Should i buy or lease my first car reddit. The whole thing is very overwhelming for me.

Should i buy or lease my first car reddit First, the money factor tends to be lower than the APR I'm trying to lease for the first time, and am getting rather off the wall prices, $800 and up. Just because someone doesn't have an extra $24000 laying around after some sizable down-payment and home payments doesn't mean they can't afford a house. Option #2 I buy a I’m (24F) finally looking to buy my first car but i am unsure if it’s the best financial decision. Buying, whether with cash or with a loan, means you own the car 100%. I will have ~$5k as a down payment and am looking for opinions on leasing with the intent to finance afterwards or just financing from the start. I was between leasing and buying mine for a while too and ended up buying & am happy. I'm an extremely low mileage driver so there is not even the most remote of risks that I will go over this, but at $508/month for the 10k, I Leasing is cheaper than buying over the same period because as you stated, you pay for the depreciation in a lease vs the full price of the car It DOES protect you from FUTURE depreciation. I don’t plan on keeping the car long term and I am will be going with a different car brand on my next vehicle. I'm always surprised how much less it costs me to lease. Once you find a great loan rate (typically lease buyout is better rate than used). The CX-5 is a great car and should last many more years. Unfortunately, some dumbass ran a red light and totaled my car. If then you want to trade it in, you lose out the tax vs directly rolling in the My current vehicle has reached its expiration date - I truly hate buying cars/depreciating assets but the time has come. With a 2-3 year lease you will be paying more but will likely have no maintenance issues / cost except tires/oil etc. should I lease a good car and pay $800 a month for the lease or should I invest the $40k and drive any current car that needs a lot of service in the If Tesla still offered lease buyout at the end of the lease it would be beneficial and worth it. For a first car, I'd buy something as cheap and as fun as possible that is in a decent mechanical condition. However, the car dealerships doesn't think my business I currently lease 2 cars and have leased almost every car I've used over the last 10 years. Some dealers may require a down payment which is fine and will reduce the cost to buy the car. I want to buy out the car. The minimum credit score needed to lease a car is 630. 5 years I've owned it. Insurance before you buy the car. Lease: For your basic, everyday non-special cars. I am considering financing a Dodge Charger (~$40k MSRP/ ~$500/mo for 75 mo. I'm in Florida, so buying out a lease costs ~4k. Buying used and selling generally should be less of a loss. That's not a recommended scenario but if you make it a high priority to always have a new car Leasing traditionally has lower payments too. (compared to 6. This comment is NOT accusing you of anything. I've leased a few vehicles and financed a few through regular purchase. Buy a new car for <$25k, and wait 1-2 years. After my 2006 Honda CRV hit its last legs at 230K I am car-less and looking to purchase or lease just as full student loan payments are kicking back in. Since we’ve never purchased a car I'm looking to save money on taxes for my company. If the market for cars continues to be pressured, I I also want to buy my first vehicle. Sometimes you will hear that with a lease, you only pay for the depreciation of the vehicle. Avoid muscle cars with base engines as they are slower than you want and should i buy this as my first car? its a 2018 with 108k miles and they’re asking 17k. She was beautiful and fun to drive. Depending on your state, there can be a BIG drop off in price after 10 years or 70k miles, because then Thanks for posting, u/CoookieHo!This comment is a copy of your post so readers can see the original text if your post is edited or removed. Your car won’t rent if you don’t have it set for instabook. I don’t see any reason not to monetize a vehicle your aren’t using. Hi everyone, basically as the title says. You may In short, 3 types of people lease: They can't afford to buy and finance and are leasing a car above their means. I have $500 dollars in my bank account. Explain to me like I'm 5 : car lease vs leasing first and then buying it out could be thought of as an (compared to 6. Leasing with Tesla is I leased my car for exactly that. Leasing a car that you’ll be able to drive for barely half of the year is just stupid any way you look at it. . Got it a So we leased my wife’s Highlander in January 2021, right before the car market went to shit. Hey everyone, we leased a car back in Jan 2020 for 3 years, we leased it with the thought that we would purchase the vehicle I know many successful people who have completely differing opinions on if leasing or buying a car is better. Given similar interest rates and money factors, buying a new car and trading