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randella
Love my little man
Member since 8/05 16290 total posts
Name:
Randi
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Cars-- Lease or Buy??
So, after living in Manhattan for 8 years and always have used cars in HS and college that my parents just took care of- I am a little lacking in the car knowledge area..
In all of your experience-- which is better to lease or buy??
The car we are looking at is about $23K and we plan to put anywhere from $3 to $5k down..
Thanks!!
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Posted 8/14/05 9:21 PM  |
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BethGail
LIF Infant
Member since 5/05 179 total posts
Name:
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Re: Cars-- Lease or Buy??
we lease....why build equity in a depricating asset?
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| Posted 8/14/05 9:35 PM |
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MommyofG
just the girls
Member since 5/05 9461 total posts
Name:
Janice
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Re: Cars-- Lease or Buy??
Posted by BethGail
we lease....why build equity in a depricating asset?
COMPLETELY AGREE! for the past 5 yrs I have been leasing only! I was nervous at first but its the best thing Ive ever done!
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| Posted 8/14/05 9:42 PM |
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CunningOne
***
Member since 5/05 26975 total posts
Name:
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Re: Cars-- Lease or Buy??
Depends on what you expect to get from your car... Buying is a better option for some people. I currently lease, and am excited to be getting something new in December when the lease is up. We're looking to have baby #2 soon and its a perfect time to get something bigger.
I'm not sure if NY is able to get by the vicarious libabilty law that stopped some car manufacturers from doing leases at all. YOu may want to look into that.
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| Posted 8/14/05 10:23 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Cars-- Lease or Buy??
Buy slightly used is the best option.
Leases carry a higher interest rate than financing. And with leases... you are still paying for a depreciating item.
People just seem to think a lower monthly payment means they aren't doing this... but they are when you look at the numbers.
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| Posted 8/15/05 12:18 AM |
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AJsMommy122
Stop 2 smell the roses
Member since 5/05 2048 total posts
Name:
Maxine
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Re: Cars-- Lease or Buy??
Posted by DjPiLL
Buy slightly used is the best option.
Leases carry a higher interest rate than financing. And with leases... you are still paying for a depreciating item.
People just seem to think a lower monthly payment means they aren't doing this... but they are when you look at the numbers.
I agree with this 100%. We always outright buy b/c my DH doesn't believe in having car payments. But if we could not afford to buy the car in full we would finance.
Lease to me is like spending all this $$ every month and having nothing to show for it in the end.. Like renting a house instead of paying mortgage payments and owning one day.
Message edited 8/15/2005 1:17:35 AM.
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| Posted 8/15/05 1:04 AM |
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VickiC
Rocking the party
Member since 5/05 4937 total posts
Name:
Vicki
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Re: Cars-- Lease or Buy??
We usually buy the car too. With leasing I'd have to worry about going over the amount of set miles you can drive per year and things like that. I don't want to worry about that.
Plus, no matter what, if something needs to be replaced, you have to fix it whether you own or lease.
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| Posted 8/15/05 9:12 AM |
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luvsun27
Check out my cool glasses
Member since 5/05 8135 total posts
Name:
Kim
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Re: Cars-- Lease or Buy??
I have done both...I think buying slightly used is the best option also....that's what both DH and my cars are now.
If you decide to lease....don't put down your 3-5K though....why put money down for nothing? If you have the money to put down...buy something that is 1-2 years old.
When I leased...I was constantly worried about how much mileage I could use...I did ultimately go over and had to pay for it in the end.
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| Posted 8/15/05 9:29 AM |
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Tah-wee-ZAH
Kisses
Member since 5/05 15952 total posts
Name:
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Re: Cars-- Lease or Buy??
Posted by AJsMommy122
Posted by DjPiLL
Buy slightly used is the best option.
Leases carry a higher interest rate than financing. And with leases... you are still paying for a depreciating item.
People just seem to think a lower monthly payment means they aren't doing this... but they are when you look at the numbers.
I agree with this 100%. We always outright buy b/c my DH doesn't believe in having car payments. But if we could not afford to buy the car in full we would finance.
Lease to me is like spending all this $$ every month and having nothing to show for it in the end.. Like renting a house instead of paying mortgage payments and owning one day.
