is leasing a vehicle better than getting a loan?

Answer 1

It depends on your financial situation and your driving pattern.

Basically, leasing is financing the difference between the purchase price, and the residual price when you return the vehicle.

Say, you are leasing a $30000 vehicle. After 3 years you are returning the vehicle, which is now worth $15000. Thus, you are really financing $15000 instead of the entire $30000 if you are buying the car.

So what are the advantages for leasing? Less money down, less money per month, no need to worry TOO much about condition of vehicle other than mileage. No need to worry about hassle of selling the car after the period.

Disadvantages? 1) You will be paying a higher interest rate than if you bought it 2) You don't qualify for all the special financing deals like 0% financing or the rebates (though sometimes they have special leasing deals) 3) You are left with NOTHING after the time's up. If you do take care of your car you can sell it for a nicer price than you didn't, but if you lease you have to return it (unless you choose to buy it). 4) The mileage penalties are steep (though you can negotiate for higher mileage at time of leasing).

If you have a set commute pattern, and/or need to keep up appearances, and/or want to limit cash outlay, leasing is a valid option, but in the LONG run, it costs more than buying the car through a loan. You will have to decide whether these advantages outweighs the price you pay for them.

Answer 2

It depends on how you plan to use your car and how many miles you'll be driving. If you drive limited miles and can keep your car in pristine condition, then leasing is a good option. If you drive more than about 12,000 miles a year or have a life style where your car might get damaged, you'll probably want to buy your car. Also, if you like a new car every few years, that is another reason to lease. Another thing to keep in mind is that at the end of your lease, you have nothing, whereas if you buy, once you have paid off your loan, the car is yours!

Answer 3

I am a sales person and I lease. The biggest advantages of a lease are- you can have a lower payment and/or drive a nicer car than you could otherwise afford. The biggest consideration you may have is with the mileage limits of the term. If you go over there can be a big bill at the end. If you do go over and you like the car, you can buy it out and avoid extra fees. But...ALWAYS read the fine print, and you will be fine with either finance option.

Answer 4

leasing is good if you want to trade out for a better vehicle 1,2,3 years later but so long as you need a car than you'll always have a payment. if you purchase than eventually the vehicle will be paid off but the value will be worth a lot less than it was when you bought it.

Answer 5

only if you get a tax write off

you are limited on mileage - and when you go over - you
pay through the nose

you also pay if the body is not in tip-top shape

would think twice - no three times about it
NAH - i would not do it

Answer 6

no