To LEASE or NOT TO LEASE

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  #1  
Old 07-31-13, 12:56 PM
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To LEASE or NOT TO LEASE

Daughter is now a PT for Vandy and does home health goes to pts homes.
Daughter now as about 75K on her car.. I was told du to all the miles she puts on a car she ought to LEASE one.. Get a new one every year

OK I'm asking tell me the pro's and con's on this

OD
Tennessee
 
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  #2  
Old 07-31-13, 01:21 PM
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That's incorrect. If she's putting a lot of miles on her car, the last thing she wants to do is lease. For the most part, you can't put more than 12,000/year, or you'll be paying big bucks when you return.
You can't lease a car every year. You sign a contract for 24 to 48 months, depending.
 
  #3  
Old 07-31-13, 02:20 PM
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Agreed...leasing is for people that don't drive that much. Although my neighbors in VA were realtors and somehow they once went with a lease for one car because they could completely write it off. I think it was used for her to drive to the site...sit around all day, then drive home.

Your daughter should talk to a tax Pro (not a tax preparer) and find out if she can write off any expenses. Usually if she is re-imbursed for mileage then , no, she can't. Worth spending $30 or so to sit down with one though. Often uniforms, Professional journal subscriptions, required tools, and such can be written off.
 
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Old 07-31-13, 02:30 PM
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Agree with Guns & Shadie; leases are mostly designed to maximize profits for the automakers. Ever notice 99% of prices shown in ads and commercials for new vehicles are for leasing? There's a reason for that.
 
  #5  
Old 08-01-13, 04:58 AM
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I put on a lot of miles commuting to work. Leasing would be the wrong option for myself, and probably your daughter.
What we'll be doing is picking up a vehicle ~3-4 years old (lower mileage) and drive it until it starts having issues then move on. ~3-4yrs old means it'll cost very little and still have a couple years of reliable life left if it's lower mileage.
Anything newer will have a higher cost per mile ownership and anything older will mean shorter ownership before issues start.
This may or may not be the solution for your daughter. It is however the direction I'm going and has worked for others in my town that do the same or similar 100 mile daily commute to work.
 
  #6  
Old 08-02-13, 10:42 AM
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Leasing is the right option a very small percentage of the time and your daughter's situation does not fit.

These days, 75 K miles is not much, I would not be concerned.
 
  #7  
Old 08-02-13, 09:05 PM
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Whether or not she even needs to replace her car or not depends not only on the mileage, but on the car itself and its characteristics and condition.

As to what to replace her car with, that'll depend on how she uses it. How many miles per month she's driving, long legs between stops as opposed to short legs between stops, how long the car sits between stops, how much equipment she needs to carry with her for work, whether or not there are any severe-service considerations like dust or seasonal hot or cold weather, etc.

One can make the argument that if the driver spends a whole lot of time in the vehicle, it actually makes sense to get the plusher, more comfortable vehicle even if it costs more to purchase and operate, as the plusher vehicle will be less hard on the driver, so long as the added costs are not too much to bear. An acquaintance of mine was a courier for awhile, and his van had premium cloth seats, tilt wheel, cruise control, and power-everything even though it was a cargo van; he was less worn-out at the end of the day than when he had a van that lacked those upgrades.
 
  #8  
Old 08-29-13, 03:41 AM
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Counterpoint: You can build extra miles into a lease. (i.e. 20,000 per year versus 12,000) Yes, your monthly payments go up - but you'll either be paying for the miles monthly, or at lease termination. (You're going to pay for the miles on an outright purchase by accelerating the decline in trade-in value.)

So the question is "When and how do you want to shell out the bucks for the amount of driving you do"?

In this case, your best bet would be to buy a two-year-old car - where the largest percentage of depreciation has already came off, yet the car still has few enough miles on it that it won't start nickel&diming you to death. Then trade it in every two years for another two-year-old car.
 
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