When is it better to lease a car rather than buy it?

Question

I want a 2006 or 2007 s2000. They are offering it to me for 36 months at $299/mo + 3700 DAS. Is this a good deal?

Answer 1

As a rule of thumb, if you would like to have a new car every 48 months or sooner you should be leasing. If you keep your car longer than 48 months you should buy. Anyone that tells you leasing is for suckers is not only wrong but not very bright either. Leasing gives you all the benefits of ownership with none of the pitfalls. At the end of your lease term if your vehicle is worth more than your buyout you can trade the car in and take the positive equity to use as down payment on your next vehicle, put it in your pocket, or spend it on whatever you want. If the vehicle is worth less than the buyout, turn it in and walk away. When you lease a vehicle your lease also has gap insurance included. Gap insurance is used when you have a car you owe $20,000 on and it gets totalled out and the insurance company gives you $18000, you have a $2000 gap that is covered by your gap insurance. If you total your leased car, call your salesperson and your leasing company to get them in contact with your insurance company. You will be driving a new car much more quickly. Lastly, on any imported vehicles your payment will be lower on a 48 month lease than a 60 month purchase, and a 36 month lease should equal approximately the same as a 60 month purchase plus it will include your use tax, (which is leasing's version of sales tax).
You also talked about putting money down on your lease. Please understand that money down is a cap cost reduction and only lowers your payment. Like renting an apartment for $1000 a month or with $1200 down $900 a month for a year, you are buying down your payment. I usually suggest keeping the money in your pocket and paying the higher payment. If you get out of your lease early, you will have lost the money down. Good luck and that sounds like a great deal for a S2000.

Answer 2

Leasing has a bad reputation, but it has changed a lot recently, it used to just be for suckers, but I'm leasing and I am actually getting a better deal than if I had just bought it.

It's good because your monthly payments are lower, I have options when my lease term is over, I can either buy own and own the car, or just turn it in and get a new vehicle, etc, so if I want a new car in a few years I have that option. If I decide to by out at the end, it will actually end up being about $1000 cheaper than if I just bought it to begin with.. My lease term is about 4 years, and if I decide to get a new car at that time, that means I won't have to pay maintenance on it once it starts getting older.

If you talk to some car salesmen, the people who know the business the best, you'll find out that a lot of them (all the ones I spoke to) don't own, they lease.

Be cautious, but it may actually be a really good deal!

Answer 3

With present day tax regulations, it extremely doens't make a lot distinction in case you employ or purchase for organization use. Leasing is way less difficult to record and makes administration extra accessible. There aren't any 6 month leases. Nealy all leases commence at 24 months. even with the undeniable fact that, organization leases are really diverse (frequently "open end" really than "closed end") and allow extra flexibility than a familiar shopper employ. leases pay for a automobile's generic fee depreciation in the course of the time the motorized vehicle is on your possession. this is money you in no way come again. even with the undeniable fact that, once you purchase a motorized vehicle, it depreciates through a similar volume and, in case you promote the motorized vehicle, this is money you in no way come again. So, with leasing, you're making a smaller month-to-month price and get not something back contained in the right. once you purchase, you're making a more effective price, in ordinary words portion of that you come again in case you promote on the right. The section you aren't getting back is the same no matter if you employ or purchase. it is an major element neglected through human beings that do not realize leasing.

Answer 4

Everyone should lease their vehicle.....you want to buy an asset that appreciates....why would you want to buy an asset that depreciates like a vehicle......payments and cash outlay are better with a lease......you buy it today and trade it in today with the residual(balance at the end) is bought back by the manufacturer so you can't lose!!.....the only hook is the mileage.....insist on 15000 miles per year and you will be OK...the dealer will work you on the 10 or 12000 per year to make more money off you.....insist on the 15,000 ....also negotiate the best price first.....find out the rate on the note.....if they give youa factor multiply it times 24 to get the actual rate......ask them if this is the buy rate(factor) are they marking it up.......then when you get into "Finance" don't buy "****" on anything they offer you......just say....I don't want anything.....just the payment nothing else........your short term lease is usually within the warranty of the vehicle.......if you die who cares if they take the car back.....leases are almost always covered by free gap insurance by the lender......but once signed up you are married to it.....so make sure it is someone you want to be married to for those three years......if you divorce(break the lease)....you better be ready to pay!!!!!!..................GO YANKEE!!! STINKIN RED SON!!!!!!

Answer 5

Don't bait for low payments, in the long term, if you lease you'll loose more than if you buy. Lease is good if you have very good, stable income and can write off the lease payments from your taxes (e.g if you have your own business). Also check what your insurance payments will be like and what are other lease requirements - like maintenance and mileage allowance, how can you cancel it, what are the penalties, etc.

Answer 6

it is never ever a good deal. you either end up giving the car up after the lease and probably paying extra for over mileage and have nothing to show for 3 years, or you buy it and get totally screwed cause you have a 3 year old car but still owe a lot on it. never ever lease a car. if you can't afford it by buying it outright then don't buy it.

Answer 7

I'm going to refer you to 3 of my previous answers regarding leasing ( I unfortunatly don't know how to 'cut & paste' !)

page 2 of 'my answers' (6 days ago, in voting)
"Walterskk" asks ..whats the deal with leasing?

page 6 of my "Best Answers"
"cheesney" asks about leasing


page 8 of my "Best Answers"
"GoodGuy" asks about leasing

Answer 8

When you have excess money to throw away and insist on having a new car every 2-3 years.

Answer 9

when you have the cash and can afford it because buying a new car is the worst investment you could make new cars drop in value thousands soon as you drive them off the lot

Answer 10

Is is a tax write off?
How many miles do you drive annually?
Think about normal wear and tear and depreciation.