To lease a car or not to lease a car...

Discussion in 'Off Topic [BG]' started by bassist11, Nov 25, 2013.


  1. bassist11

    bassist11

    Joined:
    Jul 14, 2009
    Location:
    Grand Forks, North Dakota
    So I'm thinking of trading in my 2008 Jetta for a lease on a 2014 Golf.

    I've never leased before but know a couple people that do. They've generally said go for it. I've done about as much research on leasing as I think I can and sort of have an idea of what to expect.

    Now I come to the good people of Talkbass. Anybody here lease? Any tips?
  2. iamlowsound

    iamlowsound

    Joined:
    Nov 30, 2005
    Location:
    Listowel/KW Ontario
    Only lease if you want to spend $15,000 and have nothing to show for it after the lease is up.

    lowsound
  3. MJ5150

    MJ5150 Terrific Twister Supporting Member

    Joined:
    Apr 12, 2001
    Location:
    Lacey, WA
    If you don't mind always having a car payment and won't drive it all over the world and back, leasing is viable option. I would only lease from the vehicle maker though, not a third party leasing agency.

    -Mike
  4. GlennW

    GlennW Supporting Member

    Joined:
    Sep 6, 2006
    BUY what you can afford.
  5. basspraiser

    basspraiser Jammin for the Lamb! Supporting Member

    Joined:
    Dec 8, 2006
    Location:
    Chicago - NW Burbs
    I am not a huge lease proponent.

    Leases are tough....limited mileage and you have to return the car in great condition or they charge you....

    We leased a van once and got a dent in the fender. It was not that bad....If it would have been my car I would not have fixed it BUT we had to fix it due to the lease agreement ...visit me over $1000 to fix it.

    Also you pay for most of the car so you might as well buy.....

    I will never lease a personal car again....company car is another matter....as long as the tax code stays the way it is....that being said I buy my cars and charge mileage to my company
  6. bassinplace

    bassinplace

    Joined:
    Dec 1, 2008
    Location:
    Location, Location
    This. Kinda. Same thing if you buy it, really. Only difference is if you buy it, you can resell it and get some of the money back you spent on the purchase, but not much. With a lease when you're done, you don't have the option of driving around without a car payment for awhile and you're left without a car. Unless you buy out the lease but then you're still on the hook for more payments. I think overall purchasing is the slightly more economical way to go. Either way a car is a money pit no matter what you do.
  7. iamlowsound

    iamlowsound

    Joined:
    Nov 30, 2005
    Location:
    Listowel/KW Ontario
    I drive a 2002 Mazda Protege that I paid $1500 for. Cars aren't worth paying lots for, their value just keeps going down.

    lowsound
  8. Ironbar

    Ironbar

    Joined:
    Aug 24, 2013
    Location:
    Portland, Oregon
    This is exactly it. Leasing a vehicle is a terrible way to gain transportation about 99% of the time. Stats show that you will save thousands over the life of a car by #1, buying a used vehicle, and #2, keeping it regularly maintained.
  9. bassinplace

    bassinplace

    Joined:
    Dec 1, 2008
    Location:
    Location, Location
    Yep, I would always go used as well. But I don't think that's what the op's asking about.
  10. duff beer

    duff beer

    Joined:
    Dec 2, 2007
    Location:
    Winnipeg
    I know a few people that lease, and for the most part, leasing is only one of the many poor financial decisions that they make.

    One of my friends has been leasing vehicles for 20 years...he's probably paid $100,000 over that time in lease payments alone ($400 per month x 240 months = $96,000)and after all that, he doesn't even own a vehicle.
  11. bassist11

    bassist11

    Joined:
    Jul 14, 2009
    Location:
    Grand Forks, North Dakota
    Well in the end you can buy out the lease for basically the remaining cost of the vehicle so economically I think they are fairly close.

    In my 3.5 year lease, I'd pay like 12000. Then I could buy the car for 10000 so that's maybe 2-3 more years of financing and then I own it.

