Need to get a new car. My financial planner says I should lease, but what happens at the end of the 3-yr lease term if I want to buy it? And why is this ever the right move if I plan on keeping the vehicle until it dies? I just don’t get it, ergo this question to this sub. Thanks in advance!
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Buy if you intend to keep it until it dies. Less hassle for one thing. And likely cheaper, and possibly much cheaper.
> but what happens at the end of the 3-yr lease term if I want to buy it?
Part of the lease contract will be what the residual value of the vehicle will be at the end of the term. At that point you will be given the option to buy it for that price.
> And why is this ever the right move if I plan on keeping the vehicle until it dies?
It depends on your situation, but in your specific scenario it might not be. I can’t speak for certain as I don’t know (and don’t want to know) your finances and situation.
In general, Leasing is targeted at people who want flexibility or want to drive a nicer car than they can realistically afford. They don’t have to buy the car outright, and have the option of getting a new one every 3 years or keeping the one they have if they decide they want too. Also typically Leases include service packages so your car service is paid for the duration of the lease.
If you don’t value that, then it probably isn’t for you.
Lease if you want to project status beyond your means OR actually have the financial means and want to swap out every few years for a newer vehicle because “life is short and I want it to be fun.”
If you’re a regular joe, leasing is just fucking dumb.
Buy if you intend to keep it until it dies. Less hassle for one thing. And likely cheaper, and possibly much cheaper.
> but what happens at the end of the 3-yr lease term if I want to buy it?
Part of the lease contract will be what the residual value of the vehicle will be at the end of the term. At that point you will be given the option to buy it for that price.
> And why is this ever the right move if I plan on keeping the vehicle until it dies?
It depends on your situation, but in your specific scenario it might not be. I can’t speak for certain as I don’t know (and don’t want to know) your finances and situation.
In general, Leasing is targeted at people who want flexibility or want to drive a nicer car than they can realistically afford. They don’t have to buy the car outright, and have the option of getting a new one every 3 years or keeping the one they have if they decide they want too. Also typically Leases include service packages so your car service is paid for the duration of the lease.
If you don’t value that, then it probably isn’t for you.
Lease if you want to project status beyond your means OR actually have the financial means and want to swap out every few years for a newer vehicle because “life is short and I want it to be fun.”
If you’re a regular joe, leasing is just fucking dumb.
Lease if you want to project status beyond your means OR actually have the financial means and want to swap out every few years for a newer vehicle because “life is short and I want it to be fun.”
If you’re a regular joe, leasing is just fucking dumb.
Buy if you intend to keep it until it dies. Less hassle for one thing. And likely cheaper, and possibly much cheaper.
> but what happens at the end of the 3-yr lease term if I want to buy it?
Part of the lease contract will be what the residual value of the vehicle will be at the end of the term. At that point you will be given the option to buy it for that price.
> And why is this ever the right move if I plan on keeping the vehicle until it dies?
It depends on your situation, but in your specific scenario it might not be. I can’t speak for certain as I don’t know (and don’t want to know) your finances and situation.
In general, Leasing is targeted at people who want flexibility or want to drive a nicer car than they can realistically afford. They don’t have to buy the car outright, and have the option of getting a new one every 3 years or keeping the one they have if they decide they want too. Also typically Leases include service packages so your car service is paid for the duration of the lease.
If you don’t value that, then it probably isn’t for you.
Leasing, at least here in Canada, has some tax implications if you use it for business so all the sales guys where I used to work leased their cars to write part of it off. Plus the buy out can often be less than the used sale price so most of them would then buy it out and immediately privately sell it before leasing a new car.
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