Used 2010 Prius or Lease 2012 Volt Premium?

I would never lease a vehicle. It's just throwing money away. At least you will have something with the Prius when it's over.

 

. I will sell you a 2010 Prius option 3. JBL speakers, sat radio, navigation system, backup camera, solar roof. Majority of miles are distance miles. 60,000. I am not the type of person who leases. I buy it to drive it and would exceed the mileage limits in a heartbeat! If you want to work up numbers let me know. I'm in the mood to shop for a plug in and compare volt to Prius. Ive seen the newest Prius ?5? which is a bit larger than the standard Prius and smaller than an SUV. Anyone want to comment on the Prius ?5?

 

If you need the car for business - leasing is the way to go.

If you need the car for personal use and intend to hold onto it for a number of years - buying is the way to go. Sounds like the deal your looking at w/ the Prius is pretty good. Good Luck.

DBCassidy

 

Hard to say....but you're very nearly always better buying rather than leasing.
As stated above, if the car is for personal use??? I would never lease.
18K is a little steep for a base 2010, and I would never consider a 60-month loan term for a 3 year old used car however (comma!) money is CHEAP now, and you might be better off in the end financing the 2010 and getting to keep the car when you've paid it down. The fact that Priuses have a high resale value is proof positive that leasing one is a helluva smart move financially speaking........if you're the leasing company that is!

New G3's are going for about $23,000 OTD (or a little over $400 over the same 60 months) and the car is three years newer, and so for some---THAT might be the way to go.
You could drive it for a few years on LOW interest, and then be the one trying to sell it for $18,000 when you're tired of it.

If you're a low mileage driver?
I'd shop a little harder for a used G3, go for a 36-48 month term, and let the car pay you back by being dependable and cheap to drive and maintain.

It really is hard to say without knowing your driving needs, debt-to-income ratio, etc....

Good Luck!

 

Leases are more complex to analyze. Mostly it depends on how fast you want new cars. I am a buy and hold type (10-15 years) But if the lease buy out is reasonable it can make sense even from that view, especially if you would not otherwise qualify for a tax credit. To make a fair comparison look at the residual/buy out price and then think as something you might finance for the next 3 years -- then factor how much is a newer car worth to you.

 

lease a pip, i hear they are reasonable right now. that seems like a very high payment for a used 2010, have you looked at new?

 

You're "throwing money away" on all vehicles; they are not investments, they are costs like your power bill or gasoline or food.

I am leasing my Prius at a base rate of $179/month. To buy it would have been $450/month. Now who's throwing it away?

Leasing is a valid tool, at times it makes sense and at times it doesn't.

In OP's situation I would lease that Volt to be honest. I've run the numbers in my head and it is costing you more per month but I'd rather the "fun" of a new volt with leather than a used Prius.

They are and I think most people cannot analyze the numbers properly, and thus jump to the "never lease" idea. This Prius is the first car I ever leased--first I ever even got new. Analysis of its cost over the years led me to the conclusion it was a perfectly sound decision.

The proper mindset necessary when evaluating the way to get a vehicle is one few seem to appreciate, which is that no vehicle is an investment, ever (rare exception: antique car that increases in value). They are all costs. You can increase or decrease that cost based on age of vehicle, taxes you pay (e.g. pay tax on full purchase price of vehicle if bought or only on the capital reduction if leased), brand of vehicle, cost of gas, insurance. Other factors: reliability, warranty coverage, safety features. Yet another is interest rate or money factor, another what's your life situation at the end of a lease (will you have a large family and want to ditch the vehicle, for example).

 

You left out the fact that when it is paid for and you no longer make payments on a good vehicle you are financially ahead.

The only reason I would consider a lease is to possibly test out a new product like a plug-in. Right now I just don't think the new technology is developed enough to take the risk.

 

I typically don't lease.
However, in the case of the Volt I made an exception.
First, the lease deal was a pretty dang good deal. Second, PHEV and EV technology, in my opinion, as well as the options, will be expanding greatly over the next 2-3 years. Leasing gives me the chance to pay less than I would by buying for a short timeframe.
Last,I don't trust GMs quality of their product or of their dealers. Leasing gives me a chance to test the waters and see if they really have changed.

 

I never left this out. It's simply another number to be considered.

Simple example:
My Prius was $22,500. With tax and then split payments over 60 months the cost per month is around $430/month for 5 years, or $25,800. Same car leased for 3 years, then keep leasing a new one each 3 years is $220/month (I got a great lease deal--I don't expect to be able to match it). Thus, it takes me 9 years and 9 months of those payments to pay the same that I paid on the new Prius--$25,800.

So in case 1 I financed a new Prius. In case 2 I just kept leasing every 3 years. It took almost a decade to catch up to that financed Prius in money spent (I've not included repairs/maintenance on the older Prius yet). At the end of 9 years 9 months of leasing I have nothing. At the end of the financed Prius I have a decade-old Prius (yaye?). It has some value, but it also had maintenance items throughout that time (a leased vehicle has only oil changes; you'll spend essentially zero on repairs of any kind or wear items and zero on possibility of big repairs like powertrain), not to mention that for 6 years and 9 months of that period I was driving an older car, with older or non-existent accessories, and older safety features. In the end if you run the numbers you'll see the financed one is financially a little bit better--not by much--and you did lose out because you were driving an older car for most of the period. We're talking a few grand difference here, nothing major, for the "luxury" of driving a car never older than three years. In the grand scheme of things it's not a lot of money to throw away on something you spend a lot of time in. I get no better a night's sleep with my current bedroom furniture than I would if I'd bought a set of particle board junk from Ikea. Money always finds somewhere to go.