Leasing a car… is it really worth it?

My wife and I bought a used Mazda CX-3 about 6 months ago, but she hit a deer recently, and the car was totaled. It was a terrible situation, but there wasn’t much she could’ve done. Now, we’re trying to move forward.

We don’t have a lot of extra money, so even buying another used Mazda for $15k seems tough. I also don’t want to get her a car that’s worse than what she had. We’ve been thinking about finding a really cheap lease for $200–$300 a month with a 2-year term. I’ve never leased a car before, so I don’t know much about it.

People say leasing is good because you avoid depreciation, but I like the idea of having a good car without paying more to own it. Sure, we wouldn’t own the car, but maybe it’s worth it to lease again after the 2 years.

What are the downsides of leasing? What happens if you get into an accident with a leased car? How many miles should we aim for in a lease to fit the average driver? Also, are there brands we should avoid or look out for?

Thanks for any advice!

If you plan to keep a car long-term, I think buying makes more sense. I just ended a lease on my car and thought about buying it out, but the price was too high. I ended up just buying a new car instead.

Leasing has its benefits. You get a new car with an affordable payment, and the dealer often handles maintenance.

The downside is you don’t own the car, and if you decide to buy it at the end, you’ll probably end up paying more than if you’d just bought it from the start. Also, if you keep leasing, you’re basically locking yourself into never-ending car payments.

Sometimes leasing can be a good option if you’re in a tough spot and need something reliable for a few years. Hope this helps!

@Nevin
When you get a car loan, you don’t fully own it either. The bank does until you pay it off. With a lease, you get lower payments, and you know exactly what it’ll cost to buy the car later (as long as you stay under the mileage limit).

Leasing only makes sense if you want a new car every few years. Otherwise, it’s a waste of money. Even if you get a car loan and pay $200–$300 more each month, at least you’ll own the car at the end. You can sell it if you want and get some money back.

To me, leasing is rarely worth it. Sure, it’s nice to have a new car all the time, but you’re spending way more money in the long run. If it were me, I’d get a cheaper used car for a while, save up for something better, and avoid car payments altogether in the future. That’s what my wife and I did. We drove an old Civic for years, saved up, and now we own a Mazda CX-5 outright with money left over for emergencies. It’s not flashy, but it works.

Watch out for the mileage limits on leases. They’re usually 10k miles per year. If you go over, you’ll pay extra. For example, if you drive 28k miles on a 2-year lease with a 10k limit, you’ll owe for 8k extra miles. At $0.15 per mile, that’s $1,200. You can raise the mileage allowance, but your payment will go up too.

I’ve done the math on leasing vs. buying, and leasing isn’t that bad. You’re basically paying for the depreciation with some interest. You’ll spend a little more than buying outright, but not by much. Plus, with a lease, you don’t have to worry about big repair costs since the warranty covers everything.

Leasing is really for people who have a lot of money to burn. It’s not a cheap way to get a car. You’re better off buying if you want to save money.

I always think about leasing as renting a car. It feels like you’re throwing money away unless you just really want a new car every few years. For most people, buying is the smarter option.