MisterT

I bought my car in 2001 and financed for 6 friggin' years to get payments within reach. I have just paid my 25th payment. I am wondering who out there owns or leases their vehicle. Also, if you lease, do you pay property tax each year? Don't you have to put a lot of money down on a car if you lease? What about rebates? Do you get those in a lease? I don't know squat about leases as you can tell. Just wondering if buying was a good idea or not.

toucci

leasing suxors unless you'd be buying a new car every couple years anyways (which is muy expensive)

MisterT

Just seems like a lot of people here and at other sites buy new Pro's deck them out and then sell them in 2-3 years. I wish I had that kind of money!

hihoslva

Leasing is great if you don't give a **** about owning, don't drive too much, plan on a new car every few yearsw, and don't care about never paying anything off and always having a car payment.

Buying after the lease sucks - it's expensive, and financing is very tough because you are now trying to finance a used car.

Leasing is great for senior citizens, IMHO.

Basically, leasing is kind of a rip-off. It lets people drive a car they really cannot afford, the hidden costs being HUGE charges for damage and excess mileage, as well as having to take on another contract or over-pay for your used car at lease end. The draw is the lower payments.

I don't know about everyone else, but I cannot wait until my car is paid off. I'm planning on driving my car into the ground, and even with the crazy mileage I put on it, I see no reason it shouldn't last well beyond the last payment. I'll be happy when I have that $300 a month back - not to mention the decreased insurance premiums.

You made the right choice, T.

~HH

onehawaiian

2yrs down on a 5yr loan...

dewey

If you buy, you are screwed, because (in all probability) you'll always owe more on the car than its fair market value. So if a brontosaurus sits on your car and totals it, the insurance money *might* be just enough to pay off your loan, and then you can scrape up a couple hundred bucks to get a down-payment on a new car.

If you lease, you are screwed, because you'll pay a bunch of money, and at the end of three years (or whatever), you've got to give the car back, and then you've got nothing to drive! On top of that, you've probably got to pay extra cash for your over-mileage, repairs, etc.

You get to choose whichever screwed is best for you. My choice was to buy. My plan is to avoid the brontosauruses and keep the car a couple years longer than the loan. After I'm done making payments, I'll keep writing checks (only to myself instead of the bank!) and use that saved-up money for the next car.

That's the plan, anyway.

hihoslva

So true. But at least you do OWN something at the end of the loan. This is one of the smartest ideas I've ever heard.

And just FYI - you can purchase "gap insurance". It is usually hella cheap (like $10 a month or less), and in the event your car is totalled, the gap insurance guarantees that your loan will be paid off. Even if your car is worth less than the loan balance, insurance will still satisfy the loan. YOu still walk away with nothing, but at least you don't need to keep making payments on a car that doesn't even exist anymore.

~HH

yellowdragon

Hi hihoslva;

Here in Puerto Rico, we have to get insurance on car loans... That way, if the car is totaled or stolen the remainder of the loan is paid in full by the insurance company.

The only advantage I see on a car lease is that the payments can be deducted from your income tax (well, at least here)... Other than that, I only see paying a lot of money for what is basically a loaned car...

BTW, I own my snailege... Well, the bank owns it but only for 4 more years...