Should I lease or buy?


#1

Hi,

I’m currently looking to part ways with my 2007 Hyundai Tucson (~48,000 miles on it) and was wondering if it’s better to buy or lease. I mainly use my vehicle to commute to and from work and run some errands during the weekends.

Any advice on which is the best bet?

Thanks


#2

Although I am not someone who favors leasing, at least the amount of mileage that you put on your vehicles per year (less than 4,500 miles annually) won’t put you in the category of having to pay a penalty for too many miles during the lease period. If you are also careful to protect the vehicle’s body from dings, and as long as you are willing to make sure that it has matching tires on it at the end of the lease, this might work for you.


#3

My best advice would be to hang on to the Tucson a little longer. The 48,000 miles is really low and the car has a lot of life left in it. Unless it is rusting prematurely, of course.

Leasing is your worst possible option, paying a lot of money for very few miles. Even if you can tax-deduct the leasing costs, it is still the poorest choice.

My retired sister is driving less these days and her best choice is a 4 year old low mileage, reliable compact car which she will likely drive for about 8 years or so.

Anyway, sit down with a pocket calculator and see for yourself how much you are shelling out on leasing vs buying.


#4

Have you owned this car since it was new or did you buy it used?

There is little doubt about which choice is the least costly. The only question is whether cost should be your main criterion.

Do you have any reason to shelter your assets? That’s the only reason I’d consider leasing.


#5

I would never tell anyone who does not have a business to lease a vehicle . Also I guess you might edit your thread heading because I think you meant lease instead of leave.


#6

It depends on your financial situation. I prefer buying a 1-2 year old used car because the depreciation was absorbed by the last owner.I also make sure the car is in perfect condition.


#7

The best (cheapest) alternative is @Docnick’s answer - Keep the Tuscon.

If you are just want a new car or need a different type of car, the cheapest way to get a newer car is to buy one that has come off a 3 year lease. It will have less than 36,000 miles typically, cost 55% of new and still have 85% of its life left.


#8

Of course medical science has yet to find a cure for the ( Me want new or different vehicle ) disease .


#9

Leasing means you have to sign a legal contract, and doing so presents some complicated questions you may have to answer at some point between the time you sign the lease and the time you wish to return the car, at least from the discussions on the topic here from other posters. I’ve never leased myself. But I’m thinking unless you have a lot of time on your hands, or you want to learn how the American legal system works, these are problems you probably are best to avoid. To get an idea of the complications you may be dealing with by leasing, use the forum search feature (click on e icon that looks like a magnifying glass, upper right), searching for the terms “lease” or “leasing”.


#10

I have owned and leased many cars. I have never financed a purchase, I pay cash or lease. I will only lease if 1) the car has very low depreciation; Think Honda Toyota, Acura, Lexus etc
2) There is money on the hood. Which mean the factory is giving a lease rebate, usually to adjust inventory levels. The current cash amount on a 2018 Acura RDX, for example, is $3300. The dealer can give all or some to the customer.
3) The money factor is low. This is just the APR on the finance or rent charge, divided by 2400. Why? just to make it more complicated. Dave Ramsey says the typical lease is 14%. He is wrong; each model is different. Some Acuras are below 1%. A Mazda CX5 is at 1/4 of 1%.
Bottom line; leasing is another complicated transaction after you have negotiated price and trade in. Very few salesmen know much about how it works, and the vast majority of lease ads are misleading, with a low payment in large type, and fees in mouse type.
If you want to explore leasing check out Cars Direct.com


#11

Agree! One of the few people I know who comes out ahead on a lease is my ex neighbor, who has her own business. She leases a car or SUV with good resale value and deducts the entire lease cost against her considerable income (high tax bracket).

At the end of the lease she privately buys her well maintained vehicle form the leasing company, Then cleans it up and sells it privately. On her last one, a Honda CRV, she made a tidy non-taxable profit. She’s now driving another CRV and going through the same process.

I have my own consulting business and have never been able to economically justify leasing.


#12

I bought it brand-new.


#13

Fixed it. Thanks, :slight_smile:


#14

In that case, you seem to be a prime candidate for leasing. Saving money doesn’t appear to be your primary focus and you don’t put a lot of miles on a car.

I’d still buy if I were in your shoes, but you do you.