[Aviza]

My brother suggested I lease a new car with modern technology, and buy it out at the end of the lease. My mom says forget it, buy a certified used car. Only I can't afford a certified used I like. It would be a used car. I'm leaning toward leasing on one hand and buying on the other. Not sure what to do. Thoughts, suggestions?

[Patient Zer0]

I would say a used car, need something to get to A to B you know. You can always upgrade and modify it till it is worth alot more, then when you save more money swap it in for something fresh.

Just a thought. But if you have a good paying Job/Work/Career then get a lease, just be prepared and use a money managemnet system or some MYOB books or friends and get it sorted.

All the best!

[hvert]

I would go for a used car that I had a mechanic inspect. It's a tough choice, both decisions have pros and cons. Leasing usually costs more and there can be a surprise when it comes time to buy it out.

[possum220]

Leasing the car will get you into a very nice car but at what cost? How much is leasing going to cost and then how much will they want when you buy it? What will it all cost in the end?
Buying a decent used car, get a mechanic to check it out. A reliable second hand car that can get you from point a to b. Buying the car is not the only cost to consider. Petrol, insurances etc.

Good luck with your decision.

[Nammu]

You also have to consider insurance, insurance on a newer nicer car will be expensive and you will have to have more than the basic coverage. Buying a used car that you can afford means you own it and don't need to stress over repossessions and higher monthly costs.

[WishfulThinker66]

Lease Vs Buy?

While the payments for leasing appear lower it may not be in the long-term. Realise you still have to pay taxes and administrative fees EACH month on those payments. Those advertised payments are the minimum. They are based on the lowest MSRP and it is pretty rare that this will be the car you will leave the lot with. There are definitely extras you wish to pay for - like increasing the allowable mileage for this is where they stick it to you at the end of the lease. So, that car that is advertised leased from $169 a month ends up being double that. At the end of the lease period they evaluate the condition and mileage of the car and you may get penalised. You may have to end up buying out the lease which makes the lease actually more expensive than buying a car in the first place. Finally, when the term is up you have no car.

Leasing however does have its practicality and advantages in certain situations. Fleet vehicles for instance. These are company cars and trucks rotated through often. So too would such a thing be advantageous to someone like a realtor or sales person where it is to their interest and advantage to always have a new car. If you are self-employed you can claim a portion of your lease costs, etc.

But if you are a regular person just interested in a personal car, maybe a lease isn't the thing right for you.

On the other hand, payments to own a vehicle are definitely more expensive which people see as a deterrent. But the big plus about this is that at the end of your payment period, you still have a car. You are not paying hidden costs and it doesn't matter how many miles or kilometers you put on it.

[~Christina]

I leased a car ONCE , I at the time just looked at the monthly payment. I hated myself about a month later , when I realize what I had gotten myself into. what if I couldn’t come up with down payment or all the dealer fees to get into another car??? I had no choice but to have a car, there was no public transportation. I got very lucky when my lease was done with, I had saved money monthly and my tax return I was able to purchase a car I would own outright

At the end of the lease yes you can be hit with over mileage fees but usually they won’t charge if they get you back into another lease.

Anyway .... leasing is just tossing your money out the window... unless you have your own business and can use it for taxes. At least if your buying a car your going to actually own it outright.

Regardless or lease or purchase please do take the time to fully read the paperwork , yes even the small print.

[metalchick]

Leasing is good if you don't drive much and plan to turn it in at the end of the lease. Buying the car after the lease is up, is not worth it. You will be paying for the car at top dollar, and having a car payment for another 5+ years, is not fun.