Lease vs financing a car

k town trash

k town trash

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What are pros and cons? So I got a quote from BMW for 2012 535i and with my trade in value of $17000 (2011 accord) + $3000 down it came out to $244 a month leasing but with same amount down, it's like $800+ a month to finance with 1.9 apr. So im really leaning towards leasing. Any thoughts?
 
If you can afford it leasing is fine, especially if you dont plan on doing it the rest of your life. Most people now a days purchase a car and then trade it in compounding debt in most cases. I think the average is something like 5 years.
Like you said op, a pro to leasing is def a more premium car at a more affordable price. Make sure you calculate the mileage per yr youd be using and make sure that you get a full bumper to bumper warranty for the duration of your lease..which is another pro. Really you wont have to pay any major maintenance costs for the time of the lease.
As far as I know, the best way is to buy the car flat out and avoid payments.

I think for me personally the best option would to be put down a very large down payment and use the rest of the money to pay off the car in a shorter period of time, all the while building credit.
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I need to learn about ways to own/use a car 
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As far as I know, the best way is to buy the car flat out and avoid payments. But I also hear that leasing is better in some cases...
 
Finance, you pay and own it

Lease, you pay and you dont own it ( unless you chose to keep it after the lease is up)
 
I'm leasing my car at the moment, my payment a month is about 360. However I don't plan in keeping the car, I'm hoping to trade it in later on. Anyone else done this before?
 
What's wrong with the Accord?

The reason the payments are more when you finance is because you're working to pay the car off.  In a lease, you're simply renting for a specified period of time and giving the car back plus paying for any excess wear and tear on the vehicle.  Either way, you're still overpaying for a car versus paying cash.

My recommendation would be to pay the Accord off and then save what you would be paying towards a monthly payments and put that towards your new vehicle when you sell it.  Once you don't have a car payment, you'll never go back.

Originally Posted by SC415

I'm leasing my car at the moment, my payment a month is about 360. However I don't plan in keeping the car, I'm hoping to trade it in later on. Anyone else done this before?
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You don't "trade in" a lease.  You give it back and start over.
 
Oh yea the accord will be paid off next month. I pay 250 a month for financing the accord so I'm technically spending less on the 5 series
 
I was always told that it's good to lease a car since people tend to get something different every 5 years (if you don't plan on keeping it for the long run), only bad thing is you can't do anything to it thats permanent
 
...there's tons of better resources online and you decided to ask NTers who drive their FULLY PAID M3/M5s ?

Everyone pays cash here upfront and has their ride delivered to their doorstep.

Silly.
 
Originally Posted by crcballer55

What's wrong with the Accord?

The reason the payments are more when you finance is because you're working to pay the car off.  In a lease, you're simply renting for a specified period of time and giving the car back plus paying for any excess wear and tear on the vehicle.  Either way, you're still overpaying for a car versus paying cash.

My recommendation would be to pay the Accord off and then save what you would be paying towards a monthly payments and put that towards your new vehicle when you sell it.  Once you don't have a car payment, you'll never go back.

Originally Posted by SC415

I'm leasing my car at the moment, my payment a month is about 360. However I don't plan in keeping the car, I'm hoping to trade it in later on. Anyone else done this before?
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You don't "trade in" a lease.  You give it back and start over.
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Listen to this man, he speaks truth.
Leasing just doesn't make sense financially, people do it to "stunt" in cars they can't truly afford. If you have endless money that's one thing, but if you're on a budget leasing a car is a financial fumble. 
 
I am currently leasing a car right now, and it feels like a bad telephone contract that costs a lot of money. Getting insurance for a leased car also cost more for me. The car I am leasing has a sticker price of 33k. After the 3 year term, I have the option of buying it for 20k.

I would recommended saving a pretty good sum of money as down payment or to pay cash for a car.
 
Dang bruh, still trying to get rid of the Accord your parents got you? What happened to copping a Evo? On the real tho, just keep the Accord. 
 
Originally Posted by WITNESSkb24

I was always told that it's good to lease a car since people tend to get something different every 5 years (if you don't plan on keeping it for the long run), only bad thing is you can't do anything to it thats permanent
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Just because people "want" a car every 5 years doesn't mean that it makes financial sense.  I have had my car for 7 years now and wanted to sell it for the past 3 but couldn't talk myself into doing it with the amount I've been able to save for a "new" car.

Plus, when you have a lease, what happens if you get in a wreck?  You're still under contract and going to have to make the payments on a car you won't own anyways in addition to financing your new car.  Let's also not forget to factor in the insurance costs when people lease luxury cars.  Those inherently lose value quicker than middle of the road vehicles and cost a lot more to maintain if the dealer decides that the repair isn't under warranty.
 
OP,
You're going to give them your $17,000 car
Plus $3,000 of your own cash
Plus $3,000 ($244/mo) for the next three years...

...and end up owning nothing in 2015.

Keep the 2011 accord for two years up a larger down payment on a preowned 2012 BMW 535i.
You'll miss the depreciation hit, have more affordable payments, and own something after years of making payments.
 
Originally Posted by greatone632

What are the specs on the honda??  Interested in selling it to another NTer??
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I have the black 4 cyl SE model (leather, heated seats). I wasn't really trying to sell it I just wanted to put it as down payment. You wanna cop?
 
Originally Posted by nicedudewithnicedreams

Dang bruh, still trying to get rid of the Accord your parents got you? What happened to copping a Evo? On the real tho, just keep the Accord. 
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They didn't get me the car they just gave some money down and co signed it so I wouldnt pay so much monthly. No more evo for me. I'm not gonna have time to track & mod
 
P4L...

I've been thinking about trading my truck in to lease something nice...

Still trying to find all pros and cons myself...
 
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