Leasing V. Buying

[jcmseven]

I wanted to survey the group about how many of us lease v. buy their vehicles and what connotes good points to do one v. the other. As a physician, I am in an occupation which for years has "leased" vehicles in the name of the "practice." As with most folks, the go-ment has closed many advantages tax-wise to doing this, so very few doctors lease for this express purpose, including me. My past two cars I haved purchased out-right, but wanted to get some thoughts from our fellow posters about how many do one v. the other and, as noted, which situation(s) merit each.

John M

 

[JoeR]

I dislike leasing since I drive more miles than they allow. Also, with leasing the vehicle, the car is always a debt and never an asset. If you are buying a home and looking at debt to income ratio, a lease vehicle is pure debt. In my opinion, you are better off buying a used car with cash. Of course, if you are looking for tax write-offs then your opinion may be different since you have a different reason for leasing. I know some people who have taken second mortgages on their homes to buy a vehicle cash and then they write off the interest of the mortgage on their taxes. Would I do this? NEVER! This means that I could lose my house for the sake of a car if I default on the loan.

Joe

 

[GeneD14]

I drive about 100 miles every day so leasing isn't very cost effective for me. In my case buying a vehicle is cheaper.

 

[GeneD14]

I drive about 100 miles every day so leasing isn't very cost effective for me. In my case buying a vehicle is cheaper.

 

[BlueRidge]

Depends on your ego. If you have to have a new car every year or two, leasing may be better.


Otherwise, buy and drive for 10 years, doing regular maintenance. Much cheaper in the long run.

 

[BlueRidge]

Depends on your ego. If you have to have a new car every year or two, leasing may be better.


Otherwise, buy and drive for 10 years, doing regular maintenance. Much cheaper in the long run.

 

[Jagmandave]

The only reason to lease are pretty much what you guys have covered, tax write off, want a new car every couple of years and don't drive many miles and so on. There are those folks out there (my brother-in-law is one) who simply get tired of the same'ol and want a new vehicle - he gets one about every 9 -12 months. He's a great candidate for leasing as he drives very few miles per year and keeps his car immaculate.

My company leases me a new pick-up every three years because we need the vehicle and they can write it off more easily as a lease than as a depreciated asset.

 

[Jagmandave]

The only reason to lease are pretty much what you guys have covered, tax write off, want a new car every couple of years and don't drive many miles and so on. There are those folks out there (my brother-in-law is one) who simply get tired of the same'ol and want a new vehicle - he gets one about every 9 -12 months. He's a great candidate for leasing as he drives very few miles per year and keeps his car immaculate.

My company leases me a new pick-up every three years because we need the vehicle and they can write it off more easily as a lease than as a depreciated asset.

 

[Bird]

Both as an individual, and as a fleet manager in my previous occupation, I've looked into leasing several times over the years and just no way I could ever come out better than buying outright. I can understand businesses leasing for tax purposes and simplification of record keeping, but otherwise, I'd say to buy outright. There have actually been cities which leased their police cars, but when I did some research on that many years ago, the best deal I could find would have cost almost 3 times as much per mile as we were spending by the city buying and maintaining the vehicles.

 

[Bird]

Both as an individual, and as a fleet manager in my previous occupation, I've looked into leasing several times over the years and just no way I could ever come out better than buying outright. I can understand businesses leasing for tax purposes and simplification of record keeping, but otherwise, I'd say to buy outright. There have actually been cities which leased their police cars, but when I did some research on that many years ago, the best deal I could find would have cost almost 3 times as much per mile as we were spending by the city buying and maintaining the vehicles.