why some many people preffer lease a car than buying one?
am i the only one who think lease a car is throwing you money away?
2007-09-13 04:44:57 · 9 answers · asked by gracyy00 2 in Cars & Transportation ➔ Buying & Selling
leasing a car is a waste of money. Because there's a lot of people that just follow whatever was told to them and they don't want to think logically, or don't even bother want to use their brain, they do as they're told. I thought that's funny.
I was listening to a conversation - and I was sad inside me about how the conversation is going along - one being stupid and just say yes, and getting information and telephone number, and the other, just keep on lecturing the other, I was laughing inside me, I can't help look at the faces of those two - and then I feel so disgusted I have to abandon the area.
Going back to leasing car - imagine just paying every month for nothing. What they have saved is just a little amount of money for the downpayment - that's it. They still have to go through signing papers.
Yes you are right! It's a total waste.
2007-09-13 05:06:16 · answer #1 · answered by earth angel 4 · 1⤊ 0⤋
Leasing is very good for some people. I've been leasing all my family cars (not business cars) for 20 years with no problems. People who advise you not to lease don't understand leasing, have never done it, and pass along bad stories from other people who leased when they shouldn't have.
You are concerned about throwing money away. The money you "throw away" in a lease is the depreciated value of the vehicle. All cars depreciate in value, whether they are leased or purchased. When you buy a car for $20,000 and sell or trade it 3 years later for only $10,000 you "throw away" the same money you would "throw away" in a lease -- the depreciated value. Leasing is just another way of financing, except you only pay for the depreciation, not the whole value of the vehicle.
I advise you to learn how leasing works and how to calculate payments, so that you can make your own decision. A good web site with this kind of information is the following:
http://www.leaseguide.com
.
2007-09-13 06:51:34 · answer #2 · answered by Anonymous · 0⤊ 0⤋
A lease is just a financing strategy. You pay very similar interest as you would if you were financing. The difference is that you are only financing a set amount of the car. For this, you pay the bank a profit margin also called the money factor.
It is not always a bad idea. For people who drive predictable mileage, take good care of their cars, and like a new car every few years, it is perfect. It is people who lease for the wrong reasons who get in trouble.
I lease and I think there are two good reasons for me to lease. First, I do not want to tie up money in a car. I would rather invest it or improve my home. a good rule of thumb is to buy what appreciates and lease what depreciates. A home is an asset. A car is not. Second there is a lower risk factor with a lease. If the car is damaged in an accident, it's the bank's decrease resale value and not yours. If it is stolen, it's the banks problem.
2007-09-13 05:53:42 · answer #3 · answered by Jay P 7 · 0⤊ 1⤋
When you lease a car you are only paying for what you use. They have a predetermined future value of the vehicle so they subtract that from what you pay and that's how you arrive at a lease payment. Some vehicles lease out better than others. Those with the best future value.
In most lease cases, you can go from one car to another with no money out of your pocket. If you drive less than 15k per year, and like never having to pay for service, and like getting a new car every couple of years, then leasing is for you.
How many of you have ever tried trading in a vehicle that you bought only to be dissapointed with the money you get for it? That isn't a problem with a lease.
Just never BUY a vehicle you have leased when the lease is over, that IS a waste of money. Just turn it in and get a new one.
2007-09-13 05:36:55 · answer #4 · answered by binaryking 3 · 0⤊ 1⤋
The biggest reason people lease is so you can get more car for the money or to be able to change cars every few years easily. Assuming you take care of it and dont go over the mileage, I dont think its a bad thing.
Ive never done an in depth analysis (buy vs lease), but assuming your not paying cash, I would think the end results are close enough that it doesnt make a huge difference. If anyone has, I'd like to see it.
2007-09-13 05:31:32 · answer #5 · answered by njxrider 2 · 0⤊ 1⤋
For some one who plans on switching cars every couple of years and doesn't use it for much travel. You have the option though towards the end of the lease to buy it.
Monthly payments are cheaper.
2007-09-13 04:53:21 · answer #6 · answered by Saddler 3 · 0⤊ 1⤋
Leasing is good for people who use their car for business and their company reimburses them for their travelling expenses and they have no intention of paying the car off and owning it, they trade it in every so many years for a new one. Its not for everyone.
2007-09-13 04:49:42 · answer #7 · answered by smartypants909 7 · 0⤊ 1⤋
what a waste o money...pay deposite .pay monthly,,,pay when u turn it in,,pay extra miliage and 4 every scratch and have no car when its over...great deal!!LOL...a buzness is the only reasion to lease...
2007-09-13 04:53:14 · answer #8 · answered by Anonymous · 1⤊ 0⤋
you are not the only one
2007-09-13 04:49:03 · answer #9 · answered by Anonymous · 0⤊ 0⤋