Comments on: Auto leasing is back — and better? How so?

By: public car auctions

public car auctions — Wed, 06 Aug 2008 16:00:43 +0000

public car auctions…

Is there any way I can subscribe to your blog? Thanks!…

By: Free Money Finance

Free Money Finance — Mon, 24 Oct 2005 18:52:15 +0000

Best Money Post I’ve Ever Written, Part 6

This post continues our series from top personal finance bloggers writing about the best money post they’ve ever written. Today’s entry comes from Mighty Bargain Hunter who tells why “Auto Leasing is Back — and Better? How so?” is his…

By: mbhunter

mbhunter — Wed, 27 Jul 2005 06:29:32 +0000

Some excellent points in your comment, Jimmy. Thank you!

Under certain circumstances, leasing probably does make sense. Under a lot of other circumstances, though, it doesn’t. It certainly pays to run the numbers for a bunch of different scenarios to see what you’re getting into. You’ve hit on some key considerations: How long do you want the car? How much will you drive it? What will you get for the trade-in? Some others are cost of gasoline, cost of financing the purchase (if any), and expected cost of maintenance and repairs.

So you can get a cost per mile for each case. If other factors are important to you (such as a low monthly payment or having the latest and greatest) then you can see up front how much this will cost you relative to other options.

Thanks again for your comment!

By: Jimmy J.

Jimmy J. — Tue, 26 Jul 2005 16:28:03 +0000

In my mind leasing comes down to two things: How long you are going to keep the car and how much mileage you expect to accumulate every year. If you are a person that usually gets a new car in less than four years and drives less than 15,000 miles per year; leasing is for you. If you keep a car for five plus years or drive more than 15,000 miles per year then buying is the way to go. And when you buy you shoudl really try to keep the car for eight years or more. The numbers can be deceptive because, if you trade a used car in on a new purchase, you are likely to get much less than the car is worth. If you sell your old car yopurself you may, I repeat, may get what the car is actually worth. All in all, the main thing to remember that a car is transportation and nothing more. When people buy cars for any other reason they probably pay way more than they should. So, whether buying or leasing, the cost is for the necessity of transportation and should be looked at on that basis only.