I've looked all over the internet for a lease/buy calculator that fits my situation, but they all seem to compare leasing versus a car loan. I am wondering whether to lease or buy a new car with cash. Is there ever a valid argument for leasing over a cash purchase if you can afford to pay for the car outright? Pertinent facts (I think):
- I've never leased before, always bought and drove my cars for about 7-8 years
- I put about 15000 miles a year on my car
- I do not have a valid excuse to write a lease off as a business expense
- Using the cash for the car purchase does not hurt other areas of my life and the money is not currently needed for anything else. It's in a savings account earning .80% because I knew I needed a car soon.
- The car I really want is a higher end vehicle that likely won't hold its value as well as a lower cost car would
- I like the idea of a new car every three years with a lease, but can temper that desire if leasing is a bad idea
I was considering leasing because it sounds good on the surface: no big cash outlay upfront, new car every few years, no old car maintenance expenses. But I'd like to understand how much I'm hurting my finances over the long run if I go that route. What would you do in my shoes?
- I've never leased before, always bought and drove my cars for about 7-8 years
- I put about 15000 miles a year on my car
- I do not have a valid excuse to write a lease off as a business expense
- Using the cash for the car purchase does not hurt other areas of my life and the money is not currently needed for anything else. It's in a savings account earning .80% because I knew I needed a car soon.
- The car I really want is a higher end vehicle that likely won't hold its value as well as a lower cost car would
- I like the idea of a new car every three years with a lease, but can temper that desire if leasing is a bad idea
I was considering leasing because it sounds good on the surface: no big cash outlay upfront, new car every few years, no old car maintenance expenses. But I'd like to understand how much I'm hurting my finances over the long run if I go that route. What would you do in my shoes?
