Lease vs Finance??

Question

Looking to get a car...Can't decide if i should lease or finance. I probably drive 10 miles a day round trip to work, so i don't use much mileage and don't have much wear and tear. Whats your opinion on this??

Answer 1

Why would you buy or lease a new car for a 5 mile commute?

That’s too far to walk in inclement weather – however a bicycle, Vespa scooter, PUBLIC TRANSPORTATION, Segway, motorcycle, etc., could provide daily transportation while a rental car the occasional weekend trip.

You would save tens of thousands of dollars (don’t forget the added expense of car insurance).

If not willing to consider alternative transportation methods – get a two year old used car.

You don’t drive enough to justify the expense of a new car – regardless of the financing method.

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

Leases work if you want a new car every 3 years.

Financing works if you drive a lot or you keep your car for a long time.

Answer 4

look at it like this...rent a house or buy one....if you rent your money is going out the window...if you buy it you have an investment.

While this is not the same with cars...as homes normally appreciate while cars depreciate...but...if you drive short miles..and maintain your car and pay it off...it's yours...if you lease...you have merely rented a car...you have no option to get anything back out of it...and you only get to keep it for a certain period of time. If you buy a car...maintain it...you always have the option to sell it or use it as trade in for your next car.

Leases are mainly for companys or corporations...as they can write them off as a business expense and recoup the money...or at least a protion of it...an indidual leasing...is just out that money and the end of the lease.

Hope this sheds some light on things for you.

Answer 5

Finance. Leasing is a waste of money

Answer 6

Check out this site http://www.leaseguide.com/lease03.htm

It gives you detailed explanations and examples for the pros and cons of leasing vs. buying your car.

Also see:
http://carleaseorbuy.com/
http://www.carsdirect.com/finance/new_cars/loan_or_lease

Leasing
More Americans are choosing to lease their new vehicles than ever before. Here's why:


Low payments
Since you're only purchasing the right to use a vehicle for a period of time, your financial responsibility and your monthly payments are reduced significantly.

Peace of mind
Most leases last for 2-3 years, the period when a new car is most reliable and enjoys the most extensive warranty coverage.

Convenience
When a lease expires, you simply turn your vehicle in. There's no need to worry about selling it or trading it in.


Most people who lease enjoy driving a brand new car every few years. And if you spend a lot of time on the road for business, leasing can also offer attractive tax advantages.


Financing
Most Americans still choose to finance their new cars with a loan. Financing a vehicle offers:


Equity
Once you've paid off your loan, you own your vehicle free and clear. You can keep it as long as you like, and while you'll be driving an older car you'll be free of car payments for as long as you keep it.

Flexibility
Leasing requires that you drive no more than a certain number of miles every year. Owning your car means you can drive it as much as you like, as far as you like.

Freedom
When you lease, you're responsible for returning your car as you received it. When you finance your vehicle, you get to make your own decisions about how your car should look and how it should be maintained. If you want to put in a new stereo or take your time fixing a dent, it's your call to make.


Choosing
When you're deciding between leasing and financing, ask yourself a few simple questions:


How long do I usually keep a car?
If you tend to trade your cars in every two or three years, consider leasing. If you usually keep your cars for five years or more, consider financing.


How many miles do I usually drive?
If you drive less than 12,000 miles a year, leasing is an excellent option. If you drive more than 15,000 miles a year, it usually makes sense to finance.


How much cash do I plan to put down?
Many leases let you drive your car away without putting any cash down. Financing generally requires a down payment.

Answer 7

To lease or the other?? If you dont put any miles on a car and want to drive a new car all of the time lease it but if you think you will go over better buy you can really get yourself in a jam. Just bargin with them on the lease too,, find out your bottom line and talk it over on the the phone,, dont go in. look up your trade in value on kelly blue book so you will know approx. what it is worth and then deal with them.. if you go in they will have you.. on the phone they have nothing so deal and thrreaten to go else where.. in fact get your best price at 2 or 3 places.. This is how you buy a new car also know what you want the equipment and the whole thing find out what you wanna pay and call them up they would want you to drive it,, say no i want to buy it i dont want to drive it i know what it drives like. stay in control and remember put yourself in the position of thinking yu really dont need it.

Answer 8

I think leasing is a waste of money. You make payments every month and after a few years you have nothing to show for it and you have to find another car to drive and start all over again.

Answer 9

Would you keep a car for a long time. If you want to get an american car lease it cause the resale value aint too good and the reliablity isnt great. If you want to keep it untill the car dies (Toyota or honda) than finance.

its cheaper to finance a car and at the end it belongs to you

Answer 10

Leasing will cost you more on the long term you are renting a car! It is like renting an apartment . To get good value for your money you should get a vehicle that retain its value and meets your needs.