what are the benefits of leasing a car over buying one?

Answer 1

Pros:
1. You can drive a nicer car.
2. You pay for depreciation only (how much a car's value goes down), plus any extra miles
3. You don't have to worry about selling the car later.
4. Typically a good deal when interest rates are High, because you are only charged interest on how much the car depreciates as opposed to the entire value of the car. (ie, if the car cost $35K and it depreciates $15K in 3 years you are only charged interest on the $15K)
5. You can't be upside down on a lease, meaning in 3 - 5 years you just drop off the car and that's it. If you read some of the people on this board are upside down on their loan. Meaning they purchased their car, but now want a new one and have to actually pay $2000-$5000 more, because their car isn't worth what they owe on it.

Cons.
1. You don't own the car, you are basically renting it so you can't make modifications, such as tinting windows without permission.
2. You must carry full coverage insurance, while if you purchased you are only required by most state laws to carry liability.
3. If you exceed the mileage per year, you have to pay an excess use fee.
4. You typically can't get out of a lease early unless you pay penalties.


Leases are not all bad. Some key things.
1. Negotiate the price of the car, not your lease payments. The lower your price of the car, the lower the lease payments will be.
2. Determine all dealer fees and negotiate those also. All fees can be negotiated. Some of the fees that are charged are excessive, but people who don't negotiate pay.
3. Know the approximate mileage you plan to drive. If you know you drive 20K/year, don't get a lease with an agreement of only 12K/year. Overestimating a little is typically better than underestimating. (it' like the days were cell phone companies charged excessive fees if you went over in your minutes usage)

Do your homework. GM cars depreciate a lot over a short time, which typically means you'll be paying more in a leasing situations.

For example.
Honda Civic: MSRP: $19,000
Depreciated value after 5 years: $12,000
Cost to the leasee: $7000 (so you'd only pay for the $7000 plus interest)
Pontiac Pursuit: MSRP: $17,000
Depreciated value after 5 years: $5,000
Cost to the leasee: $12000 (so you'd pay for the $12000 plus interest)

So watch the numbers and do the math! When you lease it's not only what you pay now, but what the car is worth later down the line

Answer 2

yea leasing is a huge waste of money. dealer ships draw ppl in by advertising really low payments. but sometimes the lease payment can be just as much as the payment as if you where to buy it. and then after the lease is up you give up the car and you have just spent alot of money on it and you dont even own it. and also you can only drive a certain number of mile ayear. if you go over you gota pay.

Answer 3

None. Nada. Zip... To anyone trying to tell you it can be a good thing, it is NOT. It's all smoke and mirrors and proven to be one the worst investments in the country. You may as well work out a deal with Rent-a-wreck for weekley rates -- it won't cost much more to do this vs leasing.

Answer 4

With recent tax rules, it rather doens't make plenty difference in case you hire or purchase for company use. Leasing is plenty less difficult to record and makes administration much less complicated. There are no longer any 6 month rentals. Nealy all rentals initiate at 24 months. even with the undeniable fact that, company rentals are rather diverse (frequently "open end" rather than "closed end") and permit greater flexibility than a classic shopper hire. rentals pay for a motor vehicle's popular fee depreciation in the process the time the motor vehicle is on your possession. that's funds you by no ability get decrease back. even with the undeniable fact that, once you purchase a motor vehicle, it depreciates by ability of an identical volume and, in case you sell the motor vehicle, that's funds you by no ability get decrease back. So, with leasing, you're making a smaller month-to-month value and get no longer something decrease back interior the tip. once you purchase, you're making a much bigger value, purely area of which you get decrease back in case you sell on the tip. The area you don't get decrease back is an identical regardless of no rely in case you hire or purchase. that's an significant factor neglected by ability of human beings who do no longer comprehend leasing.

Answer 5

i own a repair shop,and i cant get the meaning of leasing one,after all that money is payed out,you still don't own it,and to me that's wasting money,its like renting,why rent when you can buy,same goes for a car,it just don't make sense to me,good luck i hope this help,s.

Answer 6

None, leasing is only good if you are a business owner, but if it is your personal car, it is always better to buy.

Answer 7

The biggest benefit is lower monthly payments. However, that's not the only consideration. There's more to it than that. This web site has more about why you should or should not lease.

http://www.leaseguide.com/index2.htm

Answer 8

permanency