I'm thinking of leasing a new Honda Civic. I was wondering if buying or leasing would be cheaper over time. I know that with leasing, you have to figure other costs like more insurance and maybe going over your mileage. But if I stay under the mileage limit, will leasing or buying a new car save me more money over 10-15 years?
2006-09-15 09:13:22 · 16 answers · asked by johnlert22 2 in Cars & Transportation ➔ Buying & Selling
its cheaper to lease for short term savings (2-5 yrs)
its cheaper to buy for long term savings (6+ yrs)
2006-09-15 09:22:27 · answer #1 · answered by §eeker 5 · 1⤊ 1⤋
cheaper to buy, at the end of a lease there are a lot of penalties if you want to keep the vehicle that you dont know of until then. Milage can rack up too. Then after all that you still want to buy the vehicle you have to finance the remaining balance which is most times significantly higher than the vehicle value. The reason Lease vehicles are cheaper is the hide the full balance to the end of the lease. Be prepared to pay a monthly payment that will be kept as a Security Deposit until the term of the lease is reached.
2006-09-15 16:24:24 · answer #2 · answered by Anonymous · 0⤊ 0⤋
When you lease you are only paying for the cars depreciation over the term of the lease with no equity when you are done. When you buy, you are paying depreciation and equity. The costs for insurance and maintenance are equal. If you plan to always have a new car, lease. If you want to purchase it at the end of the lease you can negotiate the price to below the residual value.
If you have never leased before you will find that turn-in procedures are a pain. They go over the car with a fine tooth comb and you will be responsible for new tires and any damage outside of normal wear and tear.
If you know you will exceed your milage limit, you can get a lease with more miles, say 15,000/year instead of 12,000. and the cost isn't much more
2006-09-15 16:25:08 · answer #3 · answered by ©2009 7 · 1⤊ 0⤋
I just wrote on my blog about this... In my humble opinion it's better to buy. Especially if you are going to keep the car for that long. If you lease for a long term once you’re done you own nothing and paid so much into the car.
I made this mistake years ago. I purchase a car I really couldn’t afford at the time and ended up paying more than the value of car over the long lease term and when the term was over I owned nothing. Buy the car!
Read my full blog if you want more details.
http://www.autodealerscompete.com/content/
2006-09-15 20:16:42 · answer #4 · answered by Auto Dealers compete 1 · 0⤊ 0⤋
Any time you feel like 15,000 miles a year buying is the answer. Financing a car twice is just a scam unless your company can deduct car expense. 3 to 5 cars financed with lease could end up costing much more than buying two cars and driving till maintence gets high and selling. Approx 120,000 miles just being able to pay off the car will save finance charges. And things in life will change.
2006-09-15 16:29:44 · answer #5 · answered by John Paul 7 · 0⤊ 0⤋
With leasing, you will be charged 10-25 cents a mile over your limit. Plus, if you later buy after your lease is up. You are paying on the retail value of the car which will be substantially higher than buying it used then. It isn't cost effective like they say. Buying is better.
2006-09-15 16:25:55 · answer #6 · answered by f350lariat 3 · 0⤊ 0⤋
It's pretty obvious that leasing (or buying) a new car every three years will cost more over 10-15 years than buying one car and keeping it for that entire time. However, people who lease, like myself, like having a new car every three years that is always under warranty, and having low monthly payments. I drive 12,000 miles a year, keep my cars in good shape, and have never paid wear-and-tear charges. It works great for me.
2006-09-15 22:15:13 · answer #7 · answered by Anonymous · 1⤊ 0⤋
Leasing is a good short term option if you're likely to want a new car every couple of years.
If you are planning to keep the car for long term, then buying is the way to go. You also have more finance options when you buy.
2006-09-15 16:23:03 · answer #8 · answered by MissMo 2 · 1⤊ 0⤋
It comes out to be right about the same in the long run. Plus side to leasing:
~you always have a newer car
~you don't have to worry about maintenence
~dont have to worry about emergency repair expenses
Plus side to owning a vehicle
~payments are cheaper
~insurance is cheaper
~You dont have mileage or monthly limits
~pride of actual ownership
you just have to figure out which one you think you'd like better
2006-09-15 16:28:29 · answer #9 · answered by Anonymous · 0⤊ 1⤋
If you want to keep the car for 10-15 years, you should buy.
2006-09-15 16:17:17 · answer #10 · answered by AD 2 · 0⤊ 0⤋