Difference between Leasing a car and Financing it?

Question

is financing the car a way to set up how u gradually buy it over time, Which would you recommend

Answer 1

Read the fine print before signing, for some it's the way to go, would I no.

Answer 2

The reason why a lot of people lease cars is because two out of three people trade their car every two to three years when the warranty is done. If those people financed for five or six years like most of us have to, to get an affordable payment, they usually owe more on their car than it is worth and they end up rolling some of that inequity into their next vehicle and raising the payment even higher. If you lease, first of all, your payment is usually lower, second of all, you are only paying for the depreciation of the vehicle. When you get to the end of the lease, you have an option to purchase the vehicle for the residual value, or simply the unpaid portion. If it's not worth that amount, then you simply hand the keys to the dealer and start over and you let the lease company take the hit when they sell the car at auction. Just be careful when you are structuring the lease at the beginning and make sure you set it up for the miles you will drive so as to not be charged for excess mileage. I wouldn't recommend a lease any longer than 36 months. And by the way, a lease is not more profitable for the dealer. You can negotiate the selling price in a lease just like in a purchase. The dealer makes out because there is a pretty good chance he is going to be able to lease you another car in 3 years instead of taking you out of the market for 5 or 6 years with conventional financing. I recomend leasing to my family and friends.

Answer 3

Leasing isn't as bad as some people make it out to be. Best things is that usually no downpayment is required and the monthly payments are hundreds lower. And the best part is you can walk away from the vehicle without worrying about selling it at the end of your lease. While many financed cars are usually upside down (worth less than they owe).

Dont be scared away from leasing because you don't understand it. There are many benefits to it. You can also find short term leases at swapalease.com. Where leasees are looking for someone to take over their leases and many are willing to pay you to take it off their hands.

Answer 4

When you Finance you are buying the car. A lease is when you basically rent the car for a time and then have the option to buy it later or to lease another car.

Answer 5

Leasing is renting. At the end of the lease contract, you have a pile of receipts. But nothing else.

Financing is purchasing on time. At the end of the contract, you have a pile of receipts AND a paid-for car.

I would never lease. It's virtually always a terrible deal for the ordinary driver. It may be of value for some business users due to the tax treatment of leases. But for a private individual there are no tax implications so it's normally a bad idea.

Answer 6

buy it...but negotiate a good price.

if you dont have the money...finance it. it will be yours in about 5 years.

dont lease it unless you are rich...it will not be yours after 5 years. and you still pay up the ying yang.

leasing is mainly for people who want to change cars freaquently. if you have that kind of money then go ahead and lease. dealerships love leases becuase they are more profitable.

Answer 7

Hi,

To lease or buy depends on numerous factors and each has it's own advantages and dis advantages. It also depends on each individual circumstances such as the amount of driving you will do, how long do you plan on keeping etc.

The best site for this information is listed below.

Jerry Christopher
http://www.usedcarwise.com

Answer 8

save your money, buy used. leasing and financing only make the other people rich.

Answer 9

leasing a car you part for the part you use. buying the car you pay for the whole thing