So a coworker of mine leased a new car over the weekend, and I decided to run through the numbers, or a mid price lease, vs buying a used car as I've been doing.
2016 Honda Civic, EXT. New this car is about 21-22k, to drive off the lot (based on kbb).
$1500 down, $235, down payment includes all administrative fees and first months payment.
1265+(235*36) = 9725
Being a new car, his insurance is also $150 a month, which means another 5400.
So without any gas, or maintenance, he is looking at over 5k a year just to have it.
Ran it against my own numbers... $4200 including new tires, breaks with boots, battery, sparkplugs, complete flush of all fluids, and a bunch of smaller repairs. Insurance is about $75 a month, $900-1000 a year. So comes out to be also about 5k, for first year of ownership.
I do expect it to last another 2 years, for a total of about 3, before I get rid of it.
The big difference is, after the first year, unless there is a breakdown of some sort, I'd done paying. I do expect some problems to crop up... but highly doubt they will exceed 2k a year.
As a result, over the course of three years, I expect to have 4-6K more comparatively, to spend on other stuff, which in my case is fancy vacations.
Also, comparable models dropped in price about 5-6k over the past 3 years.
Overall, the best option financially, is to buy used.
Buying new is also an option, if you must have a new car, but it will leave you in a big hole financially, unless you can pay fully upfront.
The most expensive option by far, it would seem, is still leasing.
Leasing, or financing a new car, is also a greater risk, imo, because in the event of significant life changes, say you lose your job, if you fail to make a few payments, you lose both the car, and all of the money you put into it.
