Considering Leasing a Car Please Advise

[KL1246]

So Ive been told leasing is a horrible idea, from what I can tell your renting a mansion when you should be saving up for your first house.

My bind is I have a car but its quickly going downhill, to fix it would cost 6000 (new engine) and another used vehicle (of the similar type) would cost 8-10K. I am a college student so I cant really afford that kind of money. I have a regular job and make fairly good money, I also have job offers pending graduation. I need a vehicle that will get me through the next year. If I sell mine broken and use the money toward a used vehicle, I'm just buying someone else's problems. I was thinking I could get a leased vehicle until I graduate and start making enough to afford regular car payments. Let me know what you think.

[bjl584]

You can find a good reliable used vehicle that will get you through the next year and longer for a lot less than 8 to 10 thousand dollars. I bought a used truck once for $1000 and it was perfectly fine. I drove it for 4 years before selling it.

[Fizgig]

Not trying to sound harsh, but a $8-10k car for a college student is way more than is necessary. Buy something cheap and serviceable (less than $2k) to get you by, even if it's an embarrassment to drive. Your future self will thank you for not making a mess or locking yourself into a lousy lease contract.

[woodie96]

I have to agree with the two previous posters. 8-10K for a used car seems excessive. There are lots of decent/reliable...kinda ugly (maybe) cars out there for lots lots less...
Just MHO

[greenskeeper]

what make/model is your current car that needs an engine that costs $6k?

[snafu]

There are certain circumstances when leasing a car makes sense but not the scenario you've outlined. To keep within parameters of an 'affordable' car you should be able to put 20% down, monthly payments should not exceed 20% of income and financing should not exceed 3 years.

Since you 'make good money,' I suggest you save a few thousand dollars and buy a beater at he local car auction or privately. It's important to start out making good financial decisions so that you establish a successful money management plan for yourself. Once you've graduated, gained employment in your field, completed probationary period successfully - revisit the ride. Perhaps your employer will offer a leased car as part of their benefit package.

[bones72]

I have been in the car business, from detailer to lot boy to salesman and now dealer for most of my life. Been there, done that, got the scars. Never ever ever lease a car unless its a toy. Holy smokes, please don't lease, you are just screwing yourself blind. Don't do it! Find some old car that runs, drive it until you can afford to buy something better. Leases just suck your money, and then you have nothing left at the end, unless you get a bill from the leasing company for "excessive wear and tear" or high mileage. Please God NO!

[MonkeyMama]

I've also owned a couple of cars in the $1k range. Drove two of them for 11 years (& sold the second one long before it's time was up). Likewise, if you go for something closer to $3k, you should be able to find a *nice* car.

Ask relatives/friends if they are selling a used car.

Look on Craigslist for high quality used vehicles. Stay away from salvaged titles. You'll want a "granny car." Something that is an older model that has been mostly garaged, and barely driven. Less sporty/popular models will of course be cheaper, but this doesn't mean you are only stuck with ugly. It would just be an older model, is all. Maybe 1990s. Or early 2000s. Could be a sporty convertible.

Drive said car until you are in a much better financial position.

[tzsgti]

You will get burned on here asking if you should lease a car. But consider this. My friend leased a 2010 Honda Civic LX for $149 a month with nothing due at signing. Not saying you can get a deal like that all the time but for some people its worth it even spending $200.00 a month and not have to worry about a car that may need to make repairs on all the time.

200 X 36 months = $7,200. That's equivalent to a used car costing about $6,000 before you add taxes and fees.

Just to note i have personally done both. I had a 1993 Buick that had only 65k miles on it a couple of years ago. Paid $1,200 and put about $2,000 over a 2 year period of time. I drove about 25k miles and 2 years and had to junk it when the tranny went and it wasnt worth fixing anymore. So it cost me about $3,200 for two years. Not bad but i had to worry about repairs and i used to get stranded on the side of the road all the time.

[kv968]

You will get burned on here asking if you should lease a car. But consider this. My friend leased a 2010 Honda Civic LX for $149 a month with nothing due at signing. Not saying you can get a deal like that all the time but for some people its worth it even spending $200.00 a month and not have to worry about a car that may need to make repairs on all the time.

200 X 36 months = $7,200. That's equivalent to a used car costing about $6,000 before you add taxes and fees.

That's good, but what did your friend have after 36 months? Either he had to turn the car back in (basically renting the car) and start all over again or buy it (and probably have to pay the MSRP).