I'm a believer in leasing, given that the interest rate and the leasing terms are within my requirements.
Basically I don't believe in working to gain equity on an asset, like car, that depreciates rapidly (unlike realestate). Either way you will have monthly payments, so put it a side as cost of having a car, and lease. Every 3 or 4 years you get new one. But yes, make sure to do the math and that it meets your situation.

 

Well said...um....sorry never was good at kanji or reading japanese....ahahah....at any rate i totally agree it's not much a point investing equity in a car....now unless you really really like the car...then i can understand if you wanna buy it.

 

lease it...no need to stick with the long payment plan

 

When is a car ever an asset? I thought a car is a liability no matter if you buy or lease.

 

The correct way to make the decision is to model both lease and purchase (being sure to take into account lost investment income on the purchase), including initial purchase price (should be equal), finance rate (or cost of lost capital), and estimated residual value at the end of the lease term. Only when you've done that math can you make the appropriate decision. No other way.

 

A car is not an asset, it is DEFINITELY a liability unless its a collector's car. Anyone that says a lease is always the wrong choice has a narrow perspective.

I recently moved from downtown (20 miles) to about 5 miles from my office, and I am self-employed. I had a '96 328i. The 3 series is known for keeping its value, like the G now does, but the lease turn in on the Gs (as mentioned before) is something to think about, this being a newer car to come out. A bimmer will run forever, but that doesnt mean its cheap to maintain. I used to hang out on the bimmer forums and heard many people saying the same thing I was - E36 had many problems. I would replace at lease 1-2 wheel bearings every year, at about ~$400 a pop. I had the car 4 years. Heard others w/ all kinds of makes putting money into repairs.

After about $4k of repairs over the 4 years (get on a bimmer forum, this isnt unusual) I decided I would never own a car again if it wasnt necessary. So I spent a year looking at leases. In Cincinnati it actually costs more to lease a Golf R32 or a WRX STi. I called everywhere, different dealerships, on BMWs, Subarus, Lexus, Hondas, Volvos (I know), Fords, etc. I didnt know much about Infiniti or Nissan, but I always like the way these cars looked. Did my research, took a test drive, was impressed, and now I'm paying a lot less for a car thats better than almost everything I looked at.

Basically, I said I have x amount of dollars I want to spend on a car a month, I know I want a lease b/c I'm in the perfect condition for one, then looked at every car under the sun and was pleasantly surprised. I didnt think I could get a car this nice for what I was paying. My insurance went up only $50 a year from what I was paying on an 8 year old car kbb $8k (dont know what that guy above was talking about), I never have to pay to fix anything, and I only pay for what I use. I got a 7k mile a year policy w/ insurance and I dont go near that so dont have to worry about mileage.

Bottom line: dont listen to the guys that complain you shouldnt lease a car if you cant afford to buy it. No offense to anyone, but if you bought and are complaining about the coverage required for a lease, you are underinsured and cutting corners. I could easily afford this car but chose not to be stuck with it - instead I only pay for what I use. The rest goes to gas, booze, and my house, which will go up in value w/ mods

 

The car is an asset. The loan is a liability.

 

OK, let's do that. After four years, I let's say that I owe 7k on the car. I sell it for the presumed resale value of 17.8k. Now I've got 10.8k in my pocket. I "paid" 9216 for that 10.8k over the 4 years. That means I just came out 1600 ahead of the lease.

 

Next month I am looking to either get a 350Z or a G35. I am driving a 92 Pontiac Grand Am with 153,000 miles on it. It still runs like a top and I do not have to spend a lot of money on it. I drive about 8,000 miles a year. I am hoping to get a top of the line car and keep it for "ever". In my case owening is the only way to go. The only experiance I have with a lease is when I married my wife we had to turn back a Chevy Blazer in. It was about 20,000 miles over and we had to either pay $3,000 dollars or buy it for way more then it was worth. I have a bad taste in my mouth for a lease so that why I think buying is the only way to go.

 

JRinTX, youre not supposed to drive 20,000 miles over the lease terms. Thats about the equivalent of saying "I redlined my car for a full 2 minutes and the engine blew up. I will never drive a stick again." Bad move on your wifes part, no offense.

 

Hey, shes a woman, she had no idea what she was doing. Her parents set her up in it. Bottom line if you drive a vehicle regularly and have a long comute to work it hard to stay under the miles.

 

yes, but the key word here is "presumed" if you can sell the car after 4years for 17.8G. can anyone guarantee that G will be worth 17.8 four years from now? and how long are everyone planning on owning their G? this is my second G in two years, dont tell me you wont be tempted to trading it for soemthing else couple years down the road? like I said before, it all depend on one's situation....on that 1600 ahead of "lease"?, if you keep it bit longer, more than half of that, will be paying for the new set of tires

 

i leased my G due to I only live less than a mile from work and all my driving is usually done within a 3 mile radius from my house. i only put on about 600 - 700 miles a month if that. i get tired of my cars fast anyway so when the lease is up it will be time for something new.

 

bottom line, leasing is pretty much a waste of money. How can you drive a car that is not even yours, personally there is no way in my life time I would lease. I only buy cars because its an asset that is yours and you can sell later. Paying a dealer to drive a car you love what a waste.