Overhaulin'

Is it cheaper to buy a used car or lesae a new car?

I am in need of a new car. The problem is that I am kind of short on money right now. If I buy an used car, I will need to buy something that is $10,000 or less and pay it off with a 5 year loan. I would like something along the lines of a small pickup truck. I am now also considering the option of leasing a new car. I figured that this would be a good idea if I have to settle for a car that I don't really want so I don't have to be stuck with it making payments on it for the next 5 years. I think that the monthly payments are cheaper too. Would it really be cheaper to lease than to buy with financing?

Public Comments

1. Depends on the car and price. Leasing can be worthwhile if well researched. But, I would hope you wouldn't make 3 years worth of payments (most leases are 2-3 years) then walk away without anything to show for it. Consider leasing a vehicle, then purchasing at end of lease. If you don't miss any payments, the leasing company would gladly work with you to finance the residual amount. The main drawback is you will have payments for around 8 years, plus full coverage insurance. But if it's a car you enjoy, the payments are usually lower than most.
2. Leasing is never cheaper. You end up paying the same as if your buying it. Your still responsible for insurance,registration and maintenance costs. And at the end you have nothing to show for it.. The payments will be cheaper on the used vehicle also.There are no new vehicles for $10.000 out there.
3. In that range you can get a small pick up truck ,four or six cylinder, and you'll be fine.. To lease a new auto, in your situation is .. To lease,a new car or truck ,usually you need a thousand or two at closing, and they all have mileage limits, but I don't remember seeing any 5year leases.. They are usually two or three year.. If you exceed the mileage at the lease end,, you pay 10 to 20 cents for every mile over the lease miles limits.. Might not apply to you, but its knowledge you need to know... If it were me, I'd go to a dealer,and pick up a couple of years old pick up of your choice, and go from there.. You could also buy from a private owner, a vehicle two years old WITH WARRANTY LEFT FROM THE MANUFACTURER.. Either way, you'll be fine.. If you can finance at your bank or a credit union, you'll also come out better than using the dealers financing!! Good Luck!! SOLOMON
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5. Hmm. I bought an ancient Pontiac 6 years ago for $700. I had maybe $1000 in repairs over that time. So in this case used was cheaper. Of course I did get stranded in the middle of Wyoming once...