why is leasing a car not a good idea if you plan on paying the buyout amount when your lease is up?

Question

i would rather lease a new car and then finance the buyout amount than finance a certified used car. I dont drive a lot of miles and i am not hard on my cars when it comes to damaging the body and interior. why would that be a bad idea?

lets do the math, duh. 24 times 200 is 4800 plus 2000 equals 6800, not 11000

Answer 1

The website below will answer any questions you have on leasing.

Personally I do not lease because leases are more favorable to the dealer not the purchaser.

Answer 2

Leasing a car and then buying it at the end of the lease is virtually guaranteed to be more expensive than if you'd just purchased it in the first place. Otherwise everyone would just do a lease + purchase since it allows them the flexibility of walking away from the car at the end of the lease (just look at all the people on this board who bought new and want to get rid of them after 2-3 years but are hopelessly upside down in their loans). Dealers basically charge a premium for this convenience.

The only way to know for sure is to run the numbers -- see how much the (lease payments + residual value + interest) is compared to the (outright purchase price + interest).

Answer 3

It all depends on the kind of car and the residual value.. This will not always be the best idea. You would have to do an amortization schedule on leasing the car for (x, maybe 36)months then purchasing (for another 3 years) v/s buying certified for 5 years. Plus you never know what happens with the car market. If the resale value drops on the car you are leasing, your buyout can be alot higer than other vehicles comperable to yours.
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Answer 4

You pay way more, duh. Do the math: Let's say it's $2000 down and $200 a month for 24 months lease for a $15,000 car. So after 2 years you've paid $11,600. Then they'll offer it to you at a used price, prob around $9000. Then you have to pay the $9000. So total for your car is $20,600.

You you've now paid more than $20,000 for a used $15,000 car. That's more or less how leases go.

Leases are great if you plan on changing cars every two-four years, but if you plan to keep the car for longer it's better to buy.

Answer 5

In the end you just pay more. Car dealers just love lease. And that's because of the profit they make on it. There's lot more hidden cost to Lease then just buying.

Good Luck

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