The buying vs Leasing opinion thread

Sounds like fairly old cars so I get that you got bored with them or that they become money pits. If I were in your shoes I'd want to but something else too.

You can get some pretty good used cars for R100k ~R150k. You can afford R3k a month and I guess your Citi Rox should fetch a decent trade in value. What is the age/mileage on the Rox and how much to you still owe on it?
 
Rouxenator said:
Sounds like fairly old cars so I get that you got bored with them or that they become money pits. If I were in your shoes I'd want to but something else too.

You can get some pretty good used cars for R100k ~R150k. You can afford R3k a month and I guess your Citi Rox should fetch a decent trade in value. What is the age/mileage on the Rox and how much to you still owe on it?
Click to expand...

Renault gave me a trade in quote of R60k which is close to settlement. This is about retail as well for the car if I look at the same model on gumtree... this is kind of why I am considering a new car(Clio). It is a 2009 model with 105k on the clock.
 
Rouxenator said:
That's a good trade in deal, how much do they want for the Clio? If I was in your position I would want a slightly larger car, preferably German, this seems like a good deal apart from the colour. http://www.autotrader.co.za/used-ca...ssentia--fpa-0c3fb71569a34ffa9ab74af3950070b1 2011 with less than 60,000km on the clock for R110k.
Click to expand...

Here is the deal I was looking at and was the reason why I started looking at different finance options. http://www.renault-westerncape.co.za/specials-new/renault-clio-blaze-noeposit

There is a lot of good new and second hand cars on the market that I am looking at as well as different finance options. This is not really the issue.

The reason why I started this thread is to find out why there is so much negativity around leasing? I have spoken to people who had both installment sale and leasing in their life times. They were able to say yes leasing is good and yes installment sale is good. It depends on your needs and reasons for using either.

Then I talked to people that has no experience with leasing and the same phrase comes up "it is a way to live beyond your means". This is something I am trying to understand.

So far I can see both options have pro's and cons and whether leasing or buying is dependent on a lot of variables. I can also see that there is a lot of people that has no experience or is uneducated with leases but are very opinionated about the subject.

This is what boggles my mind.
 
Last edited:
And another thing that I find really funny is how clueless sales people at the car dealerships are. I have spoken 2 different new car sales guys and they both referred me to their financial administrator that works with the applications.

In both cases(different dealerships) the financial and sales people could not answer my questions around leasing. Why? Howcome the places that offers the option cannot answer the questions around the subject. The default is always installment sale. Again the problem to me seems to be education.
 
There are no concrete measurements by which you can say buying or leasing is better. However most people will try to avoid debt because in the long run the interest is more so you end up wasting more money. Considering the way our economy looks now I would say avoid debt as much as possible. If you trade in your Rox make sure they give you a good trade in on it and/or also try to negotiate the price on your new car.
 
terencej said:
Here is the deal I was looking at and was the reason why I started looking at different finance options. http://www.renault-westerncape.co.za/specials-new/renault-clio-blaze-noeposit

There is a lot of good new and second hand cars on the market that I am looking at as well as different finance options. This is not really the issue.

The reason why I started this thread is to find out why there is so much negativity around leasing? I have spoken to people who had both installment sale and leasing in their life times. They were able to say yes leasing is good and yes installment sale is good. It depends on your needs and reasons for using either.

Then I talked to people that has no experience with leasing and the same phrase comes up "it is a way to live beyond your means". This is something I am trying to understand.

So far I can see both options have pro's and cons and whether leasing or buying is dependent on a lot of variables. I can also see that there is a lot of people that has no experience or is uneducated with leases but are very opinionated about the subject.

This is what boggles my mind.
Click to expand...

It's what someone else already mention. Instead of getting the same car at a cheaper rate, people get a more expensive car and stretch themselves financially. That's why.
 
terencej said:
So far I can see both options have pro's and cons and whether leasing or buying is dependent on a lot of variables. I can also see that there is a lot of people that has no experience or is uneducated with leases but are very opinionated about the subject.

This is what boggles my mind.
Click to expand...

