could someone explain to me please what leasing a car means and why you wouldn't just buy the car?

Question

why lease? why not buy the car? is leasing better?
Could someone explain the differents please?

Answer 1

When you lease a car, you are agreeing to "rent" this car at a specific monthly payment for a specified period. During this time, you are responsible for the vehicle's maintenance and care.
You are also "allowed" to drive this vehicle a specific number of miles during the life of the lease.

You are penilized for dents and dings if excessive and mileage overages(could be .35 to .50 cents per mile!). Read the contract carefully because there may be disposal fee's and all kinds of things included that may cost you an additional $2,000-$4,000 dollars just to satisfy the contract when you turn the car back in. The benefit, and the only benefit is lower monthly payments, plus if you know you won't keep it longer than 3 years, you don't have to deal with selling it or the trade in allowance. it may be a good deal, but personally don't think so.

For the extra few dollars per month, just buy it and worry about getting rid of it yourself when the time comes. If you abuse or beat it, it's yours to do so and you will just get less at trade in or sell time.

Answer 2

Think of leasing in the most basic sense as a long term rental contract.
*The advantages are that you can get a brand new car every few years, get more car than what you could afford to buy outright if financed and the service is the responsibility of the lessor (bank/dealer) with the exception of oil/fluid changes, labor, brake shoes and other items explained in the lease agreement.

After the lease term is complete, you have the option to purchase the vehicle, usually at a steal as the vehicle is used, and becomes property of the financer after the term is complete. Banks deal in money and do not like to have physical assets like cars and trucks on hand, so they are more apt to make a deal with the lessor (you) after the lease is complete instead of trying to get a similar dollar amount at a dealer's auction.

Some disadvantages of a lease start with mileage. You will have a preset amount of miles to not go over in the lease term. If you go over, it's ok, but can be costly, I have heard of some dealerships charging $0.25 per mile over the lease agreement. The "True" definition of "normal wear and tear".... meaning that something VERY subjective is left out of your hands when turning in the vehicle and can also cost a lot to rectify.

*Purchasing a vehicle is good in many ways. You don't have mileage restrictions, and when the payments are finished, you have something to show for the money spent. One drawback is that the service will only be as good as the warranty and routine maintainence is still your responsibility. Capitalized cost is another factor.... how much money do you have to put down or trade in for a vehicle (or a combination of the two)? Reducing this number upfront reduces the amount financed and saves on interest.

With either a lease or purchase, you need to look at what you can afford comfortably per month. A lease vehicle is REQUIRED to carry full insurance as it is essentially a rental. This is another factor to consider as auto insurance is expensive.

This is about as basic as I can thoroughly explain the differences and advantages. Hope I helped clarify your question.

Answer 3

leasing a car is like renting it. this would be done mostly to keep the payments lower.

What they don't tell you is that you are limited in mileage, usually 12000 mi a year. anything more and you pay by the mile, about 10 cents a mile. it doesn't sound like much but 1000 extra miles will cost you 100 bucks. you also have to keep the maintenance up as recommended by the dealer. and pay for any damage that is not normal wear and tear. so if your kid spills a soda in the back seat, look a a bill for that. and don't forget the tires, when you turn it in it has to have good tires or you will be paying for that also