#CarOwnership #CarLeasing #BuyingVsLeasing #CarFinance
Hey there! 🚗 Considering changing your car every 4-5 years is a smart move to stay up-to-date with new models and features. But the big question remains – should you buy or lease your next ride? Let’s dive into the advantages of each option to help you make an informed decision!💡
Advantages of Buying a Car:
1. Ownership: When you buy a car, you’re the owner and can customize it to your liking without any restrictions.🔑
2. Equity: Over time, your car builds equity that you can use as a trade-in or sell for cash when you’re ready for a new vehicle.💰
3. Endless Mileage: Unlike leases that come with mileage limits, owning a car allows you to drive without constraints.🛣️
Advantages of Leasing a Car:
1. Lower Monthly Payments: Typically, leasing offers lower monthly payments than buying, making it more budget-friendly.💸
2. Warranty Coverage: Leases often come with warranty coverage, so you won’t have to worry about major repair expenses.🛠️
3. Easy Upgrade: Leasing lets you upgrade to a new car every few years without dealing with the hassle of selling or trading in.🔄
Which Option is Right for You?
– If you prefer flexibility, low monthly payments, and enjoy driving the latest models, leasing might be the ideal choice for you.🌟
– On the other hand, if you value ownership, want to customize your vehicle, and plan to keep it long-term, buying could be the better option.🔒
In conclusion, both buying and leasing have their advantages, and the best choice depends on your lifestyle, preferences, and financial situation. Whether you decide to buy or lease, make sure to consider all factors, including your budget, driving habits, and future plans. Happy car shopping! 🚘💼 #CarBuying #CarLeasing #CarOwnershipBenefits
If you are buying new every 4-5 years, maybe there’s not. If you buy, though, you don’t have to buy new.
Leasing will never build equity and you will be restricted in mileage or you’ll pay per mile for overages. With a purchase, you could have a pair off car in 4 years, and if your employment situation, life situation, or your financial mindset changes, you won’t have to have another car payment for a long time.
to me it all has to do with staying under whatever mileage you agree to on the lease.
“***… lower monthly payment …***”
When a buyer talks about monthly payments the sales people drool!
It’s like shooting fish in a barrel.
With all fees added in, the average lease has an APR equivalent to about 13%.
If you wouldn’t buy a car with 13% interest why would you lease one?
Lower momthly including insurance premium? I think you would want to calculate all in
I lease then buy the car to use as a trade in when I’m ready to get something new.
After 5 years you can sell the car and put that money towards a new car, allowing you to gradually trade up, or put more money down and reduce your monthly payments.
Just to make the math work out easier, let’s say you buy a new car every 6 years. You buy an Accord EX for $30k. At the end of 6 years you sell it for $15k. Thats 6 years of having a car for $15k. Leasing an Accord Ex is about $289/month plus $4k at signing for 3 years. Thats ~$14-15k per 3 years, so $28k-30k for 6 years.
The math can work out a little differently depending on the exact terms of your lease or purchase, but you get the idea.
Buying lightly used or off lease cars would likely be cheaper, but if you can afford and want something new every 4-5 years, leasing might be the way to go
It’s too broad of a question it all depends on what car you specifically want. Every car has different lease programs some lease well compared to buying some don’t. It’s complicated but if you educate your self on leasing you will see in what situations it is advantageous
Why would anyone willingly change their car every 4 years?
I’ve always thought leasing was batshit insane, but people have told me that they love that all maintenance is included. Is there any truth to that benefitting the bottom line?
Im leasing at the moment but that’s partially because certain EVs get big discounts and low MFs which make the total cost pretty attractive. Plus the uncertainty/higher rate of depreciation means I can walk away at the end without much drama, and this is my first real foray into the EV space and wasn’t sure about fully committing.
That being said from a finance point of view it’s better to buy, I lease because I love cars and am willing to spend a bit more on them. My next car will hopefully be bought because my priorities are shifting but we’ll see.
Most lease sweet spots are 36 months. If you change every five years, a purchase is usually much better choice.
How do you think dealerships profit off of leases
..?
You would spend less money by buying, then selling after 4-5 years. If this wasn’t true, dealerships literally would not lease cars.
If you want or need a new car every 3-5 years, leasing is an ok way to do that. People telling you “leasing is always bad” are not correct, bad leases are bad, good leases are good, and it all comes down to the numbers on that specific deal and your individual circumstances, which you haven’t shared with us.
Why 4-5 and not 8?
Wait, does a lease include the maitenence?
Also keep in mind that with leases, you have an annual mileage limit. Some makes can set the limit as low as 10k miles a year, or as high as 15k miles a year. Once you exceed the mileage, they will charge you per mile when you return the leased vehicle. The last car we leased was a Toyota 4Runner. It was a 5 year lease and the mileage allowance was 12k miles per year. For the first 3 years we owned it, it was our only car, so we used that car for our daily commutes to and from work, and our jobs were in opposite directions. We also were hurt because when we leased the car, it came with 5k miles on the odometer, as the vehicle was used by the sales manager as his personal vehicle for several months before we leased it, and they did not adjust the mileage allowance for that. We also did a lot of road trips in the car, so by the time we had the car for a year, it had 30k miles on the odometer. By the time our lease ended, we had the option to pay the residual of $11k to buy the car outright, or turn the vehicle in and pay $15k for going over on the mileage and have nothing to show for it. Toyota charged 29 cents a mile for going over the mileage allowance and the odometer at the end of our lease was already over 110k miles.
Leased car you can abuse a lot more, knowing you can dump it in 4 years. However having a car payment your whole life has always struck me as a stupid thing to aspire to, even if one can afford it.
Quit focusing on the monthly payment… that’s broke folk thinking.
Focus on the big picture of cost over 5 years. You have equity if you buy it that you can use towards your next car, you don’t if you lease it instead. You are binding yourself to car payments for life and will never own anything to show for it.
I think Consumer Reports did a study once and determined at that time if you keep a car 7 years or longer you are better off buying than leasing.
*”You’ll own nothing and be happy.”*
You don’t own a lease at the end. Zero equity. Buying you’d have a vehicle you own. You can trade it in or sell it.
My mom had a lease. At the end she owed thousands to turn it in. Unless she bought for another 5 or 6 years.
It’s not worth it.
Wow, glad to see you’re not getting shit on for this. I made a basic post asking for general help on the best approach to getting the most of my trade in and everyone flipped their shit that I wasn’t keeping my 7 year old car. Hope you find the best solution for you