What's better Leasing or Buying a vehicle?

Question

Please list CONS & PROS

Answer 1

I think leasing is a good choice if you want a new car every two to three years, if you do a lot of driving i would purchase instead because most lease contracts go up to 15,000 miles

Advantages of buying
1. sell it anytime you want
2. drive as much as you like
3. you own the vehicle after you pay it off

Disadvantages of buying

1. cost more
2. more maintenance required after 5 years
3. You owe more than the car is worth
4. heavier depreciation

Advantages of leasing
1. you get a new car every 2-4 years
2. no major maintenance
3. more car for your monthly payment

Disadvantages of leasing
1. you do own the vehicle
2. you can only go so many miles per year
3. responsible for wear and tear
4. some companies charge turn in fees

Answer 2

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 3

Cons - it's not your car. When you are tired of it or your lease is up, it needs to be returned a specific way. Some places require that only a certain amount of miles are put on it and the tires need to have at least 60% of the tread still on them. If you do lease one - read the fine print first, it may bite you in the butt in the long run. I won't recommend it.

Pros - it's easy to get one. All you need is a job and a couple hundred bucks to lease one. But the cons out way the pros.

Answer 4

Leasing is more expensive, but the dealer maintains the car (e.g. repairs). If you buy a car and pay for the repairs and maintenance yourself, it will still cost you less than if you lease. With leasing you just pay much more for the covinience of letting someone else do the repairs and maintenance.

It is much better to buy your own vehicle. Mainly rich people and companies who would rather pay much more money to have someone else fix the car leases vehicles.

Answer 5

in case you are the kind of folk who will use this motor vehicle for the long and plan on protecting the motor vehicle for an extremely long term, then it is extra effective to purchase a clean motor vehicle. it may take you longer to pay it off yet on the top it will be yours. you will placed a down fee, and pay off the remainder of the motor vehicle in month-to-month installments. leases are oftentimes extra effective for purchasers who prefer to alter vehicles 2-3 years. in case you are the kind of guy or woman who appreciates exchange then hire your motor vehicle. With leasing, you in addition to could placed down a down fee and supply month-to-month money different than you do no longer pay for the motor vehicle completely. you're paying to force for 2-3 years (finding on how long u %) after which you come it to the broker on the top of those 2-3 years, you do no longer shop it. somewhat, with leasing, it is like renting a motor vehicle from a broker for 3 years and giving it back. In essence, with leasing you will by no ability extremely very own a motor vehicle. yet another component is money, in case you're making your determination based upon financial motives then needless to say it is extra effective to hire in case you're tight financially considering which you're purely paying a component of the easily value of the motor vehicle. in case you're financially stable then you certainly can pass forward and purchase the motor vehicle. decide your standards for paying for the motor vehicle and then % despite if leasing or paying for is extra effective for you. the region decrease than provides you with a extra in intensity rationalization.

Answer 6

When you lease a car, it's not your car.
the payment is comprable to a car purchase.
Shop around for good cash deals.
usually here in Texas 3000 dollars will buy a great car that will last more than five years with no problems.
Like, a 2000 to a 2003 model foreign car, that is good on gas.

Answer 7

leasing - - - - - -
Cons:
your basically renting the vehicle under a crappy contract
limited mileage
12K per year
go over that and your paying extra
- - - - - - - - - - - - -
Pros:
Dealer is responsible for all repairs that are under the warantee outlined in the contract

Answer 8

Your best deal is usually whatever that is already parked in your driveway.

If that is not the case, a previously leased (program) car, typically four door family sedan is your best deal.

Answer 9

Although any car depreciates as soon as you drive it off the lot, NEVER lease!

It's just a waste of money!