it in 3 years later and leasing a car for 3 years should have the same cost, give or take a few percent. Your first car should always be a cheep used car. The other thing I got was lease wear care. 90 CAD. If I buy a new car I plan to keep it for probably 10 years as my Lincoln MKX is 10 years old with only 70,000 miles on it. Maybe next year would be better. My M3P is the first car I purchased. buying you pay MSPR(or whatever price) plus lower interest, leasing you pay a down payment (that normally is your fee to have the car and doesn't go to principle) and then you pay a much higher than market value price on the car at the end of the lease. It covers additional damage. I finally began looking into that route and KBB values my car between $18-20K. Currently I drive a 10 year old Ford. 4-5 biz days after you sign, you will get an email With a signup and login link to manage your leased car via Toyota financial Services. I'm not sure how long it is The lease deals on 2024s are incredible right now. 49% from 3. believe me, they are making money from you and then from selling the car on after. New-car prices remain high, which complicates the choice between buying and leasing a Also - your first car shouldn’t be a decision between leasing and financing, it should be saving up and buying junk just to get around. shorter term, then lease, 5 years plus definitely buy. For those cars it's better to lease first to avoid that luxury tax and then buy it out. The amount you pay on a lease assumes the car is going to lose a certain amount of value, if the car is worth more than that at the end of the lease you take the L and can’t buy the car and sell it with Tesla like a normal lease Whether you buy new, lease or buy used they all have significant trade offs that you have to consider. 00 more than if I had paid my Third-party dealerships and third-party individuals are not eligible to purchase leased vehicles. I am paying 100 bucks more then I was for the past 3 years and to me it’s worth it because I have a brand new car that I can beat up and then return for a new one. Tesla doesn’t let you buy your lease as of now, but program might come back. Typically, you should aim to put down 20% of a new car’s purchase price, and 10% for used cars. Here's why. buying a car to make the right choice when you finance your next vehicle. I am currently in the market for a new car, and decided to dive into the topic. 5% APR, paid zero for optionality (a lease is just financing with a put option), and lost about $2k on depreciation over 5 years. One of my ideas was to lease a exotic car for a year or two with no plans on actually buying it. Get a couple of years use out of it, and you're up on the deal, can sell it on and reassess your position then. I was wondering if anyone has pros and cons for either option. $100k OTD. (TFS) and this will Include a price to buy the car now and have them mail you your title and bill of sale. Hello, I am a 23 year old in Canada, I make about 35000 a year, have $2000 school debt. The reason why leasing is bad:. Currently I’m using my personal vehicle. It's really quite easy. I treat car my car payments as a utility. I personally have owned 3 cars in my life, the previous 2 I sold. Option 1) Purchase a used car in full, just so it is fully mine and I dont really have to worry about if I lose work because my car is paid for. I remember buying my first “new” (used from a dealership) vehicle and thinking the salesman would look down on my doing a 5 year loan with $5k down on a $21k vehicle. I want be able to proudly drive around this car and be confident in its reliability. I need to get a new car and am considering buying through my S-Corp. Does anyone know any good I’ve owned before and due to average annual repair costs, I realized leasing is better. Much appreciated My main questions: Should I lease or buy used? Is my insurance as a 22-year-old going to be unreasonably high for a My discussion point on lease over buy is always about how long you expect to keep the car. I lease. After some research I think lease may cost 20% to 30% more, but if you need transportation and you have certain budget, then lease make your life much easier, because you drive under warranty, can lease according to your budget, not the dream car you want, but et the end reliable transportation without surprise repair bills and dealing with old car breakdown. My current vehicle is a 2009 VW Passat that already has some engine issues. Model 3 and Model Y leases are not eligible for purchase regardless of delivery date. You'll still get a few thousand to buy down the vehicle once you refinance. ; Length of the lease: This is the number of months you agree to lease the car. I commute to work via bus and train. Every car I've had I've gotten the VIN and called my insurance, added the car and had them fax the dealership the paperwork. The lease on my current car (2020 Camry) is up in June. Compare your lease payment vs how much your payment will be if you finance. That’s going to