Should I lease OR buy a new OR a used car?

[Sunrise S]

I have a 1999 Toyota 4runner that is paid off and looks great, but I am thinking of a change. Let's say I get 6,000 should I sell it. Should I use that money towards a brand new car which I've never had before, or lease a car, or buy a used car?What makes the most sense financially in the long run, considering cars depreciate? I also want to enjoy a nicer looking car and upgrade so financially is not the only consideration - not looking for a Pinto. I want to drive a nice luxury car.So 1st one says lease, next two say buy and leasing will leave me penniless...any explanations?Ex. I paid 550/month for 5 years to pay off my used 1999 Toyota I bought in 2002. I just made the last payment this past October, so paid 33,000 minus 6,000 i can get at resale, so 27,000 out of pocket to drive a 1999 car starting in 2002. Was that a good choice? I can put let's say 5,000 down and pay 600/month to lease a nice BMW for 3 years. That comes out to 21,600 in payments plus 5K down = 26,600 just about identical, only I will be out that much in 3 years vs. spread out over 5 years as the former case so I think I just answered my own question on what makes the most sense?To Chris2EM, I just used a car lease calculator - if I lease a 55K luxury car, put 5,000 down at 9% rate for 3 years, it gives the monthly payment of $794.25. Also my yearly milage averages to about 20,000. So this is more costly than I was imagining...I used the vehicle leasing calculator I found at http://www.banksite.com/calc/lease and plugged in the value as 35K after the 3 years, and an 8% sales tax.

[chris2EM]

If you're getting a luxury car with good resale, lease it.Look at new BMW 3 series.(Edit)"I can put let's say 5,000 down and pay 600/month to lease a nice BMW for 3 years. "What car is that?That's way too much for a lease on a BMW 3 series.That's what my family paid for 2005 530i, and that was a $55,000 car.(Edit 2)Holy God!.......Okay! If that's what you think they use to estimate the payment for a BMW, go to a BMW dealer and tell them that's what you want....They would be very,VERY happy to give you a new car! But if I were you, I would stop going to that bull**** site.

[stevechristopher]

Just sell the old car and buy a new car!!!

[Paul L]

buy it, leasing will leave you penniless

[photogal_aly99]

Go to Kelley Blue Book site to check prices on what your car is worth. Be in the know.Cars all have the same issues, no matter how much more one is. The only difference is how much it costs to get it fixed.Leasing is only good if you don't want to pay more than your monthly payment if it breaks down. It's bad if you drive more than 12,000 miles a year (I do 25,000+) and you give it back for a newer one after your lease is up. But it still isn't yours and all that money put into it is lost. If you are finacially set and do not have a preference as to getting the most out of a car, then I would buy NEW. That way, you can sell it for what it's worth. I would buy used, if you want to get the most out of your money but settle for mileage below 40,000.Really, getting a nicer car is no big deal and you will find that out within a weeks time. You still have the huge payment to deal with. A car gets you from A to B.Good luck.Try Autotrader.com also.

[Rafael P]

actually, you did not answer your own question.. what you just did was compare apples to oranges... how do you figure that a 5 yr loan on a used CAMRY is the same as a 3 yr lease on a New BMW? How about if you want to do this the right way, compare a lease on a NEW Camry vs a purchase on a NEW Camry.. THAT will answer your question.As for people who tell you that you should buy or you will not have anything, this is true if you INTEND to go through another 5 year purchase cycle, but if you intend to trade every 3 yrs or so, what you will end up with is massive negative equity after a trade cycle or two.Also, who told you that much for a car payment on a 3 yr lease.. i would get some details on that... with 6k down, that is insane. Sounds like someone is being a little optimistic... get someone who understands leases to go with you and check your cap cost and your money factor, your residual value, and make sure the 6k is being applied to cap cost reductions and the appropriate fees. Also, make sure the miles are ok for your driving habits.. figure how many miles per year you have been averaging, and if there are no major changes that have altered that, you should be good.