    If I bought the car, I'd likely have to get a 60 month finance with higher payments. So overall the time spent making payments would be close and the dollar amount in all would be similar.

    I'm not looking at leasing for the rest of my life by any means, but at this stage in life it seems like an OK route. I could see maybe one lease now while I'm single and young and then buying something after that that might fit family life better.
  12. Mike N

    Mike N Missing the old TB Supporting Member

    Joined:
    Jan 28, 2001
    Location:
    New York
    If you like having a new car every couple years, lease away. If you drive them into the ground then buy.
  13. Phalex

    Phalex Yeah, I've got the moves like Jagger. Supporting Member

    Joined:
    Oct 3, 2006
    Location:
    G.R. MI
    What's wrong with the Jetta?

    If you need a new car it's one thing. If you want a new car it's something else.
  14. BawanaRik

    BawanaRik Supporting Member

    Joined:
    Mar 6, 2012
    Location:
    New Jersey
    When you're not there the dealers refer to leasing as Fleecing.

    You have a car that runs. Why mess with it and end up with years of payments. And you having to look for yet another car.

    Save the money you would have paid for the lease and buy a new car with cash next time.

    Then drive it 15 or twenty years.
  15. kanonfodr

    kanonfodr Supporting Member

    Joined:
    Jan 10, 2009
    Location:
    Seattle, WA, USA, Earth
    Leasing is only nice if you 1) want payments for the next few years with nothing to show for it, and 2) want a new car ever 2-3 years.

    Me personally?? I just won a 2006 Ford Crown Victoria in an auction for $2200, and it's going to need a new battery. So for $2300 dollars plus registration and inspection I've got a fairly new vehicle with only 111k miles and in 3-4 years I can sell it then for what I've paid for it today. In the meantime, everyone gets out of my way because they think I'm a cop :) .

    Peace,
    Greg
  16. mpdd

    mpdd neoconceptualist Gold Supporting Member

    Joined:
    Mar 24, 2010
    Location:
    LA
    unless you need to have a newish car, don't drive a lot, and are very careful with parking, i wouldn't lease, i got lucky at car max and i got a 4 year old tacoma that was barely driven for 6 grand less than a new one, plus they gave me 2k for my tundra that was falling apart and awful on gas
  17. DerHoggz

    DerHoggz I like cats :| Supporting Member

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    Feb 13, 2009
    Location:
    Western Pennsylvania
    Also, Crown Vics are awesome. Was that a retired cop car?
  18. fhm555

    fhm555 So FOS my eyes are brown Supporting Member

    Joined:
    Feb 16, 2011
    The trick to leasing is to do it for 3 years and have the balloon in pocket when the lease is up. Pay off the balloon the day you make your last payment on the lease and you have a clean title with a few years less interest than you'd pay by financing the full amount over more time, and the vehicle is (usually) still new enough to beat the blue book. Once you pay it off, lease another vehicle and sell your old one ASAP before the value can go any further down. We made a couple grand each on a couple trucks doing it that way. It's not huge money but it's essentially driving a newish car for the cost of gas and maintenance once you get past the first vehicle.

    This works better with your (perceived) higher end vehicles. For example, it would be better to do this with a GMC truck than with its Chevy sibling, or an Acura rather than a Honda.
  19. Batman!

    Batman!

    Joined:
    Oct 29, 2004
    Generally, there are two scenarios when leasing makes sense. The first is if it's the only way you can afford a good, running car (i.e. you can't afford to finance one but your credit is good enough to lease). The other is if you have plenty of money and just want a new car every couple of years.

    Other than those, you're better off selling your Jetta privately (you'll get more than trade-in) and using the proceeds plus financing to purchase the new Golf. There's a reason why the manufacturers push leases in their ads - they make bank off of them.
  20. matante

    matante

    Joined:
    Nov 3, 2003
    Location:
    Los Angeles
    I don't know how old you are, but I'll give you this advice. Most people, once we get older, regret how much money we spent on our cars when we were younger. If your Jetta still runs well enough, keep it.

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