Leasing vs. Financing

[BC69]

Okay so I decided to seek the advice of the all knowning forum on this one.
Since I took that internship at the beginning of the year, and have been getting paid pretty well, I am thinking about getting a daily driver car to have at school the next couple years.

Right now I share a car with my brother and sister, and while I know I am lucky enough for that, it is seriously a hassle during the summer, and I dont have anything at school. As you recall it takes 20 minutes to drive to my office, an hour and ten on the subway. I spent 10 hours a week traveling. I am the youngest of three, My brother is in college and doesnt work, my sister just graduated and is working but also paying college loans now. So I am actually working the most with two jobs and school, and am the only one who could afford to get there own car and make the car hassles alot easier.

Anyway, thus far I have been planning on leasing a car rather than buying one. My reasons being A: its cheaper payments for more car. B: In 3 years I will be paying back college loans and dont think I can pay car payment then.
My plan is to lease a car on a lease that will run out just as I am graduating college. I plan on either staying and working in Boston, or going to New York to work on Wall St. So I might not need a car then either. Yet with a lease I am essentially "renting" a car and when its over have no value left. I have mileage limits also.

So I am just curious what you guys have done or recommend. You can also say dont buy anything...because that is just as likely right now. It means I have to work next year and probably senior year during the school year, it also means I am not saving as much, but in the sphere of college loans I wouldn't make much of a dent anyway.

Oh and also: The Camaro would be taken care of, I already factored in the Camaro's insurance, and plenty of money for the upkeep and updates. Thats my baby and comes first anyway.


Anyway just feel free to offer any opinions you want.

Thanks
Tim

[RussMS]

Having done both I can recommend buying over leasing. The mileage thing can really stink, or it did for me. One I went way over and had to pay, the other I went under and got no refund.

Personally, now I will always buy well worn cars/trucks and drive em til they blow up, rinse and repeat. If nothing else, it may still be running in 3 years and you will have it if you need it. My car may not be flashy, but its been paid for at least 125,000 miles now. When it is replaced, I got my money's worth.

With my leases (wife's car), I have nothing to show for my $400 a month now that I gave it back to the dealer.

Thats my 2 cents anyway.

[XcYZ]

I've always bought my (GM) vehicles, but I've always thought a cheap lease (like $99 a month) would be perfect for a guy in college. You'd get a brand new vehicle that would be under warranty the whole time you'd be in school. It would be reliable; just one less thing to worry about.

However, mileage would always be a concern, along with the fees.

Have you shopped for any deals on leases?

[BC69]

I have been shopping around for a while. I cant get a car til May, because icant have one on campus this year, but started early. The mileage might be a concern, might not be. I have done some basic math and think I would be fine with a 12,000 mile lease or could add money to preload the lease to 15,000. The benefit is a good warranty, pretty much be covered on everything except gas.

My biggest thing is that if you were to lease a car for say 300 a month...the financing payment for the same car would be 600$ a month. So the type of car I could buy vs. lease is huge.

I've just been going back and forth over this...each day I change my mind, from lease to buy, to dont get anything.

[Ummgawa]

BC69

Around Atlanta, there are a million or so cars for sale at a time. You can get a LOADED Ford taurus with every option and maybe 40K miles for 4100.00 and it is a 2003- 2004. Great gas milage and loaded and all the bugs worked out. With all of the start up fees and first and last months payments due at lease sign, Buy a 2 year old taurus loaded with low miles and drive it till the wheels fall off, and payments of 60 a month for a few years if you finance.

[JohnM69SS]

I would recommend buying over leasing, but if you do lease and go over the mileage, there is hope.
We leased one vehicle many years ago and went over the allowed mileage. Rather than turn the vehicle in and pay the penalties when the term ended, we bought it off of the lease (sign on the dotted line and walk away) and then sold it when the title came in the mail. We eneded up breaken even, give or take a few hundred, but it beat the penalties that we were going to have to pay, which was in the thousands.

Good luck!!!

[Bill Howell]

Originally Posted by Ummgawa

BC69

Around Atlanta, there are a million or so cars for sale at a time. You can get a LOADED Ford taurus with every option and maybe 40K miles for 4100.00 and it is a 2003- 2004. Great gas milage and loaded and all the bugs worked out. With all of the start up fees and first and last months payments due at lease sign, Buy a 2 year old taurus loaded with low miles and drive it till the wheels fall off, and payments of 60 a month for a few years if you finance.

I am with Jim, BUY a USED car. I have never seen the advantage of leasing. Buy what you can afford, get thru with school and college and that way you are not upside down the day you graduate. Then once you get a good job, then go get what you really want. But for now I would just buy a beater and make it work.

[hotwheels]

I have done both, and i would highly recommend buying.........I know that may seem rough, but that is the safest way to look at your investment. If you can afford a car payment, make the payment's pay for YOUR car, don't pay off the dealer's depreciation value of the car..