Car lease vs buy

[pandugadu999]

Edi better….lot of new models coming..ev plugin..thinking of lease options..any ideas?

[Hitman]

For now lease EV. after 3 years you will have better options. Musk gaadiki chip dobbite Model Y 25K antaadu.. 

[chittugaadu]

if you are not keeping car for 8+ years ... and like to change cars or get access to latest tech ... and like luxury models ... then lease is the way to go.

[lollilolli2020]

renting vs owning vayya. 

but Car is a Deprecating asset; so ee raayi aithe endii pallu vundagottukovadaniki. 

its matter of preference, you don't drive much but likes to have a new car every few years ante leasing best. 

if you have an incorporation and you would like to write off it as expense lease cheyyi. 

[pandugadu999]

19 minutes ago, chittugaadu said:

if you are not keeping car for 8+ years ... and like to change cars or get access to latest tech ... and like luxury models ... then lease is the way to go.

If we buy and sell car after 3 years or trade in.. is it same as lease..my question is if we lease for 3 years does it cost more?

[lollilolli2020]

Just now, pandugadu999 said:

If we buy and sell car after 3 years or trade in.. is it same as lease..my question is if we lease for 3 years does it cost more?

adi nuvvu research cheyali. 


 

When deciding between buying and leasing a car, it's essential to understand the differences and the financial implications of each option. Here's a breakdown to help you compare:

Buying a Car (and Selling or Trading In After 3 Years)

1. Initial Costs:

   • Higher down payment.
   • Monthly payments might be higher compared to leasing.
   • Full ownership of the car.

2. Depreciation:

   • The car's value depreciates over time.
   • After 3 years, the car typically loses a significant portion of its value (often 20-30% per year).

3. Equity:

   • You build equity in the car as you make payments.
   • When you sell or trade in the car after 3 years, you can use the car's remaining value (equity) towards your next car purchase or pocket the cash.

4. Maintenance and Repairs:

   • You are responsible for maintenance and repairs after the warranty period expires.
   • Higher costs for repairs as the car ages.

Leasing a Car

1. Initial Costs:

   • Lower down payment or sometimes none at all.
   • Lower monthly payments compared to buying.
   • No ownership of the car.

2. Depreciation:

   • Depreciation is not your concern; the leasing company assumes this risk.
   • You pay for the car's depreciation over the lease term (usually 2-4 years).

3. Equity:

   • No equity is built in the car.
   • At the end of the lease term, you return the car and have no asset to sell or trade in.

4. Maintenance and Repairs:

   • Typically covered under warranty for the lease term.
   • Some leases include maintenance plans.

Cost Comparison

• Monthly Payments: Lease payments are generally lower than loan payments for buying.
• Total Cost Over 3 Years: Leasing might appear cheaper due to lower monthly payments, but you don't build equity in the car.
• Depreciation and Resale: When you buy, you absorb the car's depreciation. After 3 years, if you sell or trade in, the car's value is less than what you paid.
• Long-Term Ownership: If you plan to keep a car for a long time, buying can be more cost-effective as you eventually pay off the loan and eliminate monthly payments.

Example Scenario

Buying:

• Purchase Price: $30,000
• Down Payment: $3,000
• Loan Amount: $27,000
• Monthly Payment: Approx. $500 (for a 5-year loan at 4% interest)
• Value After 3 Years: $18,000 (assuming 40% depreciation)
• Equity After 3 Years: $3,000 (after loan payoff)

Leasing:

• Lease Term: 3 years
• Monthly Payment: $350
• Down Payment: $1,500
• Total Cost Over 3 Years: $350 * 36 + $1,500 = $14,100
• End of Lease: Return the car, no equity.

Conclusion

• Leasing might be more cost-effective short-term due to lower monthly payments and fewer worries about depreciation and maintenance.
• Buying could be better if you prefer ownership, want to build equity, and plan to keep the car longer than the typical lease term.

Each option has its benefits depending on your financial situation, driving habits, and personal preferences. Calculating the total costs and considering your long-term plans can help you make an informed decision.

 

[CricPokChic]

30 minutes ago, Hitman said:

For now lease EV. after 3 years you will have better options. Musk gaadiki chip dobbite Model Y 25K antaadu.. 

Right now u can get a new model Y for 35K

[psycopk]

ev aaite lease... 

[Hitman]

4 minutes ago, CricPokChic said:

Right now u can get a new model Y for 35K

may be your state has some special discounts.. otherwise it comes to 45

[l0cal]

40 minutes ago, pandugadu999 said:

Edi better….lot of new models coming..ev plugin..thinking of lease options..any ideas?

https://bettarcar.com/

get it from them. new car istaadu. can return after 1 year  

[Variety_Pullayya]

premium models at reasonable price unte theskovachu lease. 

[Variety_Pullayya]

6 minutes ago, l0cal said:

https://bettarcar.com/

get it from them. new car istaadu. can return after 1 year  

aa spelling chusthene link click cheyabuddi kavatamledu...bettar enti?  

[CricPokChic]

11 minutes ago, Hitman said:

may be your state has some special discounts.. otherwise it comes to 45

Nope its the same in most states without discounts..

Here is the link: https://www.tesla.com/inventory/new/my?arrangeby=plh&zip=76155&range=0

Inventory vehicle Price : 43230

EV discount : 7500

Referral discount : 500

Total = 35230

And u get 0% APR

[pandugadu999]

5 minutes ago, CricPokChic said:

Nope its the same in most states without discounts..

Here is the link: https://www.tesla.com/inventory/new/my?arrangeby=plh&zip=76155&range=0

Inventory vehicle Price : 43230

EV discount : 7500

Referral discount : 500

Total = 35230

And u get 0% APR

No tesla for me..i dont like..

[CricPokChic]

Just now, pandugadu999 said:

No tesla for me..i dont like..

Any reason why u dont like?