Trying to decided which is better Lease vs Finance vs Rental Car long term?

Question

I am buying a car next month and im trying to figure out which route is better for me. Should i Lease or Finance or Rent my car. I don't want to deal with maintance on a car. I want a newer car. I thought about Renting a car from Hertz or Avis for about $1000-$1500 a month so i don't have to deal with maintance and other problems plus i can switch out cars when i want too. But for that type of money a month if i lease or finance i can have a expensive car than what i get from long-term renting. So what should i do??

Thanks

Answer 1

I can't think of a more absurd waste of money than a "long term" rental form Avis or Hertz. First off, it's going to be more effort on your part than routine maintenance since most rentals are limited to 30 days; you'll have to return the car every month and re-rent it. With a lease or purchase you're probably looking at routine service every 3 to 6 months if you're a typical driver. Insurance would clobber you financially as well as you'd have to take their add-on coverage at their absurdly high rates which can easily double the daily rate; you can't put a rental on a regular insurance policy.

If you're the type who just has to have a "new" vehicle every 2 - 3 years AND you know for sure that you will drive less than 15,000 miles per year then leasing MIGHT be for you.

You can save a ton of money on leasing if you limit your choices to vehicles that hold their value better than average such as Mercedes, BMW, Toyota, Honda, etc. (Bad choices would include most Cadillacs & Lincolns and many US brands.) This is because the residual value is higher on vehicles that hold their value well and a high residual value will lower your lease payments.

If you tend to run up a lot of miles, purchasing is the only way to go. Stick with cars that hold their value well and you'll do much better at trade-in time and minimize your long-term costs.

Leasing or trading in every 2 - 3 years will cost you more in depreciation in the long run but the up-side is that you will always be driving a car that is under warranty so your only additonal expenses will be insurance and routine maintenance.

Answer 2

From the way it sounds, leasing would be a good option for you. However, how long do you normally keep a car? If you drive around town and do not mind having a more than 3 year old car, then it would be nice to consider financing. Contrary to what most people think, leasing isnt really throwing all your money away if you like to drive newer cars all the time. Payments are usually half of what they normally are if you bought them. Dealerships always tell you how much more it would cost you to own the vehicle at the beginning of the lease. That way you can gauge whether you want to "use up: all those allocated miles within the 27-39 months it is being leased to you or keep it at a minimum as you are buying it later on. In my opinion, people who hate people who lease cars so much are either a>) have bad credit or b>) have never ever tried leasing at all. I have bought and leased cars both at the same time. I have always liked owning stuff at the end but when it comes to automobiles, I prefer leasing as it is inexpensive, hassle free and hey a I still get a good deal after 27-39 months should I decide to keep the unit and yes, should I decide to KEEP the unit, I definitely don't have to pay outright cash for it. The financing company will definitely continue to finance that for you as it is only 2 1/2 to 3 years old by that time (for as long as you pay your lease on time of course) and it has low mileage (if you adhere to the contract). Hope this helps and good luck to you! Peace!!

Answer 3

lease would probaly be best for you it's a new car so mantenance would be low and there will be a wrrenty you can trade in every year or two depending on the lease contract you choose
financing you are stuck with car and value goes down much further if you want to trade it in and all repairs are up to you past the warrenty.
rental os way too expensive.. think about it this way in 10 monthes at 2000 a month you could have saved and paid cash for brans new nice car.

Answer 4

Finance and buy would be more cost effective. You may have to deal with maintenance on either. The end of a lease you have nothing, at the payoff of a loan you still have a car worth something

Answer 5

Leave rental out of the mix, that isn't what it's designed to do. Given you will switch often and don't want a lot a maintenance to worry about, lease.

Answer 6

It's not that far fetched today. I paid a 80 for a week and get a full size car. They must have the basic insurance since they couldn't have a tag anyway. I am not sure if that insurance is much higher than the simple basic. Ok. I rented an SUV after 3 months for 500, I waived their insurance to it wasn't so bad deal. Nowadays I am using mine, which is very low, since no ticket, no spot. But that's different on everybody.
Still, you could drive the car UNLIMITED mileage, they take it to the regular service, they change the oil, which is a 150 every time, clean it (25 a week). They change the tires, on an SUV is 400 each. I had to do it every 2 years, and if the car stops, they will give you another one, the junk is theirs. It's at least 60 if you are not Geico, but Geico is a roadside robbery.
The lowest lease is 350 a month, the full insurance for me is 200 a month. Every service, oil change, tire adjustment is 100-150 you need 2 a year at least. Plus new tires. It is at least 8000 a year, for 10000miles max.
The rent (SUV) 6000 a year, and it is not true, you do not have to take the car in, they used to pick it up, they take it to the service, clean it, and bring it back. So I am not sure u are right. Of course the 500 is not their advertised price, but you have to negotiate hard, since there are a lot of rental companies do not stuck on one.(I am NOT working for them)