# Buy a used car, or lease a new one?



## stuber (Jun 30, 2014)

My crack team (my little brother) and I have run the financials and come to the conclusion that buying a 2 year old car, running it one to two year, then flipping it for another 2 year old car, may cost basically the same as leasing a new car every two years.

Yes you have some massive excess miles to pay for at the end of the lease, but the deprecated value of "owned" cars with high miles is in the same ballpark in terms of overall costs. Consider that one needs to always be setting aside cash for the replacement vehicle while running the current vehicle.

More research is in the offing. Specifically I need to compare and scrutinize the lease terms. But it appears that leasing may not be so dumb a way to go.

Opinions?


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## chi1cabby (May 28, 2014)

stuber said:


> My crack team (my little brother) and I have run the financials and come to the conclusion that buying a 2 year old car, running it one to two year, then flipping it for another 2 year old car, may cost basically the same as leasing a new car every two years.
> 
> Yes you have some massive excess miles to pay for at the end of the lease, but the deprecated value of "owned" cars with high miles is in the same ballpark in terms of overall costs. Consider that one needs to always be setting aside cash for the replacement vehicle while running the current vehicle.
> 
> ...


I don't believe doing a normal consumer lease for a car would work. You'd be driving it for Ride-sharing. Check the fine print just to make sure that if it is even permissible.


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## stuber (Jun 30, 2014)

Good point. Could be a sticking point. I also am investigating leasing a certified used car, and commercial open-end leases. 

Vehwee complicated.


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## Sean O'Gorman (Apr 17, 2014)

Buy used and learn how to do your own maintenance. Maybe even buy new if the right previous gen/previous model year vehicle is sitting on the lot.


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## chi1cabby (May 28, 2014)

stuber said:


> Good point. Could be a sticking point. I also am investigating leasing a certified used car, and commercial open-end leases.
> 
> Vehwee complicated.


Brother nothing is simple, cut n dried when it comes to Ride-sharing!


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## LAuberX (Jun 3, 2014)

At .88 net in L.A. / $2.40 minimum plus hundreds of uberX on the road..... Buying for this gig don't fly.


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## stuber (Jun 30, 2014)

LAuberX, are you saying don't buy, but lease instead? Or something else. I need to replace my car,and I need something fairly newish because I have clients aside from UBER who require a newer car. The conundrum is that I go through cars pretty quickly (1-2 years) because of the 50k annual miles.


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## LAuberX (Jun 3, 2014)

My gas cost is .15 per mile, my depreciation / maintenance is .10 per mile

adding another $100.00 per week of car payment would not help my net earnings.

I drive full time 40-48 hours per week (I know that is part time for taxi drivers, sorry)

IF you have other means to pay for the car besides Uber that is a different story.

Buying / Leasing a car to drive for UberX / Lyft is a very, very bad idea.

Leasing is ALWAYS a bad idea. ALWAYS. am I clear?

YOU are not in control of future earnings / costs so no cost analysis based on current figures matters.

my .02


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## puber (Aug 31, 2014)

There is a lease that lets you outwith $2k penalty, which is 2 week pay


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## LAuberX (Jun 3, 2014)

Oh, the Santander Fleese that costs $909.00 per month? The one That you need $1,000 cash or cashiers check to start? (no personal checks for Santander)

($210.00 / week for 4.33 weeks / month) this number from another member on this site.

raise your hand if you have $2,000.00 in your checking account right now.


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## Worcester Sauce (Aug 20, 2014)

LAuberX said:


> My gas cost is .15 per mile, my depreciation / maintenance is .10 per mile
> 
> adding another $100.00 per week of car payment would not help my net earnings.
> 
> ...


LAuberX has it right, in my opinion. The macro concern is the inconsistency, unreliability, and unpredictability of the UBER business model. Who knows what new rules, or arbitrary changes Uber could mandate that might easily destroy YOUR business model. What is to prevent Uber from "outlawing" certain car colors/makes or models... or imposing odometer limits or...you hrt the point. Sound foolish or improbable....spend a couple of hours reading this forum. Oh yes....let's not forget the possibility that you could get "rated to death" and thus deactivated.


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## stuber (Jun 30, 2014)

Thank you all.


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## Barbara Bitela (Jul 14, 2014)

stuber said:


> LAuberX, are you saying don't buy, but lease instead? Or something else. I need to replace my car,and I need something fairly newish because I have clients aside from UBER who require a newer car. The conundrum is that I go through cars pretty quickly (1-2 years) because of the 50k annual miles.


to my knowledge you may not lease and do uber
THEY should get cars OR do deals so we can lease
would really be a lot better for everyone


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## LAuberX (Jun 3, 2014)

Barbara Bitela said:


> to my knowledge you may not lease and do uber
> THEY should get cars OR do deals so we can lease
> would really be a lot better for everyone


Never Lease. EVER. For any reason is my position.

Santander is "They", and at $909.00/month you are working 75 hours per month just to pay uber's lease!


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