Is it better (financially) to buy or lease a car?

Answer 1

It depends. The best course of action would be to ask an accountant in your state about the laws regarding deductions. Portions of your lease payment can be deducted in California if the car is used for business - not commuting, but deliveries or sales calls, things like that, and the company doesn't provide a car allotment that covers the costs.

Also, you need to consider how long you plan on keeping the car, what it's depreciation rate is and resale value of current models. There are a lot of things to consider.

But, again, ask an accountant. He or she would be best qualified to help you with the decision after talking with you about your plans. Also, the laws regarding deductions vary depending on where you live, and there are always a ton of exceptions and an accountant would know what they are in your area.

Answer 2

I know there will be many detractors, but leasing is the better deal IF you negotiate the price down before asking for lease fugures, and only get a "special lease" offer from the manufacturer.

You will be able to get more car for the money, have more options at the end of the term, save sales tax, etc.
You MUST set up the right miles to avoid penalties.

If you dont shop the deal, it will be easy to take advantage of you either way you buy.

If you buy the car, unless you pay cash you wont OWN anything except the right to make the payment until its paid off, and the vast majority of people who trade in a car still have a payoff, essentially leasing but receiving none of the benefits leasing provides. Also, say your lease payment is 350 for 36 months, and your purchase payment is 500 for 60. In three years you can decide what to do next, trade it, sell it, buy it(i dont recommend buying it), turn it in. You have put in your bank $150 x 36 = $5400, and now you have choices. The savings is what you now own ($5400). The purchaser may still be upside down at 36 months, want out, but will be stuck.

Of course, if you keep it for a long time, leasing may not be ideal for you. If you get the itch to trade every three years, leasing is a smart choice.

One more thing, ask the dealer what the money factor is before you agree to anything. Convert the number using this formula:

.00239 x 2400 = 5.73% to get your effective interest rate.

It should be as good or better than the going finance rate in your area, and much better if is a "special lease."

For instance in Salt Lake City the average rate is 6.75% and Toyota has a money factor of .00110 on the 07 Sequoia.
.00110 x 2400 = 2.64% a great rate anywhere.

Answer 3

Im sure you will get a lot of different awnsers to this question, but I think it all depends on the person. To me leasing is a better deal. If you look at it like this, leasing could make sense. If you lease a car for $5,000-$6,000 total for 2 years, and do that 4 times, you are paying between $20,000-$24,000 over 8 years. At the same price you could buy a pretty nice, new car, but after 8 years, how much will that car be worth anyways...not too much. With leasing almost all companies offer lease loyalty deals, mainly to keep your business. Another thing about leasing is if your car breaks down, which probably wont happen too often, since you will only have the car for the 1st 2 years its on the road, but if it does, you wont have to worry about it, cause it will be fixed by the dealership, unless its an accident or something that was caused by you. You wont have to worry, about breaking down on the side of the road, or anything like that. On fallback about leasing is you are limited miles, but even with that, you are able to buy extra miles upfront to save money instead of paying the overages at the end of the lease. For example if the lease is for 10,500 miles a year you can up the miles to 15,000 per year for about an extra $20-30 a month.
And if anyone thinks you cant get a lease for that cheap, then you arent looking in the right places, you should definately look at the deals dodge and jeep are currently running, they always have great deals on leases. I put $1000 down and paid $150 a month on my last lease for an '05 Durango SLT. I hope this helps

Answer 4

My husband and i bought a new mini van and payed cash and when we went to trade about 6 month later the price had went down drastically. we also lease another car leasing is no good you have to be careful of every mile you put on just a hassel. In my opinion just buy with a monthly payment.

Answer 5

If you are the type of person who likes to trade in your car every 2 to 3 years, then leasing may work for you.

If you keep your vehicles for 5 or more years, than a traditional finance may work best for you.

Leasing helps one to avoid negative equity if they like to trade frequently, but is not a good investment for those who like to keep their cars for a long period of time.

If you are a business, then you may find additional tax benefits to leasing versus buying, and a tax professional should be consulted.

Never lease a vehicle with the intention to finance it at the end of the lease term, for you are then paying double the finance charges than just financing it from the beginning.

Answer 6

in ,my opinion its always better to buy than lease,leasing is like renting,it just doesn't make any sense to do either,if I'm going to make a monthly payments on something ,I'm going to be paying on it so it will be mine when I'm done paying for it,i never could understand why anyone would want to lease a car,unless you need a write off on your taxes,that would be the only reason for doing this,good luck i hope this help,s.

Answer 7

Not a simple answer. Do a google search for "buy vs. lease".
Financially, it might be better to take the bus/train....

Answer 8

easily, it relies upon on your very own determination 9.9 out of 10 cases. Leasing is powerful if: - you opt for for to alter your motor vehicle each and every so regularly - you opt for for to have autos that are continuously coated via a guaranty - you will usually be paying larger motor vehicle coverage with a hire, in case you chosen to maintain motor vehicle coverage on the easy point (particularly of the whole coverage that a hire/load calls for) - the quantity of the hire + upkeep fee (if any) + # of miles pushed is in the variety allowed - residual fee of motor vehicle + finished coverage coverage < fee of paying money (or money) on a motor vehicle + upkeep expenses (which will ensue) + enhance of similar automobiles over the years you very own it + coverage expenses (and you may decrease it to easily required coverage as quickly as any very own loan is paid off) possessing is powerful if: - you plan to maintain extra money on your pocket simply by fastened expenses for the long term (i.e. oil differences, tire replacements, upkeep, etc.) - you do no longer innovations driving the standard motor vehicle, considering that they're ALL clever for paying for your from factor A to point B ... some basically have some better properties that make it a sprint extra relaxing at times

Answer 9

Many financial advisors, especially Larry Burkett,(www.larryburkett.org) agree that leasing an automobile is the WORST financial mistake you can make.

Answer 10

If you can afford the payments, it's nearly always better to own a car. It's like renting versus owning a home. If you only rent, you don't get your money back when you leave and you don't get to keep your home forever.