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 on March 29, 2023 at 8:00 PM

#2,458,966

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

Various-Cut-1070 OP t1_je6oprl wrote on March 29, 2023 at 8:13 PM

#2,459,398

Replying to Werewolfdad (#2,458,966)

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

Werewolfdad t1_je6pp8w wrote on March 29, 2023 at 8:19 PM

#2,459,627

Replying to Various-Cut-1070 (#2,459,398)

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

mageskillmetooften t1_je6tvs9 wrote on March 29, 2023 at 8:46 PM

#2,460,578

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

[deleted] t1_je6uu09 wrote on March 29, 2023 at 8:52 PM

#2,460,795

Replying to Werewolfdad (#2,459,627)

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

Various-Cut-1070 OP t1_jeb7kl5 wrote on March 30, 2023 at 7:15 PM

#2,496,572

Replying to Werewolfdad (#2,459,627)

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.

Werewolfdad t1_jeba5a2 wrote on March 30, 2023 at 7:32 PM

#2,497,163

Replying to Various-Cut-1070 (#2,496,572)

> 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.