I’m a recent college grad, and I’m making good money as an engineer. I’m currently rocking a 93 corolla with 250k miles on it, so i’d say its time for an upgrade. I’m still a couple months away from getting a new car, but I’m looking at Tundras, Tacomas, 4 Door Wranglers, and 4Runners, which don’t come cheap. I probably wont have too much money to put down for it either.
For now, I’m commutting about 500 miles a week to work, but I will be moving closer within the next year. I keep my cars in excellent condition and I am always on top of the maintenance (as you can tell by my current car). Would it be better for me to buy or lease my next vehicle?
seller
April 2, 2010 at 4:18 pm
Firstly I would not limit myself to those vehicles. I would stop in a few dealerships and ask as some manufacturers have discounts for recent grads.
Lease or buy ? Not knowing your situation completely I would still suggest a lease
deez
April 2, 2010 at 4:52 pm
I would say buy a slightly used one from an Auto Lenders. Theres no use to buy a completely brand new car because they lose value so quickly. If you didnt keep your car in good shape I would say lease because they take care of most of the technical problems. But since you seem to be on top of things go for something where you dont have to worry about mileage and you can call your own.
mousehth72
April 2, 2010 at 5:46 pm
at 500 miles a week you need to buy a car lease cars usually have very low mileage restrictions. like about 12,000 a year after that you pay about .25 cents more per mile hence you would rack up over mileage by about an additional 12,000 miles so 12,000 times .25 equals 3,000 additional dollars for leasing. you definetly need to buy.
kimischillinger
April 2, 2010 at 6:16 pm
they both have pros and cons. Buying ensures that the car is yours, but with leasing you can get most repairs paid for by the dealership. But also with leasing, you will most likely be on a plan that limits how many miles you can drive per month. Based on how much you commute to work it may be cheaper to buy. If you can put at least $2,000 down, your payments will most likely be around the 200-300 dollar mark.
TY A
April 2, 2010 at 7:03 pm
Hey congrats on graduating! Its okay to not have money to put down depending on your credit you might not have to anyway. Especially with most of the vehichles you just named have factory incentives that can be used in place of a downpayment. You should probably buy for the following reasons. Leasing a car means you own nothing, also most leases have a mileage allowance which you would probably go over because average people drive 11,000 miles a year you would do that in six monthes. On a lease if you go over the mile allowance its usually .20 a mile which adds up. Leasing is great if you want to own a bmw or lexus or audi because outright buying those cars is stupid. Anyway hope I was some help best of luck to you!
PMack
April 2, 2010 at 7:35 pm
Why are you only looking at gas hogs? From your list, I’m guessing you like to venture off road from time to time, but all of those vehicles will be expensive – very much so while you continue to drive 100 miles a day.
You should consider buying a new car that’s efficient (Civic, Corolla, something like that) for your commuting, then maybe get a used Jeep or something for your weekend jaunts. You could easily do this for less than the price of a 4Runner.
As for the lease vs buy question – generally leasing is more expensive in the long run – the only way they are good for you is if you hit the mileage almost exactly. If you go over, they overcharge you for the difference, and if you go under – well now you paid for miles you didn’t use. If you decided to go with a two vehicle solution that might work for you since you could use the 4×4 when needed to keep your leased vehicles miles in check.
More to think about!