Lease or Buy?
#1
Lease or Buy?
I don't think I can get too excited about personalizing my xB - I just remembered we lease it. - $2000 down, $200 month x 4 years. Then I will switch it out for a later model if I'm still in love with the boxes. which I think I will be..... Do most of you buy or lease? Just wondering..
#2
buy. its the only way to go. why pay for something and have all these restrictions like not being able to drive so many miles in a year just so you can return it and start all over on payments on a new car. where as when you buy it all that money you put into it stays in it for you, saving you money in the long run.
#3
Senior Member
Music City Scions
SL Member
Join Date: May 2004
Location: West TN - Land of twisty roads
Posts: 11,808
Leasing is one of the biggest ripoffs in the world. Leasing is good for those that want more car than they can afford.
Look at it this way. You'll have $11,600 invested to drive it for 4 years. Can't Really enjoy it ie: no modding or long trips. Then you have to give it back in very good condition or pay penalties. For about another $100 a month it would have been yours to keep forever and you'd have something to show for your money.
Mine will be paid off in less than a year. woot woot.
Look at it this way. You'll have $11,600 invested to drive it for 4 years. Can't Really enjoy it ie: no modding or long trips. Then you have to give it back in very good condition or pay penalties. For about another $100 a month it would have been yours to keep forever and you'd have something to show for your money.
Mine will be paid off in less than a year. woot woot.
#4
There was a time that I was VERY big on leasing. It still can make sense in certain situations. In general though, its not as attractive as it once was. Toyota got burned several years ago with cars coming off lease that were not worth the residual value. When this happens, Toyota lost that money at auction. There was a time when Toyota was loosing millions every month on off-lease vehicles. The same happened to Nissan and it almost sent them into bankruptcy. Toyota survived it easily, but learned from it. They have set the residuals much lower than they once were. Lower residuals means higher payments.
So, why lease? If you know you're going to want a new car in 3 years and you are worried about having negative equity at trade-in, leasing makes perfect sense. Unless you abuse it, you will not owe more money than its worth at the end of the lease. You can quickly and simply move into a new vehicle. Lease payments are still a little lower than a buy but not by as much as they once were.
So, why lease? If you know you're going to want a new car in 3 years and you are worried about having negative equity at trade-in, leasing makes perfect sense. Unless you abuse it, you will not owe more money than its worth at the end of the lease. You can quickly and simply move into a new vehicle. Lease payments are still a little lower than a buy but not by as much as they once were.
#5
i know a while back, my mom had a lease on one of hers and the dealer told her if she decided she wanted it, all she had to do was just finish paying for it at the end of the lease and keep it.
#6
Senior Member
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Scion Evolution
Join Date: Apr 2005
Location: Cucamonga, CA RT66
Posts: 4,402
You can certainly buy the car at the end of the lease term. The residual value is in your contract I would imagine. You might even be able to get it cheaper at that point if you negotiate. The real problem with a lease is the restricted mileage that is in the contracts. If you drive over the 12 or 15 k a year in your lease your car will be worth a lot less and you will have to come up with the lump sum. You can always keep the OEM parts after any mod and put them back on when you turn it in.
#8
Just got my xB yesterday. We went to the dealer thinking we were just going to lease one. But we ended up buying it. Looking at all the numbers in the long run just made sense to buy it instead of leasing it!
#10
Originally Posted by bassist1217
i know a while back, my mom had a lease on one of hers and the dealer told her if she decided she wanted it, all she had to do was just finish paying for it at the end of the lease and keep it.
#11
Originally Posted by jethro_b
Leasing is one of the biggest ripoffs in the world. Leasing is good for those that want more car than they can afford.
Look at it this way. You'll have $11,600 invested to drive it for 4 years. Can't Really enjoy it ie: no modding or long trips. Then you have to give it back in very good condition or pay penalties. For about another $100 a month it would have been yours to keep forever and you'd have something to show for your money.
Mine will be paid off in less than a year. woot woot.
Look at it this way. You'll have $11,600 invested to drive it for 4 years. Can't Really enjoy it ie: no modding or long trips. Then you have to give it back in very good condition or pay penalties. For about another $100 a month it would have been yours to keep forever and you'd have something to show for your money.
Mine will be paid off in less than a year. woot woot.
also its not always the case of "Leasing is good for those that want more car than they can afford" some people lease cars because they want a new car every other year or so, but in general its a rip off. you have no equity, if any, and basically your renting a car. and the penatlies are huge, i had a freind who leased a truck, and had no choice but to exceed the 15k milage a year, he turned it in with over 30,000 miles extra at 15 cents a mile. YIKES
#13
if you r used to trading every couple of yrs then it may pay to look into a lease. unless you pay off ur car, most of it will be negative equity at resale or trade-in. look at what you want to accomplish with ur car. if u want to mod one out with a lease, be sure keep oem parts so that u can replace them when the lease is up. that is money that you may be able to recoup by either reusing the parts or selling them. if ur looking for inexpensive transportation and wont put more than 12-15k miles per yr. the best thing to do is talk with people with a similiar situation and see what they like/dislike about their situation. if u do lease and decide to purchase the car after the lease is up, that is an option but you may end up paying more for the used car plus the cost of lease than it would have been to just purchase it to begin with. talk with a salesperson you feel you can trust and they can help u decide.
#15
i bought mine. 281/month for 60 months. i just came out of a 4yr lease on a 2002 subaru WRX. biggest mistake ever. over 16000+downpayment on that car is gone, and i have nothing to show for it. oh well.. i bought the xB 2 weeks ago and i'm more than happy with it, even though its like 3 times slower than my WRX was.
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