what's the advantage of leasing a car vs. purchasing a car?

Answer 1

1 ... . it`s newer, but you still have to pay for maintenance... .
2 ... . it`s your`s and you will own it, may be older, still have to pay for maintenance, but probably `your` cooler car... . still have to pay for maintenance... .

unless a business user, buy a 1 or 2 year old vehicle, it will have already lost the majority of its value (depending on vehicle though).

Answer 2

The idea behind leasing is that you pay for what you use. The end of lease value is guaranteed. You are not taking the risk of owning the car. Typically the payment will be much lower that a purchase. Just remember, your mileage will be set, so plan for the miles you will need. Damage is another issue, normal wear and tear are fine, excessive is not, you will be charged for that. Do not go into a long term lease, make certain you keep your term as short as possible. If you are looking at domestics, Ford, GM, Chrysler etc. will all over 24 - 35 month terms. These are great. Don't consider the 60 and 72 month terms. If thats the only way to get the payment where you need it you either need to change dealers or cars. Good luck

Answer 3

Leasing a car is a good idea in principle but there are stringent measures put in place and a lot of small print. Get it wrong and you could find yourself well out of pocket.
What the leasing companies don't tell you is that the car has to be in tip top condition when you hand it back. You could find yourself having to pay for bumps, scratches and god knows what to be repaired.
OK you can claim on your insurance for such things but why bump up your premiums unnecessarily.
If on the other hand you were to buy a year old car that has still two years warranty on it then you get most of the benefits of leasing but non of the headaches and worry knowing the car your driving isn't yours to do as you wish with.
If your credit rating is good then you will almost certainly get a better deal on finance than you would leasing.
You can sell the car after two years or just swap it for a newer one. As the owner you hold all the A'S if you lease then your at the mercy of the leasing company. My advice would be to buy, rather than lease.
All the best Andrew D

Answer 4

It depends on what you look at as an "advantage". If you're looking for cheaper payments and lower maintenance cost with the option of giving the car back or trading for a new model every few years, then leasing is your best bet. You can also find some deals if you're going to purchase a car that can get you to the same level of satisfaction as with leasing. Just play the game with the dealer, don't jump at their first offer, and don't be afraid to walk away and let them sweat it for a week or two. They need to sell that car to you,.. that's their lively hood. They can't survive if they don't sell cars, and you can survive without buying that car from them.
In the long-run, I think purchasing the vehicle will bring about a lower expense than leasing because you'll get a better APR, depending on your credit, and you'll score financing for the cost of the vehicle; whereas, when you're lease is up and the vehicle is now 3 years old and you still owe more than FMV you'll be screwed.

Answer 5

if you want a new car every 2 yrs, or so than lease, if keeping it longer than buy. when you lease it's like renting, you don't own it and must return it in good shape. whatever you do don't buy the car after the lease is done because you lease on the MSRP ( sticker price ) and you end up paying more than the actual sticker price would be, so if leasing than give back and either lease another car from that dealer or walk away and lease or buy from someone else.

Answer 6

I am a first-time leaser. Doing my maths, it came to the fact that I pay £11k over 3 years for a £21k vehicle. It is under a 3 year warranty so no repair bill worries apart from consumables such as tyres, batteries etc. I pay for servicing. The road fund licence is included in the monthly fee. At the end of 3 years I hand it back and get a new one.
The obvious advantage is that no large chunk of money going out of my bank account in one go leaving me cash to enjoy on other things.
OK, so I don't actually own the vehicle, but then I don't particularly want to. As long as I have a vehicle to use for the 3 year term, that's fine by me. It doesn't matter who owns it.
At the end of the 3 years I also don't have the hassle of either trading-in the old vehicle or the real stress of trying to sell it privately.
All in all, a really good system. If you want further details of whom I use, please contact me and I will be happy to tell you more.

Answer 7

IF U DONT need the car for very long leasing is good, buts its like renting its a waste of money, you pay x $ to drive the thing then turn around and give it back to the car company out thousands of dollars and with nothing to show for it but the memories of driving, plus if u put too many miles on it u get charge 50cents a mile and can rack up serious charges... buy the car!

Answer 8

EASY. IF YOU LEASE A CAR THEN ALL REPAIRS, ROAD TAX, MOT AND ALL THE LITTLE BITS THAT COST YOU A FORTUNE IN THE LONG RUN ARE PAID FOR. IF YOU LEASE A CAR OVER A 6 OR 12 MONTH PERIOD THEN MOST FIRMS WILL GIVE YOU A LARGE DISCOUNT AS WELL.

Answer 9

talk to your accountant to work out in case you are able to "write-off" a lease as a employer fee. i comprehend the guidelines have replaced over the years and leasing for employer applications isn't as favorable because it was once. additionally leasing has that's problems as you do ought to observe your mileage and guard the motor vehicle. think of of leasing as long-term renting. in case you purchase used (pay funds, of path), you are able to write off all miles pushed for employer as a employer fee. The allowable volume is $0.485 in keeping with mile. This fee in keeping with mile takes into consideration gasoline, upkeep and depreciation. you ought to shop a separate ledger detailing your employer miles as against your own miles on the motor vehicle. My spouse does this for her mary kay employer.

Answer 10

when you buy a car its yours costly repairs and all, when you lease a car the car is warrenteed of any repairs for the time of the lease, this does not cover tires oil changes etc.