NFT: Lease vs Buying a Car

I had a good experience with leasing. New car. low payments. I don't drive all that much so I could get the lowest mileage lease. No repair payments either.

The drawback is when the lease ends, you either have to finance the car, or give it back and get (and pay) for another lease or a new or used car.

I'd take the $0 down lease deal..

However since you have the money to buy UPFRONT, I would explore the mathematical equations that Go into acquiring a new liquid asset that also holds value but also loses thousands of value in weeks.

If less than 4 years then lease, I go $0 down. When I lease I try to get in and out as cheaply as possible. Plus you don't have to worry about the resale value 3-4 years from now, who knows where it will go sometimes.

If more than 4 years than buy. Buying will cost you less if you keep the car longer.

Lease if a few years, $0 down. Buy if you will keep it over 4 years.

Non-self driving car values are going to plummet in the next 2-3 years.

Residual value on the civic will be better so you’ll owe about the same as if You were going to buy the back half of the car 3 years prior.

I think if you’re the type of person who wants a new car every few years and views a car payment as a part of life than leasing is fine. Lots do it.

If you’re the type of person who wants to eventually pay cash for vehicles and be free and clear without debt, drive your cars into the ground and don’t care about keeps my up with the Jones’ - especially with Honda’s - That I would consider buying it for some $ down and getting a low rate, and paying off the loan early and keep that car for 10-15 years.

In comment 13696725 Sarcastic Sam said:

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Non-self driving car values are going to plummet in the next 2-3 years.

I think the skepticism of the self driving cars will actually cause the exact opposite by the time he's ready to buy a self driving car.

A 2018 self driven civic could be a goldmine car to sell in 10 years

In comment 13696732 DennyInDenville said:

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In comment 13696725 Sarcastic Sam said: Quote: Non-self driving car values are going to plummet in the next 2-3 years. I think the skepticism of the self driving cars will actually cause the exact opposite by the time he's ready to buy a self driving car. A 2018 self driven civic could be a goldmine car to sell in 10 years

Wanna put your money where your month is? I'll bet you 200k vietnam dongs that self driving cars will significantly devalue non-self driving cars by November 19, 2020.

In comment 13696725 Sarcastic Sam said:

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Non-self driving car values are going to plummet in the next 2-3 years.

THIS is my primary concern

I’m likely leasing ... does $0 down / 290 month seem reasonable for a new civic hatchback ? Initially offered me 375, the 290 includes all fees/taxes/bs

I just wanted to drive it ... they pushed hard to sell me obviously

In comment 13696736 Sarcastic Sam said:

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In comment 13696732 DennyInDenville said: Quote: In comment 13696725 Sarcastic Sam said: Quote: Non-self driving car values are going to plummet in the next 2-3 years. I think the skepticism of the self driving cars will actually cause the exact opposite by the time he's ready to buy a self driving car. A 2018 self driven civic could be a goldmine car to sell in 10 years Wanna put your money where your month is? I'll bet you 200k vietnam dongs that self driving cars will significantly devalue non-self driving cars by November 19, 2020.

2 years definitely, but 10 years the self driven cars will bounce way back up in my opinion

In comment 13696739 annexOPR said:

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In comment 13696725 Sarcastic Sam said: Quote: Non-self driving car values are going to plummet in the next 2-3 years. THIS is my primary concern I’m likely leasing ... does $0 down / 290 month seem reasonable for a new civic hatchback ? Initially offered me 375, the 290 includes all fees/taxes/bs I just wanted to drive it ... they pushed hard to sell me obviously

Is there a late-model, low-mileage pre-owned model you can buy outright (if that's the direction you decide to go)?

IMO, lease brand new or buy pre-owned. But buying brand new commits you to the big depreciation - you're setting fire to 30% of your investment the moment you drive the car off the lot. Even if you're going to run the car into the ground, you can do it in a certified pre-owned model and save yourself some money.

