My question is regarding leasing a car and then buying it at the end of the lease?

Question

I think that by doing this I will pay more money in the end than buying it upfront. I am not sure how. Does anyone knows how will I end up paying more if I decide to buy at the end of my lease. I plan to keep the car for atleast 5 yrs. The only thing that is keeping me away is the high monthly payements but I dont mind if at the end i am anyways going to pay more money..
Please let me know..Appreciate it!!!

Answer 1

Leasing is good for getting more car than you could afford by buying and you don't need a high down payment but it's not the best way to save money over the long term---you would have to add up your lease payments and the buyout amount when the lease is up to see how it compares with buying the car outright at the start factoring in any interest differences between the two methods. Better to buy a one or two year old car with some warranty left or buy a good warranty for the 4 extra years---most cars depreciate the most in the first 2 years of ownership--- 30 to 40 percent. That's where you save the most. Also, try to determine maintenance costs for items like tires, brakes, tuneups and any other non-warranty items to calculate your monthly expenses....I usually budget 100.00 a month for a used car and 50.00 a month for one still in warranty.

Answer 2

I bought my first car by leasing then bought it out when lease was up. It has its pros and cons if u can afford to buy your better off getting more of a savings at the time of sale. Yes payment is higher and the lower the interest rate the more goes towards your payment u wanna find out how that will apply if u get a lease. now on the lease you have less payment also helps in establishing your credit and its always under-warranty but u also have to keep up with the maintenance leasing or u can get penalized and u can trade up every year have a new car if u want but at the end u pay more out actually u can be upside down and don't forget it automatically looses value when u drive it off the lot. hope this was helpful good luck

Answer 3

If you lease with the intention of buying at the end, it's true that you pay more. When you lease, payments are much lower but total finance costs are greater than if you purchased at the beginning. However, many people who have tight budgets find this an acceptable tradeoff.

Answer 4

first the way you may benefit from a lease is if you own a company and can write the loss off .Think like this when you title a car be it lease or own the value drops 5k to 10k depending on the car. the best way buy a one or two year old car put a the best warranty on it that way you will get more car and if anything goes bad you will get the benefit of the warranty. mile rule of thumb one year old car no more than 15000 miles two year old car 30000 miles got it .