Lease or Buy?
Joined: Jul 2002
Posts: 13,151
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From: Washington DC
Rep Power: 424 
Bought it... I drive too much to lease. And I never understood the point of giving back a perfectly good car in 3 years just to start paying an arm and a leg for a new one.
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Joined: Mar 2002
Posts: 1,807
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From: Vancouver Canada
Rep Power: 0 Leasing and financing have it's advantages and disadvantages.
Lease payments are usually cheaper, and if you're the type of person that likes to change cars every 3 years, then go ahead. You don't have to worry about depreciation and you can drive the car as hard as you want.
Financing the payments are usually higher, and you end up with a car afterwards. But you're stuck with it after you've paid it off.
Lease payments are usually cheaper, and if you're the type of person that likes to change cars every 3 years, then go ahead. You don't have to worry about depreciation and you can drive the car as hard as you want.
Financing the payments are usually higher, and you end up with a car afterwards. But you're stuck with it after you've paid it off.
Joined: Aug 2001
Posts: 10,857
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From: Gaithersburg, MD
Rep Power: 412 I would buy if you plan on keeping the car longer than 2-3 years. My grandparents lease their cars but they only keep them for 2-3 years. Also when you lease, if something breaks, it always gets fixed for free/cheap. You will be unable to modify your car tho.
If you want a car for more than 3 years then buy the car. It is waste to lease.
If you want a car for more than 3 years then buy the car. It is waste to lease.
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Joined: Sep 2001
Posts: 1,512
Likes: 0
From: Portland,OR / Vancouver,WA, Washington, US
Rep Power: 0 Think of it like......Would you rather rent a house your whole life and pay aginst nothing.......and have nothing in the end........
Or would you rather buy a house.....and have lots at the end.
(although a house is an actual good investment as a car is not)......but you get the Idea.......
I pay 325$$ for 60 months......in 5 years....I'll at least get 8,000$$ out of my car.......
or lease paying 225$$ for 5 years, only went through 2 cars......and have nothing........
when you buy, you can trade your car in and have a HUGE don payment on a brand new car in 4-5 years........
I say buy
Or would you rather buy a house.....and have lots at the end.
(although a house is an actual good investment as a car is not)......but you get the Idea.......
I pay 325$$ for 60 months......in 5 years....I'll at least get 8,000$$ out of my car.......
or lease paying 225$$ for 5 years, only went through 2 cars......and have nothing........
when you buy, you can trade your car in and have a HUGE don payment on a brand new car in 4-5 years........
I say buy
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Joined: Dec 2001
Posts: 606
Likes: 0
From: Virginia Tech, Virginia, US
Rep Power: 0 ONLY lease if:
1. you want to do NO modifications
2. you only want the car temperary
3. you have money to waste cause leasing is a waste of money.
Buy the civic and even if you dont want to mod..you can sell it stock for a good amount of money, all honda in good condition are like that !
...but really... a civic isn't that expensive.. buy it [IMG]i/expressions/face-icon-small-cool.gif[/IMG]
1. you want to do NO modifications
2. you only want the car temperary
3. you have money to waste cause leasing is a waste of money.
Buy the civic and even if you dont want to mod..you can sell it stock for a good amount of money, all honda in good condition are like that !
...but really... a civic isn't that expensive.. buy it [IMG]i/expressions/face-icon-small-cool.gif[/IMG]
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iTrader: (2)
Joined: May 2002
Posts: 28,226
Likes: 0
From: North Jersey, New Jersey, US
Rep Power: 583 i have a 4 year lease on my 2k1 and heres why:
- the payments are cheaper by about $100 per month
- the end of the lease coinsides with the last year of the 7thGen...so if i like the civic i can buy the last model of the generation. that model might be a special edition, turboed, who knows what...but one thing is for sure, all the kinks that you guys have with the 01/02 will most likely be worked out by then. i get a new car, and all the mods that im doing now i can use then.
- you CAN still mod the car when you lease, but only bolt-ons. you have to be a little careful, but how many are actually planning on custom paint and such? this also depends on your dealer. mine told me i can mod, but im not gonna get the reimbursed for them when i return the car.
- the lease is just like a REALLY extended test drive. if i like it, ill get another civic. if i dont, ill get another car. when you buy, youre pretty much stuck with the car. and selling it every 3 or 4 years isnt as good as some think. who wants to buy a 4 year old car for 8k when they can get a new one for 12k??
- someone said "what do you have after 3 or 4 years of leasing?" answer: you have a new car. what do you have after 3-4 years if you buy? an old car that you beat on cause you like to drive it so much.
so decide for yourself. its def. a personal preference. there is a third option by the way. its something in between.
- the payments are cheaper by about $100 per month
- the end of the lease coinsides with the last year of the 7thGen...so if i like the civic i can buy the last model of the generation. that model might be a special edition, turboed, who knows what...but one thing is for sure, all the kinks that you guys have with the 01/02 will most likely be worked out by then. i get a new car, and all the mods that im doing now i can use then.
- you CAN still mod the car when you lease, but only bolt-ons. you have to be a little careful, but how many are actually planning on custom paint and such? this also depends on your dealer. mine told me i can mod, but im not gonna get the reimbursed for them when i return the car.
- the lease is just like a REALLY extended test drive. if i like it, ill get another civic. if i dont, ill get another car. when you buy, youre pretty much stuck with the car. and selling it every 3 or 4 years isnt as good as some think. who wants to buy a 4 year old car for 8k when they can get a new one for 12k??
- someone said "what do you have after 3 or 4 years of leasing?" answer: you have a new car. what do you have after 3-4 years if you buy? an old car that you beat on cause you like to drive it so much.
so decide for yourself. its def. a personal preference. there is a third option by the way. its something in between.
