Buy current car or lease a new one?

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amother

Wed, Feb 08 2023, 3:05 pm

What makes the most financial sense?
Got a lease 3 and a half years ago, which can no longer be extended. They allowed us an extra 6 months.
To buy the current vehicle, I need to pay almost 19 thousand dollars.

Right now, a new lease for anything remotely similar is double what I've paid for current one. Mid 400s a month, vs mid 200s a month, which is what I do now
Plus taxes, first month, license and registration on a new lease.

Car is a 2019, has about 20 thousand miles.
It isn't a Honda or a Nissan. That's what concerns me. The reliability, or lack of.

What makes more financial sense, assuming I could do either?
I have visions of everything going wrong with the car, things breaking, and paying tons of money for repairs.
Help.

amother

Trillium

Wed, Feb 08 2023, 3:06 pm

I’m in the same position. Following.

amother

Hotpink

Wed, Feb 08 2023, 3:20 pm

In general leasing is about the most expensive way to own a car.

What is the Blue Book value of the car - is it $19,000 or more?

What are the actual reviews of the exact year and model of your vehicle. There are decent cars that aren't a Honda or Toyota so you should make a decision based on a reliable source like Edmunds or Consumer Reports.

There is a real advantage to owning a car. After a period of time you don't owe payments and most cars last far longer than five years so long as they have been maintained well = I.e. oil changes and specified maintenance when they hit certain mileage.

When payments stop. you PAY YOURSELF into a bank account and so after a few years you have enough to put a down payment or even pay cash for a car. Once you have done this the savings are enormous over the years.

amother

Cantaloupe

Wed, Feb 08 2023, 3:22 pm

Cars are generally worth more than their payout value. Find someone who sells used cars and try to make a deal with them- if they sell it and pay off your lease you share in the profit.

You can then use that extra money toward your new vehicle.

amother

Wed, Feb 08 2023, 3:28 pm

amother Hotpink wrote:

But if I put down 19k to buy it, that's alot of money, for how many more years of driving? 8th No idea how long it will last without problems. No one does!!

amother

Wed, Feb 08 2023, 3:29 pm

amother Cantaloupe wrote:

But then, I've defeated the purpose. I'm paying double the amount of money monthly, for a new vehicle.

bsimcharabba

Wed, Feb 08 2023, 3:32 pm

What is the exact cost of a new lease? You need to do the math to find the breakeven point. I was in this situation and we realized that if we get 5 years out of the 2019 used car we bought we broke even compared to leasing. If you post the exact balances I’m happy to do the math for you. It’s usually worth buying as you’ll have an asset at the end of the day.

amother

Catmint

Wed, Feb 08 2023, 3:44 pm

A shidduch?

https://www.imamother.com/foru.....00890

amother

Hotpink

Wed, Feb 08 2023, 4:13 pm

amother OP wrote:

But if I put down 19k to buy it, that's alot of money, for how many more years of driving? 8th No idea how long it will last without problems. No one does!!

My experience is that cars last far longer than 3 1/2 years and you only have 20,000 miles which is almost nothing for a car. My cars are reliable for a decade or more.

I am presuming that you did oil changes and other maintenance at appropriate times. Have a good mechanic check it out and evaluate just as one would with any purchase of a used car.

But you have very short range thinking. At the end of 3 years if you lease, you are left with absolutely nothing of value. At the end of 3 years if you purchase a car, you own a car which still is generally very usable or could be sold.

Also even when a car is older it is still a great second car to have to use around town for errands even if you don't want to use it for long commutes or trips. The cost to keep the second car is very low as well since you don't generally get collision insurance and liability insurance for a second car driven by adults is very minimal.

Again you need to check Blue Book value for the model and year of your car with very low mileage - average mileage after 3 1/2 years is closer to 42,000 if not more - based on average 12,000 miles per year which is actually fairly low.

amother

Aconite

Wed, Feb 08 2023, 4:16 pm

Neither. Buy a used Honda or Toyota car.

amother

Dandelion

Wed, Feb 08 2023, 4:21 pm

The way I figure it out
19,000/$400 comes out to almost 48 months(4 years)
So if you think it will last another 4 years than it’s worth it to buy out if it’s already giving problems I wouldn’t buy it.

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