I've done a lot of searching on this site, but I still have an issue that I can't seem to resolve: Buy or Lease.
Here's the situation: I'm 26, single and finally have a great job (after a couple years of temp work in a poor economy). Luckily, I have no student loans or credit card debt. However, I'm trying to rebuild my savings, so I don't have a lot there either. I was considering buying a 2004 E and with all the taxes and etc. here (Los Angeles) I would need to borrow about $20,000 (trying to avoid a down payment to keep cash on hand, although I could put down a thousand or two). By my math that puts my payments in the $385 range for 5 years. I can swing that, although it's more than I've ever paid for a car.
On the other hand, it looks like I can lease the same car for about $310 for 3 years. If ever there was a candidate for leasing, it's me. I live close to work and drive 10,000 miles or less each year. I don't want to put a ton of money down (none, in a leasing situation). If I were to lease, I would roll some of the saved monthly money (about $50) into a retirement account, so I'm not thinking about leasing just to have extra money for parties.
My arguments for leasing are that I may not want the car longer than 3 years as my family needs change, and that the resale on a 2WD burnt orange box may not be where I'd want it to be if decided to sell it in 3 or 5 years. My arguments against leasing are concerns about the hazy negotiations going into a lease deal (never done it before), my paranoia about keeping it in good condition since it isn't mine, constant checks of the odometer and fear of hefty wear-and-tear fines - even if I did my best to keep it clean and it looked OK to me.
I'm very practical and pragmatic - I have researched this car and this issue to death, but I still can't decide whether to buy or lease. Can anyone help with an opinion? Thanks....
Here's the situation: I'm 26, single and finally have a great job (after a couple years of temp work in a poor economy). Luckily, I have no student loans or credit card debt. However, I'm trying to rebuild my savings, so I don't have a lot there either. I was considering buying a 2004 E and with all the taxes and etc. here (Los Angeles) I would need to borrow about $20,000 (trying to avoid a down payment to keep cash on hand, although I could put down a thousand or two). By my math that puts my payments in the $385 range for 5 years. I can swing that, although it's more than I've ever paid for a car.
On the other hand, it looks like I can lease the same car for about $310 for 3 years. If ever there was a candidate for leasing, it's me. I live close to work and drive 10,000 miles or less each year. I don't want to put a ton of money down (none, in a leasing situation). If I were to lease, I would roll some of the saved monthly money (about $50) into a retirement account, so I'm not thinking about leasing just to have extra money for parties.
My arguments for leasing are that I may not want the car longer than 3 years as my family needs change, and that the resale on a 2WD burnt orange box may not be where I'd want it to be if decided to sell it in 3 or 5 years. My arguments against leasing are concerns about the hazy negotiations going into a lease deal (never done it before), my paranoia about keeping it in good condition since it isn't mine, constant checks of the odometer and fear of hefty wear-and-tear fines - even if I did my best to keep it clean and it looked OK to me.
I'm very practical and pragmatic - I have researched this car and this issue to death, but I still can't decide whether to buy or lease. Can anyone help with an opinion? Thanks....