Buying vs. Leasing a new car - which is the best approach?

General rule—when interest rates are low, then buy; when high, then lease.

Consumer Reports auto issue is a great reference for a ‘small’ low maintenance car .. like the Honda Civic or the Toyota Corolla . I also like to bypass the auto dealers and buy a 2–3yr old car of my choice, used but in good shape with low mileage.

[I do not work for banks or car companies. I’ve just been thru this with my son.]

I’m w/ @virtualist, get a used decent car with low mileage and in good condition :)

You also need to consider tax implications. Most people will not benefit from a lease in terms of total cost of operation over the lease period, but some certainly will. Only your financial adviser knows enough about your position to be able to answer this part of the question.

I can’t lease, because my commute is too long and I go 30k+ miles in a year.
For a vehicle choice, I recommend the Mini Cooper – it is fun, economical, and includes maintenance.

You have to remember that most leases require at least $2000 up front, if not more.

I agree with @virtualist. My husband and I just moved from New York City and we bought a slightly used new car and ended up with a vehicle much nicer than one we could have afforded buying new.

My sister bought a 87’ Volvo sedan for under 1000$. It was really clean and runs perfectly. She has used it for about a year.

Paying 300$ per month for a new car seems crazy. Especially when you can get a good used one for less then the down payment on a new one.

Leasing is very dangerous. For one thing, the up front charge is as high as downpayment, anyway. The dangerous part is when you turn it in they can (and often do) hit you with every single ‘possible’ charge that was mentioned in the original lease. Read the lease, it is full of ‘potential’ charges they can come up with.

Also your insurance costs, if you can even get insurance, will be much higher.

I have owned 13 cars and I am only 23 yrs old…..I trade, buy & resell, buy, and even sell for others so I have a lil bit of experience with cars, not as a profession but kind of like a hobby. My suggestion is a car really doesn’t have that much maintenance or cost if your smart about it. You just have to think, ” What all do I need a car for?” and “what are my preferences?” if you arent a people person, leasing or buying would be best. if you are, then consider other cheaper options like riding the bus, tram, subway, etc.
There are many options like carpooling with someone that does own a car and chipping in gas $. But I prefer my own vehicle just because I dont like having to wait on someone or vice versa. So if you like the idea of owning your own vehicle, buy smart, NEVER be hasty because you like the car, another will come along with an even better “deal”. I’ve never leased just because the simple fact of interest. But it all depends on your needs. If you need any other assistance in selection, dont hesitate to ask me. ~ :)