William Shaw

I am shortly moving to the US (Connecticut), for what will probably be a 3 year expat contract, and am trying to establish whether it would be better to buy or lease a car. I have a couple of questions:

Does leasing a car help with building a credit history?
If you lease a car, does it mean you avoid paying property tax on the car?
Is it generally a more expensive option than buying?
Do you get the same warranties etc?

Any advice on Pros & Cons would be a great help.

Elvira

Leasing tends to work out a lot more expensive than buying.

You won't have a US credit history, so you'll get crap interest rate.

If you have the cash, I'd say buy.

(NB: Do a search, there have been a few threads on leasing cars in the US)

And check out Fatbrit's article on financial life in the US!

fatbrit

www.carbuyingtips.com has great advice -- ignore the adverts.

Generally, the only fans of leasing on this site have been car salesmen! :scared:

You won't have any credit and will find it difficult to secure a car stateside unless your company is large and has clout or you arrange it beforehand, i.e. International Autosource. Also, be aware that your lack of credit history and US driving history will make your insurance even more expensive.

Difficult to say what's best for you without more info about your plans. If I were just coming for three years and then leaving, I'd just buy a used one with cash and dump it when I left. This would allow me to save on the insurance as well. However, if I were coming with a possibility of staying, I would start to work on my credit history and might well take a car loan to kick start my credit history.

Bob

Lease only if you know you ain't going to put many miles on it, and you want brand new and will get rid of it within 2 years, otherwise buy...and don't even bother get a new motor, a 3 year old motor will be cheap as chips if you get an american bucket of poo.

and when you get it, you'll still have to register the motor each year and probably get it inspected, plus pay tax on it to your county as well as cost of plates each year.

frrussre

I have leased 6 vehicles in 17 + yrs. Huge fan of leasing, no not a car salesmen. Yes several US friends who pooh poohed leasing are now leasing. Luv that new car smell & never worrying about paying for repairs ($105 per hour). Never having to sell a used car. Assuming 36 months & 36,000 miles, never lease for more then 36 mths. Yes you pay, state tax (If applicable on the payments + any down payment. Must get GAP ins including in the payment, not extra. NO not more expensive then buying, you only pay for the part you use. I constantly, hear "You give the car back & have no equity", why would I have equity, I never bought that part.
Reg. Frank R.

Ray

Or buy a new one ..and take it back with you when you return ....

Bob

problem with a wonky sided steering wheel havin' sod all resale...and possibly dodgy electrics and lights, least lights is an easy fix.

Ray

Your joking ... I have friend coming over twice a year to buy cars and truck to take back to the UK .. very profitable little business...

Giantaxe

That depends. If you wish to have a new car every few years, then it's a fair argument. Personally, I keep cars until they start to become unreliable and then ditch them. That way I save bags on insurance and depreciation. For example, I'm about to donate my second car to charity: it's 18 years old and has 200k miles on it.

As to the original question, a lease will get you a credit record, but at a price:your current lack of a credit record will almost certainly mean a higher interest rate. There are less painful ways to get a credit record, e.g. a store credit card etc.

Bob

on a general motor or special motors?

frrussre

18 years, wow!
Reg. Frank R.

fatbrit

There's a nice trick with a new car loan if you've already got the dosh:
New car: 20k
Ask for a first time buyer loan and offer 10k down -- you'll probably get it @ some crazy interest rate.
On the very first payment, put 9k down (xs to principal only!), then dribble in $100 plus interest a month for 10 months to close it out.
Result: minimal interest payment but great credit start.

Wildandcrazy0525

someone got 20 grand laying around, I seem to have lost my wallet!

fatbrit

In that case, halve the car, the sums and your aspirations. Saturns are okay.

Crispyuk88

LEASE!
If you're just moving here, lease. You might end up hating the place and then guess what? Leasing maybe a bit more expensive, but don't forget that you can buy the car much much cheaper at the end of the lease. Or if you decide otherwise, you can renew it or move on to another car.

I know my dad bought a brand new car a couple months into our move here. 3 years later we're moving back and are losing a substantial amount of money on the car. :scared:

Btw... Saturns suck!