be the amount you will pay if you want to own your vehicle at the end of your lease. Never had any issues in the short 2 years that I had her. true. But on a point made before, dealers and brokers always get a decent discount on new cars, often about £2k-£5k on a car at your price. Most manufacturers have this minimum requirement. These solar companies will steam roll you with terrible terms. They can afford it and they own their business I am looking at buying a car in the Seattle area and am trying to figure out if i should buy a car or lease one because of this car market. Statistically if you drive a reasonable amount leasing is the best option if you don't plan to keep the car long term. I get bored of my cars quickly and it’s not financially smart to buy a car and move into something new every 2-3 years. To my First cars generally should be something affordable to buy and cheap to run and maintain. I did my lease for 2 years and will be buying a new car at the end of my lease. Is there an option to buy out a lease down the line? Depending on your financial situation, this could be a great option. I have not had a ton of time to research in depth on what the leasing market is like in 2023, so I'm trying to get some input from the community on what your experience has been if you or someone you know recently leased a car within the last 6 months or so. It has been a pain taking public transportation to work. What you are paying for car (price and residual value) Just to add here in bc there is a luxury tax on vehicles over $50k. Should I just keep looking and hope that I will find a good used car off someone or should I finance a used car? Help! I have been very blessed and my parents have offered me a budget of 20k to purchase a car because they have money saved that wasn’t spent on my college. Leasing is attractive to me because once I turn it in, I can avoid the insane amount that BMW charges for service repairs once things start falling apart, lol. At the end of my lease, the buy-out price is only $1000. Buying a car gives you full ownership Considering trading in my car and getting a BMW. 00 more than if Lease fee = (Selling price + Residual) * Money factor Yes, you read that last line correctly. Its going to be an unpopular opinion but one which will be the safest in the long run. You’re just carrying over negative equity from car to car. rates) for the next 5 years into a car that I may not end up sticking with, especially as price is Insurance before you buy the car. In my experience, the whole co-signing situation never turn out 10 votes, 10 comments. The EV6 on a 3 year lease (my intention would be to buy out at the end of my lease) would be 522/month for 12k miles/year. I put 0 down and paid $267 monthly (3 year lease). I got the KBB instant offer of ~36k. You pay cash under the business, you can deduct 100% of the car (if it meets certain limits) in the year you purchase it, if you finance you can do the same thing then deduct the interest on the loan, or if My first was a 2016. The total cost of the service plan was I think $600 or so for my lease. Don’t listen to BMW guy on pricing and screening renters. So far I have always gotten lucky trading in a leased vehicle over the miles to another company with like 2 months left on the lease. Right now I'm driving a 2003 Ford Buying the new car cost more. I did not want to get a nice car until I can truly afford it. That should be in your lease contract. Bed Model 7544 with MSRP of $39,188, net capitalized cost of $34,060, and a lease end purchase amount of $30,567. You’ll be much happier with something cheap and used that’ll be much nicer than your traverse and allow you to save your money and enjoy nights out, dates, etc. Leasing can be prudent as a temporary option if the other option is buying a new car, since a lease essentially includes a call option at the end. If the car ends up being worth more than the buy out you can sell it third party or to carmax and recoup some of the money from the lease. I went with a lease, and I am a "People should NEVER lease cars". We've been in business for 2 1/2 years, and we've started making good money. For example, my 21 lease was about 370/month, my 23 Buy a ten year old honda for $5k or so. And being that it's your 1st car, I see no point of it no It makes more sense to lease than to buy if you'd be buying a new car every 1-3 years anyways. At the end of your lease, there’s a residual value. As Traditional wisdom I've seen online suggests that buying is a better financial decision than leasing a vehicle. lease topic on r/personalfinance before, but one thing that seems to not be considered is the cost of maintenance. Interestingly enough, among all the discussions here, it seems no one mentioned a lease to own option. This could be a good or bad price depending on the market in 3 years. Leasing is cheaper than buying, but you only get like 3 years out of the car. I don't want to pay a boatload in taxes, so I am thinking of leasing a car. I have a LLC small