Leasing vs. Owning a car?

Question

I am interested in purchasing or leasing a Honda Civic and I was wondering what the pros and cons where for each, which i should do and people's experiences. Is it true that you have a kilometre or mile restriction when you lease? As well, if I leased for a year and then wanted to buy out the car after a year (original lease is for 3 years) could i do that?

Answer 1

I just answered a similiar question and here is my take on leasing:


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.

Answer 2

All I could say is leasing is the best way to go because you could always come back in 3 years and return the car and you will let the dealer take the hit on the loss of value instead of you normal consumers trade there cars in 3 years.Remember houses hold there value and cars losses there value. Your payments are low rather than high. if you plan to purchase the car most of the time the bank goes 72 months to lower the payments and on a lease you olny will have it for 3 years and you could decide to keep or buy it at the end of the lease.Most people are leasing these days because if you think about you never own the car,everything changes in three years you never know something might come out in 3 years and you will love and you could turn in your car by that time and get what you want. people never keep there car more than 3 years and when you are in a lease you will always be under warranty and free gap insurence. Leasing is the best way to go !!!!!

Answer 3

if you only drive a few miles per year (less than 12,000) and you would normally plan on buying a new car every 3 years or so, then leasing might be good for you.

Also, if you're a business, there may be tax implications in leasing verses purchasing.

I can't figure why anyone else would lease, honestly. You give them a couple thousand up front, make payments for three years, then hand them the car at the end of three years and they give you a bill for any 'excess' wear and tear, milage, etc. The payments are usually less than purchasing, but still...

Answer 4

Dont listen to them ive been working for a honda for 15 years. Leasing is a great option if you dont want to be in a car for more than 3 years and get bored easly. You dont need anything down and it will still be cheaper than buying the vehicle. you have 12,000 miles a year and make sure you dont go over. You will not want to buy the car out after your lease is over on a civic. If your payment is below 300 a month you will be financing a car for 15,000 when its worth 9,000 see what iam saying? If you like the car buy one just like it.

Answer 5

Depends on how much you would be using the car.

If you won't be putting lots of miles on it, and not keeping it forever, leasing is a good option. Typically the restrictions are for 12,000 miles / year, with a charge for each mile after.

You'll have the option to buy the car after the lease is up. I did that last time because I wanted to keep the car.

Purchasing is best if you get one a couple years old, after it's lost most of it's initial value.


http://www.edmunds.com/advice/buying/articles/47079/article.html

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Answer 6

If you're thinking of buying a car, then, don't lease it first. Would you rent a condo for 3 yrs. and then buy it?

Answer 7

if you ultimitly want to buy the car your better off just going out and buying one leasing will just cost you more. and yes most have a milage limit and you will really pay alot if you damage the car

Answer 8

buy. lewqasing is like renting a home-- it's never yours and there are to many limitations.