Lease vs Loan

BigBallsNoWorries
BigBallsNoWorries Members Posts: 5,461 ✭✭✭✭✭
Lets talk about it

What do you prefer

Comments

  • Copper
    Copper Members Posts: 49,532 ✭✭✭✭✭
    edited July 2017
    Loans are good to build credit

    Depends on your financial/living situation
  • AZTG
    AZTG Members Posts: 7,598 ✭✭✭✭✭
    edited July 2017
    Im guessing we talking about cars.

    A lot goes into it. First, how often do you drive? How far you live from work? How much does the car cost? It it worth keeping after 3 years?

    My Nissan Altima is financed. After the down payment, it was a 21k loan, 60 months, 0 interest.

    Im on the market again for luxury. Trying to decide between a Porche, a Maserati, or a Range. Whatever it is, its gonna leased. These joints start having issues after the 4th, 5th year and cost way too much to fix and lose.

    Always keep in mind, cars are always a bad investment, and go into buying a car with that in mind.
  • Olorun22
    Olorun22 Members Posts: 5,696 ✭✭✭✭✭
    Depending on the living situation..

    Leasing is good for business with taxes.

    Buy a Toyota and put 300k miles on it
  • Trollio
    Trollio Members Posts: 25,815 ✭✭✭✭✭
    U can get dope on credit from the dopeman


    But u better pay him back with cash...on time
  • b'mer...
    b'mer... Members Posts: 1,119 ✭✭✭✭✭
    If you lease a vehicle, you will not own the vehicle even after you've made every payment for the duration of the lease. People that lease vehicles generally dont wont to own the vehicle, so after the lease is satisfied, they usually trade the vehicle for a newer model and lease.

    With a loan, you are actually paying monthly payments from a 2 to 5 year duration with the full notion of owning that particular vehicle.

    Both have pros and cons. To me its about practicality and financial spendthrift. For example, generally wealthy people own certain vehicles like a medium size sudan or suv but lease expensive vehicles such as high end sports cars. Being that they dont have to deal the expensive cost of maintenance. But folks with thlat make median salaries, tend to get loans to own those expensive vehicles in order to fulfill a false since of satisfaction of owning a "dream super car".
  • Beech Oss Neega
    Beech Oss Neega Members Posts: 1,143 ✭✭✭✭✭
    Was JUST trying to sell my ? leasing instead of getting a loan for a Jaguar XJ just yesterday. I told her to lease it cuz it's not gonna be her primary vehicle anyway and I'm sure she's gonna want something new in a couple of years. I told her the same thing @b'mer said. Rich ppl lease their luxury cars, plus the cost to lease is usually lower than the cost of a loan for a depreciating asset anyway. If you're not gonna put alot of miles on it, leasing is definitely the way to go....I'm my opinion.
  • Go figure
    Go figure Guests, Members, Confirm Email, Writer Posts: 4,662 ✭✭✭✭✭
    Never leased and never saw the upside to it aside from always driving something current. I dont think its worth leasing unless u make at least 6 figures, debt free, and even better if u can write it off as a business expense.

    Otherwise loans are great for credit building. If u can get your score high enough like 700+ for low interest and a low note youre better off.

    Biggest benefit is when u have it paid off and kept it in good condition thats 250+ u can keep in your pocket every month and can maybe save for something else or u can sell it/give it to someone close to u when ur ready to upgrade.
  • gdatruth2.0
    gdatruth2.0 Members Posts: 3,581 ✭✭✭✭✭
    One thing that I don’t think that has been mentioned is the benefits of owning a car PERIOD.
    Leasing has its benefits (newer cars, low maintenance & lower payments) but the main benefit to owning a car outright is not making payments of any kind.

    I’ve had these discussions with friends & family. I argue that even with the maintenance associated with a car 5-10 years old; it is typically cheaper than making loan or lease payments.

    I was raised on the principle that you keep a car til the wheels fall off.
  • leftcoastkev
    leftcoastkev Members Posts: 6,232 ✭✭✭✭✭
    edited July 2017
    I've done both and bought cash off the lot.

