I heard that leasing a car will cost less than buying one and you can own it later?

Question

even that you don't have a bussiness to claim

Answer 1

I have been leasing for 10 years because I like to have (use) a new car every 3 years. I drive less than 12K miles per year which is very important because milage penalties are excessive. I usually lease the best bang for the buck deal. I will provide and example of why lease if you going to flip cars is better.

2002 Honda Accord LX msrp 20030
actual bargained price 17900++tax(7%) + tag 225 = 19,378

Amount down $1000
Amt Finan 18378 @4.75% for 60 months = $344.71

after 3 years of payments you have paid for the car

344.71*36 + 1000 = 13409.56

Car's trade in value 10000 amount you owe 7877.64

total cost of vehicle for 3 years is 13409.56 + what u owe 7877.64 - what you get at tradein 10000 = 11287.20


to lease for 36 months with 1000 out of pocket upfront is
229*sales tax 7% * 35 months = 8576.05 + 1000(1st payment, title, registration bank fee) is 9576.05

lease 9576.05 is less than buying.

However you must negotiate like a buyer and then n the financing say you want tolease if not they always give you a good lease which isn't.

the lease payment even on a bad lease will be always less than buying and financing.


PS never buy your lease than you do end up paying more than if you bought !!

Answer 2

The cost of leasing or buying depends on your long term ownership plan.

If you plan to acquire a car and use it for longer than the lease term then you should buy the car now. The leasing company is in business to make money and inviting them into the transaction will cost you at least as much as financing the car.

If you plan to acquire a car and use it for the lease term or less, then leasing is a good option and will save you some money in states with sales tax. In states with sales tax you have to pay taxes on the money you pay for the car. If you purchase the car the tax base is the purchase price. If you lease a car then the tax base is only your monthly lease payment each month.

Also, note that the lease payment is calculated assuming a specific resale value of the car. If you are a gifted sales person, you might be able to sell the car after the lease period for more. If so, you should factor that into your cost of ownership.

Ultimately, it's a personal preference that should be guided by your long term ownership plan. If you plan to keep the car for many years then buying it is usually a better choice. If you only plan on using it for a few years then leasing is probably a better choice.

In reality, leases are often used to acquire a car because the lease payments are LESS than the ownership payment. That's because you are only paying for the cost of the car less the resale value whereas when you buy the car you are paying for the whole car (any resale value will be yours to keep).

Answer 3

No, who give you the idea is that?
if you run over the mileage limit, you pay, at the end of the lease, you own nothing. Either you have to pay a ballon payment to keep the car or start a new cycle again

If you buy a dependable car, you can use it for 10 years, after you pay it off for 4-5 years, you own the car and you save the payment in the next 5 years.

What kind of logic of some stupid head giving you the advice is that?

Answer 4

You heard wrongly. Leasing a car costs as much or more than buying. You still have to maintain it and you are responsible for all repairs while you use it. Then, when it comes time to possibly buy it, you won't have paid anything toward its purchase and will have to either finance that, make an agreement with the seller, or pay cash. You can end up paying thousands more for something you don't own than had you bought at the outset.

Answer 5

The payments for leasing the vehicle is less, but in the long run the vehicle will cost you more. At the end of your lease term, you will have the option to buy the vechicle at what ever the buyout price is, and get financing all over again. When you go to buy a vehicle, when you have made all of your payments you are done, and the vehicle is yours.

Answer 6

First, while you're purely 17 years previous, you are able to no longer hire. and notwithstanding if your father and mom leased for you, maximum hire contracts limit all people however the lessee or his/her significant different from utilising the motor vehicle. As for 2013 FRS as against 2014, the value would drop a splash yet sellers do no longer make lots earnings besides on the FRS. So do no longer assume extra advantageous than a pair hundred money drop. as properly there won't be any 2013s left whilst the 2014s come out. notwithstanding if there are, you have got a no longer common time getting the colour, innovations, and kit you like. i'd say pay a pair hundred money extra and get the 2014.

Answer 7

Most leasing payments I see are the same if not more than the actual car payment if you were to buy it in the first place.