business. To my surprise, all of my research has led me to the conclusion I’m 24 and the lease on my first car is ending next June. Pretty low TCO on a brand-new car. Everyone seems up in arms about leases around here. Total of payments to own the car (not including sales tax and probably some secret purchase option fee) $36684 + $39517 + $6025 + $995 lease fee = $83,221. With the money left over a can feel a little more safe while I get settled in with my job. However buying a non-premium car and keeping it for a long time (6+ years Just buy out your lease and keep driving it. If you are early in your lease, usually the payoff will be high. I still have 19 years on a lease for some panels that I can never own and payments go up. The last part happens all the time with deals I work. I will most likely be buying in Los Angeles area, or I might be able to buy ASAP in Houston & will ship to LA. I have enough in my bank account to pay cash for the car, but I’d Reddit is very anti-leasing, but it really just depends on what you want. Of course you need to run the numbers on it to see if it's worth your while. But, I leased a car in 2017 and paid 0. You don’t want to be stuck in a loan that forces you to work double the number of hours just to pay for your The lease deals on the 2024 are really good. My sales guy at Mazda says my buyout is 13477. Then head off to buy the car. I've been working my ass off over the years and I want my money to be put to good use. That extra money is mine if I decide to sell, not Tesla’s. We’re just trying to decide if we want to lease it or buy it and finance. Okay I am 33 and got my license at 29 chewing through 3 used cars befor getting a leased new car (factory new). You I've read the buy vs. The reason why is because 1) if you trash the car, you're not destroying the transmission or the engine on a car that costs over $10,000, 2) if you start liking the car, you'll want to get into taking good care of it and maintaining it yourself (that is easier to do with more It would be easier for to buy a car. There is too many factors that can affect a car if you buy it and then plan to sell it or trade it in later View community ranking In the Top 1% of largest communities on Reddit. First job is NOT the time to make long term financial commitments like multi year car leases or buying new. However like myself, you are an enthusiast. 5% on finance agreement for the same vehicle). Conversely, returning a car you drove only 10,000 miles, when you paid for 36,000 miles is like handing the dealer a big check. For example, the leasing company will get the federal solar credit. ). My understanding is if i buy a leasing car i won't have any car after the leasing contract is over and on the other hand if buy used car there might be repairing issues and all these things. The whole thing is very overwhelming for me. The salesmen said that leasing it is the best way to go even if she plans on buying. My husband and I are about to get our first car ever and we’re pretty hyped on getting a model 3. I have rather no experience in Germany buying a leasing car, and have 2 options either buy used car upto 10k or get a leasing car. Instead, buy the car and use the value you’ve paid for, Jones says. Fwiw I bought my first car in 15 years because the used car market is so expensive that new is better for what I Whether you buy new, lease or buy used they all have significant trade offs that you have to consider. I had years of mechanic reports. I’ve always paid cash for used cars. Whenever you think "i should spend money to fix that, since the rest seems okay" DON'T. I am starting a job where they will pay you $625/month for a car you lease or I’d buy new and I’d try to pay cash, if possible, however I wouldn’t pull from your investments to do so. If your planning on moving out the first thing I’d do is notify your landlord that’s what your going to do or at least attempt to do 90 days prior or whatever the required time is in your lease then 45 days before your lease is up I’d start looking/ calling. Then on my second lease (Mazda) I asked for gap and they said it was included. If it is your first car, buy it. I would try to find a short term 12-month lease with as little I always lease cars because I like getting a new one like every year. Here are some options I am considering: Buying a new Toyota Corolla - estimated cost of $23k-25k Leasing a Tl/dr: my grandfather is trying to convince me that I need to lease a car, my parents think I should buy a (relatively) new car. My car was serviced at my Mercedes dealer for every single thing. Your investments should do better than whatever the interest rate is on a new Corolla. Would it be smart to lease my car to the business and then the business pays me for using the Leasing Buying/Financing Ownership You don't own a leased vehicle, and you don’t build equity. Also I would get lease My husband and I (22) (23) are considering to purchase a house at the end of next year, we’re currently renting an apartment for our 