It has been pointed out to you a number of times already why leasing is "bad" in SA. It is really only something for the wealthy. it has been pointed out to you why buying a car, with some disciplines attached to it, can actually help a person in the future.

Seems you are just sticking your head in the sand because you really want that "better" car right now.
 
Splinter said:
It has been pointed out to you a number of times already why leasing is "bad" in SA.
Click to expand...

Yes, the entire fallacy with the OP is that always having a new non-boring car is some kind of a real necessity - thus justifying an otherwise unjustifiable lease model with a cycle of debt without ownership. He also over-states maintenance costs on a 3 year old 36 000 km vehicle. As OP stated, he is not paying less on a lease (without ownership) as he would on an installment (with ownership) to take advantage of the other 'advantages of leasing'. He is rather just paying what he can/wants.

The only real justifications that I can see for leasing is for capital constrained businesses (i.e. using the vehicle as an asset to generate income), for when you are 100 % certain you can get a better return on capital over 3 years (but he does not have the capital anyway and good luck with that in SA at the moment. This also does not justify paying the same for a lease as what you would pay for an installment with ownership) or if you are only planning to be around in the country for the exact lease period and are worried about selling easily (not too much of an issue with most cars).

Sorry - whenever people rail against 'the system' and complain about being perpetually poor and complaining about rich bankers- they are usually doing these kinds of things to themselves so they can show off their bank's car to their friends.
 
******99 said:
Sorry - whenever people rail against 'the system' and complain about being perpetually poor and complaining about rich bankers- they are usually doing these kinds of things to themselves so they can show off their bank's car to their friends.
Click to expand...

I fell for this once, never again, current car (325i) is now past the 5 year mark, settled the debt in Jan and will never get such an extended finance deal ever again, at least I had enough sense to have it with zero residual and it was at prime -5%.

The next car will be one that I pay off in my sleep in three years or less with zero residual, I don't care at all anymore if that means downgrading somewhat, I'm not playing this game anymore.
 
A few years ago I had a Company car. The Powers That BE changed the rules to return on investment. I suggested that we change to an allowance scheme.

Under the scheme I would have been entitled to a Merc. I bought a Camry, and a Corrola for my wife for the same amount. I used both cars to maximize their tax advantage.

My colleagues, went the whole bundle, with new Mercs. I feel nothing for the guys using money to impress. I know which approach makes sense, and it is not penis substitutes.
 
******99 said:
Sorry - whenever people rail against 'the system' and complain about being perpetually poor and complaining about rich bankers- they are usually doing these kinds of things to themselves so they can show off their bank's car to their friends
Click to expand...

I did not once complain that I was poor. Please read the entire thread. I was complaining about people not knowing anything about leasing but has an opinion about it. Exactly like your worthless opinion about complaining about rich and poor...

I am also not going against the so called "System" that you are referring to. I am just questioning everything so that I can understand it. I do not just follow like sheep. I want to know why I should do what everyone says I should. I was questioning why buying is better than leasing. Why is leasing so popular in the US and not here? Why people that does not know anything about the subject has opinions about it? Why people working at dealerships has no clue about it?

Apart from some totally out of context assumptions and comments, I have had some good advice on this thread.


Splinter said:
Seems you are just sticking your head in the sand because you really want that "better" car right now.
Click to expand...
I did say that I am looking at all finance options and not just sticking my head in the sand. eg.
terencej said:
There is a lot of good new and second hand cars on the market that I am looking at as well as different finance options. This is not really the issue.
Click to expand...

My frustration is not with taking an installment sale. Which is probably what I will do with all the good advice I got regarding leasing In SA it seems the banks makes leasing useless to private buyers. My frustration was with the people that did not know anything about the subject but had an opinion. My other frustration was with the car dealers that had no clue about leasing when I asked them.

And I did post a link above to a renault clio. And previously to vw with the buy back option on Polo's. I would hardly classify a clio or polo in the same class as Merc or 'Show off' status as a lot of you are doing.
 
Last edited:
terencej said:
And I did post a link above to a renault clio. And previously to vw with the buy back option on Polo's. I would hardly classify a clio or polo in the same class as Merc or 'Show off' status as a lot of you are doing.
Click to expand...