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Joined: Aug 2002
Posts: 53
Likes: 0
From: Chicago, Illinois, US
Rep Power: 0 you have a new car after 4 years of leasing? If you lease for 4 years, you haven nothing, Finance you have a car. Sure, the leaser had lower monthly payments, but when they go to lease (or buy) that new car, they have nothing to trade. The person who bought the car 4 years ago has a 4 year old car to trade in.
Acording to Honda.com, leasing a LX for 4 years for 15000 miles costs around $249.51 while a 4 year financing costs around $380.63 (based on the MRSP and destingation charge with no options). Sure I'm paying $6293.76 more over 4 years, but (using the value of a 1998 Civic LX) have a car that I could trade in for around $8800 (average) to $10500 (clean), or more if I am good at negotiating (In the Chicago area). So that next car, I have $9000 or so less to pay on that next car. So, if my income changes with inflation, I could purchase a vehicle for around $9000 more and have the same car paymes. Of course adjustsed for changes in the interest rate.
What will the leaser have in 4 years to lower the cost of their next lease or purchase? Oh sure, you could try to invest the $130 every month. But with the stock market of the last 18 months and savings rates, who would want to do that? With a savings rate of 0.50% (ridiculous, but what is your banks savings rate?), youd need to save $242.90 per month to have $9000 set aside in 4 years to have a down payment that is of equal value as my trade in. Thats $90 more saving than my car payment. (Edit, $90 more for the savings and car lease payment combinded, compared to my car payment)
If my average number of miles in the first month I have owned my Civic continues, I will have 24,000 miles after year one, a bit more than the 15000 allowed for by my example lease.
At the end of a lease, sure you can go out and lease a new car, but you have nothing to show for all that money spent over 4 years. I may have spent more every month, but I have a physical object that has value, and can use to get my next car for less.
Acording to Honda.com, leasing a LX for 4 years for 15000 miles costs around $249.51 while a 4 year financing costs around $380.63 (based on the MRSP and destingation charge with no options). Sure I'm paying $6293.76 more over 4 years, but (using the value of a 1998 Civic LX) have a car that I could trade in for around $8800 (average) to $10500 (clean), or more if I am good at negotiating (In the Chicago area). So that next car, I have $9000 or so less to pay on that next car. So, if my income changes with inflation, I could purchase a vehicle for around $9000 more and have the same car paymes. Of course adjustsed for changes in the interest rate.
What will the leaser have in 4 years to lower the cost of their next lease or purchase? Oh sure, you could try to invest the $130 every month. But with the stock market of the last 18 months and savings rates, who would want to do that? With a savings rate of 0.50% (ridiculous, but what is your banks savings rate?), youd need to save $242.90 per month to have $9000 set aside in 4 years to have a down payment that is of equal value as my trade in. Thats $90 more saving than my car payment. (Edit, $90 more for the savings and car lease payment combinded, compared to my car payment)
If my average number of miles in the first month I have owned my Civic continues, I will have 24,000 miles after year one, a bit more than the 15000 allowed for by my example lease.
At the end of a lease, sure you can go out and lease a new car, but you have nothing to show for all that money spent over 4 years. I may have spent more every month, but I have a physical object that has value, and can use to get my next car for less.
Joined: Sep 2001
Posts: 7,651
Likes: 0
From: San Antonio, Texas
Rep Power: 377
Quote
[hr]Originally posted by: PbFoot
i have a 4 year lease on my 2k1 and heres why:
- the payments are cheaper by about $100 per month
- the end of the lease coinsides with the last year of the 7thGen...so if i like the civic i can buy the last model of the generation. that model might be a special edition, turboed, who knows what...but one thing is for sure, all the kinks that you guys have with the 01/02 will most likely be worked out by then. i get a new car, and all the mods that im doing now i can use then.
- you CAN still mod the car when you lease, but only bolt-ons. you have to be a little careful, but how many are actually planning on custom paint and such? this also depends on your dealer. mine told me i can mod, but im not gonna get the reimbursed for them when i return the car.
- the lease is just like a REALLY extended test drive. if i like it, ill get another civic. if i dont, ill get another car. when you buy, youre pretty much stuck with the car. and selling it every 3 or 4 years isnt as good as some think. who wants to buy a 4 year old car for 8k when they can get a new one for 12k??
- someone said "what do you have after 3 or 4 years of leasing?" answer: you have a new car. what do you have after 3-4 years if you buy? an old car that you beat on cause you like to drive it so much.
so decide for yourself. its def. a personal preference. there is a third option by the way. its something in between.[hr]
[hr]Originally posted by: PbFoot
i have a 4 year lease on my 2k1 and heres why:
- the payments are cheaper by about $100 per month
- the end of the lease coinsides with the last year of the 7thGen...so if i like the civic i can buy the last model of the generation. that model might be a special edition, turboed, who knows what...but one thing is for sure, all the kinks that you guys have with the 01/02 will most likely be worked out by then. i get a new car, and all the mods that im doing now i can use then.
- you CAN still mod the car when you lease, but only bolt-ons. you have to be a little careful, but how many are actually planning on custom paint and such? this also depends on your dealer. mine told me i can mod, but im not gonna get the reimbursed for them when i return the car.
- the lease is just like a REALLY extended test drive. if i like it, ill get another civic. if i dont, ill get another car. when you buy, youre pretty much stuck with the car. and selling it every 3 or 4 years isnt as good as some think. who wants to buy a 4 year old car for 8k when they can get a new one for 12k??
- someone said "what do you have after 3 or 4 years of leasing?" answer: you have a new car. what do you have after 3-4 years if you buy? an old car that you beat on cause you like to drive it so much.
so decide for yourself. its def. a personal preference. there is a third option by the way. its something in between.[hr]
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