3rd year at this place. This means that if you’re buying a new car worth $40,000, you’ll want to put down at least $8,000. Running the numbers, you come out on top after 3 years with a purchase. If the car is worth less than the buyout you can Lease vs loan works like this when you buy a house. If you lease it or PCP etc, you So I have always taken for granted that buying is better than leasing a car, but I never really thought about it for myself. My GF is looking at getting a second car for commuting. I don't know if Buying a new car makes more financial sense than leasing. This is the way it's done. If you buy the system outright you will make all the money. They can afford it and don't want to deal with maintenance so they lease to get a new car every 3 years. He has an almost brand new car he was able to purchase at the beginning of our first year renting together You shouldn't spend anything on a car lease, especially not in your situation. Then you can buy the car for $39,517 at lease end. If you buy the car and drive it for 5 years or lease the car and drive it for 5 years, mathmatically the depreciation should be roughly Leases are only for those rich enough to swap cars every 12-18 months, or those too poor to afford the car payments. I needed a car, and I wanted a Tesla. My current budget for a car is 14k and from what ive been seeing it doesn't get me much, But if i were to lease a vehicle I would be able to get a much nicer/newer vehicle that is under warranty. paying cash can help the same. The finance company is buying the car, and then loaning it to you. Is there time to do it tomorrow? I would recommend becoming independent before buying a $50K car, but that’s my preference. And hear me out. Any profit you may have is just going to be eaten up by higher prices and market adjustments. Yep! No flair here Almost anyone who is ending a lease right now should be buying out their vehicles. ; Expected mileage: The lease sets the Parkinglotracer wrote: ↑ Thu Nov 30, 2023 11:48 am This loan Edmund calculator helped me understand what numbers go into a lease when my daughter in law leased a car. He said that when the lease is up, the only taxes she’ll pay is on the balance of the car as apprised to the total if she just edit: Thank you for the advice everyone, I’ll be on the lookout for a good used car to buy in cash based on the suggestions. But then I see people saying that leasing is bad so I'm not sure. I drive ~35 miles to and from work daily. I’ve been going through a divorce, moved, and have been very depressed so I let it slip that my car lease is up tomorrow. There is too many factors that can affect a car if you buy it and then plan to sell it or trade it in later Running the numbers, you come out on top after 3 years with a purchase. The credit comes right off the purchase price. If your car loan has 10 payments or less left on it the monthly payment doesn’t count against you. My parents, for example, have leased new cars on three-year leases for the past 20 years. I'm torn on purchasing given the current used car market and APR rates vs. It's a 2021 Mazda3 sedan and it's at around 32,000 miles. Is that about right in Brooklyn? I'm looking for a small SUV/Hatchback, nothing pricey, maybe a $20,000 car value, but still the prices are insane. Just to add here in bc there is a luxury tax on vehicles over $50k. This saved me about $12k when my Acura lease was up in 2022. I do not recommend putting anything down on a lease though. With that being said, even a co-signer may not be able to get the lease approved. I would say that for a $55k car, if you can get below $800 a month with no money down - it's worth it, if it's more than that - then maybe buying is the way to go. Leasing a Tesla is essentially renting a Teslayou can’t buy the car at the end of the lease. if this is your very first car lease something and learn more about cars. It’s a 2020 Toyota C-HR with 49k miles on it. 2) At the end of my lease I can buy the car for $20,000. I was told if I lease initially that I when I do eventually finance I would only pay sales 65 votes, 72 comments. I have done zero research into getting loan offers to compare. $3,849 Due At Signing includes $2,960 customer down payment, first month's payment of $239, and $650 Acquisition Fee. View community ranking In the Top 1% of largest communities on Reddit. While leasing may offer a newer, fancier car with lower monthly payments; My main questions: Should I lease or buy used? Is my insurance as a 22-year-old going to be unreasonably high for a leased car compared to a used car? If I buy used should I finance it or We compared the pros and cons of leasing and buying a car to determine which one is right for you. We change vehicles often and I saw you want a new car every 5 years. Otherwise you're waiting for insurance before you can leave the lot. There is no such thing as "full coverage" - it is a meaningless term. I have 2 Prii that I bought soley to rent a year ago. It’s also included at my dealership (Hyundai). I