[USER]

Our family needs a second car by the end of the year. Nothing fancy, just something to move get us from A to B. Our current car is paid off.

Here’s what’s on our mind:
Long term:
– In 12-24 months, we want to lease a minivan. We only would need it for a few years, and the one we want is from a company that is not known for reliability.

– In a few years, our current car will probably go to our teenage son.

– we have a daughter that will also need a car in about 4 years.

Short term:
-Lease something cheap for 24 months? No equity but low monthly payment for something we need.

If we lease from the same company we want the minivan from, maybe they’ll give is a sweet deal in the future?

-Buy certified used? With current rates, payment will be about $100-$150 more a month, but it will build equity and could possibly go to my daughter when the time comes?

What would you do?

[John]

leasing a car and FIRE do not go together IMO unless you are already FI and want a toy for a few years.

It is never a sound financial proposition

[Matt]

Claiming no one ever should lease a vehicle is just as close-minded as saying everyone HAS to work until they are 60. Costs to lease can easily be calculated and compared to purchasing the same vehicle.

With some pretty accurate/standard assumptions on depreciation, almost anyone can calculate the transaction that would work the best financially.

In fact, when you understand the money factor/calculations, you often times can be at an advantageous spot compared to your salesman.

As an extreme example, if you were given two options, to purchase a car for $20,000 or lease the same car for $1/month and no money down for 3 years, it’s obvious which would be a better decision.

Admitting that leads to the verifiable fact that a “break-even” point exists between leasing a vehicle and purchasing a vehicle.

You just have to figure out where that point is, and choose the most financially advantageous option.

[Ralph]

Never Ever Flease a car. They screw you royally. Buy a good brand older car, even with 100K miles it will last for the kids.

Never Flease that crappy brand minivan. If you look, that is the ONLY vehicle that manufacturer has. Do you think they are going to be around? yeah thats a nope.

I sold my 2007 Odyssey with 184K miles in fantastic shape to a family from a church that needed a hand. I sold it to them for 3800 when I could have gotten 6K or more.

Find a family that has no issues paying it forward and you will be happy in the long run.

[Allison]

Based on your timeline I would buy something now that could be sold or handed down to your daughter 4 years from now. What would you spend on a 2 year lease?

Put that into a car you’ll buy now.

Rarely does the whole they’ll give me a good deal when I come back a second time ever pan out to anything substantial enough to matter.

I would eliminate that from the equation entirely.

[Author]

Posts