# Car-buy or lease?



## Bettinag (Dec 30, 2011)

Hello,

I just arrived in California and will stay here about 3 years. As I need a car I would like to know if anybody could tell me if its better to buy a used car or to lease a car? Our company got an offer from an expat leasing company but I guess these are pretty expensive (interests 4.75% to 6.50%).
I would appreciate any help/comments!

thanks

Bettina


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## twostep (Apr 3, 2008)

Bettinag said:


> Hello,
> 
> I just arrived in California and will stay here about 3 years. As I need a car I would like to know if anybody could tell me if its better to buy a used car or to lease a car? Our company got an offer from an expat leasing company but I guess these are pretty expensive (interests 4.75% to 6.50%).
> I would appreciate any help/comments!
> ...


Before signing a lease please get all the details about turn-in - mileage, final payment ...

With no US credit history you will be hard pressed to find what you are used to as far as interest rates are concerned even for a used vehicle. There is always the question lease versus used - when will you need repairs? What can you do yourself? How and for how much will you be able to sell when you leave?

Use the search function - we had a poster fairly recently who posted information about an expat leasing company.


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## AmericanAussie (Dec 22, 2011)

As lease agreements are generally 3 years this may be the perfect option for you (unless you are intending on purchasing an enthusiast/classic car to import back home).

Interest rates can be had for 0% when buying new, but that would require a high credit score.

Basically I worked out some calculations myself once when considering leasing and as car prices depreciate quickly here, the cost of the lease over 3 years is basically the same as the amount of depreciation in that time period. However if purchasing, you would need to also consider selling the vehicle when it comes time to leave (time/advertising).

My advice would be to calculate the total lease costs over the 3 years then look for the new price on the same car (cars . com is good), deduct the total lease payments, then compare this figure to what 2008/9 models are selling for currently of the same model/mileage. This will give you an idea as to whether the lease is reasonable.

New car warranty is generally 3 years with extra years purchased quite cheaply.

If you're looking for easy lease is the way to go...


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## Kevlegs (Jun 15, 2011)

I'd be suprised if you could get a lease as a new comer. IF you decide to try, let us know how you get on


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## AmandaL (Feb 20, 2009)

We've been in California for nearly 3 years now. When we were looking for a car, leasing was just too expensive without credit score, despite our company agreeing to sponsor the lease. Remember, as well as the lease, you still need to insure the car.. In the end, we bought a pile of junk car, then upgraded once our credit score had had a chance to catch up with us!


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## Eins (Jun 30, 2010)

Staying "about" any length of time makes a lease less ideal, as leases are firm agreements for a specific time period (and not only for 36 months but quite flexible, from 12 to 60 months, as you need and the lessor accepts). However, terminating a lease prematurely can be expensive. Extending a lease by up to 6 months is, however, possible in most cases.

None of this takes into account the credit issue. To get around that, there are pre-paid leases that still carry the above time frame issue, require full payment of the lease amount minus some reduction and will (like all leases) relieve you of the problem to sell a car at the end of your assignment.

All that said, I would suggest to buy a young used car for cash and keep it for the entire stay, then sell it again. If you are cash-strapped, maybe your employer can help you with a loan arrangement (after all, they control your paycheck and can be sure to get the money back).


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## Bettinag (Dec 30, 2011)

Thanks for your answers. I checked out Lion International Leasing and its just too expensive.
Buying a car turns out to be complicated as well as the DMV is giving me a hard time now as my last name has an umlaut which is written as an O in my visa and as an OE on my SSN....now they dont give me a drivers license....OMG...
So I try to find an insurance who insures expatsand is not too expensive...





AmericanAussie said:


> As lease agreements are generally 3 years this may be the perfect option for you (unless you are intending on purchasing an enthusiast/classic car to import back home).
> 
> Interest rates can be had for 0% when buying new, but that would require a high credit score.
> 
> ...


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