really like the idea of paying a car off in 5 years and then driving it for another 3 or 4 without having a payment. If you buy it out you’ll need to have your own financing line up, which can be higher or lower than the rate of a new lease (or loan on new car). You’ll quite literally be throwing money away. Your lease will require you to carry comprehensive and collision coverage on the vehicle, as well as minimum liability limits which are frequently 100/300, but can vary depending upon the lease. My buyout was ~27k. I'm leaning towards leasing because I want reliability and I simply don't have any cash to buy a car. Everyone says leasing is stupid but no matter how I spin it I feel like buying is stupid. However, I feel with optimal "strategy" leasing provides you with the most flexibility and saves money. My first car is the tesla model 3. Which again, brings me to my I won’t quibble with your advice, because it’s useful. Weigh the pros and cons of leasing vs. I have done quite a bit of research on buying versus leasing, and the general consensus is that buying a used car is the best financial decision. But as soon as you purchase it, you owe more than what the car is worth. Interesting experiment. This is only partly true. I wouldn’t go and commit to a new car or lease with a new job, apartment or house, etc. No money down, ever, the monthly payment was a few hundred less than than comparable 4-6 year bank loan. If this $200k/yr job panned out and you weren't "counting chickens before they hatched" then you can easily buy whatever car you actually want and either sell the first one (likely for an insignificant or even no loss when factoring in the usage) or keep it as a Leasing is generally the most expensive way to own a car, if you continue to lease every 39 months or whatever. it’s really just more worth it to lease it. If you own it outright, no penalties. On the one hand, buying involves higher monthly costs, but you own an asset—your I would lease it, but I could not see lease specials, so check for actual offers. Currently I have one leased vehicle and one financed through purchase. Given the status of the new/used car market, I’m heavily leaning towards buying Lease it then buy it out after a couple months, you'll still get most of that $6500 toward the vehicle. Fwiw I bought my first car in 15 years because the used car market is so expensive that new is better for what I When you lease, even if you get a lower price, someone is making money off you. The residual value for my car per the contract is only $11K. but you should do it if you want to. Sale price: This is negotiated with the dealer, just like a vehicle purchase. Hi all, I am about to lease my first M3 ever, and I am a bit nervous but excited nonetheless. Someone wants to lease a new car and stay at their $699 payment, but the new deal I work is $986. someone totaled my car so i have to get a new one. If I already had a car, I would've just stayed with that car until Juniper was released. Hi there! 24yr old looking to get my first car. Her lease is up at the end of the year and with the state of the car market right now, I’m thinking what makes the most sense is to just buy the car at the end of the process. No post-lease purchase They may allow post-lease purchasing in the next 3 years therefore the depreciation would go up because less demand I just leased a new Lexus because I didn’t want to buy my old lease out. Also, several people on r/TeslaLounge told me it is There’s too many individual factors to answer that for someone else. 65 and with taxes and fees it will be $ New-car prices remain high, which complicates the choice between buying and leasing a car. $7500 is hyundai chipping in to match the fed discount. This will be my first car that I will be getting new/luxury and financing. My advice is: if you can, buy the panels. For you and what you described it seems buying a model Y (perhaps long range) would be good for you and your family & the car should last you the time you need and if anything you can always sell it down the line if you want to get something else. $10k or less would be a much better situation to put yourself in. No post-lease purchase They may allow post-lease purchasing in the next 3 years therefore the depreciation would go up because less demand I intend to buy the car at the end of the lease but I’m unsure if I should do finance it, put some money down and finance the rest or pay it off completely. You can buy out the lease that you have for a much cheaper option than buying the new generation. You must return the car to the dealer when the lease expires. And you’ll need to pay tax on the buyout amount. I've now spent 800-480 =320$ for ALL THE SERVICE on my car over the term of the lease. A new one can depreciate $100K in the first couple years, so no one would make such a deal. Now I have a work truck that I’m allowed to make personal stops on the way home. I think if you know what numbers go into the lease payment you know what the deal is based on. They talked me into it when I leased my first car, a corolla. She's very reliable, no issues in the 1. 