2007-02-28 05:59:31 · 2 answers · asked by ian h 1 in Cars & Transportation ➔ Buying & Selling
Leasing is for companies. They have cash flow but not spare capital. It is no way a best value option.
2007-03-01 04:31:45 · answer #1 · answered by fred35 6 · 0⤊ 0⤋
Ex Demo Lease Cars
2016-12-18 04:58:08 · answer #2 · answered by kunkle 4 · 0⤊ 0⤋
LEASING with option to buy is always better than buying for folowing reasons:
1: the interest rate is lower on a lease. A lease rate might be half that of the rate to buy. As a result more of your payment goes toward the principal of the cars value as opposed to the bank for interest.
2: If you hate the car because it sucks or just change your mind you can just give it back and let the dealer sell it instead of you. The dollar amount is the same. Remener when you lease your payment will be based on how much the car will depreciate over the length of the lease. If a $20,000 will be worth $12,000 at lease end then you wil pay the dealer $8000 over the life of the lease. Its better than BUYING the car for the full $20,000 and then selling it for $12,000.
3: You are paying a smaller amount initially. Why pay interest and taxes on $20,000 when you can pay it on just $8000 and THEN on $12,000 (assuming you keep car). Not only is interest RATE lower, but the amount it accumulates on is a smaller amount. Interest will be 2 1/2 times as much on a $20,000 loan as it would be on an $8000 loan and thats if the rates are the same. Imagine what happens when the rate is even lower on the lease.
The biggest REAL drawback on a lease is that your miles are limited. Of course you can always adjust the lease for much higher miles (which will increase your payment). Your payment goes up because that $20,000 Volkswagon wont be worth $12,000 anymore if you put a ton of miles on it. So if your expected mileage will make the car worth $9000 instead of $12,000, your payments will be based on an $11,000 loan vs $8000 because you are using up more if the value of the car. But it all works out well anyway if you plan on BUYING because your buyback price is also cheaper.
So leasing with option to buy is always better than buying outright.
As for your demo, try leasing the demo instead of buying. You want to be careful with demos and definitely check out its condition and warranty. If its been cared for and not abused then why not buy it. Just see of you can lease it instead.
2007-02-28 06:20:16 · answer #3 · answered by Stanley D 2 · 0⤊ 0⤋
Demo. It's always cheaper to own than lease. Also, demo cars aren't driven enough to be seriously abused, but the price is usually pretty good. My in-laws did that, and the car has been great for the last 90,000 miles. And they own it. remember, leases seem cheap until it comes time to give it back. After all, a lease is really just a long-term rental.
2007-02-28 06:24:20 · answer #4 · answered by Me 6 · 0⤊ 0⤋
Leasing is the most expensive way to drive a car, unless you can deduct it as a business expense. You are really just renting it, at a very high rate, and have no equity in it.
The best way to buy a car (from an economical standpoint) is to buy a low-mileage, one or two year old car that has excellent re-sale value, and is very reliable (Honda, Toyota, Mazda, for example). Demos can be abused so be careful if you go that route.
2007-02-28 06:10:03 · answer #5 · answered by JeffyB 7 · 0⤊ 0⤋
Do your research and decide what works best for you. Would you like an upgrade in a year or two? Do you plan to keep your car until the wheels fall off? Again, do what works for you, and do lots of research. Best of luck
2016-03-17 05:22:55 · answer #6 · answered by Anonymous · 0⤊ 0⤋
demo it has been driven by the car dealer manager or taken on test drives under supervison
2007-02-28 06:04:03 · answer #7 · answered by leoz 1 · 0⤊ 0⤋
Here's a link on ebay Map-it where you can find them in your home town
2007-02-28 09:15:25 · answer #8 · answered by mike m 4 · 0⤊ 0⤋