[dharmama]

We have two kiddos, a big dog, my DH is 6' 3"...and drive a 2000 Toyota Corolla. It's a reliable car. Has a/c. Gets us where we need to go (albeit a little squished) and I've been totally committed to making it work as long as possible as we do not have enough money for a car payment right now.

But....

Today I saw an ad for a minivan lease for $139 a month!

(darn. I never use the "idea" smilie and when I want it, it is not working for some reason.

: )

I'm thinking maybe it *might* work for us to lease a minivan/station wagon (whatever...something a little bigger) for a couple of years until my kiddos are a bit older and I can do some part-time work to make some more $$$....but I can't shake the programming of my dad and others saying that leasing is *NEVER* a good idea...throwing money away.

Any thoughts? When is leasing a good idea?

 

[DoulaClara]

We are buying out a lease right now on a VW GTI- at the time, it made sense for DH (at the time, boyfriend) to lease as he thought he would be moving on to another car after a year or two. We probably will be letting it go soon for another car- we want to trade it in before it hits 80,000.

But, I'd say that if you are planning on only having it for a short period of time (two-three years tops) and are going to take the time to keep it in very nice condition (oops, I better go clean the toe prints off the windshield of the GTI!

) than leasing is a good option.

Clara

 

[Sydnee]

I guess I too look at it as throwing money away. You still have to put a down payment on it, which you cannot get back. And even if you plan on always leasing, that's a couple grand you loose every few years to get a new lease, kwim? We leased once, before kids, and we'll never do it again. On the other hand, good friends of ours have always leased, and love it!

 

[dharmama]

Ooo...didn't know about the down payment. Interesting.

:

 

[sunnysideup]

If you are someone that buys a new car and trades it in after 3 years, then it makes sense to lease instead of buying with a loan. Most people don't have any value in their car at that point--they essentially just go from one loan to the next--so a lease saves you quite a bit of money.

 

[dharmama]

Oh and don't know where that $139/month came from (well it came from the paper but it must be a bunch of bull). Just looked online and leases for minivans are more in the $500 a month range.

 

[Throkmorton]

The 139 is probably with 5000 down, no options, low mileage for 60 mos. really not worth it.

 

[dharmama]

Quote:

Originally Posted by Throkmorton The 139 is probably with 5000 down, no options, low mileage for 60 mos. really not worth it.

Yeah. If I had $5k to put down I would be buying a car.

Oh well. It was a fun fantasy for a few minutes!

 

[kolszewski]

wow, here is my first post and it isn't even about kids

A lease is a great option if you always want a new car to drive and don't put a ton of miles on. If you are the drive it into the ground sort then you should just continue on doing that. I personally love leasing but I also work for an auto company and like driving our new products. Some leases really are as good as they sound though. Of course you will always have some out of pocket expense for tax, title, and license. But often times you will see these deals and they are zero down (excl the above mentioned items). My friend drives a minivan lease at $189 per month and she put only TT&L money down. So, just carefully weight the benefits but it might work if you really want to do it.

 

[Hippiemommie]

Sorry. I've taken plenty of business and a few personal finance classes and leasing is never a good option. If you have kids you have to worry about any mess they make as you are liable when you turn the car in. You have to worry about being over the mileage and still have to maintain the car. You do have the option to purchase the car at the end but it still doesn't pay to lease. The only way I would ever consider it is if I had absolutely no other option and had to have another car.

Check out Dave Ramsey (who is my fav) and Suze Orman might have something to say on it too.