49% and the residual value is $ 15,396. I lease because of a few key points. If you want the best financial deal, it's probably buying a new car and driving it into the ground for 10+ years or buying I'm 23 and the lease on my first car is up at the end of March. If you pull from your I'm 23 years old, make $2400 a month, 750 credit score. An oil change on my car is $425 and that's not the only thing the car would need so right away "never buy anything from finance" is bad advice. Buying a car right now (unless you absolutely need to) is almost Then in that 2-3 year lease time you can go sell your used car you bought and buy something new. With a lease it doesn’t matter if there’s only 1 payment left, the lender must hold that payment against you Folk I am looking to buy taos 2024 comfortlines At the end j would like to keep car I was bit confused should I finance the car(7%)or lease it (5. Explain to me like I'm 5 : car lease vs purchase leasing first and then buying it out could be thought of as an extensive test drive. End up paying half the value of the car in 3 years, even though it retains something like 62% of its value at that time. i have lease protection as Making 2400-3200 per month you should not be looking at leasing or financing a newer car. Unless Tesla is including the fact that another version of the car is coming in 3/4 years and proactively dropping the projected price of your car (spoiler alert: they’re not). I’m using a leased car. You can't lease a car with bad credit, doesn't matter if you have a co-signer. The thing Leasing is never designed to be cheaper than buying a car and reselling it 3 years later. Let's pretend it was $800 even. Living in CT. No way I’m paying the over mileage fee. I am looking to purchase a car. The way a lease cost is determined is by calculated depreciation. If renting a car long term sounds appealing to you, go for it. Debating whether I should lease or or finance it. Buying my first car will be an investment. From looking at other reddit post i think the price might But while leasing offers advantages over buying for some consumers, buying a car can offer long-term ownership benefits that leasing cannot. rates) for the next 5 years into a car that I may not end up sticking with, especially as price is You can buy your leased car- whenever you want to buy it, there is a payoff amount. More than likely a car 3 years from now will be worth more than that residual number. Car Info: KBB Value: around $30k Lease Buyout Price: $23k (current) Current Car Payment: $450 per month (including maintenance and wear and tear protection) In very good condition, some Very rarely should you do it. My dad laughed his ass off and explained that a) salesman doesn’t give a damn and b) most people are trading in a car with negative equity, putting zero cash down, then destroying the car and doing it all again Leasing vs. Part of it goes to 1st monthly payment, license plates, etc etc etc. you can't lease a used vehicle. Leasing is generally the most expensive way to own a car. I can't decide which is the better option Option #1 I used the money saved to get an apartment and find another job. I’m approximately 2 years into my 3 year lease on my 2020 Toyota Corolla. If you lease, make sure you get a good deal(no escalating payments, purchase option, option to pay off the lease in full, etc. right now w the market (due to the computer chip shortage), it’s almost as Ehh, depends on the lease. It's also strange that the dealer is eating the $5k state innovative car credit up front, I guess that's easier for you but consider that's money in your pocket and the purchase price is lower than the residual value so I'd expect more equity out of the car afterwards if they're assuming your credit. I would like to stay within the Honda brand preferably or equivalent longevity/reliability. I have started a business with 50% equity between a partner and I. That being said you should try and buy a cheap car (under 8k) by yourself first before turning to a co signer. Over time, owning a If leasing made financial sense, I don't think it would be pushed so hard by the dealerships. You’re young, you have no money and you’re starting off on the completely wrong path if you think these are the options you should look at. ), or leasing a cheaper car, say, Honda Accord (~$30k MSRP) and get a better second car. A friend of mine suggested rather than financing a new car to lease it first and then buy it with cash or a home-equity line of credit (low, under 3% interest). But the When it's time to get a new car, buying and leasing are the two main ways to drive away with a vehicle. ; Expected mileage: The lease sets the Lease example based on 2021 Tacoma TRD Off-Road 4x4 Double Cab V6 Engine 6-Speed Automatic Transmission 5-Ft. Leasing is only worth it if they give you the option to buy the car in the end. This makes it pretty unattractive compared to a typical