in simpler words what does it mean when you lease a car??.and is it a good thing to do it w/ a new car?

Answer 1

With a lease, you are basically financing only the part of the vehicle you will use. For instance, if you have the car for 3 years, and the value (residual) at the end of the term is 50%, you finance 50% at the going rate, plus fees and tax (which vary from state to state).

The good part is lower monthly payments.

The bad part of the lease is you have no way out if your needs change, like you need a bigger car because your wife just had triplets.

Answer 2

a car lease is a good idea for someone who needs a reliable car and doesnt want to foot the entire bill and keep thier payments low. FOr the most part there is a limit on the miliage you agree to in the contract and if you go over the set number you will have to pay that to the company when you return your lease. I lease an Acura TL and used my little commuter to do my local running around and it wrked out great for me. also you arent stuck with a car forever and you get the flexibility to switch things up every couple years and not have to worry about your cars depreciated value kicking you in the pants in 5 years.

the only type of cars you can lease are the new ones. you will probably need to put a down payment still however. Best of luck to you!!

Answer 3

it is a good thing if you want to keep driving newer cars. in 2 or 3 years, you turn it back in, and walk away. you do not take the hit of value depreciation; also, if you own a business, you can charge this off as a business expense. on the down side, you are always making payments on a car(s) that will never be yours. there are ups and downs to the lease; just do whats best for you; watch the fine print. its a killer, potentially.

Answer 4

Basically, its like a long-term rental...for like 2-3 years usually...When the lease term is over, you have to take the car back...