Overhaulin'

Lease or buy car if I want to get a different car in the future?

I read that it is always better to buy a car than lease it since there is a set mileage you cannot exceed without paying extra. However, if i plan on getting a new car within 3-4 years, is it still a good idea to buy?

Public Comments

1. its a great idea to buy just because if you do go over then you have to pay extra and that stinks
2. not only do the miles have to be acertain range but they will charge you for wear on tires,dings dents,all kinds of hidden costs.just get a cheap car payment for now on a 3-4year loan.
3. Planning to buy again in four years is a good reason to buy now. Even though the depreciation value on the trade-in is high. At least it's something. If you lease, sometimes you have an 'option to purchase' the leased vehicle at the end of the lease agreement. wherein a portion of lease payments is applied towards the down payment. But, of course, you're not purchasing a new car. You're purchasing the vehicle that you've leased for a few years. But still, some people prefer the lease and don't even bother with the buy option. Of course, if you can't afford or don't want to lay out a down payment for a new car, the lease can be convenient.
4. If you are certain you want to get a new car every 3-4 years and drive less than 10,000 miles a year, then lease is probably for you. Advantage of leasing: 1. No downpayment.... 2. Lower monthly payments 3. You can transfer contract anytime you wish 4. Don't have to worry about driving out of warranty cars
5. Yes as they have leases for 2,3 4 and 5 years and some other options. Even if you take out a 3 year lease and you are 30,000 miles over (10,12,15,18 or 20K miles) in lease you can trade in for payoff and not deal with miles. You don't own a financed car and you do not own a leased car unless you buy either. Leasing you only pay for what you use. Cars with high resales have highest residuals which means lower payment like a 4-runner might have a 50% residual for 3 years whereas a ford explorer might have a 32% for same time. Thats if you have a 400 Toyota payment then you will have a 480 approx. Ford payment on Exploreer for example.
6. If you plan on getting a new car in 3 years, there is no question....lease. If you buy, when you go to trade the car in, you will only get wholesale value for the trade, and you'll end up being upside-down on your loan, the negative equity will have to be rolled into the new loan. With the lease, choose the appropriate mileage, drive the car for the lease term and you are back to zero with no worries of negative equity affecting your next purchase. In this case, a lease is a no-brainer. Assuming the car you lease has a decent lease program.
7. If you plan to get a new car in 3 years, if you have good credit, if you drive less than15k miles per year- lease and lease now!! You'll save money now and most manufacturers have special leases for returning lessees.