Leasing vs. buying a new vehicle
 

We're thinking about going back to a Honda Pilot; pro's and con's from those who've leased vs. buying . Thanks.

GM offers a super low mileage lease on Buick, Cadillac and some others. It’s a great deal for us, even working we only put on 4 to 6 thousand miles a year. Here less than 2,000. Not sure if Honda offers but worth checking out.

I have friends who just have to have a new car every two or three years. Leasing works for them. I have leased two cars before buying my current one. One I sold to my son, and one I bought out the lease and gave it to my DIL. I think in those circumstances we lost $.

Fine if u want a new car every 2 to3 years but not fine if u intend to buy the car when the lease is over. You will definitely lose money

It always depends on the deal at that point in time. What I have found that works best is to find the car I want and negotiate the best price possible for that car. I tell the sales person up front that I will decide later if I will lease, finance or write a check for the full amount. Once you have a final price for that specific car, then and only then sit down with the finance person and discuss all three options. And I have done all three in the past. You have to have the final price you agree to before you can compare which way is best. So much depends on what incentives are in place.

Examples are things like you see advertised, $10,000 rebates and 0% interest. Those may only come into play at list price. But at a deeply discounted price I was happy with, I once got another 3K discount if I took their financing. It had no prepayment penalty so I did and paid it off 30 days later. The dealership had a significant incentive from the manufacturer to finance cars. Another time at that final finance meeting there was a lease incentive with a very high residual value (equals lower lease payment) so leasing made more sense. I also got .05% interest (1/2 of 1%) once on a deeply discounted price.

Always get the best possible price first then figure out the best way to pay for it. Will save you lots of money.

In my opinion, from a financial standpoint, it is always better to pay cash for a car. Of course, if you want a new car every 2-3 years, you are going to spend a lot of money over time. But, you will still come out ahead by paying cash vs leasing or financing.

Our current lease it’s $69 a month for 24 months for a Buick no money down. Ultralow miles lease. I would loose that much money driving off the lot with a new car

That sounds incredibly good. Can you give specifics?

Also. What did it cost you out the door?

Thank you.

I cant rent a lawn mower for $69 a month. :cryin2:

For my two cents worth
 

As we all know if a deal sounds too good to be true it is too good to be true.

The dealer needs to get you in the door. When you arrive you get lines like we just sole the last one or that is the one without air conditioning etc.

You will see ads $100 over dealer cost. WOW that sounds like an impossibly great deal. AND IT IS. On any car there is something called "A call Back" Depending on the car the dealer gets 3-7% back on the cost when the car is sold.

You can easily see what people are paying for the car you want, equipped as you want, on the internet. You know the dance when you go to buy a car. After the salesman shoots you a number. If, it is higher than your information
yopu tell him you will not pay more than ..............
'

we have been leasing for years. Present lease, 2015 dodge ram 1500 crew cab with a hemi, has all the toys, GPS, upgraded radio and speakers. value $41K

we put down $1200 for the taxes, registration and all that and pay $344 for 3 years with 12k miles per year. Totals out to $13k for driving a decked out, $41k truck.

The payments for 3 years would not have been that low.

Previous lease (2) matching, his and hers, new 2012 Honda Accords Top of the line, V6, sunroof, leather value $36K each, and all that $725 a month for 2....no money down.

So we will probably always have a lease payment, but we will drive a new car every 3 years.....so....

we did however purchase a in town car from Jenkins in Lakeland new 2015 Sentra basic model, but great gas mileage and not many toys, for cask $14k out the door.....but its a lesser car for a lesser price. We could have leased a luxury car for just about the same money...

so...whatever you choose....but remember...when your lease it up you need to have done the research to get into another lease or buy something...because the car has to go back when you lease. But deals are out there..

GM executive, with options for valet service ( car is picked up and serviced and then returned). This summer GM was clearing out the 2017s, I just had to have a GM car, my GM discount, paid to transfer plates, got a baby Buick with everything but a sun roof, and 8,000 miles a year, so comes in the ultra low lease. Could have gotten a Cadillac for more but did not want a car. Our 6 year old Buick only has 32,000 on it so we have no problem with ultra low lease. We purchased that car from a ultra low lease with 7,800 miles. Our sales person let’s me know when a deal is coming before it’s in the paper. They cleared out hundreds of cars in 6 hours

Actually, it's called the 'dealers holdback.'

What Is Dealer Holdback? on Edmunds.com

Caveat Emptor
If the deal sounds too good to be true, there is a high probability that it is , too good to be true.

No one has even been able to prove to me that leases are cheaper than a well researched purchase.

Leasing is really a disguised purchase option ,if your consider all the terms and conditions.

Great info. Thanks. Pays to be a smart shopper. Btw, costco has up to $750 cash back for GM purchases.