I'm looking at buying a car, but when commercials come on and they shows the price, in the fine print they say "leasing for X number of months." So what happens at the end of those months? Is it better to buy the car?
2007-03-05 05:36:29 · 12 answers · asked by Xander 4 in Cars & Transportation ➔ Buying & Selling
Buying a car you pay a higer amount but at the end you own the car.
Leasing a car you pay a lower amount because you are only paying the estimated amount of devaluation of the car over the time period you are using it. But also because the amount you pay is based on this estimation they will normally put a milage limit in place for the number of years that you lease the car. If you go over that number of miles you will pay an additional amount of money per mile for the overage. Also, if at the end of the lease you want to keep the car you end up paying the rest of the amount of the value of the car.
Leasing is great if you don't have to drive too much and can stay under the alloted mile limitation and if you want to have a new vehical every 3 years and don't mind always having a car payment.
Otherwise your much better off buying the car and not messing with a lease.
2007-03-05 05:49:06 · answer #1 · answered by John 6 · 3⤊ 0⤋
Leasing is not always bad. I am currently leasing my vehicle. When I first got the car, my credit wasn't so great and my work situation wasn't steady or that great of pay. I needed a dependable car though. With the lease my payment was only about $200 a month, which was very affordable. I only lived a short distance to work so mileage is not an issue. Now, four years later, my lease is up in a few months. The buyout was set the day I drove off with the car.This choice worked great for me because of the situation I was in. Once I got a better paying job, I put a little extra into my savings and I am buying the car. I only have 35,000 miles on a 4 year old car that I know everything that has been done to it. My credit is a lot better and I always had peace of mind in the last 4 years that I would not break down and I would always be able to make the payments.
2007-03-05 14:58:59 · answer #2 · answered by miss.thang17 2 · 3⤊ 2⤋
When you lease you are only paying off the depreciation on the car, not the full sticker price of the car. But since you are basically renting versus buying you are restricted to using the vehicle in a way that will not decrease its value faster than the standard depreciation rate for that model.
If you like the car you can always buy it at the end of the lease. If you don't, and you have maintained the vehicle well, you just turn it back in, no harm no foul.
Getting ripped off has nothing to do with leasing versus buying. Just ask for the cash price first, then tell the salesman you will lease the car at that price. If they don't agree, walk out and don't even look back.
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2007-03-05 13:56:19 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Leasing is not always bad. I am currently leasing my vehicle. When I first got the car, my credit wasn't so great and my work situation wasn't steady or that great of pay. I needed a dependable car though. With the lease my payment was only about $200 a month, which was very affordable. I only lived a short distance to work so mileage is not an issue. Now, four years later, my lease is up in a few months. The buyout was set the day I drove off with the car.This choice worked great for me because of the situation I was in. Once I got a better paying job, I put a little extra into my savings and I am buying the car. I only have 35,000 miles on a 4 year old car that I know everything that has been done to it. My credit is a lot better and I always had peace of mind in the last 4 years that I would not break down and I would always be able to make the payments
2007-03-05 18:57:29 · answer #4 · answered by bcre8iv 3 · 1⤊ 4⤋
lease=long term rent a car
buy=ya own it
Now is it better to buy or lease? it depends. Are you a person that wants to have a new car every 2 years and dont want to be stuck with problems of high mileaged engines? then lease
if you plan on keeping the car, then reselling it to buy a new car, thats the way to do it.
I perfer to own a car, because i can modify it. I can swap the engine, i can upgrade the wheels and brakes.
at the end of those months, you give the car back to the dealer.
People who lease cars re-lease cars every 2-3 years. My uncle wouldnt do anything other then lease, and he leases if for 3 years, he drives it for a year year and a half,, then gives to my gradma for the next year and a half. This way, she always has a new car, and he always has a new car.
2007-03-05 13:50:19 · answer #5 · answered by Anonymous · 1⤊ 1⤋
I think it is better to buy a car than to lease it, unless you are one of those people that want a new car every two years. You also can't put a lot of miles on a leased car and if you do there is a penalty.
2007-03-05 13:44:37 · answer #6 · answered by Yvonne 4 · 3⤊ 0⤋
Unless you are trading cars every three years, and don't mind ALWAYS having a car payment, it is usually better to buy. Leasing limits the number of miles you can put on a car without extra charges, and you will also be charged for any damage, new tires, etc. when you turn the car in.
I have leased. I will now always buy. Not gonna get ripped off again.
2007-03-05 13:42:44 · answer #7 · answered by J.R. 6 · 3⤊ 1⤋
it would be better buying a car than leasing it. if you lease a car you're going to pay for it monthly for a certain number of months plus interest. interest is added with how much you are paying monthly. but leasing a car also builds up your credit. if you buy the car, you pay the full price of the car plus tt&l which is tax, title and license.
2007-03-05 13:46:07 · answer #8 · answered by Τau19 3 · 1⤊ 1⤋
Leasing has lower payments but mileage restritions . I got stuck with a lemon for 3 years
2007-03-05 13:47:59 · answer #9 · answered by Grand pa 7 · 2⤊ 0⤋
NEVER lease a vehicle! A lease is just like renting. You will be throwing away your money!
2007-03-05 13:46:46 · answer #10 · answered by Anonymous · 1⤊ 0⤋