Overhaulin'

OK, lease or buy car?

I have a family of 5 total. I would like a high end car (3rd row SUV), but am concerned I cannot afford it. I wouldn't mind a lease but don't want to be screwed at the end with high buyout. I had a lease 15 years ago, have they changed? What can I do to sweeten the deal...I have a clunker! Looking for a Toyota Highlander Hybrid.

Public Comments

1. Do not lease...you are limited to a certain amount of miles per year....what if you move, what if you job location change...what if the unforseen occurs....with prices now still low you can buy a car for a decent price. Oh....you do not need a high end car/van/suv...just one that looks decent and reliable.
2. personally, as long as your clunkers not in miserable shape and needs a ton of repairs (i have an 86 cutlass), stick with it and put away the money that you could be using for a car payment. then when the time comes where you actually need the new (ish) car, you can pay for it in full and not have to worry about all the things that come with a lease. do the same thing while you have the new car, then when it comes time to sell that car, youll have the money you saved while you drove it, plus the money from selling your car to get an even better one. this just kinda build up and you can gradually afford more and more expensive cars without having to worry about leasing also check with that new cash for clunkers deal if your really in need of a new car. that can take a good 4k off the cost
3. If you like to be in a new car every 2-3 years, and you don't drive too much, leasing might be a good choice. But if you can kick the 'frequent new car' habit, you would be better off if you purchased a good used vehicle. Even one that's only a year old will save you a lot of money.
4. If you have a clunker than it will have to be a 5 year lease. That is if you want to take advantage of cash for clunkers. For a family of 5 you should go buy a Chevy Traverse (or something from that family). With FWD the difference in MPG wont be much but the cost will be a lot less.
5. Leases on luxury SUV such as Lexus RX350 and Acura MDX are very cheap because they have high resale value so they are good choices. Pros of leasing: 1) Little to no downpayment 2) Low monthly payments 3) If u lose ur job u can transfer ur lease 4) You can purchase extra miles upfront 5) You can sell or trade in just like financed vehicles 6) Most leases include free GAP insurance 7) Resale value is guaranteed so u dont take a hit if value plummets