2006-07-14 16:28:07 · 9 answers · asked by duckface 2 in Cars & Transportation ➔ Buying & Selling
Their are some advantages to leasing a car, but you must be careful. If you travel a lot, a lease is not a good idea because of the mileage limitations and penalties. If you are using for a business, keep in mind that a lease is 100 % percent tax deductible. When you return a lease car, it must in almost perfect condition or you will pay other surcharges.
All the payments made towards to lease car amount to basically nothing because you will still have a large balloon payment. If you travel on occasion and like a new vehicle every couple of years, a lease may be perfect for situation. I don't like the idea of making payments for the rest of my life.
2006-07-14 16:44:29 · answer #1 · answered by Johnny D 6 · 0⤊ 0⤋
Lease is the best unless you want to keep your car past the life of the loan. If you bought a new car with an attractive loan of "0"down, for 60 months with 0 % you will have a depreciating asset. Guess what, as soon as you drive that new car off the lot, you owe more money than the car is worth. Let's say you bought a new car for $24,000. 3 years later you want a new car and want to trade-in your old car. Your 3 year old car with normal mileage is worth $8000. You've paid $14,400 over 36 months. You still owe 9,600 on the life of the loan. You owe the difference of $1600. This is a generous situation. I have seen a lot worse. We call this being, "Upside Down" The same car could be leased for $360 a month. You only pay for the use of the car that you use. Normally it is 12,000 miles per year. Why don't more people lease instead of own? They equate owning vs. renting. Automobiles are a depreciating asset not at all to be compared to real estate.
2006-07-15 01:53:04 · answer #2 · answered by andywho2006 5 · 0⤊ 0⤋
leasing makes sense if you can write it off from your taxes when you have your own business or when you not limited with money.
Leasing is more expensive but at the end you just return your car back and you don't have to worry how to sell it. But you will be left with nothing.
When you buy a car, your payments will be higher but when your car will be paid off you will still have some value in it which you can use as a downpayment for your next car. And the cheapes way is buying not too old used car with good reliability rating (e.g Honda or Toyota)
2006-07-14 23:38:32 · answer #3 · answered by mmd_774 2 · 0⤊ 0⤋
I would buy a nearly new one, and keep it as long as possible. You will certainly come out a winner. Why? What's to say that once your lease ends you will be able to afford to lease another vehicle? It's great not having car payments for a few years.
2006-07-14 23:35:13 · answer #4 · answered by bob c 3 · 0⤊ 0⤋
leasing will give you lower payments, but the car won't be yours unless you buy it at the end of the contract, plus you can't make any changes to the car other than normal wear and tear items
2006-07-14 23:33:23 · answer #5 · answered by Comfortably Numb™ 7 · 0⤊ 0⤋
All the experts say your should never lease a car.
2006-07-14 23:31:47 · answer #6 · answered by The Big Shot 6 · 0⤊ 0⤋
if u have good credit and money to burn, lease.
2006-07-14 23:54:01 · answer #7 · answered by ekstreem81 2 · 0⤊ 0⤋
why pay for something that will never be yours unless you pay the ridicules balloon price at the end.
2006-07-14 23:37:16 · answer #8 · answered by Anonymous · 0⤊ 0⤋
buy its alot cheaper in the long run
2006-07-14 23:31:40 · answer #9 · answered by Anonymous · 0⤊ 0⤋