Cars - Leasing vs. Buying

What do you guys prefer? I'm replacing my car soon, and my top choice is a 2007 Civic LX via leasing. I can get it for around $225 a month with no money down, which is a pretty incredible deal.

However, I can't help but feel like there's a catch or something. So, I emplore you GFFers, what are your thoughts on leasing/buying? Which method do you prefer and why?

Jam it back in, in the dark.

Well, the catch is that you don't own it.

You can't sell your apartment when you move out of it and you can't sell your leased car when you are done driving it.

When you buy a car, you can sell it when you are ready to buy a new one, which is a huge help with the down payment.

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True. However, you CAN buy out the rest of the car after the 3 year lease for 63% of the MSRP. I dunno if that's the same thing everywhere, or just for Honda, but after doing some math it's not too much of a loss that I would be taking. I atleast have that option, which is good to have. I'm hoping that in 3 years I'll be able to finance a car, and if not, I'll just buy out the Civic for another few years.

This thing is sticky, and I don't like it. I don't appreciate it.

I never liked the idea of leasing. It's like dumping money into something you'll get no return from.

Renting a house is one thing, leasing a car is kind of bogus because you still have to pay for all of the maintenance, tires, it costs more to insure. You'd be better off getting a car that is used, and still paying less on it. It won't be a 2007, but then again, not many cars from this model year are worth buying, anyway. The new civics are crap IMO, it pains me to say this because I am a huge fan of Honda, unless you're talking about the Si, which has iV-tech.

I still think you'd be better off getting like a 2000 or 2002 Si, making the same 225 a month payment, except that you own it. They're easy to find in good condition and they boast the K20A3, engine. Puts out almost as much power as the B18C1 and is pretty easy to DIY.

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Originally Posted by sprouticus

True. However, you CAN buy out the rest of the car after the 3 year lease for 63% of the MSRP. I dunno if that's the same thing everywhere, or just for Honda, but after doing some math it's not too much of a loss that I would be taking. I atleast have that option, which is good to have. I'm hoping that in 3 years I'll be able to finance a car, and if not, I'll just buy out the Civic for another few years.

I guess my problem with your decision here is that you want a brand new car. The loss that you are taking is you are pouring money into something that will depreciate 33% in 3 years, and that is only if you choose the buy option. If you don't, you just wasted your money in the worst way you can on an auto.

Where, instead, you could buy something that has already depreciated and spend a ton less money on it. Plus, if you were to finance now, you could improve your credit score. There's no way you can't finance now unless you are like in bankruptcy or something.

If you own, you don't have to wait 3 years to sell it. You could sell it in a year if you are unhappy. And then you aren't losing that money to renting a car, you get back a big portion of the money you spent.

I think buying new cars is absolutely insane, but you are talking about buying a new car with the possibility of not getting any money back when you are done.

I was speaking idiomatically.

All good points... I was looking at used Civics/Accords and stuff, and the problem is they aren't THAT much cheaper. A 3 year old car fresh off a lease is only a couple thousand cheaper than the Civic I want. Not to mention I will be paying more monthly.

I think leasing is the best option for me because I don't have a big and steady income yet. Plus I'm moving to California in a year. If I can keep my car payments down until I can establish a good, full-tine, paying job, then by the time the lease is up, I can have more flexibility.

What kind of toxic man-thing is happening now?

Alternatively, you could go for older cars, if you're strapped. I got a '95 Civic EX 2-door for 4,500 a year or so ago, and it's run like a dream (mostly; there are a few minor issues I've had with the passenger's window and the wiper mechanism, and I've had to get the brake switch replaced, but that's it outside of standard maintenance).

Point is, that you can get a used car for a LOT cheaper that is just as good as a new car. Leasing is all well and good if you want to keep on the bleeding edge of new cars, but overall, I think it's cheaper to just buy a reliable used car and keep it for 5-6 years easy than it is to lease a new car.

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I was thinking about leasing but for some cars it still requires a down payment and I would like to own my car. I would only lease a car if I wanted to try out a car. But since I am absolutely, positively sure on what car I want, I chose to buy.

I'm about to buy an 07 Acura TSX within about two weeks. I've been emailing dealers like crazy to get the cheapest price. The best thing about this time of year is that the 08's are coming in soon so you can get the 07's at a much cheaper price.

The reason I don't want to get a used car is because I have delt with car problem after car problem. I just got ripped off over 2,000 because of taking my old car to get fixed, and it wasn't. So now I am buying a new car. I don't have to deal with any previous car issues, and I get a full warranty. I understand that some Honda / Acura used cars are certified and come with a warranty, but I just want something fresh after ALL of my car problems. I have EASILY put over 3 grand in to my old car that I wish I could have back.

I can not wait to get my new car.

You might want to check out:

http://www.edmunds.com
- They have invoice prices and discussions on what people are actually paying for thier new cars.

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Originally Posted by sprouticus

I think leasing is the best option for me because I don't have a big and steady income yet. Plus I'm moving to California in a year. If I can keep my car payments down until I can establish a good, full-tine, paying job, then by the time the lease is up, I can have more flexibility.

1) Your lease may not be breakable, which means that because of your unsteady income, you could face huge fines if you can't afford the car anymore, rather than just selling it and buying something cheaper. If you have no steady income, why on Earth would you want to get yourself in a lengthy lease and also spend over $200 a month on a car?

(I guess that wouldn't make you unusual, most Americans get themselves into bad situations financially.)

2) If you are moving, then you are pretty much stuck with the car. You would have to break the lease when you move (with those major fines), find some way to get it back to New Hampshire from California when the lease is up, or buy it. You'd have no other option.


I was able to get a 2004 Dodge Neon with 18,000 from a dealer for $10k. I put $4k down (part of that was a trade-in, thanks to owning my previous car) and my payment is under $200.

Perhaps you should spend your money more wisely now and you can have luxuries later. But that's just how I approach the world.

Jam it back in, in the dark.

Originally Posted by BlueMikey

1) Your lease may not be breakable, which means that because of your unsteady income, you could face huge fines if you can't afford the car anymore, rather than just selling it and buying something cheaper. If you have no steady income, why on Earth would you want to get yourself in a lengthy lease and also spend over $200 a month on a car?

I don't have steady income TODAY, but within 2 weeks I'll be working again. Plus, as my graduation gift, my parents are gonna help cover the first few months. I'm not worried about paying off the lease, especially when it's $225 a month instead of financing it for like $350.

Quote:

2) If you are moving, then you are pretty much stuck with the car. You would have to break the lease when you move (with those major fines), find some way to get it back to New Hampshire from California when the lease is up, or buy it. You'd have no other option.

I can turn the car into any Honda dealership when the lease is up, so I'm not worried about that.

Quote:

Perhaps you should spend your money more wisely now and you can have luxuries later. But that's just how I approach the world.

You're saying this to a guy who doesn't spend his money very wildly. I think I'll be okay with the lease. I need to make two big purchases this summer (hell, before I move out, really), and that is my new car, and a new computer. With no down payment, and my parents helping with the first few months of the lease, I can get my new computer with my graduation money next month, and then spend the next 11 months working my ass off and saving up money for car payments and, eventually, rent.

I have all the numbers worked out and leasing works in my favor. All of your comments are good, though. I want to see both sides of the leasing coin before I make my decision. So, thanks

There's nowhere I can't reach.

Why did you make this thread? Nearly Everyone who answered said that leases are stupid. You already answered what you were going to do before you came here.

This thing is sticky, and I don't like it. I don't appreciate it.

I wasn't entirely sure that I was going to do the lease when I came here, and I wanted to get some other opinions before I go about doing it. Was that wrong?

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