    Years ago, I used a loan on "an around town blend in" car to build credit. Put over half down and paid like $200 a month for 2 years then dropped 2 big principle payments and paid it off.

    I once used a lease on a luxury car and glad I did. Kept it around 3 years then turned it in. The worth of the car dropped significantly in those 2 years and I could tell mechanical issues were on the cusp of starting. I was happy to turn it in and dodge the foreign car repair costs + any upcoming payments if it was a loan...I had the option to buy but realized if I paid it off and sold it I would be taking a bigger loss overall. I haven't leased since but I have no complaints.

    Paying cash is the best if you can tho, but in comparison between lease and loan I don't think I'd ever recommend to do a long term loan on a car unless it was cheap one, you can put 50% or more down, the monthly payments are not an issue whatsoever, and/or your trying to build your credit.
  • pimped_out_red
    pimped_out_red Members Posts: 894 ✭✭✭✭
    I paid cash for my 2000 model, regular maintenance, i rent cars for vacation trips...and uber for Club nights...i also like to customize so i gota own my car...i just installed a backup camera and a new stereo
  • blakfyahking
    blakfyahking Members Posts: 15,785 ✭✭✭✭✭
    One thing that I don’t think that has been mentioned is the benefits of owning a car PERIOD.
    Leasing has its benefits (newer cars, low maintenance & lower payments) but the main benefit to owning a car outright is not making payments of any kind.

    I’ve had these discussions with friends & family. I argue that even with the maintenance associated with a car 5-10 years old; it is typically cheaper than making loan or lease payments.

    I was raised on the principle that you keep a car til the wheels fall off.

    ^^^^cosign on the bolded

    a quality car can easily last 10yrs or more for cheaper

    instead of always rushing out to buy the newest ? and being saddled down with car payments

    too many people switch up cars every 3 -5 years to the point that ? who even buy luxury cars end up spending less over time if they just paid the 1 car off and kept it

  • king hassan
    king hassan Members Posts: 22,739 ✭✭✭✭✭
    edited July 2017
    One thing that I don’t think that has been mentioned is the benefits of owning a car PERIOD.
    Leasing has its benefits (newer cars, low maintenance & lower payments) but the main benefit to owning a car outright is not making payments of any kind.

    I’ve had these discussions with friends & family. I argue that even with the maintenance associated with a car 5-10 years old; it is typically cheaper than making loan or lease payments.

    I was raised on the principle that you keep a car til the wheels fall off.

    ^^^^cosign on the bolded

    a quality car can easily last 10yrs or more for cheaper

    instead of always rushing out to buy the newest ? and being saddled down with car payments

    too many people switch up cars every 3 -5 years to the point that ? who even buy luxury cars end up spending less over time if they just paid the 1 car off and kept it

    You just said a mouthful. I own both my cars, one 20 years old and the other 10, and I actually hate driving. Both good, keep the maintenance up on them and no issues
  • konceptjones
    konceptjones Guests, Members, Writer, Content Producer Posts: 13,139 ✭✭✭✭✭
    AZTG wrote: »
    Im guessing we talking about cars.

    A lot goes into it. First, how often do you drive? How far you live from work? How much does the car cost? It it worth keeping after 3 years?

    My Nissan Altima is financed. After the down payment, it was a 21k loan, 60 months, 0 interest.

    Im on the market again for luxury. Trying to decide between a Porche, a Maserati, or a Range. Whatever it is, its gonna leased. These joints start having issues after the 4th, 5th year and cost way too much to fix and lose.

    Always keep in mind, cars are always a bad investment, and go into buying a car with that in mind.

    The problem with this mindset is that as long as a car is performing its function, it kinda doesn't matter how much it's resale value has depreciated, you got that functionality out of it for however long you own it. If a car is 30 years old with 400K on the ticker, does it even matter how much it cost when you first bought it? That muhfucka still runs and still gets you to work and back and around town. You got the value back by it's continued usefulness.

  • Fosheezy
    Fosheezy Members Posts: 3,204 ✭✭✭✭✭
    There's also the scenario where people finance luxury cars like lambos even though they intend to only keep it for less than a year before they end up selling it.