Benefits of leasing a car?

Question

My daughter and her husband want to buy a car; but they are undecided what kind of a car
is best suitable for them; they have 1 child.
so they have decided to lease a car to see what is the best. do you think this is a good idea?

Answer 1

My husband and I were in the same situation last year. We decided against leasing a car because we drive well over the amount of miles allowed in a lease...just driving back and forth to work and all. It is good deal if you have a second, primary vehicle and you are just using the leased one for taking the kid to the doctor or to McDonald's a couple times a week, but if you like to make long trips, it puts you in a bind. We purchased a Toyota Camry and have really enjoyed it. It is perfect for a small family and we've not had any problems. I advise doing what we do: Don't buy any brand that originates in the USA (I'm patriotic, but not to the point where I wind up ripping myself off by having to buy a new transmission for my first car, a Saturn, right after the warranty expired.) My entire family swears by Nissan, Toyota and Volkswagon. If you pay a couple thousand dollars more for a good vehicle you are actually saving money because you don't have to make so many pricey repairs. The VW Golf is also a good, gas efficient car that we've never had problems with. Also the insurance on these three brands of vehicles is a lot less than, say, a Ford or Chevy or Chrysler. The cars Nissan and Toyota make rarely change body styles drastically (you know, if they are worried about "being in style" as one of the former answerers replied).

Answer 2

The ONLY benefit I have ever heard for leasing a car is that the payments are lower, which usually means you can get a nicer car for the same money. But, I have never heard any financial adviser recommend leasing.

For one thing, it isn't as cheap as it sounds. There are always extra fees and penalties embedded in the contract. A friend lease a car years ago, she had mileage restrictions, meaning she had to pay a penalty if she drove it more than a certain number of miles each year. She also had to pay an extra fee when she moved to a different state. I remember there were other fees and expenses as well.

I have always heard that the best bargain is a used car. Many still have warranties in place or warranties from the place where you buy it.

Answer 3

It really depends on what they plan to ultimately do with the car. Keep in mind that there are some hefty charges up front, including an administration fee, usually a first payment, possibly freight charges, and on and on. If they decide not to keep it when the lease is up, they lose all they have paid to that point, unless they roll it over into another lease on another car. Then it all goes around the circle again. The third option is to buy the car outright at the end of the lease, and the pay-out is usually no bargain. I did the third option, on a minivan, and ended up paying about 4K more than if I'd bought it in the first place.

Answer 4

1) You have to stay within the mileage they in your agreement.
You could buy extra miles if you know you drive a lot, otherwise they'll hit you at the end for going over.
2) You always have a new car, I love to trade my car in every 2-3 years (if I could afford it).
3) You don't have to come up with much of a down payment, like you would if you were buying.
4) You're responsible for maintenance, which shouldn't be much for a new car.
5) In the end of 2-3 years you paid x amount of dollars and now you'll have to start all over again.

Those are some pros & cons. I would lease if I could afford to always make payments. Since I can't, I buy used & pay if off in 3 years.

Answer 5

Leasing a car is good under the following rules:

1)You have VERY good credit.

2)You are not going to drive more than 12,500 miles per year

3)You are in a stable work background and you know you're not going to lose your job, so you are planning on trading your car in for another one in 3 years.

If the answer to the above quesitons is "yes" then leasing might be a good idea for you.

I was selling cars at Hazelwood Auto Complex in Bremerton, Washington a few years back. Young man said "I need a new car- I've leased this one, its 36,000 miles over its lease limits and I can't afford it"

Went into the sales tower, spoke with the manager Eric, and we did some pencil work to see if we could make it happen. This kid was about 23, and about 12000 dollars "upside down" as it was!

I told him drive it home, jack it up, put it on blocks, put an extra 10psi in the tires, remove the spark plugs, and put a few drops of oil in each piston head- use like 90 weight- and disconnect the ground lead on the battery, and throw a tarp over it for the next 3 years. I showed him the numbers- his penatly was like 15 cents a mile or some outlandish price. So I told him to mothball the car, for 3 years, then trade it in so the time would catch up to the car's expected mileage.

Knew a guy who leased a car to his Dad, (He was another sales person) who sued his Son when he felt he got screwed.

Put a young couple, similar to yours into a nice 36 month lease, they loved it- price was right, insurance was right, and they were wonderful customers!

So it can work for you if you're one of those kind of people

Answer 6

Leasing would not help them, because they would still be locked in to a long period of time. What would be a good idea is to rent a car for a week, for an "extended test drive" to see if they like it and it fits their needs!

There is a difference between leasing and renting. Leasing is an alternative way to finance a vehicle, with set terms and conditions. Renting is temporary use of a vehicle, usually for a period under 30 days!!!

Renting a couple of different cars to compare them in normal everyday use, prior to deciding on a purchase is a very good idea!!!

Answer 7

Generally speaking, leasing is a bad idea. It is best used by people such as real estate agents that need a nice car for business purposes.

Otherwise, leasing is only a good idea for the type of person that insists on a new car every time they pay of their old car. This is purely a choice based on personality and disposable income.

Answer 8

Well first if she want to lease a car the minimum she can do it is 2 years , there is no benefit for her meanwhile. is better for her to rent a car that she like and if she is absolutely satisfied then she can buy it at any dealer but tell her to do not do any lease or also she is going to be tied for long time.

Answer 9

the benefit is that you have lower monthly payments, and at the end of your 2-4 year lease, you are not stuck with a used car that is no longer worth what you still owe for it;so you can have a new car every 2-4 years and not lose money on a depreciated vehicle.

Answer 10

the advantages to leasing a vehicle is that you can change them out every couple of years or so,they are covered by a warranty(as is a new car). the bad thing is that you onlny have so many miles that you can put on the vehicle. so if they travel alot or have to drive alot then to lease is not a good idea. it is reallly not cheaper either way but you have to decide what is more accomidating for their miles that they drive.