Leasing: is it a good move if you drive under 10k miles a year?

[Jumpem]

My gf is going to be living only four miles from work. She'd barely be putting miles on a car then, except to go out of town or something.

Right now she drives a 91 Sunbird, and wants something better for when she starts her accounting position. Is leasing a good idea since she wouldn't be driving a lot? Or would buying a car a few years old be a better move?

 

[Spikesoldier]

let her bear with the sunbird for another year, unless the wheels fall off.

once shes been in for a year with the accounting firm and has a good savings, then she can do that.

i would invest in a bus pass though.

 

[pulse8]

It's been my experience that buying is always better than leasing.

 

[Otaking]

1. Buy Car
2. ????
3. Profit

 

[SaturnX]

Originally posted by: pulse8
It's been my experience that buying is always better than leasing.

Yeah, I've gotta agree, unless you're a company, leasing will only pull MORE cash out of you... go ahead an calculate the total amount you'll pay by the end of the lease period, then you'll see what I mean, it's simple accounting

--Mark

 

[Jumpem]

Originally posted by: Spikesoldier
let her bear with the sunbird for another year, unless the wheels fall off.

once shes been in for a year with the accounting firm and has a good savings, then she can do that.

i would invest in a bus pass though.

Buss pass is definitely not an option. Public transportation is useless around here unless you live and work right in downtown.

The reason she needs abetter car, is that she needs something more presentable and professional looking. She will be doing audits at other companies and needs to look the part. A rusty blue early nineties car doesn't do that.

So her options are either going to buy a 2000-02 sedan, or lease a new one. She doesn't want anything expensive, just an AWD Subaru of some sort.

 

[Jumpem]

Originally posted by: SaturnX
Yeah, I've gotta agree, unless you're a company, leasing will only pull MORE cash out of you... go ahead an calculate the total amount you'll pay by the end of the lease period, then you'll see what I mean, it's simple accounting

--Mark

I was going to do that too. Figure out what the total for the lease is, and then see if buying a car and it's resale value would cost less.

 

[Malfeas]

A new subaru sedan is going to cost 20k to 30k. But subaru's are rated among the best for reliability and low maintenance costs. I would look at the local dealer websites and look at the 2003 to 2004 used cars on their lots, they will still have the majority of their warranty left.

Also negotiate, subaru is trying to gain market share, and offers a 3% rebate to the dealer for every car sold(the dealer won't tell you this, they want the biggest commission). You should not have to pay more than 500 over dealer invoice, and if you are good you can get it for invoice or below.

 

[freebee]

Lease calculations should not be the major part of this decision. This is a vehicle needed for presentation and meeting with clients. This ultimately affects her job and her image within her profession. This should be the focus of your purchase.

She needs a newer vehicle to maintain that image. Leasing would actually make sense for you. In addition, since she is using this for business purposes. certain tax advantages come into play as well.

 

[V00DOO]

Depend on the car she wants to lease or buy. If she is getting a $50K car then it would be wise to lease becasue the depreciation would be a killer. On the other hand if she is buying a $20K car then it would make more sense to buy since 3 years old car low mileage has good resale value if she decide to see it.

 

[Jumpem]

Originally posted by: freebee
Lease calculations should not be the major part of this decision. This is a vehicle needed for presentation and meeting with clients. This ultimately affects her job and her image within her profession. This should be the focus of your purchase.

She needs a newer vehicle to maintain that image. Leasing would actually make sense for you. In addition, since she is using this for business purposes. certain tax advantages come into play as well.

Can she get tax deductions on it working for someone else? I'd assume only for the mileage she used it for that's work related.

 

[njmodi]

Originally posted by: V00DOO
Depend on the car she wants to lease or buy. If she is getting a $50K car then it would be wise to lease becasue the depreciation would be a killer. On the other hand if she is buying a $20K car then it would make more sense to buy since 3 years old car low mileage has good resale value if she decide to see it.

Actually - with a lease, all you are doing is paying for depreciation. So a car that depreciates faster, will have a higher lease payment. Thats the only way a lease makes sense from a dealer's perspective.

 

[Jumpem]

Originally posted by: V00DOO
Depend on the car she wants to lease or buy. If she is getting a $50K car then it would be wise to lease becasue the depreciation would be a killer. On the other hand if she is buying a $20K car then it would make more sense to buy since 3 years old car low mileage has good resale value if she decide to see it.

If she buys one it will probably be a $10-15k few year old Legacy or Forester. If its leased, she'll probably want a Legacy GT or a Forester XT.