Leasing a car

cars 003-A

David and I own these cars, a Hyundai Accent and a Toyota Camry.  We don’t lease them.

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A family member is considering leasing either an Audi or a BMW rather than buying one.

A nice aspect about leasing is that you get to drive a new car every three years.

However, if you can’t claim the lease as a business expense on your taxes, it would be like having a car loan that never gets paid off.

This family member is also considering buying a house on the mainland.  Wouldn’t leasing a car be an unnecessary burden?

David and I prefer to buy a new car and then run it to the ground.  That’s what we have been doing throughout our marriage.  We see no advantage in leasing our cars.

9 Responses to “Leasing a car”

  1. Olga Says:

    I have a good friend who leases her cars. I really don’t understand the economics of this. I am of your thinking about cars — when they stop running completely, time for a “new” one. Recently I had to spend $700 for new brakes and new tires. Well, the car does have over 130,000 miles on it so I wasn’t surprised. My friend cannot understand paying that kind of repair bill on a vehicle, so there we are.

  2. Russell Roberts Says:

    Well said. I run my cars ’till it’s unsafe to use them. I pay attention to maintenance and basic repairs. My 2010 Honda Odyssey has 91,000 miles on the odometer and it shows no sign of weakening. My former car, a 1996 Toyota Tercel, was sold with 231,000 miles on the odometer. That car belongs to a UH-Hilo student who still drives it. Aloha, Russ.

  3. DJan Says:

    I’ve never leased a car, either. People who do, though, seem to prefer it. There’s no right or wrong, really. 🙂

  4. dkzody Says:

    People who lease like to have a new car, all the time, without a large expenditure of cash. Leasing allows you to do that. Leasing payments are usually less than purchase payments. But, as you said, you start all over in 3 years and never get a chance to have NO car payment. Works really well for those who have a large income or need a tax write-off. I fall into neither category.

  5. Cathy Says:

    Tax benefits are the main attraction . I liken it to an interest only housing loan, a monthly payment with no long term ownership.

  6. Christine Says:

    Your way makes a lot of sense financially.

  7. honoluluaunty91 Says:

    I lease my car now, for the first time ever. Not sure if it was a wise thing to do, but already, I can’t wait for the lease to expire because it isn’t perfect for me.

    Hopefully, by the time the lease is up, self driving cars will be out. It shall be interesting.

  8. joared Says:

    Friends of mine are leasing a car for the first time with lots of new tech features that now make it safe for her husband to drive again. There will be even more tech features available for their next car when their lease expires which they want. Leasing can reportedly make sense for some people but all the factors have to be considered. One such source, Car Pro with Jerry Reynolds who seems knowledgeable that I listen to his radio car program explains in a FAQ on his web site how leasing for older people can be wise, cost effective and explains what must be done. That said, I think my car which I own will last as long as I do, so I have no plans to get a different car — buy or lease.

  9. Beatrice Says:

    This was a timely post, Gigi, as my brother now leases 2 brand new SUVs for himself and his wife. He has been trying to convince us of the benefit, but we are not convinced. Both our older vehicles, a 2004 Jeep Cherokee and 2007 Jeep Liberty are paid for and we maintain them regularly. True, there are associated maintenance costs with older vehicles, but that’s true of anything that you maintain, and doing so can prevent more costly repairts later. So, I agree with you on buying our cars and keeping them until they need to be replaced 🙂

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