The Matzav Shmoooze: To Lease or to Buy?
Dear Editor,
As someone in the market to buy a car, I have been debating whether to buy (a used car) or to lease. I know this is an old machlokes, but I can’t seem to get a clear view of what to do.
Perhaps readers of Matzav can provide some insight into whether it is more kedai to buy or to lease. I am quite turned off by the idea that after 3 years and paying thousands and thousands I will be left with nothing, but everyone I know seems to be leasing.
Please help me.
Thank you.
A Yungerman
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17 Responses to “The Matzav Shmoooze: To Lease or to Buy?”
2. Comment from Common Sense
Time January 9, 2013 at 10:34 AM
Buy, leasing is a waste of money!
3. Comment from Anonymous
Time January 9, 2013 at 10:44 AM
If you have a house and making lots of money then it make sense to lease because the money going out can reduce your taxes. But if you are not paying a lot of taxes then owning a used car is better if you can buy it cash with no payments.
4. Comment from lakewood yungerman
Time January 9, 2013 at 10:47 AM
i believe there was an article about this in the yated a month or go about this.
5. Comment from obviously
Time January 9, 2013 at 11:01 AM
there is not questions: if you can afford it, BUY a car. otherwise, at the end of the day, you have nothing! and every time you “bump” your car or do anything to it, you will always have a fear since its leased. give yourself some menuchas hanefesh and buy one! its worth the investment!
6. Comment from Lakewood guy
Time January 9, 2013 at 11:07 AM
This is an age old question. my thought has always been:
It is more cost effective to buy a good used car and finance it. (There are great rates out there, penfed etc.) your monthly payment will be similar to a lease as you can finance for 3,4 or 5 years depending on what you want your payments to be. You dont have to worry about access miles, or additional scratches along the way. After you finish paying off the car, you can either sell it, and put the cash in your pocket or keep driving the car that wont cost you anything.
As far as a lease, while it is great to have a brand new car and be able to just return it hassle free, its just paying “rent” instead of paying towards something.
if you finanace a used car and sell it when you finish paying it off, you still get to drive a “new car every few years, and you get to put some money in your pocket.
Bottom line: leasing is a more convenient option, but your paying for that convenience.
Good Luck
7. Comment from Chaim Dovid
Time January 9, 2013 at 1:54 PM
take the bus!
8. Comment from shloime
Time January 9, 2013 at 2:28 PM
This is the kind of question that differs for different people and you generally don’t know the answer until several years after you make the decision. You may have costly repairs on a car, costly body work on a lease, etc. You may overpay on a used car, or you might get a great deal on a lease. It is a reality that used car prices have gone up tons in the last couple of years, so if you get an opportunity to get a real special on a lease, leasing has an advantage. One more important factor is how many miles a year you will drive. Best lease deals are for 12,000 a year, a bit more for 15,000 - if you do more than that, likely buying will make more sense. Hatzlocha, more important - with either choice - dont talk on phone or text while driving.
9. Comment from lessor
Time January 9, 2013 at 3:04 PM
To no. 6. Afetr 5 years of driving a used car, it costs you nothing?? Farkert, thats when you start pumping good money after bad into it. You will spend thousands upon thousands replacing part by part, when they go one at a time. THATS precisely why leasing is the better option You drive a new reliable car that costs you nothing to maintain since it is all covered!
10. Comment from A Non-dependant
Time January 9, 2013 at 3:06 PM
Buying cash or financing is far superior, as stated by the above responds. A) You needn’t be concerned about mileage if you drive a lot and B) likewise, you needn’t be concerned about nicks, scratches and knocked off bumpers which, I might add, if you live in BP is inevitable. Today’s cars are made of plastic clicks AND THEY COME APART EASILY!!! Why be a slave to a car?!
And if there are more than one drivers - fuhggedaboudit!
11. Comment from Eli
Time January 9, 2013 at 4:09 PM
#1, if the rich have money, why would they care to buy the car outright and buy a new one in a few years? Your statement makes absolutely no sense what so ever. The bottom line is , lease if you won’t put too much miles on and buy if you want it for long term. Its that simple
12. Comment from The Gelt Brothers
Time January 9, 2013 at 5:52 PM
Buy Buy Buy. Leasing is for idiots! After you paid every month & the lease is up, what are you left with? Answer: NOTHING! you’re left holding the bag!
13. Comment from Thank You
Time January 9, 2013 at 8:39 PM
Toyota is running a toyotathon, that means 0%APR.
you can finance a new car with no interest for a few dollars more than a lease for 60 months and own it after 5 years as oppose to 3 years of leasing where you say good bye to you money.
And beside any Japenese cars after after 5 years will not depreciate too much and at that point it can be sold for more than half the original price.
14. Comment from anonymous
Time January 9, 2013 at 9:14 PM
whats the difference
15. Comment from lakewood guy
Time January 9, 2013 at 9:23 PM
To number 9:
The idea is to either sell the car or keep it without paying monthly for it. If you buy a decent used car (ie 2008-2010 camry, accord or similar) you should be able to salvage either a decent retail value or very minor repairs.
16. Comment from Clarifier
Time January 9, 2013 at 10:48 PM
We own both of our cars. I have this dream of one day leasing two cars for 2 yrs with the start date before Pessach thus eliminating Pessach car cleaning every other year when we’d get new leased cars. It’s definitely cheaper owning but requires more time involvement as trips to the mechanic are more frequent than would be with newer leased cars. We also skip minor body repairs that a lessee would be required to do but really aren’t needed for any functionality.
17. Comment from my 2 cents
Time January 10, 2013 at 12:24 PM
In my opinion, it was wrll said that leasing is for the rich - who can afford to over pay versus buying new and selling every three years and the poor who have no savings and/ or limited income and thus can only afford a small monthly payment. So if you fall into one of these categories that’s simple. The other advantage of leasing is that you don’t have to worry about breakdowns and unexpected expenses, which is worth something too. It also makes sense to lease a honda over a toyota because honda comes with a nice damage waiver. You might wish to consider also that it might look funny if you’re not paying full tuition and are driving a brand new car, even though driving one makes more financial sense. You may also not want to be one of THOSE people who live on a small kollel income but drive a brand new car.
1. Comment from Anonymous
Time January 9, 2013 at 10:23 AM
THEY ARE LEASING BECAUSE THEY CANT SEEM TO PUT A LARGE SUM OF MONEY TOGETHER TO MAKE THE PURCHASE.
KLAL: ONLY RICH & POOR PEOPLE LEASE
RICH: LEASE BECAUSE THEY LIKE A NEW CAR EVERY FEW YEARS AND TO LEASE A FANCY CAR IS ONLY A COUPLE OF HUNDRED DOLLARS A MONTH
POOR: BECAUSE THEY CANT PUT A LARGE SOME OF MONEY TOGETHER TO MAKE THE PURCHASE.
YOU NEED TO CHECK YOU BANK ACCOUNT AND FIGURE IT OUT. IF YOU HAVE THE MONEY, THEN SHOP AROUND FOR A WELL PRICED 2-3 YEAR OLD CAR TOYOTA.