Car Leases, a good option, Yes or No?

Question

I need people's opinions on car leases. I live in the city and I occasionally need a car for work (like 2 or 3 times a week). I like driving but I like getting around without one also. I think a lease would be a good option for me since I don't necessarily depend on a car.

I've heard a lot of different things about leases, some good, some bad. I want people to share their experiences with them. Key word experiences. I would prefer answers from people who have experience with car leases.

One thing in particular that worries me about leases is the insurance. I've heard that people get hit with a lot more insurance costs when they lease. Is this true?

Answer 1

Leasing is great if you know how many miles per year you will be driving and you like to have a new car evey 3 or 4 years. Example: I lease a 2006 Cadillac CTS 3.6, my lease payments are $345 a month and I came up with only the first payment when I signed the lease. Had I purchased, my payments with tax title and license rolled in with only a $345 down payment would be about $630. Total price would have been about $32,000 with taxes and everything rolled in. This is a 12k miles 39 month lease. Had I purchased the car after 39 months and I traded the car to a dealership, which is what most people do, I could expect to get maybe $16,500 trade in value for the car with 39k miles on it. These figures are based on KBB trade in in excellent condition.
So I'd have made $24,570 worth of payments at 6.9% and have a pay-off of about $13,500. Net dollars spent on purchase $21,570. Net payments via lease $13,455. Gee, what do I do? By leasing I save over $8,000. Works for me.

Now this does not work for everyone. If you arent honest with yourself about your mileage and you go over the allowed mileage you will owe some big money at the end of the lease, my contract says 25 cents per mile over. My car is somewhat of a luxury and I am not totally concerned with value and as we all know, cars depreciate. I like having a new car every 3 years and I like nice cars. If I were concerned totally about the money I'd buy a honda Civic and keep it for 6 years, but I hate Honda Civics and would rather spend the same money monthly for a Cadillac Cts via lease than purchase a 2 door manual tranmission Honda Civic. $345 a month equals financing about $17,000 at %6.9.

Do the math. My insurance is $110 month on my Cadillac but I live in New Orleans and have a perfect driving record. Hope this helps you.

I love how everybody thinks leasing is a rip off. Its not. It works for certain people and not others. Who cares if you dont own it? Why would you want to? In 5 years it wont be worth much anyways. You do NOT have to purchase the car at the end of the lease. Depending on the leasing company you may not have to put up a security deposit or a down payment. I know I will always have a car payment becasue I like to have a new car all the time so why would I want a higher payment via purchsase when lease payments can be so low. You have to find the right deal, manufacturers have certain lease programs at certain times where they boost the residual or give youextra low interest rate. Check it out.

Answer 2

Your insurance cost is about the same as if you are buying it (Insurance companies look at it as if you ARE buying the car), If you do not want to buy the car a lease may be a good option for you, lease it for two years and turn it in. HOWEVER, for most people a lease is not a good option. The mileage restrictions are horrendous (may be as much as $1.00/mile over the allowance) any damage to the vehicle will be charged to you. (dings and scratches included which could add up to a lot when you return it). And if you do not have proof of maintenance (oil changes ect..) then they can charge you for excessive wear too.

Answer 3

leasing is a terrible option.
Unless you are in business and can LEGALLY write it off.
It costs more to insure, there are caps or limitations on mileage, with heavy penalties if you exceed them, and the hidden charges they administer upon the return of the vehicle at end of lease... due to incidentals, damage to vehicle and extra wear and tear all add up. They will usually coerce you into another lease by promising to erase all charges from this lease by signing for a new one.
AND, when it is all said and done you have NOTHING for all the money you put forward to rent this car.
I leased 2 cars and leases are not cheap. They say you get more car but in reality you are paying that much more with no return on investment.
Live within your means and get what you can afford by buying.

Answer 4

No. Bad Idea. If you don't want to own it, don't buy it. If you go over the miles, you will be charged for each mile over, and if you don't, you aren't going to get a refund. Also, if the car is stolen, or in an accident, you don't own it, the leasing company decides whether it gets repaired or junked, meanwhile you will be responsible for making up any difference in the value of the car, and what you will owe them (purchase price). Leases are a bad deal all the way around, don't do it.

Answer 5

if you are only going to be driving it a few times a week it might be ok. just make sure you dont drive far. leases suck, if you go over the amount of miles the dealership allows you they will hit you with extra fees. and yes insurance is more, i am not sure why but i had the same car as a friend, mine was leased and her was not and my insurance was a lot more and we both had no accidents or tickets.same age. i would not suggest getting a lease, i hated mine, and i know quite a few other ppl who hater theirs.

Answer 6

Leasing is designed strictly for big business owners as a tax write off. It's a rip off for anyone else. You pay a huge lump sum at the beginning and end of the lease period or are forced to buy the vehicle at way more than it is worth. You would be better off to buy a good used vihicle.