Lease vs. buy

[gemsnewday]

Hi, Marv and everyone.

 

I've recently set out on my own, and I'm doing well. I have an 2011 Equinox that I love, it's just that I need more space and trunk room to haul a wheelchair and other cargo when I shop. Plus, it would help if I had extra seating for the three grandchildren that I have to get from school from time-to-time. They let me drive a Tahoe as a loaner last time, and I absolutely loved this car. To purchase would be over my comfort line (could do it, but makes me nervous), but a lease might be affordable. No smoking in car, and looks brand new, inside and out, save a long scratch on the bumper that isn't very distinctive. Should I fix the scratch before trade in, or would I take a big hit on value because of it?

 

I drive less than 7000 miles a year. It's been great driving this car, but now I'm wondering if I really should just opt for leasing. My initial thoughts were that I can get more bang for my buck with a leased car, and at lease end I can either buy the car for payoff, or turn it in and go again. It just seems like leasing will keep me in a newer vehicle and under warranty, so that makes me feel a little safer.

 

The other cars I'm considering are Honda Pilot, Ford Explorer or Expedition. I'm just starting to look. Open to other suggestions.

 

I have scores in the mid 800's (thanks so much CB), on this job 2 years, Debt to income ratio is under 4 (by a calculator app i used). Been with Ally almost a year and a half with stellar payment history.

 

I would appreciate some real world discussion on lease vs. buy.

 

Features I would love to have on a new car would be hands free audio, cell phone bluetooth hands free, tilt wheel, power driver seat adjustments, and dual or tri zone ac/heat for rear passengers. Wish list would be backup camera, 2nd row buckets. Don't care one way or the other for leather seating, or sun/moon roof.

 

Discuss, please.

[hoapres]

Run the numbers.

 

I never liked leases because every time I ran the numbers buying made more sense. Try selling your current vehicle privately.

 

The major problem with leasing is that by definition you never own the car and for all practical purposes you are renting a car.

[MarvBear]

Leasing is great if you always want a vehicle payment.

 

you're just renting a car for an extended term in reality.

[hegemony]

leasing is a way to 1) get more car than you can afford or 2) always have a new car and payment or 3) both.

 

everyone I know IRL who has leased regretted it.

[hegemony]

gurus can pipe in with more details but I've always been told that getting approved for a lease is harder than getting approved for financing. not that it will be an issue for the OP.

[gemsnewday]

Thanks for the replies.

 

I know I would perpetually have a note. That's part of what I am struggling with.

 

I was hoping that some of you could give me examples from your experiences on why buy is better than lease. Pros, and cons. I've found some on my own through the research I'm trying to do, but I would love to hear from people that leased and regretted, or leased and loved, or both.

 

I can afford a fairly hefty note payment, but I'm not sure I want to have that slice of cake. I don't have many monthly expenses, and PIF my CC's each mo. It's just that I'm not so sure I want to have a really big car note.

 

I always relate better to actual experiences. So I hope some CB members will jump in here and share a little.

 

If not, you can bet I will carefully weigh and research the best options for me now and over the life of the loan. I don't HAVE to have a new, bigger car...I can make this work, although it is a hassle with the wheelchair and more than one stop. Shuffling purchases in and out to get the wheelchair is really exhausting and frustrating. My thought was that If I have the 3rd row, I could fold flat, put the packages/load in first, then stow the chair. Easy access. That's only one consideration, though.

 

(sorry so long...too much coffee)

[Chris in OK]

To me (my opinion) it seems that you have been financially prudent I've the years in order to achieve a great credit score, little to no debt, and security. Trading in a 2011 vehicle, no matter if it's paid for or not, seems to be going backwards to me. Basically, you're going to lose your rear on that trade.

 

Will you get the vehicle you really "want" and have a little more "access?" Yes, but at what cost? Just because you or anyone else can afford a huge payment doesn't mean it's fun making one.

 

And I'm not trying to get you down here, I'm just a realist. I like to look at it like it is.

[MarvBear]

many many years ago in the mid 90"s. I leased an 8100 model Toyota truck for 18 months at $89 monthly not including tax. No radio, no rear bumper no power steering no air conditioning.

 

I turned it in with probably less than 2000 miles on it and did another for the same figures.

 

Then I quit.