In comment 13696753 Gatorade Dunk said:

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In comment 13696739 annexOPR said: Quote: In comment 13696725 Sarcastic Sam said: Quote: Non-self driving car values are going to plummet in the next 2-3 years. THIS is my primary concern I’m likely leasing ... does $0 down / 290 month seem reasonable for a new civic hatchback ? Initially offered me 375, the 290 includes all fees/taxes/bs I just wanted to drive it ... they pushed hard to sell me obviously Is there a late-model, low-mileage pre-owned model you can buy outright (if that's the direction you decide to go)? IMO, lease brand new or buy pre-owned. But buying brand new commits you to the big depreciation - you're setting fire to 30% of your investment the moment you drive the car off the lot. Even if you're going to run the car into the ground, you can do it in a certified pre-owned model and save yourself some money.

If you go to a place like D&M or Autoflex you can also lease pre-owned cars. I think under 3 years they will do it.

In comment 13696753 Gatorade Dunk said:

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In comment 13696739 annexOPR said: Quote: In comment 13696725 Sarcastic Sam said: Quote: Non-self driving car values are going to plummet in the next 2-3 years. THIS is my primary concern I’m likely leasing ... does $0 down / 290 month seem reasonable for a new civic hatchback ? Initially offered me 375, the 290 includes all fees/taxes/bs I just wanted to drive it ... they pushed hard to sell me obviously Is there a late-model, low-mileage pre-owned model you can buy outright (if that's the direction you decide to go)? IMO, lease brand new or buy pre-owned. But buying brand new commits you to the big depreciation - you're setting fire to 30% of your investment the moment you drive the car off the lot. Even if you're going to run the car into the ground, you can do it in a certified pre-owned model and save yourself some money.

2017 pre-owned I was thinking for buying ... I’m likely going to lease as this is my first non-awd drive car

The self driving movement (I hate the idea) has me wondering about car values going forward - should know a bit more after a 3 year lease

In comment 13696753 Gatorade Dunk said:

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In comment 13696739 annexOPR said: Quote: In comment 13696725 Sarcastic Sam said: Quote: Non-self driving car values are going to plummet in the next 2-3 years. THIS is my primary concern I’m likely leasing ... does $0 down / 290 month seem reasonable for a new civic hatchback ? Initially offered me 375, the 290 includes all fees/taxes/bs I just wanted to drive it ... they pushed hard to sell me obviously Is there a late-model, low-mileage pre-owned model you can buy outright (if that's the direction you decide to go)? IMO, lease brand new or buy pre-owned. But buying brand new commits you to the big depreciation - you're setting fire to 30% of your investment the moment you drive the car off the lot. Even if you're going to run the car into the ground, you can do it in a certified pre-owned model and save yourself some money.

This!!!! plus a detailed carfax report

I'd probably just lease the car and take the money you would have spent and earn interest on that.

You can argue that purchasing is better financially in the long run, but that doesn't take into account the risks that you take (accidents, maintenance, etc).

If you buy, I'd only buy newly used (1 owner, less than 30,000 miles, warranty still good, etc)

One other thing, people don't realize leases are negotiable but they are. Negotiate the sale price / current value of the car.

Lease payments are basically ((Sale Price - Residual Value) / Monthly Payments) + interest. I don't think residual value is negotiable, it might be, but the sale price definitely is.

In comment 13696778 armstead98 said:

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One other thing, people don't realize leases are negotiable but they are. Negotiate the sale price / current value of the car. Lease payments are basically ((Sale Price - Residual Value) / Monthly Payments) + interest. I don't think residual value is negotiable, it might be, but the sale price definitely is.

I planned on just driving and getting a card - they pushed hard to sell me obviously. Initially went down from 375 to 290 per month with all fees included / 0 down . I think that’s pretty good (compared to my past Audi / Jeep payments for sure)

Wondering if I can get it lower ... I just want my car + insurance to be less than $400 so I can continue to invest 1/3 of my net each month

the Pacifica Hybrid, and the monthly payments on a 3 year lease were almost $100 more than buying the car would have been (financing over 72 months).

I guess that means they expect that thing to depreciate something fierce?

A 17 hatchback lease will be $255 plus tax. Even though it’s zero down, make sure they don’t BS you about a first month payment, dealer fee etc. literally don’t give them a penny till your first payment is due in a month.

