Lease or Finance a car?

Question

hey .. im thinking of buying the 2007 chrysler sebring or 2007 ford fusion. The thing is that i dont know if i should lease or buy the car i choose. I would like to know which one would be my best bet and which car should i choose. I ma 20 so i dont know if finance is the righ tone for me. HELP!!

Answer 1

Lease = Paying for car's depreciation.

Buy = Owning the car.

If you plan to have a new car every 2-3 years, then leasing is typically the better option (especially if you know how many miles you plan to put on the car yearly). Many people who purchase, then try to get rid of their car in less than 3 years, find themselves with an enormous amount of negative equity, that then has to be "rolled" over into their next car. For those people, they probably would have been better off leasing.

If you plan to keep the car for 4 years or more, buy, because typically at 4 years, you won't have much negative equity in the vehicle, then definitely buy. Purchasing gives you a lot of flexibility because you don't need to know the exact mileage you'll be travelling yearly, you are free to make modifications to your car. (ie things like tinting, chroming, changing the radio, etc. with out needing to get an agreement from your leasing company)

If you are purchasing I would definitely strongly consider the sebring because Chrysler is offering a LIFETIME warranty on their power train.

Answer 2

Leasing is only a good option if you stick to driving locally and plan to return the vehicle in about 2 years, maximum. It's WAY too easy to go over the mileage limit and be charged through the nose for tjhose high extra-mileage feess, all it takes is one or two long driving trips, which I know you'll probably be doing some of since you're only 20.

Also, you generally need to have a very high credit rating to lease a vehicle, so that may not even be an option for you.

At your age, the best thing to do is to SAVE for a used car that costs $3-4K, pay it all at once until you've been working a while and can save more over a few years for a new down payment on a better car.

If you insist on getting the car, make sure it's one you like and know you can live with for at least six years and buy it.

Answer 3

Depends on how long you plan to own plus how much you drive. A lease is nice since you never have to worry about the cost if something goes wrong, and in a few years you can trade in for a new car which can be good with the continuing advancements in safety features and comfort. Then again, if you lease you will be basically paying for a car your whole life. The choice comes down to where you see yourself in the future. If you decide to buy, outside financing is almost always better than financing through the dealership. Ask your local credit union or bank for financing programs.
Good luck.

Answer 4

Okay, first off, do you either have the credit or co-signer to back up a low interest rate if you decide to buy? It really counts when it comes to your payment. Leasing usually gets you a lower monthly payment, but there are all sorts of fees if you go over the allowed milage, etc. If you purchase (on a 5 yr note) and want to trade in in 2-3 years, you'd be close to even on the note and wouldn't really be upside down (again, depending on the APR and condition of the vehicle). At least if you buy the car, you're getting something for your money should you choose to keep the car. Leasing is prolonging the deal. I vote with buy if you can :)

Answer 5

Lease only if you must drive a newer car every few years and you dont go over the mileage that is allowed. Keep in mind you will have higher insurance coverage on a lease also. Buy if you can hold off ten or more years between cars. this way you have no car payments for years that you can either save up to put as a down payment on a car or buy it outright the next time. Think of it this way I am going to pay $20,000 in payments do I want to have something to show for it after its paid for?

Answer 6

if i were you, i would not lease. I'll tell you what, unless you have a really good job go ahead and purchase. Lease if you know you won't go over with the allowed mileage. If you are a student and need to work to pay for your car, don't became a payment slave for five or six years. Instead, get an older model car that is safe and work good that way you won't have any payments to make and you'll have a lot more peace of mind. Save a good amount of money for a nice down for a new car with low payments.... good luck!

Answer 7

first of all don't buy either of those cars they are both notorious for having a lot of problems, and when i say a lot i mean a lot both those cars will be a much bigger headache then you want. Second leasing is rarely a good idea because you have to lease for MSRP price (most cars you buy end up being a lot less then MSRP price when you purchase it) so not only are you paying more money for the car, but if you go over in your allowed miles you end up with a bigger bill.

Answer 8

I finally convinced my wife to not look at the payments per month but at the grand scheme of things. You are relatively young and probably drive a lot of miles per year. If so, you will pay a premium on the back end if you lease the car. Payments are usually based upon XXX miles per year for XXX years. Say your payment is based upon driving 12,000 miles per year and the lease period is for three years. If you drive 20,000 miles per year for that three year period, you will owe an additional sum on money for the additional 24,000 miles you put on the car. That amount is based upon a figure quoted when you sign the lease.

Do yourself a favor and buy less car but do not lease it. If you take care of the car you purchase, hopefully when you decide to get a newer car, you will have equity that can be used for a down payment. That is not the case when leasing.