Lease or buy?

[dalebunker]

With the delivery date looming, I'm faced with the decision to either lease or buy.  Just curious what others have done and what your situation is?

 

A friend of my says since its a new (model) car with new technology, I should lease, that way in 2 years I just turn the car in.  In two years a lot of issues will be worked out and the car may be a much better car by then, then get a newer model.  Also I do have a history of replacing at least one of my vehicles within 2 to 4 years.

 

On the other hand, I've lever leased, I've always bought, cost more initially, and if the value drops significantly, then hard to hold onto any equity.  

 

Any thoughts anyone has would be appreciated!

 

:runaway:

[plus 3 golfer]

My philosophy is to keep a vehicle for 6-10 years / 150 - 200 k miles and hence I've never leased although I have always considered leasing vs buying.  If I believed that a new car with new technology would become an issue down the road, I would not purchase / lease such a vehicle to begin with.  IMHO, buying / leasing a car every 2 - 3 years is a sure way to lose significant value because depreciation is highest in the earlier years.

 

I can see where leasing makes sense if ones objective is to drive a new car every 2 - 3 years.

[BigRed]

My philosophy is to keep a vehicle for 6-10 years / 150 - 200 k miles and hence I've never leased although I have always considered leasing vs buying.  If I believed that a new car with new technology would become an issue down the road, I would not purchase / lease such a vehicle to begin with.  IMHO, buying / leasing a car every 2 - 3 years is a sure way to lose significant value because depreciation is highest in the earlier years.

 

I can see where leasing makes sense if ones objective is to drive a new car every 2 - 3 years.

That is exactly why I am buying mine.

 

I am still running on my first car right now! When I was 18 I went and got a loan for a 1996 Chevy camaro that had 28,000 miles. I am 29 now and still drive it to work every day. It is quickly approaching 200k miles

[wamba2000]

I agree w Plus 3, unless you are the kind of person that constantly wants to be driving a new car.  If you plan on having the car for 7 years or so, buy an ESP warranty to cover any major issues, much cheaper than leasing and turning the car.  If you prefer to get a new car every three years, lease - I think you will pay more, but you can walk away at the end, especially if the car had major issues.

 

Also, be prepared for some extra charges when you lease- there always seems to be a reconditioning fee at the end, they will say your vehicle is in average condition even it if is pristine and well taken care of.  You can fight but you are also trying to get into a new vehicle......it can force you to accept low trade values and added fees.

 

I prefer to purchase and have more control.  I am planning on having the C-Max at least 8 years, since it will be used mostly for commuting.

[roninsd]

I have leased in the past, and have had good luck: ie, no problem turning the car in "as is" with no additional fees.  I had my last car for 8 years, and enjoyed having it as a trade in for my C-Max.

 

The reason I leased (3 years), even though overall it may be a little more expensive, was that I was able to afford the payments, which would have been higher if I bought.  At the end of the 3 years I can choose to either turn it in for a newer model (say it ain't so!), or I can buy out the loan and keep the car.  I'm thinking the latter. 

[FoutsNC]

I also choses to lease mine.  I do tend to trade my cars in every couple of years though.  The Ford lease on the C-Max was extremely appealing when I got mine last year.  They had a high resale value on the C-Max, which made for low payments. It really comes down to how long you think you will stay in this car.  My wife likes to keep her cars a lot longer, so we purchased hers at the same time instead.  If you are considering trading the car in for a new car or newer model within 3-4 years, a lease through Ford may be really appealing.  I have never had an issue at the time of trade in with a lease.  Actually, each time a lease has come up in the past, I usually get hammered with offers from Ford Credit to turn it in early with all kinds of offers along with it for a newer model.

 

Whatever choice you make, I am sure you will love the new car :)

[dalebunker]

Thanks everyone, all great perspectives and very helpful.  Consensus is if I plan to keep it 2 or 3 year, lease, if 5 to 7 years buy.  I'm probably going to lease this one as I'm thinking only 2 years, then decide if I want to keep the car longer term, if so, I'll buy the next.

 

I appreciate all the active participation in this forum and all the great input.