Lease or finance for the habitual car changer?

[blinkme323]

Hi everyone! I just locked in on my MYP with delivery next week, so I'm very excited. That said, I'm debating on whether I should lease or finance this one... I know the Tesla lease is closed-end with iffy terms, but being someone who habitually changes cars, would it be worth biting the lease bullet? For instance, if there is a game-changing improvement to the Y over the coming years, I could see wanting to upgrade, which I would think the lease would be more amenable at that point. By the same token, I only drive about 6-8k miles a year, so I doubt that the depreciation will be very steep with finance.

Really just looking to see if there is any benefit at all to the lease (outside of those that can writeoff). I've leased all my cars for the last 15 years, so this is a paradigm shift for me.

 

[balucipher]

Closed ended lease might hold you in the MY for a little bit longer than usual, which helps you save money on your car ADD

-someone with severe car ADD

 

[z335is]

As someone who is the same way and was going through the same decision process, I decided to just finance it. As of now, resale value on the Ys is very high, so I think you actually get more flexibility out of a finance than a lease. BMW, Mercedes, etc. lease all the way because the inverse is usually true.

 

[blinkme323]

As someone who is the same way and was going through the same decision process, I decided to just finance it. As of now, resale value on the Ys is very high, so I think you actually get more flexibility out of a finance than a lease. BMW, Mercedes, etc. lease all the way because the inverse is usually true.

Yeah, my only worry is that eventually the resale value will to decrease due to competition.

 

[pshifrin]

This is my first purchase in a long time. I've been leasing and leasing and leasing Volvo for years. It was time to break the cycle and due to a change in personal circumstances, will be driving more than 15k a year now and don't want to have to watch the odometer... instead I'll be watching the battery gauge! Seriously though, I think the MF on Tesla leases aren't great where as the loan rate is <2%.

 

[Darren Donovan]

Something else to consider: with a finance you pay the sales tax on the entire purchase price. In a lease, you only pay taxes during the lease terms.

 

[bryan995]

Buying is the smarter financial move by far - and even more so given the MY depreciation rate.

 

[duran505]

"Habitual car changer," I believe you have your answer. UNLESS, you buy and sell your cars every few years too? lol LEASE

 

[trlengle]

Do most car manufacturers offer open or closed leases. I read something that states closed are better for the average person.