whats the purpose of leasing a car?

Answer 1

to throw away lots of money...You Pay big and end up with no car at the end.

Answer 2

The purpose of leasing a car is simple. People who rent cars, can simply lease a car for a longer period of time, making it alot cheaper in the long run. As well, in this scenario, you do not have to pay off the full value of a car that will depreciate in value over time (you lose money on your investment), and you can simply lease a newer/better car once your lease is up for that particular vehicle. Similarly, the dealership will fix most repairs as long as you keep the car under the mileage stipulated in your contract. Lastly, an entrepreneur or business can lease a vehicle and simply write off the costs as a business expense (gas, leasing the vehicle - you can do the same with restaraunts, etc.).

However, there is a downside. You never do own the car under a lease, and you are simply spending money, and receiving nothing in return. It's similar to the rent vs. buy a home debate. If you rent a place it is a lot cheaper, but you are simply giving your money away, and receiving no property or monetary gain in return. On the other hand, if you purchase a house it is a lot more expensive, and you have to pay for repairs etc. (which you dont have to while renting), but you will, in the end, own the house and can sell it at your discretion, for a price you deem fit. So when it comes down to it, if you use the money you spend on a lease towards the car, you could own it, but if you are only seeking a temporary (short term) car purchase, then leasing is the way to go.

Answer 3

If you don't put allot of miles on a car or go easy on the wear and tear of a car, it's a easy way to get a new car every 2-3 years.
Or if you want a nicer car, but can't afford to buy out right, you can lease it and then buy it out at the end of a lease. There isn't a better used car to buy than one you have owned and know exactly what it's been through.
My brother got a subaru legacy by leasing for 3 years and buying it out. He had only put 20,000 miles on the car during the 3 years, so he got quite a deal on the car at the buy out.

Answer 4

Leasing usually allows you to get more car for your payment, or a lower payment on the car you want. However, you don't own the car, so there are limitations (like you can only drive so many mile per year without paying a penalty), and you will still owe a big chuck of money at the end of the lease period.

If you're the sort of person who buys a new car every three years, and doesn't make many long trips, leasing might make sense. Otherwise, stick to buying.

See: http://www.leaseguide.com/lease03.htm

Answer 5

Leasing is very good for some people, like me. I've been leasing all my cars for over 25 years. I don't like putting my cash in a depreciating asset. I like getting a new car every three years. I like the low payments and no down payment. And I like not having the hassle of getting rid of a used car when I want a new car.

One of the biggest misunderstandings about leasing is often stated as "you pay all that money and have nothing to show for it at the end" and it's compared to renting a house. In fact, it's nothing like renting a house.

What is overlooked is the fact that all automobiles, unlike houses, depreciate in value with age and mileage. Cars depreciate in value whether they are bought or leased. Leasing simply pays for that depreciation, plus finance charges. However, when you buy a car, you also pay for that depreciation. Ask anyone who has bought a car and sold it 3 years later for 50% of it's original value. They also have nothing to show for the other 50% that has been lost to depreciation. They only have half their car to show for their money, because they made higher monthly payments.

Leasing is simply an alternative method of financing a car. It's good for some people, it's not so good for other people. Unfortunately, leasing often gets a bad name, from people who don't understand how leasing works and had a bad experience because they were not right for it and were talked into it by a dealer salesperson.

If you are considering leasing, take the time to understand how it works and make your own decision about whether it's right for you.

The following web site may be helpful to you:

http://www.LeaseGuide.com/index2.htm

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Answer 6

you dont own it and lose money over time, it is a easy way to trade in for a new car every two years, I wouldnt lease one longer than that,, but you will always be " upside down" with the car so never buy the car at the end of a lease,

Answer 7

If you don't have the money to buy a car you would lease a car. And if you only want to have it for a few years, and then they'll take it so you can get a new car! Who wants to drive the same car forever, know what I mean?

Answer 8

If you don't want to stick with one car more than 5 yrs..then leasing is the way to go. Cos you'd get a new car every 3-5 yrs. But it means that you would ALWAYS have a monthly payment.... When you buy..your payments end in 4-5 yrs (depend on your loan term).

Answer 9

You pay lots of money to borrow a NEW car for 2-3 years, then give it back and do it again. It gives the dealership used cars 2-3 years old with low miles to sell and make even more profit.

Answer 10

i lease, i do because i always want a new car every couple years.
1. cheaper payments
2. NEW car every couple years
3. dont have to worry about going upside down on your loans

I love it!!!