Overhaulin'

Buy vs Lease. Which would be better in my case?

My plan is to get a car in the summer (around July). I checked my credit scores online and they are all over 700 (709, 717 and 725), but I also have alot of debt (over 19k). Based on this, what would be a good move in my case? I'm trying to pay down as much debt as I can by the summer. I don't plan to do any big time driving. Just from point a to b; to work, run errands, etc. I also just want a basic compact or sedan.

Public Comments

1. Buy the car if you can afford it , dont have okay credit and set yourself up into more debt, but thats just what i would do in your case.
2. The answer is – it depends. It's not possible to simply say that one is always better than the other because the answer depends on the specifics of each individual situation. Leases and purchase loans are simply two different methods of automobile financing. One finances the use of a vehicle; the other finances the purchase of a vehicle. Each has its own benefits and drawbacks. When making a 'lease or buy' decision you must look not only at financial comparisons but also at your own personal priorities — what's important to you. Is having a new vehicle every two or three years with no major repair risks more important than long-term cost? Or are long term cost savings more important than lower monthly payments? Is having some ownership in your vehicle more important than low up-front costs and no down payment? Is it important to you to pay off your vehicle and be debt-free for a while, even if it means higher monthly payments for the first few years?
3. In your case buy a used car that you car afford and make a reasonable effort to pay it off as fast as possible. do not go fancy and get in debt used it always a good option start looking now, it takes time to find a good used car for a bargan. member if u buy a new car, as soon as you drive it off the lot the value decreases by 5,000 plus. depending on the car. Tip : Go used and buy it. in the long run its cheaper. and its yours. ! hope this helps
4. payments with $5.00 fuel this summer.
5. primarily it all depends on the amount of miles you do and what vehicle you are interested in. some manufacturers do not have a good lease program vs buying. you also have to see how much you want your monthly car payment to be. my advice is this: If you are looking for a new vehicle and you want to keep your payment down and you dont do a ton of miles a year go with a lease. In majority cases if the lease program is good the calculated interest rates are much less than a standard loan except on a lease they call it a "money factor" which is the same thing. You are able to get a more expensive vehicle for the same monthly payment as a cheaper buy car. if you do a lot of miles or plan to keep the vehicle for a long time, then buy, but not new! buy a year or 2 year old car. preferably one with a certified warranty on it or a decent amount of original factory warranty on it. The reason I say this is that any new vehicle will take it's biggest depreciation hit it will ever take as soon as the vehicle is registered. As soon as that happens the car becomes used and loses much of its value. After a couple of years on a loan, if you want to get out of the vehicle you will find that you are in what they call an "upside down" situation, meaning yo uowe more than the car is worth. However thats why I suggest a 24 - 30 month lease, because you are responsible for all payments till lease end. One other note: I have found also in most cases if you lease and buy out the vehicle in the end, it comes out less in the total cost, then if you finances from the begining. I hope this helps you!
6. YES!!! keep paying down the debt as fast as you are able, with the highest APR's paid down the fastest....High debt to income ratio can earn you a decline with prime lenders OK now its July......your good credit score is higher, you have about a grand for down payment, and try to stick with TRADITIONAL financing. It requires less down, theres no big balloon after 3 years, And you'll own it outright after 4 years. Avoid 5 year terms if possible. If. IF< , you can see yourself only keeping the car a few years, not driving it more than 12,000 a year, and can afford twice the down pay, a lease will be great for you. Confidently negotiate vehicle price with either instrument. get er done
7. With lease your payment will be about $150 less than buying. But then, you will just going to add an other debt. If you buy, your payments will be higher, but you will build equity, something you going to call yours when it's paid off! So if you can afford to buy, you should buy. Your credit score is fine, it's going to get better as you get rid of more debt. When you at the end of the month, the dealers will give you better deals so they can close the month better. (Any month in the year).
8. The information you gave doesn't have anything to do with whether you should buy or lease. It doesn't have anything to do with your credit score, or how much credit card debt you have. It has to do with what your plans are about your car. If you plan to get a new car every 2 or 3 years, then leasing is fine. If you are not a rich person, then you'd be foolish to drive a new car all the time, because it's fairly expensive. But this is not a question about your intelligence either. It's a question about carrying out your plans. It also has to do with whether the car you want has good lease deals or not. Some cars don't depreciate much, and the first couple of years of ownership are fairly cheap. Other cars, ones that deprecation quickly, would be terrible to lease.