car buy vs. lease

[Meenah]

My car died, and it has been a very long time since I bought a new car. I can't believe the prices. I'm thinking of leasing, any thoughts?

[Finding Equanimity]

I don't want to sound preachy, but as a general matter I think financial advisors say leasing a car is usually a bad financial idea. In the long run it costs more. I bought a car last year and was surprised at how favorable a rate I could get on my loan. I think with less people buying new cars due to the economy, there can be some good deals. Just my humble opinion.

[SuzySunshine]

We just got 0% on my new car, if we can get approved for it you should be able to too. Its free money. A lot of companies have free maintenance for the first 3ish years of the car too which if you can get that plus 0% financing it makes more sense then leasing.

[corn poffi]

Leasing is not a good idea. Especially right now, the market is perfect for low interest rates. I bought mine right when the economy tanked, and got a great deal and a great interest rate!

I remember asking this question waaaay back and the iMSN fountain of wisdom told us not to lease. I'm so glad we took that advice because, although we were kind of dumb to buy a NEW car at the beginning of residency, we only have one more payment to make before we own it and hope to get many years from it yet!!!!

[diggitydot]

Depends on how many miles a year you drive and how frequently you change vehicles. Most people are better off buying, though.

[Ravenclaw]

We bought a 2010 car right when the 2011 models were coming out and saved a ton since they were trying to get rid of the 2010 models. Paid $12K, while the new ones start at 22K, only had a few thousand miles on it and is still under warranty. We financed through PenFed and have a 1.9% APR (not sure what the rates they are offering right now.)

[Chrisada]

We lease, but that's only because I'm weird and like having a new car every two years, plus I don't drive much and we got more for our money through the lease vs. buy. It's coming in handy because we are planning on baby #3 next summer, so I'll just turn in the car for an SUV next January.

[MissCrabette]

I would normally advise that most people buy their cars, but I did briefly entertain the idea of leasing during part of residency or fellowship. The reason for that is that we could get a better car for a lower payment, and that situation would be temporary while money is tight. Of course, now we only have one driver in the family and a paid for 2006 Accord, so I no longer need to worry about a second car.

[v-girl]

If you don't want to buy brand new, you could go our route. We went to Carmax and bought a 2011 that had been a rental. Only 28K miles and about 1/2 the price of brand new. My friend did the same thing last year.

We leased once. I hated when we turned it in and needed to buy a car and had no trade-in.

[SoonerTexan]

What about a car that is a year or two old, like vgirl said. Half the time you can't tell the difference and it will save you thousands. And some come with warranties.

[Pollyanna]

What about a car that is a year or two old, like vgirl said. Half the time you can't tell the difference and it will save you thousands. And some come with warranties.

Yes this! We are planning to do this when we move, by buying a 2011 SUV with about 10K-20K miles on it we will save over $15K.