What are the benefits of leasing a vehicle compared to buying? Would I have to sell my vehicle privately?

Answer 1

There really are no benefits to leasing a car. Leasing a car is like renting an apartment. When you're done, you're left with nothing other than less money in your pocket. Leasing cars is for people who like to change cars constantly, or people who relocate quite often and therefore require different functionality from their cars. I recommend you either buy a new/used car and drive it until you need another car.

In terms of selling your vehicle privately (if you decide to buy as opposed to lease), yes, you are correct. But there are many channels in which to sell a car. You could sell it to a dealer/another individual/put in on ebay or something of the sort.

-MunkiPhD
Autotropolis.com

Answer 2

I'll assume this is just a personal-use car, and there's no business-related tax advantage or employer-paid mileage allowance.

In essense, a dealership leases a car by subtracting its anticipated trade-in value at the end of the lease term (call it three years) from the selling price and charging you that amount over the term in some combination of down and monthly payments.

It is, in the long run, NO different than buying the car and trading it in, except that everything is planned out for you. Either way might save or cost you a small amount, but there is no big difference, assuming IT'S THE SAME CAR.

The mistake most people make is looking just at the monthly payment and leasing an Acura for the price of an Accord. After three years the former has nothing, and the latter has a three-year old Accord.

Answer 3

I disagree with the earlier posts. Leasing is a great tactic if you fit a certain profile. If you take good care of your cars, drive a somewhat predictable amount of miles, and replace your cars often, leasing is a good way to it affordably. I buy a new car every three years. My job pays for my mileage and I take great care of my vehicles. I'm a perfect candidate.

The notion that you don't have anything when you're done with a lease is just plain wrong. When you finance a car, you don't own it anyway until your loan is satisfied. Your paying interest either way. When you finance what you have done is taken on the responsibility of paying for the deprecation and the risk of what could happen to it. In a lease, you don't have to worry about resale. And if it is wrecked or stolen, it's the bank's issue, not yours. Plus, you don't have to tie up any of your assets in a piece of property that LOSES value. Buy what appreciates...lease what depreciates.

Answer 4

leasing is a great way to have a new vehicle every couple of years without accumulating negative equity. you can trade in your current vehicle but if you have negative equity then your payment will go up about 20 usd for every 1000 of negative. the advantage is after the lease is up you will never have negative again. I have been in car business over 10 years and all people in this business lease our cars doesn,t it make sense to lease if everyone in this business is leasing? after all most of us are pretty savy about how to purchase autos.

Answer 5

Honestly there are NO benefits to leasing a vehicle - unless you're someone who desperately wants a car every 2-3 years and doesn't mind throwing away all that money for nothing.
But if you're like most of us, you don't want to throw away your money and have nothing to show for it in the end. Buying is your best bet!

And btw - when you lease, most dealerships can only give you wholesale value for your car. My hubby almost leased a truck, took his Neon in, they said, $1,000 bucks. He sold it on the street for almost $3,000 and ended up buying the truck.

leaser beware!

Answer 6

leasing is worse thing you can do after the lease is up you have to give it back to the dealership and your end up still own on it and u have to get more coverage on your insurance than if u had gotten a loan for the car and u can only go some many miles till the end of the lease i had a friend that did it and he lost so much money because of it