Buy or lease?

So now that my Envoy is toast I need to get a new ride. Here's where I need help. The lease is $80 cheaper a month, buying is a very tight fit in my budget. I have only bought in the past and always paid cars off. It will get less than 10k a year in miles. If I lease intending to buy is it beneficial than just buying it? If I lease can I pay it down fast and refinance it to lower payments for emergency situational budget fluff? I'm nervouse either way but need to get e new vehicle. Thoughts?

 

I debated too. Sales dude made a great point on the lease when I told him I would purchase later. What I had in mind that I wanted to do to it might have been frowned upon by a dealer if they got it back. Also, I wasn't keen on still paying for the extra mileage I was sure to put on it. Just my preference though

 

I'm working graves lol. Its cold and slow I am looking at a Nissan Armada. The new one is very nice and had luxery feel. Fully loaded of course. I wasn't to ultimately own it as I have no desire to start fresh payments every few years. I can buy and use overtime to pay it down fast its just worste case scenarios I need to be ready for.

 

I try to pay off early too but it never seems to go that way for me. I have a hard time starting with new payments every few years, especially if it doesn't go down...which is always my situation

 

I debated the same thing when I just bought my Tundra last week. I did lots of calculating and debating and came to conclusion - especially if you want to ultimately buy it at lease end, and cannot deduct lease payments from taxes - it makes more financial sense to buy. They key is look at amortization table to see what you'd owe after 3 years (or when lease is up). You will see you are probably much closer to having the vehicle paid off versus what you paid in if you just bought. Even with a Toyota and the high residuals at lease end (may have equity).

 

Nissan residuals are probably terrible. Don't lease!

 

Yes, absolutely agree regarding lease purchase. You are basically overpaying for a certified preowned 3 year old 36k mile Toyota at that point.

 

This is what we might get. 2017 Nissan Armada Platinum. Never looked at Nissan in my life and always thought the Armada was fugly until this makeover edition. 390hp and rides real smooth.

 

I am currently leasing, if I keep it till lease end the residual is set at $25000, I can buy it for that or walk away. I have seen lots of 3 year old tundras selling for $32 - $36k, so if that trend continues it could make sense to buy the truck I have now.

I tend to trade every 3 years or so. Have not decided what I am going to do with this one.

 

Why the Nissan armada? Too good of a deal to *not* consider? Need the space?

Why not stay in the family and look at a 4Runner/sequoia/land cruiser based on your budget and/or needs? Not trying to be a Toyota fanboy but just curious?
My wife had a 2004 Yukon xl with 275k on it that ran like a top. She just didn't want it to finally break down when it's -30F and a whiteout up here. So we did a 2016 4Runner for her. While I was familiar with the quality and capabilities of the 4Runner (not to mention how well it holds value) I was so impressed by the Toyota that when my 2005 sierra bought the farm I jumped in my current Tundra and never looked back.

 

Also, if you've already priced the lease with <10k miles/ year and it's only $80/month cheaper than buying?
The dealer is trying to pull your pants down on the lease and will get an absolute *mint* rig he can sell in 3 years for 5/6 of the price of new.
I'd definitely buy. And maybe wait til Memorial Day weekend for some good financing options/deals.

 

The 4runner is too small, the sequoia felt cheap was out dated and my head kept hitting the roof, the land cruiser is about $25k more than I wanted to spend. I'm a detached GM guy who no longer holds a car "family" Nissan is a stretch but it fit. Great room, luxery feel, V-8, 4x4 best towing in its class...

 

Gotcha. I was a former gm guy as well. Wife's Yukon was previously mine. Didn't plan on staying "GM family" but just worked out that way. Now I'm definitely a Toyota guy and will likely keep new vehicles "in the family".

Maybe do another Honda Accord (wife had an '08 - it was a great car).

 

Never lease. Leasing is good for dealers not consumers, they lure you in with a lower payment but your renting a car for 3 years at the end you've got nothing and have to do it again. Just a way for dealers to guarantee repeat business.
Dealers love it since they get paid by leasing company for the car when it's new, 3 yrs later you turn it in they buy it from leasing company cheap to put on used lot. Then you get another new car they get paid again...

 

With the difference only being $80/mo why not buy?? If you get into a poor financial situation you can trade it in for something used and lower your payment. The cost difference doesn't seem high enough to warrant a lease.

A year ago my wifes car was falling apart and was worth zero in trade (sold for $2k on CL). We went into Toyota and they put us in a new 4Runner with nothing down for about half what it would have cost us a month to buy it. Yes, we are constantly watching mileage and yes it is like we are renting it. BUT my wife and kids will be in a new car every 2-3 years. If we were to buy I would have had to do a 7 year loan (still paying much more than we do now) and at the end of 7 years you have a car with over 100k miles that you want to trade in anyways. For us it made sense...

 

Something else to consider, I'm guessing in 3 years when lease is up interest rates will be higher than now.
I say buy. I had a new 87 hardbody p/u and beat the hell out it. Construction and off roading. That thing was great. Nissan is pretty solid. That being said, after getting older and being a Chevy guy (full sized trucks) will stay with Toyota from now on. Never had to call for a tow in an import.

 

We had a leased Nissan Altima once. Will never again lease from Nissan. They nickel and dime us when we turned the car in. I argued that it was normal wear and tear and they weren't having it (tires with low thread, but still good and some dings and scratches). Also didn't want to work with us and give us a deal to buy it at the end of the lease. So vowed never to go to Nissan again. Toyota and Honda have been great with that.

Only benefit of a lease is you can get a good car that you normally couldn't afford since payments tend to be lower. Also, you're basically under warranty for the entire length of the lease and if a good car. And if it is a car that has a high resale market, car dealerships will give you good $$ on the trade in. And yes as @Sean266 said, you are paying more since you are in essence financing twice and paying more interest in the long run.

Owning, well you know. But as @SOB said, for $80 why not just buy? If it was $300 difference, then I would lease or get a car you can actually afford (not you, you. But "you" as in generally speaking LOL).

 

To be honest... If the budget is too tight for $80, then you should really consider a lower priced/optioned vehicle.

PMG

 

What is the price difference between buying a lower trim model and leasing a Platinum?