buying vs financing?

If you want to have a car payment for the rest of your life, then go for it. However, even the average millionaire will BUY a 2-3yr old USED Honda or Chrysler - why? because they know it makes financial sense.

I bought a used minivan for $6,600 cash last year with 65K miles on it. If I spend $1,000 a year on upkeep and repairs, after 6 years (average length of car ownership in US) it costs me $12,600 total in ownership. In the same time, a Leased Honda Accord EX will cost you $24,768 (not including higher car insurance with leasing) and you will NOT own the car, and I'll still have a minivan worth about $3,000. Thats $4,000 a year that you could have invested, saved, used to pay off debt, etc.

If you buy that same car new, you'll pay it off in 5yrs and spent $28,880 (4K more than the lease in the same time) but you will own a car worth about $11,000.

good luck with your choice.

 

I'd only lease a car if I didn't drive much and never took road trips. Basically if I didn't plan on staying in a city too long.

 

Shouldn't have purchased a Kia?

 

This is the best info in this thread. You're gonna get jobbed acquiring a new vehicle. Buying used cars cash is what I do as well. I just think it makes the most sense.

 

Chrysler.