Hi!I'm looking to get a car ...should I buy it outright or should I lease it from a dealer?? which is cheaper?

Answer 1

Hi, Nazilla

Buy or lease for a new set of wheels? Each option has its own benefits and drawbacks, and it all depends on a set of financial and personal considerations.

Your finances is clearly key, and you need to ask the question of how stable is your job and how healthy is your general financial situation.

The short-term monthly-cost of leasing is significantly lower than the monthly payments when buying: you only pay for “the portion” of the vehicle’s cost that you use up during the time you drive it.

Buying effectively gives you ownership of the car and that feeling of “free driving” that goes on providing transportation.

Unlike buying,leasing gives you the option of not having to fork out the down payment upfront, leaving you to pay a lower money factor that is generally similar to the interest rate on a financing loan. but terminating a lease early or defaulting on your monthly lease payments will result in stiff financial penalties and can ruin your credit.

Besides the financial aspect, making a buy or lease decision depends on your own particular lifestyle choices and preferences.

If you want to drive a car for more than fives years, negotiate carefully and buy the car you like. If, on the other hand, you don’t like the idea of ownership and prefer to drive a new car every two to three years then you should lease.

Next, factor your transportation needs: Leasing is based on the assumption of limited-mileage, usually no more than 12,000 to 15,000 miles a year, and wear-and-tear considerations. Unless you can keep within the prescribed mileage limits and keep the car in a good condition at the end of your lease, you might incur hefty end-of-lease costs.

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Answer 2

Depends on what you are looking for. If you drive a lot leases only allow you a certain number of miles a year. (they will charge you a fee for miles over what is stated in the lease) They can be a great way to keep your payments low but when turning in your vehicle make sure you read the fine print. They will get you on any little thing that might be wrong with the vehicle. 9dings, dents, scratches, stained seats, etc.
Also anything you might add on to the vehicle does not add to the value of the turn in rate. You do not get added value if you add video systems, new stereo, spoiler, leather, sunroof etc. If it is on the vehicle when purchased it counts but if you add it on later it does not.
Make sure you understand what you will have to pay in the end if you decide not to keep the car at the end of your lease.
Purchasing is good for anyone that is going to keep the car longer then 3 years or if you drive more then 12,000 to 15,000 miles a year.
Different manufacturer's have different programs. Make sure you find a dealer that is willing to explain all the differences to you before you make your decision.

Answer 3

Leasing a car is like a long term rental. You still have to maintain the car, can only drive it a certain amount of miles and then at the end of the lease, you give it back. I suggest you save your money and buy a car with cash. Or, if you must finance, buy a used car and get a credit union or AAA to finance it. Financing a new car is risky cuz at some point you will owe more to the finance company than the car is worth.

Answer 4

A clear financial analysis of both transactions indicates that costs between leasing a car for two years and purchasing it under finance and selling it in two years is roughly equal. Either way, you are going to pay for the use of the car for two years, and swallow the depreciation in value for those two years.

The least expensive route is to buy one of the cars some OTHER person has leased for two years and driven only 24,000 or less miles.

No matter how you parse it, there is a heavy cost to be paid for the privilege of driving a brand new car off the lot.

Answer 5

Personally, if you don't do alot of mileage I would lease the car. A car depreciates in value as soon as you take it off the lot. There is no investment value here. Lease a car and trade it in a few years down the road for another.

Answer 6

A lease is ALWAYS rip off. It's never a good deal.

You should save up and pay cash, but if you must finance, then finance... and shop for a good deal on a used car.... let someone else take the financial hit of a brand new car.

Answer 7

depends on the type of car and how much money you have to invest add details to your question and I will add delails to my answer