buy vs lease question, any thoughts anyone?

[jersey123]

just wanted to know if anybody has any thoughts about leasing a Highlander as appose to buying it. what i'm thinking is that leasing (with no money down) will get me into a HL for around $350 a month whereas if i were to buy it with no money down my payment would be much more. at the end of the lease term i can opt to purchase the HL and since it holds it's value well, it wont be as if i'm paying for a undervalued vehicle. i was thinking about it this way also: $350 X 42months = $14,700. residual value of $15,000. $14,700 + $15,000 = $29,700. currently you can get a well equipted HL for under $30,000. basically my point is that if the intention is to own the vehicle and not give it back to the dealer after the lease is over, then is it worth leasing the vehicle and then buying it after the lease is over for the 15 thou? this way, u can still get into aHL and not pay much more than 350. what do u guys think?

[carguyinok]

I have a strong background in auto finance. The part of the lease that bites most people in the azz is the mile allowance. I have sold beaters to people that have leased cars. Only because the miles went over so the leased car needs to sit. One time a guy was 20,000 miles over with 18 months left on the lease.
It's a risk going lease. If you dont like it after a few months or near the end of the lease. It better look like new with low miles. Or they will charge you huge fee's. Just in looking to make you buy.
Just use care & READ THE FINE PRINT.

[jersey123]

Originally Posted by carguyinok

I have a strong background in auto finance. The part of the lease that bites most people in the azz is the mile allowance. I have sold beaters to people that have leased cars. Only because the miles went over so the leased car needs to sit. One time a guy was 20,000 miles over with 18 months left on the lease.
It's a risk going lease. If you dont like it after a few months or near the end of the lease. It better look like new with low miles. Or they will charge you huge fee's. Just in looking to make you buy.
Just use care & READ THE FINE PRINT.

carguy: thanks for your thoughts. i've taken the mileage factor into consideration and i'm told by the dealer that if i were to buy the vehicle after the lease term is over, i wouldnt get charged for the miles exceeding my allowance. is this true? i guess its something i have to have written into the contract. i forgot to find out if i will be charged for the dings and scratches though.

[kathygarnerville]

One thing I'd like to know, do you currently have a vehicle for a trade-in? if you do and you aren't making payments, the trade value is your "money down".

I think you should finance. I once leased a Taurus, thinking if I liked it, I'd finance at the lease end. Well, I hated it. Also, I wound up getting transferred to my then employer's offices 65 miles (one way) from my home. At the lease end , I was 34,500 miles over the allowance, and a car with 65,500 miles isn't worth financing.


Test drive the highlander, make sure it suits you then finance