Re putting anything down on a lease. Never, ever do it. Think of it as renting a car. It gets stolen the next day and your out the down pay,ent. Put nothing down and you just go get another car and lost nothing.

Minor point that hasn’t been brought up yet but you did mention insurance. Most people get 100/300 coverage anyway, on a lease it is required vs state minimums on a purchased car. Small food for thought.

In comment 13697089 Shecky said:

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A 17 hatchback lease will be $255 plus tax. Even though it’s zero down, make sure they don’t BS you about a first month payment, dealer fee etc. literally don’t give them a penny till your first payment is due in a month. Re putting anything down on a lease. Never, ever do it. Think of it as renting a car. It gets stolen the next day and your out the down pay,ent. Put nothing down and you just go get another car and lost nothing. Minor point that hasn’t been brought up yet but you did mention insurance. Most people get 100/300 coverage anyway, on a lease it is required vs state minimums on a purchased car. Small food for thought.

Thank you ... so with no money down a 2018 Hatchback with everything (taxes and all that bs) for 290 a good deal ?

I’ve gotten quotes from Geico and Progressive so far .. it’ll be between 1000-1200 a year for insurance

Could you knock a couple bucks off it, maybe. Worth the headache? Probably not. But you’re in driver seat, no pun intended. Car is out, it’s shopping season now for everything BUT cars. So dealership will call you, no need to be in a rush. Or email other dealerships for their best numbers.

Honda usually offers $500 to military, and usually recent grads if either fits you. Financing deals are sweet right now if you buy. Like 1%.

Good luck and enjoy the new car!!!! Pop a new pioneer headunit in and have fun.

Take $7000 and buy an older Corolla/Civic and bank the rest of your money.

Buy a depreciating asset? Nope.

Rent a car and give it back with wear and tear charges with mileage limits? Nope.

Buy a car whose reliability record you can research and have a bunch of extra cash around?? Bing, Bing, Bing!!!! We have a winner.

Cars are transportation devices. Nothing more. Nothing less. You're not buying the 2018 equivalent of a '69 Dodge Charger. These cars have ZERO long term value. Let some other dope take the depreciation hit while you smile all the way to the bank.

And vehicles down so it's a matter of what kind of driving you are doing, where, what your near future is within the next 5 to 10 years, highway vs city milage etc..

The main thing is if you lease you simply have nothing to show for what you spent lots of money on for years. If you need a new car ever few years because you get bored then that is a consideration too. I think this made a lot of sense when I read it. I bought my car and when it was paid off it felt pretty good. And I knew no matter what I had a car as long the price was thing worked. But you can also buy out a lease if you can afford that no problem.

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Leasing is the Worst Way to Build Financial Security. A shiny new car every three years seems so enticing. But have you every stopped to consider the cost? If you are leasing and trading in, and then leasing again, you never own the car free and clear. You will be making monthly payments forever. That is a colossal waste of money. If you instead follow my advice and take out a 3-year loan, you will own the car free and clear after 36 months. Given the dependability of cars these days, that could mean you could keep driving the car for five, seven or even more years (depends on your mileage ) without having a loan payment. That gives you years when you can be saving more for other important goals—such as retirement-rather than continuing to throw money at your depreciating car

debts. If you can eliminate a payment every month thats great. If you could use the money to pay off something else that your paying interest on do that first.

and keep my cars for a bare minimum of 10 years. This has always led to numerous years of payment-free driving. The repairs have never been a significant cost relative to more car payments. It hasn't even been close.

Buy a pre owned certified since the depreciation of vehicle is largely front loaded. If you don’t drive a ton of miles and prefer new vehicles lease. Not sure I would ever buy a straight up new car again given you can get a 2 year old version with under 20k miles for about 30-40% off. But admittedly I am less of a car guy than some so it being brand new isn’t a massive issue for me.

Regarding self driving cars, depending on where legislation goes with that, but I would think the civic price point would largely be unaffected. Would think that to be much more relevant in luxury cars.