Should we lease or finance a car...

DH wants to get a new car and has been looking into financing one. He hasn't really found a good deal yet. Anyways yesterday someone suggested leasing a car. So I was just wondering which one is better?

Message edited 2/25/2008 11:37:52 AM.

Re: Should we lease or finance a car...

Funny you should ask this because DH and I are wondering the same thing right now too. We're going to be getting a new car in the summer and we've always financed, but we're thinking about leasing since we like to get a new car every few years or so anyway, and we don't really rack up the miles. We both dont know much about leasing though so any words of wisdom from someone who has would be great!

Re: Should we lease or finance a car...

most financial advisors say finance, don't lease.
I've done both.

Right now we're leasing from Honda and we are very happy- I like the idea of having a new car every 3 years and not having to worry about selling the car when we no longer want it.

I just had to sell my Ford Focus late last year and it was a PITA... so I"m not sure if I'll ever "buy" a car again.

Re: Should we lease or finance a car...

Posted by jjk1007

Funny you should ask this because DH and I are wondering the same thing right now too. We're going to be getting a new car in the summer and we've always financed, but we're thinking about leasing since we like to get a new car every few years or so anyway, and we don't really rack up the miles. We both dont know much about leasing though so any words of wisdom from someone who has would be great!

Re: Should we lease or finance a car...

For the first time DH and I are both leasing...we thought it was better for many reasons. I had financed a car and just paid it off after 5 years last year. I found that around year 2 or 3 many things started to break on the car and I knew with a lease I would give it back after 36 mos. Also...I really like the idea of getting new car every 3 years and I won't be stuck selling something.

Re: Should we lease or finance a car...

i like leasing but it's not for everyone.

If you want a new car every few years and you drive under 15K a year it works. That's our scenario. I don't want to deal with big repairs so that suits us as well.

I have done both and I prefer leasing.

Re: Should we lease or finance a car...

Re: Should we lease or finance a car...

I like to Lease while husband likes to finance (so right now we are doing both)
I love leasing because I like to test drive my car for a couple years and then if i like it, then i will finance it. So i leased my honda for a couple years, loved it (no problems whatsoever) so then i financed it.
My husband financed his car from the start. Good luck they are both fine options. Just make sure whatever u do many sure u ge the best interest/financing rate. Sometimes dealers just tell u this is how much it will be per months meanwhile u could get a better rate elsewhere......
what cars are looking into? I love love love my honda crv~

Re: Should we lease or finance a car...

I leased once and i'll never do it again. Finance all the way for me!

You will get better deals on finances. Loads of manufacturer rebates, cash backs, and financing options for people who buy. My last car I financed at 0% - show me where you can get a 0% lease.

And in regards to the pain (as someone above said) of selling a financed car: This isn't a pain, it's a BENEFIT!

Why? Because many people don't know if you sell your car back to the dealer in exchange for a new car, you are exempt from paying sales tax for the portion you are trading in.

For instance, the last car I traded in I got 22k from the dealer. The car I bought was 27k. I only paid sales tax on the difference which was 5k. So I only paid $432 dollars sales tax on a 27k car! I saved $1,903 dollars by trading in a car I previously financed.

It's a no-brainer move IMO. Find a dealer that is desperate to move/sell a car and they will give you a great deal on your trade. It's all about patience. If you sell privately, you don't get this benefit.

I'll have my car paid off within three years of owning it (right after the warranty is up). There is no way this car will have repairs out of warranty that would exceed what I would be paying monthly on a new lease.

Message edited 2/25/2008 12:05:32 PM.

Re: Should we lease or finance a car...

Re: Should we lease or finance a car...

Posted by ave1024

I leased once and i'll never do it again. Finance all the way for me!

You will get better deals on finances. Loads of manufacturer rebates, cash backs, and financing options for people who buy. My last car I financed at 0% - show me where you can get a 0% lease.

And in regards to the pain (as someone above said) of selling a financed car: This isn't a pain, it's a BENEFIT!

Why? Because many people don't know if you sell your car back to the dealer in exchange for a new car, you are exempt from paying sales tax for the portion you are trading in.

For instance, the last car I traded in I got 22k from the dealer. The car I bought was 27k. I only paid sales tax on the difference which was 5k. So I only paid $432 dollars sales tax on a 27k car! I saved $1,903 dollars by trading in a car I previously financed.

It's a no-brainer move IMO. Find a dealer that is desperate to move/sell a car and they will give you a great deal on your trade. It's all about patience. If you sell privately, you don't get this benefit.

I'll have my car paid off within three years of owning it (right after the warranty is up). There is no way this car will have repairs out of warranty that would exceed what I would be paying monthly on a new lease.