I was thinking about leasing a new car. The Kia I bought is just having issues and I’m having a hard time getting another one within my price range. Has anyone ever leased a car before?

9 hours ago, PP1 said:

I was thinking about leasing a new car. The Kia I bought is just having issues and I’m having a hard time getting another one within my price range. Has anyone ever leased a car before?

I don't know if it was a separate thread or not, or if it was just brought up in something else, but there's been a discussion on BGP about leasing before.  I know there's been some strong advocates of it in the past.  Don't know if that's still the case, given the current economic state.

I know the first point I'd start at is how many miles do you normally drive.  Because if that number is over what's allotted on the lease (usually 12-15k per year), the penalty makes it rarely worth it.  I am traditionally in the 18-24k range, so it's never made sense for me.

1 hour ago, CincySportsFan said:

I don't know if it was a separate thread or not, or if it was just brought up in something else, but there's been a discussion on BGP about leasing before.  I know there's been some strong advocates of it in the past.  Don't know if that's still the case, given the current economic state.

I know the first point I'd start at is how many miles do you normally drive.  Because if that number is over what's allotted on the lease (usually 12-15k per year), the penalty makes it rarely worth it.  I am traditionally in the 18-24k range, so it's never made sense for me.

Here is one of the threads:

 

34 minutes ago, theguru said:

Here is one of the threads:

 

Don't tell my wife I remembered something from 8 years ago.  By the end of the day, I'll have forgotten what she told me yesterday.

A lease and a traditional car loan have set monthly payments that people can budget for.  Lease and loan haters will tell you to save enough to but a car you can pay cash for.  Doing that is fine but you can also break that down monthly.  Say you save and pay $4800 for a used car and drive it 4 years before it dies.  That's $100/mo.  Let's say during that time you put $2400 into the car in repairs (tires, brakes, etc).  That's another $50/mo that is the cost of ownership.  So that used car cost you $150/mo.... pretty cheap transportation.  Let's say Kia has a lease deal - $0 and $199/mo for 3 years.  The question becomes do you want to drive a new car with full warranty and no repair cost or roll the dice on a used car.  

If you are ok with a small, base model then leasing is not a bad option.  

 

5 minutes ago, theguru said:

I would definitely consider leasing if I knew I could stay within the mileage requirements. 

Owning cars (and homes for that matter) is grossly overrated, IMO. 

22 minutes ago, TheDeuce said:

I got a good laugh out of this one but I do think Dave provides solid, basic advice.  

LOL.  I thought of Ramsey while I was typing my post.  He hates leasing!  He also tends to over simplify things.  Sure working 3 jobs will get you out of debt.  It will also end marriages, alienate your kids, and put you in the ground before your time.

1 hour ago, theguru said:

I got a good laugh out of this one but I do think Dave provides solid, basic advice.  

Some of the stuff he says is fine. His idea about paying off smaller debts and rolling those payments into the more expensive ones makes perfect sense. 

I find the majority of his stuff to be unreasonable and impossible for people who don't already have money. 

1 hour ago, TheDeuce said:

Some of the stuff he says is fine. His idea about paying off smaller debts and rolling those payments into the more expensive ones makes perfect sense. 

I find the majority of his stuff to be unreasonable and impossible for people who don't already have money. 

Exactly!