I've never bought or leased a car in my life. Tell me what I need to know about leasing/buying a car.
2007-05-20 03:26:31 · 5 answers · asked by Juliet 1 in Cars & Transportation ➔ Buying & Selling
Buying in just that -- you're buying the car. People typically finance a car purchase -- that is, they borrow the money to buy the car, with the car as collateral. The most common car loans are 5 or 6 years long.
Leasing is essentially renting a car for a particular amount of time (hence the "lease"). A typical lease is for 3 years/36k miles. If you go over the 36k miles, you will be charged a per-mile overage fee that is usually pretty steep (kinda like cell phone minute overage fees). You can still buy the car after a lease -- they give you the option to buy the car for a pre-determined amount -- but it's almost guaranteed that the lease + buy-off amount will be much higher than if you would have just bought the car outright in the first place.
About the only advantages to leasing is that 1) your monthly payment will probably be lower than if buying, 2) if you change cars very often, like every 2-3 years, it may actually save you a little bit of money over buying a car and trading it in every 2-3 years (since trade-in values are so notoriously low).
However, option #1 is deceptive (leasing leaves you with nothing to show for it, whereas making payments on a car will eventually give you full ownership). And option #2 is just not a good idea -- getting a new car that often is a huge and unnecessary financial drain.
2007-05-20 10:41:28 · answer #1 · answered by nevergonnaletyoudown 4 · 0⤊ 1⤋
Simple answer is this. Buy. You buy the car. Once paid for, it's yours. Do what you want with it or to it.
Lease. You are renting miles. If you go over, you will have to pay extra. At the end of the lease, you can walk away, or you then have the option to buy if you'd like, or you can upgrade to a new car and lease for another "X" years. During the lease there are restrictions as to what you can and can't do.
2007-05-20 03:41:56 · answer #2 · answered by oklatom 7 · 0⤊ 0⤋
Leasing is good if you are a company. As a consumer at the end of the lease you have nothing but a very high pay off.
I did this in 1998. At the end of the lease they wanted $6700 for a four year old car.
The best thing to do is pay cash for the car with no financing.
Good luck to you
2007-05-20 03:29:57 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Buying you own the car. It is your responsibility.
Leasing you have some responsibility but most rests on the dealership.
You have to pay for regular maintenance like oil changes but anything major the dealership will pay.
You never own the car unless to do a lease to own but if your going to do that you might as well buy.
You have to stay within certain restrictions if you lease like mileage per year and no damage to the vehicle.
2007-05-20 03:30:58 · answer #4 · answered by Crowdpleaser 6 · 0⤊ 0⤋
Books have been written about the subject. You need to refine your question. Such as how does a engine work?, how does a transmission work? What are those silly peddles on the floor for? What is a PRNDL?
2016-05-22 00:00:55 · answer #5 · answered by Anonymous · 0⤊ 0⤋