i need a car should i lease or buy ?

Question

i don't know what to do . i have to go cheap and save money what should i do . how the insurance work . is my insurance going up for leasing a car i am 68 y/o man

Answer 1

Leasing is an alternative form of financing. Both have fixed terms and payments. With a purchase you finance the whole price of the vehicle and pay that amount, plus interest, back to the finance source. With a lease you also finance the full price of the vehicle, and pay all the interest. You only repay part of the principle of the loan. A lease has an estimated value of the vehicle at the end of the lease term. (Residual value) This is deducted from the principle and you only pay the difference in your monthly payments.

For example:

Assume a vehicle that costs $30,000 and a trade in worth $5000. Also assume you are financing, or leasing the vehicle for 5 years. A final assumption is that at the end of the 5-year period, the vehicle is worth $7500.

With a purchase you would pay back $25,000 plus interest over the period of the loan. You would own the vehicle (worth $7500) You can keep it, or trade it in on a new vehicle

With a lease you pay back $17,500 ($25,000- $7500 residual value), and the interest that is charged on the $25,000.

Your payment is less, but at the end of the term you have nothing!

With a lease there is a limit on the number of miles you can drive and a per mile charge after that. You are also responsible for any and all damage to the vehicle. At the end of the lease, when you turn the car in, you will have to pay for any and all damage and over miles charges!

With both a lease, and a purchase, you are responsible for all maintenance. Some leases, but not many, may have a maintenance program, but that does cost extra, and will increase your monthly payment.

Answer 2

If you want to have a new car every three years, want to avoid pricey maintenance and you don't go over the set miles contracted, then go for it. Your guaranteed a buyer at the end of the lease and can get into another new vehicle. Insurance on leasing is not that much more, be sure that your leasing company has the replacement clause in it. Without it, your insurance company will place a value deemed at the time and may not be enough to get back into the same vehicle.
Whether you buy or lease you will lose the same amount of money within the first three years. The reason that so many people buy is a mind set, they feel better knowing they'll own it eventually. The only way buying is smarter is when you decide to keep the vehicle until the wheels fall off (highly unlikely in this world).
We've owned numerous vehicles and when you add up the cost of the outrageous repair bills, we were actually losing thousands of dollars every year. We noted that after the three years warranty was over, suddenly repairs seemed never ending and costly (especially on trucks).
Your best to do some online searching to make your decision, there are some great sites that may answer your questions better.

Answer 3

The lease has some great benefits over a sale. You will not own the car, but you will have all the rights of ownership. So this means that the dealer keeps their interest in the car and after so much time you return it to them and then walk away.

The big perk of a lease is that it cuts the cost of a payment in half a lot of times as opposed to buying a car.

So, there is one major downfall to a lease and that is watching the miles you drive. You will have a certain amount of miles under the lease, usually about 12,000 a year. If you go over that amount you will have to pay the cars true owner (dealer or manufacturer) what is called a balloon payment for a fee per mile (like 3 cents a mile).

I have leased a few cars, and think its the best deal these days. Cars are not investments like they were 50 years ago, so why pay to own it after you are no longer in love with it. I also do not think it makes any change in your insurance rates to lease rather than buy, for all intensive purposes you are the owner to the rest of the world. Thus, you insure the car as you would with a car you own.

Answer 4

Leasing delivers flexibility in terms of the selections obtainable. in case you go with to alter your automobile each few years or in the journey that your existence-sort demands a sparkling automobile each few years, then leasing is an suited determination. So lease is extra constructive whilst in comparison with a private loan.

Answer 5

It depends on weather or not you want to cover the maintenance on the car leasing it will all be covered except service, and you will be able to exchange the car at the end of the contract, also Insurance will be cheaper because of your age