Absolutely. I leased my previous car. I lived very close to work at the time but then I met DH and was always worried about the miles and if anything would ever happen to the car... the slightest ding because I new I was giving it back. It wasn't for me. If you crunch the numbers leasing does not pay for most people. If you have a business and can write it off it might but for most individuals it doesn't.
Yes, buying slightly used is cheaper. Your insurance will be cheaper as well and all of that does factor into the price of the car.
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| Posted 8/15/05 4:46 PM |
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dengal
Dad of Twins
Member since 5/05 1385 total posts
Name:
The 80's Man
Let's Go Mets!
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Re: Cars-- Lease or Buy??
I don't think I see myself ever leasing.
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| Posted 8/15/05 4:50 PM |
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MommyofG
just the girls
Member since 5/05 9461 total posts
Name:
Janice
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Re: Cars-- Lease or Buy??
Lease to me is like spending all this $$ every month and having nothing to show for it in the end.
Nope, your money rolls over into a NEW car every 2 or 3 yrs however you do your lease. To me that shows something for my money!
BUT TO BUY A CAR YES SLIGHTLY USED IS THE BEST FOR FINACIAL PURPOSES FOR SOME. ahh caps
For me my interest rate was not higher than when I bought its based on your TRW and my insurance has been cheaper than when I purchased too.
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| Posted 8/15/05 9:01 PM |
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Gertyrae
Peace out Homies!
Member since 5/05 20046 total posts
Name:
Gerty ®
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Re: Cars-- Lease or Buy??
I have always bought.
I understand the theory behind leasing, but it always seems to end up costing the leasor? more. Almost everyone I know has gone over the mileage (they only give you 12,000 to 15,000 per year) and you pay $300 or $400 a month for three years just to give the car back.
I buy new, and I don't recommend it, I do recommend buying slightly used. I only buy new cuz I want to know that the oil was changed every 3000 miles and all maintenance is taken care of immediately. You don't know that for sure when you buy a two or three year old car, someone may have beat on it knowing they were turning it in.
I keep my cars for an extremely long time. My last car was a Celica, I paid for it in three years and drove it for ten more...for free!!! I put 200,000 miles on the car and sold it for $1600, it was that clean. I have a Santa Fe now with 60,000 miles on it and plan on keeping it for at least ten years. I pretty much squeeze everything I can out of a car
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| Posted 8/15/05 9:21 PM |
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ThreeCats
Train Ride
Member since 5/05 3127 total posts
Name:
A
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Re: Cars-- Lease or Buy??
I have done both - it depends on your needs
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| Posted 8/15/05 9:29 PM |
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karacg
Babygirl is 4!
Member since 5/05 17076 total posts
Name:
Kara®
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Re: Cars-- Lease or Buy??
Posted by Gertyrae
I have always bought.
I understand the theory behind leasing, but it always seems to end up costing the leasor? more. Almost everyone I know has gone over the mileage (they only give you 12,000 to 15,000 per year) and you pay $300 or $400 a month for three years just to give the car back.
I buy new, and I don't recommend it, I do recommend buying slightly used. I only buy new cuz I want to know that the oil was changed every 3000 miles and all maintenance is taken care of immediately. You don't know that for sure when you buy a two or three year old car, someone may have beat on it knowing they were turning it in.
I keep my cars for an extremely long time. My last car was a Celica, I paid for it in three years and drove it for ten more...for free!!! I put 200,000 miles on the car and sold it for $1600, it was that clean. I have a Santa Fe now with 60,000 miles on it and plan on keeping it for at least ten years. I pretty much squeeze everything I can out of a car
I agree wholeheartedly --- buy slightly used! Best bet financially...
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| Posted 8/15/05 9:59 PM |
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BethGail
LIF Infant
Member since 5/05 179 total posts
Name:
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Re: Cars-- Lease or Buy??
Posted by girlygrl33
Lease to me is like spending all this $$ every month and having nothing to show for it in the end.
Nope, your money rolls over into a NEW car every 2 or 3 yrs however you do your lease. To me that shows something for my money!
BUT TO BUY A CAR YES SLIGHTLY USED IS THE BEST FOR FINACIAL PURPOSES FOR SOME. ahh caps
For me my interest rate was not higher than when I bought its based on your TRW and my insurance has been cheaper than when I purchased too.
everyone has their own opion, but as i said earlier, i agree with girly.. i mean yeah you have ntohing to show for it, BUT you only have the car duiring the time it is under warranty and you rarely hvae to put extra $$ into it. as for the miles, i also have an excessive use adn damamge waiver that kicks in if i go over my miles in the end. i like being able to have a new car every few years and not have to worry if something will go wrong. and our insurance...well to be honest, i dont think it could get any lower!
