Do you lease or buy your vehicle ?

[Nicholas Weckstein]

I’m curious what the community here has to say. My dads in the car business and swears by leasing. I’m all about wealth building and assets and I think buying is the better option. I’m currently torn between buying new/newer used vs leasing....OR buying an old junker for a few years to keep DTI low. What’s everyone else doing?

[Brian Adzadi]

@Nicholas Weckstein

If you ever get on the Dave Ramsey bandwagon, he will tell you that on the list of dumbest ways to finance a car: Leasing is #1, Car note is #2, and Owning is #3. You are going to rent out a car that is going to decrease in value once you take it off the lot, the same is said for a car note. The insurance on leased cars and bank financed cars tend to be quite higher than vehicles owned free and clear.

There is nothing wrong with buying older model cars and they don't have to be complete beaters that are on their last leg. You can find pretty descent vehicles between 2005-2014 model years with not too high mileage and be surprised how well they run.

Many people will tell you go for a Japanese model car because they are more reliable, and they are right, most are. However, with my experience, it does not really matter. The parts for American cars tend to run pretty cheap, thus repairs tend to be on the cheaper side as compared to foreign cars.

I have a 2003 Volkswagen Jetta and a 2005 Jeep Cherokee, that I own free and clear. Just them being owned free and clear, makes me happy because its like a boulder lifted off my shoulder. I pay $82 monthly (with comprehensive insurance) for BOTH cars. I average a max of $500 in repairs per year. If you do the math, I still come out on top compared someone leasing or has a car note. I plan on running these suckers to the ground and once I do, guess what I am getting again? A beater.

Not having a monthly payment is a blessing, strive for it.