Buy or lease?

Question

Okay so I am not to fortunate in the money area but I am going to have to buy a car in a few months because the bus is just getting hard and annoying. What is better to do? Buy or lease?

Answer 1

Leasing is an alternative form of financing. Both have fixed terms and payments. With a purchase you finance the whole price of the vehicle and pay that amount, plus interest, back to the finance source. With a lease you also finance the full price of the vehicle, and pay all the interest. You only repay part of the principle of the loan. A lease has an estimated value of the vehicle at the end of the lease term. (Residual value) This is deducted from the principle and you only pay the difference in your monthly payments.

For example:

Assume a vehicle that costs $30,000 and a trade in worth $5000. Also assume you are financing, or leasing the vehicle for 5 years. A final assumption is that at the end of the 5-year period, the vehicle is worth $7500.

With a purchase you would pay back $25,000 plus interest over the period of the loan. You would own the vehicle (worth $7500) You can keep it, or trade it in on a new vehicle

With a lease you pay back $17,500 ($25,000- $7500 residual value), and the interest that is charged on the $25,000.

Your payment is less, but at the end of the term you have nothing!

With a lease there is a limit on the number of miles you can drive and a per mile charge after that. You are also responsible for any and all damage to the vehicle. At the end of the lease, when you turn the car in, you will have to pay for any and all damage and over miles charges!

With both a lease, and a purchase, you are responsible for all maintenance. Some leases, but not many, may have a maintenance program, but that does cost extra, and will increase your monthly payment.

Under usual situations, buying is the better choice!

Answer 2

if you lease a car, you are just renting it--it will not be yours unless you buy it at the end of the lease for a pre-determined price. You are only allowed a certain number of miles that can be put on the car, if you exceed that number you have to pay at the end of the lease when you return the car. That price is usually a minimum of .15 per mile.
also, you are not allowed to make any changes to the car other than routine maintenance and replacement items, such as tires. Leasing is cheaper per month, but far more expensive in the long run if you put a lot of miles on a vehicle. If you don't drive much, or don't desire to keep a vehicle more than a few years, leasing may be for you. You also can not trade a lease car before the end of the contract without paying outrageous fees.

Answer 3

Leasing can be the cheaper of the two BUT only if you keep your annual miles driven well below those alotted in the lease. If you go over the annual mile (usually between 12,000 and 15,000) you will be charged anywhere from 12 to 18 cents a mile in most cases at the end of your lease. Sometimes dealers will allow you to "purchase" extra miles when you deal. In a nut shell, If your just gonna be puttering around town and can keep it in good shape, lease it. Problem is that although your payments will be a little less you still have to turn it back in. Yeh, your payments will be more if you buy BUT when it is all said and done it will be yours. Good Luck

PS If you finance ANY vehicle you will be required to have full coverage insurance.

Answer 4

Buy a good pre-owned car about 2 years old that's known for good dependability. Cheaper than a new or lease car. Here where I live, the county will tax you with personal taxes every year of the lease car, not any on a car owned by someone.
Just a consequence no one is telling you about in these posts.

Answer 5

Lease..you will have cheaper payments..but you can only keep the car for so many years and they require usually a heft downpayment..also if ANY damage is done the the car you will pay out the *** at return time..and you have to watch mileage...

BUY: cars yours..no restrictions..higher payments then on a lease...its yours until you decide to sell or trade it in...

Answer 6

DON'T LEASE really my brother has to go to Iraq just so he can get out of his, if you go over a certain mileage a year you have to pay, its ridiculous, just buy, once you pay it off your credit will get better anyway

Answer 7

Also if you lease, you will have to carry full coverage insurance, rather if you want to or not.

Answer 8

go lease a new nissan and only lease for no more than 39 mo's