cars buying or leasing?

Question

i need a car. which is better? down payment a new car and pay monthly? or leasing? can anyone tell me the pro and cons of both? thankyou

Answer 1

It depends on how much you drive. If you drive a ton of miles it would be better to purchase. If you only drive between 12 and 15k a year then you can lease. Leasing requires less of a down payment if any, typically you just put first payment down and one of the more popular leases is a 39 month. That way you can get a new car after the 39 months and you don't have to worry about having negative equity. I guess it just depends on your driving habits and how frequently you like to get a new vehicle.

Answer 2

ok. leasing and purchasing are pretty much the same thing. its just different way to pay for your vehicle.
in a normal purchase you finance say...$20,000 for usually anywhere from 48 to 72 months.
when you lease you in essence finance $10,000 for 24-48 months. at the end of the lease term you still owe the remainder $10,000.
anytime you buy a car you have three options.
1. keep the car
2. sell the car
3. trade the car
you have those same options w/ a lease w/ one additional option. at the end of the lease you can 4. turn the car in to the leasing company if you dont like it or want it. naturally if you turn it in to the manufacturer they want it to be in good shape. no major damage and miles in average range. (usually 12 to 15k miles)
often by leasing you will get a lower payment than purchasing or a similar payment for a much shorter term. leasing is best if you are the type of person who wants a new car every 2 to 4 years.
if you like keeping your cars longer than 4 years, then your probably better off purchasing the car.
as far as down payments. banks generally want a down payment whether your purchasing or leasing a vehicle. whether or not they get one though is a different story. you dont have to pay anything down in a lease. will it get you shorter payments? sure..but youll have lower payments in a purchase w/ a down pmt too. the only difference is that when you lease, the leasing company wants the first payment up front and usually a few fee's. but those can be absorbed either in the sales price or w/ rebates.
many people say not to lease if you put alot of miles on your vehicles. actually its just the opposite. you can figure in whatever miles you want to when you start up the lease. 20k, 30, 50k, per years. naturally the more miles the more it will cost you. but think about it. if you purchase a vehicle and put 50k miles on it the first year what happens to the value of that vehicle? so by leasing you can turn the vehicle back in to the manufacturer w/ more miles than what is "normal" and not have to pay anything for them since you figured it in up front. will it get you the lowest payment? no. but try trading that car in two years later w/ 100k miles on it and see whats its worth.
all leases are a little different. but the real question is how long are you going to want to keep the car. 9 times out of 10 its not in your best interest to purchase the car at the end of the lease. so buy if your going to keep it. lease if your going to want a new car in a few years.
i strongly suggest that you do not lease a car for longer than 4 years, and likewise strongly suggest you dont finance a car longer than 6 years. and your always better off the shorter the term you can go.
p.s. i leased a $31K chrysler for $370 a month. try purchasing that same price car for those payments.

Answer 3

I would only lease if the business I work for would pay the lease. Otherwise, buy the car and you at least own the vehicle and have some capital to trade in with.

Answer 4

If you do not change cars very often... then buy. That way at one point you own it and have no car payments. I LOVE no car payments.

Answer 5

Hey , why don't you do a search at http://carauctions.deals-guide.com , you will find great cars in auctions, could have you lots of money