Switch car lease to buy, buy it out or keep leasing? - The Finance Forums: Financial planning, debt help, loans, mortgages, retirement and 401k, investment, and general finance discussion forums

glennopeko · #1 (**permalink**) 01-03-2007, 02:01 AM

Wonder what people's thoughts are on vehicles (lease versus buy versus cash).

I currently lease a 2006 Jetta Wagon (4 year lease that started November 2005). Could that be worth buying out lump sum with cash (Which I could do but it would tap out my bank savings account to 0? Switching from Lease to a buy out with payments is a lot more monthly. Or is there anything else I should look at with regards to that? It is $400 a month to lease and in a little less than 3 years I'll end up starting it all up again probably for a never ending payment which is good for the dealer but can’t be good for me…..I do write off a portion of it due to a few side businesses roughly 30-50% - originally the reason why I went lease instead of buy but now all my consumer debt is paid off aside from a mortgage and I am thinking this is an area I can make another decision that will help my future finances. I am 40.

Any advice would be greatly appreciated.
Glenn

taiarain · #2 (**permalink**) 01-07-2007, 02:39 AM

Do you want to keep this vehicle for years? Can you escape the lease and just go buy a car on a 36 month loan?

brian · #3 (**permalink**) 01-18-2007, 05:52 PM

Hi Glenn and welcome to The Finance Forums.

As for your question - is there any desperate reason why you need to lease a brand new model, rather than buy an older version?

riskey58 · #4 (**permalink**) 01-19-2007, 12:33 AM

I would just rather buy a car then too lease it. When I buy a car I plan on keeping for a long time. As long as it runs good and looks good It is fine with me.

nangel78 · #5 (**permalink**) 01-19-2007, 03:32 PM

I prefer buying myself. You pay more money in the long run from leasing a car that depreciates once it leaves the lot.

unique · #6 (**permalink**) 02-06-2007, 11:34 AM

I prefer to buy a car. Unless you have immediate plans of migrating to other places where bringing a car is not cost-efficient, buying a car (or loan if you do not have enough money to pay cash) is the best option for me.

ohioguy · #7 (**permalink**) 03-14-2007, 02:14 AM

It depends on your situation. If you plan on driving the same car for 4 years or more, buying makes more sense than leasing.

fitnessk · #8 (**permalink**) 03-14-2007, 11:47 AM

I think I would want to buy a car. I have never leased anything personally so I am only giving my opinion. I agree with OhioGuy that if you want a car to keep for several years it is probably better to buy.