Overhaulin'

As retirees, is it better to lease or buy a car?

We want to get a new car. Leasing has been recommended but we can't use the cost as a business write-off.

Public Comments

1. Leasing is like renting at a higher cost and if u cant write it off dont do it :)
2. First things first, perhaps you should define why you would have the need to buy a new car. Buying a new car is preferably the better option if you can afford it since after utilizing the car, there are other options which you may do with it (like sell or hand over to your kids), while leasing a car obviously just takes away your money whilst utilizing the car.
3. Leasing is okay if you stick to their policy about mileage and want to get a different car all the time. If you are going to drive alot, it is not worth it to pay the higher prices later.
4. If you want to drive a new vehicle every 2 or 3 years, leasing may be good for you. This is especially true if you like to drive high-end vehicles that maintain their value well, such as Mercedes, Lexus or Infinity. If you normally drive a vehicle until it wears out, then leasing is a very bad deal. If you prefer vehicles that don't hold their value well comparatively (Lincoln or Cadillac for example, compared to Lexus or Mercedes) then it is also a bad idea. At the end of the lease term, you have a bunch of receipts and no car. If you go over your mileage limitation (typically 10,000 per year is used in advertising) then you'll be hit for excess mileage charges. Also, the vehicle must be returned in good condition "normal wear and tear excepted." The lease company's definition of "normal wear and tear" is probably a bit different from yours so every little nick and ding is likely to cost you. Most retirees need to get a long service life out of a vehicle to keep costs in line. If this is your situation, then leasing is probably the worst option conceivable. Finally, lease contracts are rife with legalese terms that will confuse the saaviest consumer. Any proposed lease should be reviewed by a trusted financial advisor, CPA or attorney. Finance agreements are tightly regulated and are easy to compare. Leases are virtually unregulated and are nearly impossible to compare side-by-side.
5. I think leasing gets you into money problems and also it doesn't give you right to say it's your car because it is still the car dealership's. It will be cheaper buying it right off the bat, too. Just try and find a good bank that offers low interest rates on loans and it will be a lot cheaper than leasing it if you don't have the money.
6. I would NOT ever lease. You have strict policies about how many miles a year you get to drive and if your over the limit it costs PER mile you went over. If you can make payments on lease why not take that money and make payments on your very own car?