View Full Version : lease vs. buy pros and cons

08-24-2005, 10:59 PM
Whats the story, what do you guys do. I have always been a fan of buying but not sure anymore.

08-24-2005, 11:01 PM
I was wondering the same thing. There are some good deals on Infiniti's right now for leases.

08-24-2005, 11:08 PM
Best thing to do is talk to your accountant. Leasing happens to be the best deal for me as opposed to buying. Tax shit is foreign to me, but, leasing has it's tax benefits. Plus, I like having a newer car every few years.

08-24-2005, 11:09 PM
Wondering the same thing. I cant sleep cuz I am thinking about it to much. Looking at leasing a new Ford Powerstroke but not sure. I have always been a firm believer in not leasing but when I look at the truck I have now, what I paid over the years, I am not sure what the best thing to do is. I dont know if me buying was any better than if I would have leased.

08-25-2005, 12:16 AM
Two things to consider: how many miles you drive and how long you keep your cars.
If you drive less than the alocated mileage, leasing is a great deal. If you go significantly over in mileage or trade/sell before the term is up you get screwed. So its a good idea to never lease for more than 3 years. This way you are under warranty for the lease term and generally are not too burned out on the car after 3 years. Five year leases do not drop the payment by that much and are really what gives leasing the bad rep.
Always lease from a dealer you trust because it is easy for the dealer to overcharge you for the car (cap cost) without you knowing if you are not savy.
I lease my wifes SUV and bought my car. The deciding factor was the miles I drive would kill me on a lease.
I'm sure Photoglou or other car peeps like Ziggy can give more details but this is the basics.

08-25-2005, 04:19 AM
Here's my .02.... not that it's worth a crap!!!.. I have always leased my vehicles even when i didn't own a bussiness... And have only got screwed one time.. The 1st thing you need to know is work on the price of the vehicle first.. not the payments... Call around to the internet guy or sales manager only.. no regular salesmen... Start working at 300 over invoice and go up from there.. call around you will be suprised.... Then work on the money factor ie: instrest rate... a 000.26 is a good place to start.. Then the most important is to make sure the car or trk you buy has a great resale value... So a f150 with a 6 cyl.. is not a good buy...Then go into this with the lowest miliage allowed lets say 10,000 a year... stick with a 3 yr or 4 yr max lease... When you are tired of the vehicle and you are over the miliage... Just sell it pay off the lease and go for it again.. Here's what you get... you are only going to pay the sales tax each month as to all up front in the loan, you will be driving a new vehcile ever 3 yrs or so... Now.. why i got screwd it will be one word and one word only.. AUDI.... Shitie resale MY BAD.... Well like i said only my .02... Good luck

08-25-2005, 07:33 AM
it works for us,my wifes car has a great payment for what it is,best thing to do is figure out the car and the payment they want,then tell us,chances are someone has the same car on here

08-25-2005, 07:39 AM
if u own a business I would lease do to the tax benefits....
If you have to have the latest edition vechicle ever year or two...then lease..
If you want to own the vechilce someday and have no payment and can live with the fact your truck is outdated....buy :D
I personally like the sound...PAID OFF! :D

Dave C
08-25-2005, 07:50 AM
Tax benefits:
Lease - it has tax benefits if you own a business and can "legally" deduct most if not all the miles. (Reason, luxury car deduction limits)
Buy - if you don't own a business or drive part time for business because you can still deduct the business mileage at $0.405 a mile, which is more than you can get under other circumstances.
There is always the debate about own vs. lease. This is a personal choice. If you prefer to "own" the equity in your vehicles or have one paid off cuz you hate payments then buy one. If you don't care if you own a "depreciable asset" and like making monthly payments then lease.
Cars are depreciable assets so some people may prefer to use their capital for other things (like buying another depreciable asset (boat) when they should be buying stocks or real estate, LOL :D )
If you go for a lease be aware that certain dealers play games with the numbers. The whole point of the lease is to pay less per month than purchasing for the same term because you are only paying for roughly half of it. Don't lease cars with low resale values.
For those of you wondering about all the fancy numbers involved with a lease it is really quite easy. Think of the lease as a loan but you are only paying off half the car so you have some "value" at the end of the lease. To calculate you need 3 numbers, sale price less down, residual % and term. You select a realistic interest % (assume slightly higher interest rates than purchasing).
For example: price of car=$30,000, term=48 months, residual = 45%. The residual means that you will pay them 13,500 (30,000 * .55) if you decide to pay the car off at the end of the lease. Therefore, you are paying on a "loan" of 16,500. (30,000 - 13,500)
So to make sure you not getting ripped off figure out what the loan payments would be on a 48 month loan, for $16,500 with 6% interest. They are $387.50. So if the dealer says the payments, less taxes, are more than $387.50 they are ripping you off.
Have I lost everyone? :supp: sorry :D

08-25-2005, 07:55 AM
Leasing means those oil changes come nearly never.
39 mo leases mean you gotta make that damn annual license fee for the entire year but only drive the car another 3 mos. BS
Leased car should never be leased longer than the warranty. I always negotiate a car deal as if I'm purchasing, then tell 'em I'm gonna lease with that purchase price as the Cap Cost. That's always fun to do. But one must be very educated as far as money factors, depreciation, etc.

08-25-2005, 07:57 AM
Here's the bottom line:
Google... " Bob Peralta".
He'll deliver a car to your door at a better price/lease than you'll ever get on your own.