Buying out my car lease.

Submitted by Various-Cut-1070 t3_125yxd4 in personalfinance

My cars payoff quote is just about the same as my cars value through KBB. It’s actually about $1k less but adding the fees and all that should break it even.

I’ve never purchased a car, only leased. My concerns with buying is the value of the car depreciating quickly and I end up at a loss. I’m way over my miles on my lease, so it’s either this or trading it in for another lease.

The car is a 2021 Hyundai Santa Fe. I’m just trying to make the best financial decision moving forward. Thank you!

Edit: car value is $24k and payoff quote is $23k.

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Werewolfdad t1_je6mpma wrote

Leasing a car is just buying the most expensive depreciation every 3 years.

> My concerns with buying is the value of the car depreciating quickly and I end up at a loss.

So why would you ever lease since that’s exactly what you’re choosing to do

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Various-Cut-1070 OP t1_je6oprl wrote

Can you elaborate? You’re probably right, I just don’t think I fully understand.

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Werewolfdad t1_je6pp8w wrote

Leasing is buying the first 39k miles.

The depreciation curve is the steepest for the first miles on a car and flattens as you put more miles on a car.

You’re doing the thing you say you’re concerned about

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[deleted] t1_je6uu09 wrote

Yes he is scared of something and doing exact thing and subsidizing other intelligent buyers to have nice car without the depreciation available

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Various-Cut-1070 OP t1_jeb7kl5 wrote

I was taught that leasing is best because

A) you have a fairly new car most of the time that will likely not give you issues.

B) Warranty/Repairs/Maintenance is typically covered for the life of the lease.

C) Short term commitment

I’m really new to all of this. I’m sure I wasn’t taught correctly.

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Werewolfdad t1_jeba5a2 wrote

> A) you have a fairly new car most of the time that will likely not give you issues.

New cars cost more.

> B) Warranty/Repairs/Maintenance is typically covered for the life of the leas

New cars cost more

> C) Short term commitment

Very expensive short term commitment. The financially responsible decision is making a long term commitment to a car and driving it into the car.

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mageskillmetooften t1_je6tvs9 wrote

The only solution when fearing high depreciation is buying second handed.

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