Lease or buy a car- interest rates are so high now

amother

Sun, Jun 30 2024, 3:22 pm

Looking for a minivan. Leases are about $600 a month including tax. Which is a lot Buying would have me about $700 a month, or I can get a longer term for lower monthly payment but the interest rate is higher.
Is it better to lease for a while and then buy it out when interest rates go down?

amother

DarkViolet

Sun, Jun 30 2024, 3:30 pm

We bought a very old one for cheap to last us a few years until things are hopefully better

amother

Sun, Jun 30 2024, 3:31 pm

amother DarkViolet wrote:

We bought a very old one for cheap to last us a few years until things are hopefully better

Ok but that wasn’t my question. We have a very old car right now but need a second card that’s good and reliable

Amarante

Sun, Jun 30 2024, 4:23 pm

You are always going to be better off if you can buy.

For an extra $100 a month, you will have the ability to own your car presumably.

If you have selected a reliable car, you will then have at least five years - if not more - when you have no car payments. If you are smart you will bank those car payments and use them so that you have less of a loan. Eventually you could even pay cash. Very Happy

realtalk

Sun, Jun 30 2024, 4:31 pm

You aren't saving any money long term by leasing. The high interest rates are all rolled into the price

amother

Sun, Jun 30 2024, 5:41 pm

realtalk wrote:

You aren't saving any money long term by leasing. The high interest rates are all rolled into the price

But I’m not locked into that interest rate, and if I buy later and the prices went down maybe I can get a better deal.

I’m also afraid of being underwater with my loan in a few years because minivans are so much right now, but we need a new one

amother

Sun, Jun 30 2024, 5:42 pm

Amarante wrote:

It’s not necessarily $100 a month, I can even pay less than the lease. It’s the interest rate that’s killing me.

amother

Sun, Jun 30 2024, 6:16 pm

I can lease a sienna for $419 a month and 3k down which is definitely more reachable than $700/month

amother

Maize

Sun, Jun 30 2024, 6:59 pm

where can u get a sienna lease for so cheap? in lakewood I was quoted over 700. I think your getting 419 bec their getting your 3 thousand dollars down. In the long run its not cheap.

amother

Sun, Jun 30 2024, 7:02 pm

amother Maize wrote:

where can u get a sienna lease for so cheap? in lakewood I was quoted over 700. I think your getting 419 bec their getting your 3 thousand dollars down. In the long run its not cheap.

I’m in the Midwest somewhere. Odysseys are lots more here.

But in the short run it’s a monthly payment that I can be more close to affording.
3200 down is still only $100 more a month. So it would be equivalent to $519 a month before taxes, which is still cheaper and we’d be saving on gas

amother

Sun, Jun 30 2024, 7:08 pm

If we buy an odyssey and the price depreciates a lot (say they come out with electric car) then we are underwater.

If we lease an odyssey and then it depreciates we can buy it out for lower cost

amother

Moonstone

Sun, Jun 30 2024, 7:11 pm

Would an electric car be feasible for you?
There are some good deals on those.
And no gas bills if you have a solar roof

amother

Sun, Jun 30 2024, 7:12 pm

amother Moonstone wrote:

Would an electric car be feasible for you?
There are some good deals on those.

We need a minivan

amother

DarkYellow

Sun, Jun 30 2024, 7:14 pm

With a lease, don’t you have to fix any exterior damage before returning? So if you ding it, that’s an extra cost.

amother

Sun, Jun 30 2024, 7:15 pm

amother DarkYellow wrote:

With a lease, don’t you have to fix any exterior damage before returning? So if you ding it, that’s an extra cost.

Unless we’d buy out the lease.

amother

Tomato

Sun, Jun 30 2024, 7:20 pm

amother OP wrote:

I can lease a sienna for $419 a month and 3k down which is definitely more reachable than $700/month

There's no way that includes taxes and fees.

realtalk

Sun, Jun 30 2024, 7:27 pm

If you buy a 2-3yo car, you won't end up so underwater just from driving it off the lot

amother

Navyblue

Sun, Jun 30 2024, 7:30 pm

amother OP wrote:

If we buy an odyssey and the price depreciates a lot (say they come out with electric car) then we are underwater.

If we lease an odyssey and then it depreciates we can buy it out for lower cost

The buy out price is stated in the lease.

amother

Sun, Jun 30 2024, 7:31 pm

amother Tomato wrote:

There's no way that includes taxes andn fees.

Yes but it would be around $450/475 with taxes and fees

amother

Sun, Jun 30 2024, 7:31 pm

realtalk wrote:

If you buy a 2-3yo car, you won't end up so underwater just from driving it off the lot

But I imagine prices will go down at some point and then we are stuck having paid $30k when then it’s going to cost $20k for the same car