Lease or Buy???? Need advice...

[lrprn]

Simrn, I deleted the links in your signature. It's against our forum rules to use links like these in your signature unless you have prior permission from our administrator, Lazar, or until you make 100 quality posts in the forums.

[HRx]

Keep your $5k and just finance a cheap, reliable used car, e.g Honda, Toyota, etc. KEEP MONEY IN THE BANK!!! There are plently of low mileage reliable used cars on the market. And if repair costs is a concern of yours just look into buying an extended warranty. Why burden yourself with an expensive car note right now...especially when you consider the current economic climate.

[CindyLou]

In this discussion I would like to offer some facts on this subject.

The most expensive miles driven in a car occur durning its first few years. So in a lease you are paying a rather high rate per mile or year of ownership in a lease becasue the car is new.
Then there is the problem in "over mileage or under mileage" to settle up at the end of the lease.
There is now tax savings in ownership or a lease.
So why are there car leases you ask. Well they are encouraged by the car makers becasue it helps them sell new cars.
Regards,
emoney

There are tax savings for those that can deduct mileage for business...in the case of a lease, the entire amount is deductible instead of just the per cent mileage used for business...

[CATCHMEIFYOUCAN]

If I didn't commute as much as I did, or just galavant around I would consider leasing since I like the feel of a new car and less maintenance issues as the car gets older. My mileage w/in one year was like 35,000. So leasing would not be a good option for me at least. I do tend to get rid of my rides at around 100,000, to me after THAT, the car just eats up more money in maintenance issues.

Catchmeifyoucan

[HHM]

I like the feel of a new car and less maintenance issues

Problem is, that is the mentality people need to break. That is the reasoning why someone like Debtmonster has $1600+ in car payments that he cannot afford.

The problem is, buyers rarely have a mechanism to objectively evaluate a car deal. All the look at is general price, condition, and monthly payment. But they rarely delve into the numbers and do the homework to really evaluate a car deal or come-up with some rule about affordability.