What is the deal with a lease?

Question

My wife and I both have company cars which are very limited for our personal use. So we need another vehicle for our personal use and we thought a lease would be a good option for us. However, upon talking with a dealer about a lease, we were confuzed as to why there is not much difference in the lease payment vs. the purchase payment. I always thought lease payments would be about 1/2 of a purchase payment. Is the dealer looking to make a huge profit, or am I just not that familiar with leases and would other financial institutions have a better lease deals?

Answer 1

Generally speaking :
a 24month lease payment is about equal to a 48 month loan payment

& a 36 month lease payment is about equal to a 60 month loan payment.

Any longer term lease than 36 ( or maybe 39 ) months ..you may as well just buy it.

Probably a better choice for your personal car would be a 1-2 year old "Program Vehicle" such as a Ford Taurus.
My dealership buys them 10-12 at a time & sells them for about half their original price.

1/2 price = 1/2 payment

Look for this kind of deal at your local NEW car dealer.

Answer 2

the only thing a lease is good for is a tax deduction but you cant get it if its for personal use, get a good used car cause you lose a bunch on a new car just leavin the lot

Answer 3

if u dont plan on using it much...as in miles..and also plan to get a new car every 2 yrs a lease is the way to go...free oil changes ect...