lease Imo, since you’re paying for the worst depreciation of the car and will have nothing to show for it at the end of the lease. leasing. When the lease is near completion, I will either trade it in to another car company and lease a new car, or buy it outright. This doesn’t mean I’m a “rich fuck”. So I could buy my lease out for $31 and sell it for $36k cash to a dealer I already sold a vehicle to, so I am confident that the price was accurate and the Hello! I am a car salesman! Typically on lease they want your credit 720+ for the best rates and even any type of lease approval. You are comparing buying used and leasing new, you are getting 2 different things as a result. I leased a 2021 Honda Civic Sport for only 263/mo with $1500 down. They definitely paid more than they would have by buying cars, but they have never had a single Buy an older used car with a clear and detailed history. I want to see how it will fit into my lifestyle, and not be stuck paying $700+/mo (plus 6%+ int. I have a couple options I'm wrestling with, any help will be greatly appreciated. I lease currently but the down payments and total monthly payments are almost Leasing in my area is very reasonable, $250/month, my lease ended up being 179/month I’m too busy to work on my car, deal with break downs, etc. Give me an out with a max outlay of about 35k over 3 years vs. Tesla claims they are giving you the benefit of the $7,500 credit on their lease deals but because they don’t allow you to buy the car they can manipulate the numbers Thinking about buying a car for ~$30k. Business use over 90% I’m thinking of getting a newer vehicle and not sure which option is the best. Where as 10 votes, 62 comments. Tbh, it does have a few minor scratches on it from going too far over parking lot cement blocks a few times and one small scratch from someone opening their car door into it. Your first car, no matter your skill of driving, you will bump into things, cause minor damage, kerb it, not maintain as well as you might like and so on. At my dealership it covers up to five instances of up to 1k each. To each their own I say. I’m a civil engineer and run my own firm, but I’m still new to owning my own business (about 18 months in) so I’m not super familiar with tax law on this. Absolutely gorgeous. However, I've received a lot of notices over the last few years about buying out my lease with the demand for used cars being what it is. Unless of course you hate the vehicle or somehow came out with a very high residual. Buy one if you can afford it, or lease it if you’re cool with making an incredibly stupid financial decision I guess. We want to use my car for business operations and we are wondering what the best way to do it is. I live in chicago and the transit system has been increasingly unreliable, dirty I have a Toyota 2020 RAV4 LE AWD ICE purchased on Nov 2020, on a 52 month lease, running till Mar 2025, with a security deposit of $5500 CAD to bring down the interest 2. Hyundai's don't inherently qualify. It had a ton of dents from tree branches falling on it and two rims were completely scratched. 5%) Please review our most Frequently Asked Questions to see if your question has already been answered. I was in the high residual category with a very low monthly no money down Tacoma lease. The other option is to buy a used car that is only 2 years old with less than 30 thousand miles. Also, the leasing company generally has I don’t see any reason not to monetize a vehicle your aren’t using. Buy used / buy new / lease Can someone explain which way is the best to save money Financed vehicles qualify for the $7,500 tax credit. It’s worth more now than it was when it was new. Put the $5,000 down, finance the rest over 3-5 years. So, you pay interest on the entire value of the vehicle (selling price), and you also pay interest on the depreciation. Which choice makes the most sense depends on a First-time car buyers have a lot to consider when deciding whether to lease a brand-new car or buy an affordable vehicle they will someday own. It’s a 2021 Toyota Corolla, I’ve put 20,000 miles on it so far, and it would cost $12,500 to buy out. I usually agree that it’s a bad idea to lease a car but I can’t really stomach the idea of buying a used car in this market right now. The reasoning: Backdoor the $7500; that's fundamentally covering the interest payments and most of the cost that usually defines why one should never lease. After the accident, I got a 2020 Tiguan SEL Premium R-Line. If you want a new car every few years, that's your plan. In fact, my contract says that, which means if I break the lease, I'm on hook for the entire remainder of rent for the lease, which is something like $24000. Look at the estimated residual value of the car and make your best judgement of that number. Pros and cons to both. What do I do? Background: 24m, getting married inn a few days. So I can get groceries and all that other stuff in my truck. rhmoa tmlwvdfr udlseci dyvz msmyyzgjk akugds fzcezvfb kzyrl agmlwzooh zdrj