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| Posted 8/16/05 9:27 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Cars-- Lease or Buy??
Posted by girlygrl33
For me my interest rate was not higher than when I bought its based on your TRW and my insurance has been cheaper than when I purchased too.
Perhaps... but my credit union was offering 3.9% financing for up to five years for new OR used vechicles! A killer deal if you want to buy used.
Its now 4.5%... but still good for new or used.
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| Posted 8/16/05 11:10 PM |
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MissJones
I need a nap!
Member since 5/05 22134 total posts
Name:
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Re: Cars-- Lease or Buy??
Posted by Gertyrae
I have always bought.
I understand the theory behind leasing, but it always seems to end up costing the leasor? more. Almost everyone I know has gone over the mileage (they only give you 12,000 to 15,000 per year) and you pay $300 or $400 a month for three years just to give the car back.
I buy new, and I don't recommend it, I do recommend buying slightly used. I only buy new cuz I want to know that the oil was changed every 3000 miles and all maintenance is taken care of immediately. You don't know that for sure when you buy a two or three year old car, someone may have beat on it knowing they were turning it in.
I keep my cars for an extremely long time. My last car was a Celica, I paid for it in three years and drove it for ten more...for free!!! I put 200,000 miles on the car and sold it for $1600, it was that clean. I have a Santa Fe now with 60,000 miles on it and plan on keeping it for at least ten years. I pretty much squeeze everything I can out of a car
Ditto. My first car as a teen was the family car given to me. Then I bought my next car. When I was hit and the car was declared totaled, I toyed with buying new outright. But I wound up buying my car that was $7K and 5 years old. I looooooove my car. It was mine from day one, the owner treated it great and the breaking in period was done with. Now we have a new car that we are financing. But we are run the car into the ground kind of people. When the engine dies, put a new one in. Yet, we still have my first car, paid off, and just a great car in general.
IMO, in the end with buying, you have something. If you want something prettier and newer in 3 years, then leasing is for you. If you are the kind that takes care of things and can see yourself in the car for another 10 years, then buy. Even if you buy, you can still sell it. Although it depreciates, technically in value, it is still an asset.
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| Posted 8/16/05 11:35 PM |
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Kelly9904
Mommy to 2 amazing little boys
Member since 5/05 9306 total posts
Name:
Kelly
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Re: Cars-- Lease or Buy??
Message edited 1/30/2009 1:29:42 PM.
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| Posted 8/17/05 12:53 PM |
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Bugaboo
Relax!
Member since 5/05 2133 total posts
Name:
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Re: Cars-- Lease or Buy??
Against my better judgement, my DH and I used to lease a car and we turned it in early - consolidation - one car we owned and one leased car to buy one car. There wasn't a need for us to have two anymore. Even though the car retained it's value really well, we will never lease again. It's just not a financially-wise thing to do. Here is an article that explains why and I couldn't say it better myself....
Buy vs. Lease
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| Posted 8/17/05 1:38 PM |
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MommyofG
just the girls
Member since 5/05 9461 total posts
Name:
Janice
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Re: Cars-- Lease or Buy??
Posted by Bugaboo
Against my better judgement, my DH and I used to lease a car and we turned it in early - consolidation - one car we owned and one leased car to buy one car. There wasn't a need for us to have two anymore. Even though the car retained it's value really well, we will never lease again. It's just not a financially-wise thing to do. Here is an article that explains why and I couldn't say it better myself....
Buy vs. Lease
I completely DISAGREE with your comment on its not WISE financially and with that artilce- first off we all work hard for our money- theres no question about that- who's to say its wise and not wise- its an OPTION- if you ARE financially ABLE to do it why not?????? I dont lease to be the talk of the town- or have an ego problem- or that I couldnt afford it b/c frankly with all the money you put into leasing- I certainly think you can afford to buy it- expensive cars to buy your monthly payments are just about the same when leasing. I like the idea of having a new car b/c I always had a used car- I work hard for my money and if I want a new car every 3 yrs whats wrong with that? My money is still going into a car whether its a lease or a purchase- and most of the cars I lease I DONT want to purchase or own outright , I like to try new things and the best part is the car NEVER gives me a problem- Ive had that OLD car that needed this and that- Im tired of that- and if you can afford a lease payment Id say your ok financially!!!! Its not a fair comment or article because I know and I know others who lease and will only lease that financially its the best and wise thing to do for me! and I dont ever look back. my % rate is great and my insurance is LESS AND there are options regarding the MILE thing everyone seems so worried about- you just need to ask the dealership! And yes all cars depreciate at some time BUT by the time I have to give the car back the depreciation isnt as great as if I owned it longer!
