth 20,000, will resell for 10,000, so you’re paying on 10,000 vs. 20,000. That’s grossly oversimplified of course, but is a way of looking at it that helps put things in perspective.

The difference of course is that if you lease, in 3 years you need to take out ANOTHER 3-year lease and pay another 10,000 loan. And 3 years after THAT, you repeat all over again. Whereas with a purchase, you’re paying on the whole 20,000 which is a larger payment, but then you own the car.

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**Author:** ![Balthisar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/balthisar/32/2825_2.png) [@Balthisar](https://boards.straightdope.com/u/Balthisar)\
**Post date:** [October 8, 2011, 7:03am UTC](https://boards.straightdope.com/t/new-car-lease-or-buy/598232/23 "2011-10-08T07:03:42Z")

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> [@PunditLisa](#):
>
> I work for an international corporation and they have a digital employee bulletin board for selling used items. I’ve seen fantastic deals on newer used cars from managers who are being relocated overseas.

Someone got an absolute steal on my Continental for that reason. One prospective buyer thought I was a craigslist scammer because of the low price. It was actually Blue Book; all of the other Continentals were simply way overpriced.

I didn’t have time to unload the Expedition, though. Maybe during my home leave in December. People will be wanting 4x4’s when the snow starts to fall.

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