2007-01-22 03:35:44 · 10 answers · asked by 3001 1 in Cars & Transportation ➔ Buying & Selling
Advantages of leasing are lower payments and no headaches of selling the car. The car is in the name of the leasing company and you are in effect only renting it for the lease term. However, please remember to be within the contracted mileage or be ready to pay up when the lease is up. You still need to pay for the insurance.
2007-01-22 03:45:54 · answer #1 · answered by edge 3 · 0⤊ 0⤋
The two advantages of leasing are: 1) lower monthly payments and 2) you can be in a new car every three or four years (just in time for you to get sick of the one you've got)
The problem is that the car is never yours (you're pretty much renting the car). Also, unless you work within 5 miles from your job, you'll always be worried about going over your mileage allowance (that can be a hassle).
Unless you own a business (and can write off the lease payments) I'd consider purchasing rather than leasing.
2007-01-22 03:55:23 · answer #2 · answered by dapwma 2 · 0⤊ 0⤋
You are budgeting yourself to drive a car. You will have a set monthly payment on a new car that will not go up because of maintenance or surprise repair bills. With that being said make sure that the lease term and mileage will keep you under factory warranty. This will insure that you don’t have to worry or pay for any mechanical breakdowns. You will also not have to do as much maintenance on the car because you will have the option to return the vehicle right when the car needs the most attention. Keep in mind that the financed monthly payment you agree to will go up in the third to fourth year of ownership. This is due to the maintenance (tires, brakes, tune ups ) that you will have to do just to keep the car safe to drive, and doesn't include any breakdowns. You will also have to come up with less out of pocket to get a comfortable payment and will have a shorter term. Most finance terms are set up for five years and by the time you cut that last check you will have a five year old used car that you are probably ready to replace. I learned a long time ago to buy things that will go up in value (real estate ) and lease or rent things that will go down in value. Why do you want to own a deprecating asset that will eventually need to be replaced? Another thing to think about is what kind of safety, comfort and convenience options will be offered in the years to come. Automotive technology is changing at a rapid pace and cars that we thought were safe and state of the art will soon be obsolete. Having a set monthly budget and options to upgrade into a new car under warranty in 2-3 yrs is the main benefit.
2007-01-22 04:43:45 · answer #3 · answered by Tony J 2 · 0⤊ 0⤋
None! Dont lease, just buy a cheaper car, and save up for a more expensive car! Leases are a bad idea.
2007-01-22 04:24:00 · answer #4 · answered by Harvard Longbottom 2 · 0⤊ 0⤋
They serve diverse purposes. Leasing a vehicle is nearly a protracted term apartment. on the top of the settlement, you own no longer something. internet fairness interior the vehicle is 0. The hire finance agency replaced into paid for a central quantity equivalent to the version between the value paid (MSRP or there abouts) and the residual value (the projected value of the vehicle once you turn it back in). And, on innovations-blowing of the central, you paid one hundred% (definite, you examine that top -one hundred%) of the activity on a private loan quantity for the whole value of the vehicle (definite, no longer purely the central - however the full factor). greater, on the hire, you pay the taxes and DMV costs interior the value of the interior maximum loan. For a vehicle purchase, on the top of the interior maximum loan you have fairness interior the vehicle. that's relatively worth what the industry will pay for it. It has value to place as a downpayment for yet another vehicle. You paid the two the central and activity for one hundred% of the puchase value (minus any downpayment). A hire is a robust deal for employer using fact they do no longer could difficulty approximately depreciating the fee; they could walk far flung from the fee if the employer fails; and that they could write off the whole value of the hire. for inner maximum use, a hire is clever in case you are going to be in a sparkling vehicle each and every few years and you're poor at advertising automobiles your self. a purchase order is a robust deal in case you have a tendency to maintain automobiles for an exceedingly long term. in case you could shop a vehicle for 10 years, and your individual loan replaced into for 5 years, the value in step with mile would be dramatically under any hire ought to probable compete with.
2016-10-31 23:58:30 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Leasing will get you the less payment at the time of delievery but the burdon of payment the dues in years make it tansion and becomes disadvantage.
2007-01-22 03:41:40 · answer #6 · answered by Paassion 3 · 0⤊ 0⤋
None! Leasing is not a good idea. You get screwed in the end.
2007-01-22 03:45:35 · answer #7 · answered by Anonymous · 0⤊ 0⤋
ok short and sweet lease if you plan to trade soon and buy if you plan to keep for at least 3 to 5 years. that way you wont have to keep paying all thoses finance charges and end up with **** everytime you trade again.
2007-01-22 04:08:10 · answer #8 · answered by nyrican 4 · 0⤊ 0⤋
there are no advantages - leasing is a total rip off
2007-01-22 03:44:08 · answer #9 · answered by hobo 7 · 0⤊ 0⤋
the basic advantage is that it saves you cash flow problems and spreads your liability over a period of time.
It makes repayment of the car easy, whilst you can do other things with your cash.
If you were to pay for the car outrightly, you would have tied down your funds to a huge one off purchase.
2007-01-22 03:47:56 · answer #10 · answered by cafdeg 1 · 0⤊ 0⤋