My Situation to Ownership - Your Advice???

[luxury1]

I am 28 and am building a house. In the 3rd bay of the garage I wanted to put a '05 or '06 boxster. My wife and I already have cars that we own and this would be our 3rd fun car (summer and such) so we are not going to be putting on a lot of mileage on it. We are planning on having kids in the next 2 years. Thus, my question is should I lease or buy? I have been reading a lot of maintenance costs of the higher mileage and I am not sure which way to go especially since the thought of walking away is attractive. Any input would be GREATLY appreciated!

Thanks!

Luxury1, only you know your true financial picture. For us to give advice is difficult at best.

One question you need to answer is how long you plan on keeping a potential 3rd car. If you are planning to keep it for a long time, leasing usually makes little sense, ....to me at least. For example, you're not "leasing" (renting) your new home, are you, you are purchasing it, over a period of time.

I think leasing is for people who can take advantage of the tax implications and this is usually for people who have their own business, and can write off some of the expenses.

Leasing also works in some cases for people who want a new car every couple of years.

Lastly, having kids is a very expensive responsibilty. So work hard and save-up for them too.

Good luck in your thought process!

[tqtran]

If you really want to take advantage of leasing I would:
1) Lease the car for a couple of years
2) Write off your lease payments, thus reducing what you have($$$) in the car itself
3) When the lease is over, buy the car at a low depreciated value

But since you are still the original owner, think of it as buying the car NEW but at way below MSRP. You also still have the option to not buy it as well if you so choose. Best of both worlds I guess...

[MNBoxster]

Hi,

Another negative about Leasing, given your description of the Car's use is the limited, seasonal use/mileage you anticipate.

Since leasing is basically a long-term Rental, you'll be paying for something which you don't use. At least buying (Financing) it gives you an asset at the end of the term and lower mileage helps maximize the Resale value.

But, again, as was stated, only you can gauge whether your personal Financial situation favors one or the other...

Happy Motoring!...Jim'99

[luxury1]

Thanks for the info so far! Let's say I leased it for 36 months with $5K down. At the end of the lease program, how much might it cost to buy the car if let's say it was worth $47K to begin with?

[BuffaloBoxster]

I paid $31k for my 2001 that came off a similar lease to the one you described - although I didn't lease the car I bought it from a dealer who bought the off-lease car. But that should give you a ballpark figure.