Any car can be a show off depending on your financial situation.
 
terencej said:
Why is leasing so popular in the US and not here?
Click to expand...

Ask yourself about every other major problem in America and then you'll maybe come to a conclusion yourself.

America is all about consumption.

Consume and throw away.

Shocking medical system, massive meals and drinks. Huge card and motorcycles.

Everything in excess.

Of course leasing woukd work there because they are absolutely hung up with the Jones' next door.

Nobody owns anything. Everyone just consumes and is ultimately poorer for it.
 
its pretty clear that this guy just wants some confirmation that him buying a car on lease that he otherwise cant afford is a good idea.

in fact even standard installment sale by default means you CANNOT AFFORD THE CAR. you are using the banks money.

Grow up, get some financial savvy and save up for a car that you buy WITH YOUR OWN MONEY.

neither installment sale or lease is a good idea.
 
FalconZA said:
its pretty clear that this guy just wants some confirmation that him buying a car on lease that he otherwise cant afford is a good idea.

in fact even standard installment sale by default means you CANNOT AFFORD THE CAR. you are using the banks money.

Grow up, get some financial savvy and save up for a car that you buy WITH YOUR OWN MONEY.

neither installment sale or lease is a good idea.
Click to expand...

Actually no. I am as of today purchasing a car normal installment sale(Renault clio).
I just wanted as much info as possible about the other finance options. And I had to question everything to get the info I needed as it seemed that a lot of people gave opinions without fact.

And with some of the good explanations and advice I got here I find that in SA leases are crap. Got some good info from this thread.

And your comments are not really helping or relevant in today's terms if you say you can not afford a car if you have to finance it. I do agree with buying cash would be best. But come on dude, it is 2016. GROW UP. If you can afford to buy a reliable, fairly new car cash then hats off to you. But I can guarantee you that 95% of the working class today can not do that. I am sure most people on this thread had to finance their vehicles.

If everyone that commented on this thread bought their car for cash I would be very surprised and feel very dumb.
 
Last edited:
terencej said:
I did not once complain that I was poor. Please read the entire thread. I was complaining about people not knowing anything about leasing but has an opinion about it. Exactly like your worthless opinion about complaining about rich and poor...

I am also not going against the so called "System" that you are referring to. I am just questioning everything so that I can understand it. I do not just follow like sheep. I want to know why I should do what everyone says I should. I was questioning why buying is better than leasing. Why is leasing so popular in the US and not here? Why people that does not know anything about the subject has opinions about it? Why people working at dealerships has no clue about it?
.
Click to expand...

I did not say YOU were (though those comments about not being able to afford a proper installment/bond/milkshake make me wonder). I specifically said "PEOPLE". Who is making assumptions now?
 
terencej said:
Actually no. I am as of today purchasing a car normal installment sale(Renault clio).
I just wanted as much info as possible about the other finance options. And I had to question everything to get the info I needed as it seemed that a lot of people gave opinions without fact.

And with some of the good explanations and advice I got here I find that in SA leases are crap. Got some good info from this thread.

And your comments are not really helping or relevant in today's terms if you say you can not afford a car if you have to finance it. I do agree with buying cash would be best. But come on dude, it is 2016. GROW UP. If you can afford to buy a reliable, fairly new car cash then hats off to you. But I can guarantee you that 95% of the working class today can not do that. I am sure most people on this thread had to finance their vehicles.

If everyone that commented on this thread bought their car for cash I would be very surprised and feel very dumb.
Click to expand...

As long as the car is working for you (enabling you to make money) ans you aren't working for the car (it's so big an expense you need to sacrifice other things) then financing it is all good.

We would all love to buy our cars cash. Then we would either have very ****ty cars or so much money we wouldn't be in here.
 
******99 said:
I did not say YOU were (though those comments about not being able to afford a proper installment/bond/milkshake make me wonder). I specifically said "PEOPLE". Who is making assumptions now?
Click to expand...

So you made a comment without it being relevant to this thread then?
 
You must log in or register to reply here.
Back
Top
Sign up to the MyBroadband newsletter
X