If you are looking to watch your spending then no leasing is not for you b/c it isnt cheap- again depending on which model or make you lease.
Heres a thing for you- I bought in 97, I bought a brand new mustang had a spoiler put on- alarm system- still had the paper on the car- great finance rate , great insurance rate- put 2k down, 5 yr loan-in 5 yrs I was under 60k miles still had the extended warranty that was valid- the car in 5 years cost me over 23k- thats including the extended warranty cost too- went to trade it in and it was only worth according to the kelly book 4200- yes thats right in 5 years a car that I spent 23 thousand dollars on in 5 years was only worth 4200 in the kelly book and thats all I could get for a trade in- so I sold it on ebay for 6100- so my point here is- " buying " in the end isnt that much better!!!!
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| Posted 8/17/05 11:35 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Cars-- Lease or Buy??
Posted by girlygrl33
my % rate is great and my insurance is LESS
Couple of questions.
I am curious how your insurance is less than it would be with a finance. How did you come about this?
I am also curious what interest rate you got with your lease. Do you know what it is?
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| Posted 8/17/05 11:53 PM |
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MommyofG
just the girls
Member since 5/05 9461 total posts
Name:
Janice
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Re: Cars-- Lease or Buy??
Posted by DjPiLL
Posted by girlygrl33
my % rate is great and my insurance is LESS
Couple of questions.
I am curious how your insurance is less than it would be with a finance. How did you come about this?
I am also curious what interest rate you got with your lease. Do you know what it is?
Sure when I bought finance charge was just under 7%- leasing under 5% and my insurance for that 1 car financing was around 2500 a year- you still have to take out extra liability the same with a lease for a loan too.
Call and get quotes- they are out there- I had a few companies quote me a little more than 4k to insure 1 lease and 1 finance- I pay 1/2!!!!! 2100 for 1 lease and 1 purchase a year!!!!!! edited to add and that includes the extra glass that is not covered in ny state in liability. that only cost me 100 a car.
It is possible Phil- you just have to keep calling and calling. and if your TRW is 700 and above you can get a great % rate- a car dealership is not going to lease out a 50k + vehicle if someones credit is shot. They can get special finance but the interest rate will be sky high and so are the payments but insurance isnt effected by TRW-
Good Luck 
Message edited 8/18/2005 12:46:59 PM.
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| Posted 8/18/05 12:43 PM |
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DjPiLL
Member since 5/05 3664 total posts
Name:
Richard
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Re: Cars-- Lease or Buy??
Oh thats fine. My TRW is 807 so I am not worried about that.
I just figured the lease was somewhere around 5% which is what I expected.
I am just not a major fan of leasing because a lot of auto manufacturers are offering 0% financing... some up to 2.9%. Thats a killer deal IMO.
I know for a fact that Geico requires 100k of liability for any sort of a lease... but with a finance you can do 25k.
But I guess I would never rule out a lease in the future... if the time was right.
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| Posted 8/18/05 1:00 PM |
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MommyofG
just the girls
Member since 5/05 9461 total posts
Name:
Janice
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Re: Cars-- Lease or Buy??
Posted by DjPiLL
Oh thats fine. My TRW is 807 so I am not worried about that.
I just figured the lease was somewhere around 5% which is what I expected.
I am just not a major fan of leasing because a lot of auto manufacturers are offering 0% financing... some up to 2.9%. Thats a killer deal IMO.
I know for a fact that Geico requires 100k of liability for any sort of a lease... but with a finance you can do 25k.
But I guess I would never rule out a lease in the future... if the time was right.
thats a great credit score!!!! I hear ya, but after my buying disaster- I dont know if I would ever go back- but your right with these low 0% and 2.9 ( for good credit scores like yourself) it is a great deal!!
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| Posted 8/18/05 3:14 PM |
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