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Unread 02-16-2016, 07:01 PM   #1
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Default Lease Vs Buy (Finance)

I'm looking to buy a car around $35000. I'm really confused between leasing and buying it (financing). Just talked to an agent and he was really pushing me to go for leasing (provided the options of returning it, trade it or buy it at the end of lease).

I'll be driving the car atleast 10000 miles a year. Is leasing option is a good one?

Thanks in advance for your suggestions.

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Unread 02-16-2016, 07:19 PM   #2
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No. Do not lease.
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Unread 02-16-2016, 07:33 PM   #3
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Here Are Four Reasons Why Leasing Is A Horrible Idea For Car Lovers
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Unread 02-16-2016, 08:26 PM   #4
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At 10,000 miles a year, your much better off Buying it, keeping on top of maintenance, then selling it in a few years when you feel ready to get a new car. Its typically cheaper that way too.

Of course they push to lease, they make much more off the car that way. They essentially get to sell it twice.
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Unread 02-18-2016, 10:26 AM   #5
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i lease my cars, swap for new one every 3 years, i will never finance a car.
i do not see how it is bad.,
btw link on how how horrable leasing is, well garbage.

yes you do not own a car, but so what? it is yours for 3 years, than return it and get a new one. you pay as much in 3 year term as you would lose to depreciation if you bought it. (don't even get me started on bad finance when you owe more for car than it worth, seen it happen few times)
slave to a dealer?? that is a lie. you are no more slave than if you financed it. i only go to dealer for warranty work, and recalls, just as anyone who financed it would. oil changes, or anything not warranty work, i do in my shop.
you are screwed if you can't pay regardless lease or finance. bank takes your car.
if you drive more than 15k a year, lease may not be the best way, however even if you own it, and selling it, high millage will drop your price anyway.

10k a year is not a lot at all, standard lease is 12k a year, some dealer may even get you 10k lease for less.

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Unread 02-18-2016, 10:30 AM   #6
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Quote:
Originally Posted by pbasil1 View Post

Of course they push to lease, they make much more off the car that way. They essentially get to sell it twice.
actually dealer does not care, he makes as much from lease as of finance. they are basically selling the car to the bank, and bank authorities you to drive it for term of the lease.
they only get to sell it twice, if they buy it from you and resale it, basically same procedure as with any used car trade in.

they do push lease cuz it is cheaper than finance, there is a big difference between paying $250 a mo. and $400 a mo. that is what one would pay for a lease, since you only need to cover depreciation+fees, vs 400 where you have to pay out full price, plus interest. yea i know you do not own a car, but neither you do untill you pay out loan. bank is still holding the title, so until you pay in full, you do not own it either.

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Unread 02-18-2016, 11:06 AM   #7
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Quote:
Originally Posted by deltaolds View Post
i lease my cars, swap for new one every 3 years, i will never finance a car.
i do not see how it is bad.,
btw link on how how horrable leasing is, well garbage.

yes you do not own a car, but so what? it is yours for 3 years, than return it and get a new one. you pay as much in 3 year term as you would lose to depreciation if you bought it. (don't even get me started on bad finance when you owe more for car than it worth, seen it happen few times)
slave to a dealer?? that is a lie. you are no more slave than if you financed it. i only go to dealer for warranty work, and recalls, just as anyone who financed it would. oil changes, or anything not warranty work, i do in my shop.
you are screwed if you can't pay regardless lease or finance. bank takes your car.
if you drive more than 15k a year, lease may not be the best way, however even if you own it, and selling it, high millage will drop your price anyway.

10k a year is not a lot at all, standard lease is 12k a year, some dealer may even get you 10k lease for less.
It seems like your mind is made up already so I'm not sure why you're even bothering to ask us. In my opinion you are buying the lease pitch from the dealer hook, line, and sinker. Some of the phrases you mentioned are the exact same things I've heard a dealer say when trying to sell me on a lease. You even mentioned that the agent was pushing you towards the leasing option. Don't ever forget that they are a SALES AGENT. It is literally their job to get the most amount of money out of you as possible. They are not pushing you towards a lease out of the goodness of his own heart, they are doing it because leasing is a better deal for them.

If you honestly think that they are trying to find you the cheapest option then you are, quite frankly, a fool. As they say, a fool and his money are soon parted.
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Unread 02-18-2016, 11:20 AM   #8
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Quote:
Originally Posted by enderx475 View Post
It seems like your mind is made up already so I'm not sure why you're even bothering to ask us. .
i was not asking anyone, i gave my answer to op. i'm not sure which part of my post looked like a question.

i lease my cars for over 12 years, and i can't find a single thing wrong with it.
everything i said was from my personal experience. i'm not a dealer nor lease agent. i did work for a shop\used car lot, as a mechanic, but it was too long ago. if my experience matched what dealers were saying, that is because this is how it is in reality.

what was your personal experience with financing or\and leasing ? can you share it with op?

Last edited by deltaolds; 02-18-2016 at 11:36 AM.

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Unread 02-18-2016, 12:20 PM   #9
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Ah, I mixed you up with OP. My points still stand though.

In my experience, buying a used car outright is a better deal. If I have to finance I'm able to get ~1.8% financing through my credit union so the interest on a loan is pretty minimal for the added benefit of actually owning the car at end.
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Unread 02-18-2016, 12:38 PM   #10
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"if I have to", does not sound like it is your experience, more like an opinion.
not to mention getting finance on used car is a tricky thing, you need to see how car's value changes over time, so you do not end up owing more for it than it worth. i have seen people total their used cars, and have to still pay bank, after insurance estimated its value less, and in some cases a lot less than what it was left on their loan.
not to mention banks, most if not all, would never give you same % on used vs new. they always charge more interest on used car loan.

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