I graduated in May and have just landed my first job, paying $45k. I have very minimal monthly bills (about $300). The car I'm driving now doesn't have any major problems but it's got 170,000 miles on it and is old, so I'd like to get a new, more reliable one for work. In my situation, would it be smarter for me to consider leasing or buying? I'd like to get a hybrid. Thanks for any advice!
2007-08-04 19:44:06 · 8 answers · asked by Grace1228 3 in Cars & Transportation ➔ Buying & Selling
I Would Say Buy A Used Car But If You Must Buy A New Car Then... BUY IT! Dont Ever Lease One... To Me I Think Its A Waste Of Time And Money. Even Buying, You Always Trade It In Anyway. But Leasing A Car Is Like Renting An Apt. For $1000 When You Can Just Buy A House With The Same Price And Get To Keep It In The End... Know What Im Saying?
2007-08-04 19:56:53 · answer #1 · answered by Joe Red 4 · 0⤊ 0⤋
Unless you understand things like capitalized cost, residual cost, and lease factors, and are ready to negotiate these elements, it's likely that leasing will be more expensive to you than buying. The dealer has more variables to jerk around in a lease deal and unless you are familiar with these, they will probably be used against you. In addition to this, you have no way of knowing how badly you will get dinged at the end of the lease for what you might think is ordinary wear and tear.
Your most cost-effective route is probably to buy a slightly used car, maybe a lease return or rental return. If you buy new, go to Edmunds or another site and find out the invoice price and actual average selling cost for the car (not the MSRP!) and use those as bargaining points.
Whether you buy new or used, two other items are important. Arrange the loan separately from the car purchase, preferably with your own bank or credit union. That way, even if it looks like the car dealer is giving you a sweet deal on a loan, you can walk away from his loan and use your own if he tries to tack on costs, etc. Second, never buy an extended warranty, no matter how hard the dealer tries to sell it to you.
Good luck.
2007-08-04 20:10:49 · answer #2 · answered by Barrabas_6025 4 · 1⤊ 0⤋
You sound very bright and congrats on the graduation (sounds like you got a nice job too!). Financially speaking, it makes better sense to buy than to lease. Leasing encumbers you to somebody else's rules (mileage per year, add-ons, customizations). Buying a car gives you ownership of that car, and something left over at the end of the purchase - that car with no more payments!
You sound pretty sensible, and to keep a car with 170K miles on it tells me that you are not the type that needs a new car every X years, but only when you need a new one. I'm that way too and it works out great to buy a brand new car when you feel like it because you have that equity left from the last car.
2007-08-04 19:58:46 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Hey Grace, driving a car now with 170K shows me your not the lease type buyer, without going into details I could write a book on the subject " simply stay away from leasing" if you dont understand how it works 100%
Buying a vehicle is a process of steps, its really simple but to many buyers cant find the time for a little homework ends up with the short end of the stick and will blame all their mistakes on the dealer.
If you find the time go to my website http://www.usedcartips.org/ and study my steps how to buy a car, its free advice with no string attached
2007-08-04 23:31:22 · answer #4 · answered by Anonymous · 1⤊ 0⤋
I leased one time and won't do it again.They charged me for a chip in the windshield (even though I had it professionally repaired) they charged for the whole windshield.I even gave it to them with 10,000 less miles than they expected.I also was charged a fee at the end that I was told I wasn't responsable for when I leased it.They also charged for an oil change since I didn't have one in the last 3000 miles before i turned it in.
Your better off buying a car at least you don't have to worry about minute car damage coming out of your pocket.
Plus you have trade in value which you don't have with a lease.
2007-08-04 19:53:03 · answer #5 · answered by boobooloo 4 · 2⤊ 0⤋
It's all personal preference really. I know some people like to buy, because they like to feel that sense of ownership. The question you have to ask yourself is "Do I want a new car every 2 or 3 years?" or "Do I want to own this car for 5 or more years?"
2007-08-04 19:48:55 · answer #6 · answered by Scott R 1 · 0⤊ 0⤋
Do not lease. Buy a used car that has been inspected by a respected mechanic.
2007-08-04 19:47:37 · answer #7 · answered by rcpaden 5 · 1⤊ 0⤋
just a tip it cost you an extar 3000 or 4000 to lease a car
2007-08-08 16:07:18 · answer #8 · answered by panthor001 4 · 0⤊ 0⤋