Is it better to lease a car rather than purchase?

Answer 1

It is always better to lease a car. Always. Don't listen to these retards who tell you to buy. People: YOU DON"T OWN AYTHING UNTIL YOU ARE DONE PAYING FOR IT!!!! What is your return on your investment? Let's say you purchase a new vehicle for 35000 otd at 0 percent. Payments are 583 a month. Or you lease that same car for 420/month . That's 160 a month better x 36 months equals 6480 less to lease it for three years and if you include the fact that you won't be making the 24 remaining payments of 583, thats a 20472 dollar better deal to lease it. Make sure you don't plan on driving 30000 miles per year though. Donald Trump says it best lease what depreciate (cars) buy what appreciates (real estate).

Answer 2

In Leasing, you're only paying for depreciation. You DON'T OWN the car.

So if you lease the car for 3 years, you are paying for the difference between what the car is worth today vs what the car will be worth in 3 years.

So say the car is worth $40K today, but 3 years from now, the lease company believes the car will only be worth $18K. Your lease means you will be paying for this depreciated value of the car ($40K-$18K = $22K).

This means over the 3 years you will be paying $22K (+ the interest on that $22K) to drive the car. After the 3 years, you'll need to return the car. The dealership won't charge you any more unless there is what they consider "excessive wear and tear". Typically dealerships will then allow you to purchase the car for a value that is typically greater than the $18K the car is now worth to them.

The biggest problem with lease agreements is the mileage limitation. You are restricted on the amount of miles you can put on the car. This is fine if you know how much you will be driving the car, but many people don't and many underestimate and end up paying a fine on mileage overage.
You can typically purchase extra mileage at the beginning of the lease for significantly less, and if you can get a good estimate of what you believe you'll be using this will limit your overall cost significantly.

Remember, in a lease you aren't building any equity. You are simply paying for the depreciation. This can be advantageous or not. Since you are only paying for depreciation, your monthly cost will be lower than if you purchased. However, you also build no equity (which some people see as valuable, but if they simply saved the difference from their leased cost and the purchase cost they would have a good savings amount built up). The advantage of course if you are never going to end up with Negative equity and be upside down on your car.

My rule of thumb. IF you plan to get a new car ever 3 years and you can properly estimate how much you'll be driving in those 3 years, leases can be a good deal. As long as you follow those TWO conditions, you are never upsidedown on a lease payment, unlike those people who purchase, then try to sell the car before 3 years and find themselves rolling over thousands of dollars into their next car loan.

If you plan to keep the car for more than 4 years, or don't have a clue on how much driving you do on a yearly basis. Then purchasing is typically a safer choice

Answer 3

it depends on you, people say its always better to buy because you own the car, but unless you pay cash you dont own the car, you will have a lien on the title and if that is the case you DO NOT own the car. things you need to becareful about with leasing is your miles, figure out how many miles you put on a car and consider that the MINIMUM, leave yuor self plenty of room over that. you do have to turn the car in, but if your a person who is gonna want a new car in a few years any way its better than buying a car and trading it in when you still owe money on it. and dont lease for long term, the worst thing you can do with a lease is need to get rid of the car before the lease term is up, thats even worse than still oweing on a car you bought when you get rid of it.

the good part about a lease is you can get more car for less money, and you dont have to worry about getting stuck with an old car that you still owe money on. just make sure you will be happy with the car for the entire lease term and buy plenty of extra miles upfront

the best part about buying a car is if you plan to keep it beyond the amount of time you need to make payments, then you have a car with no payments, but be carefull about financing a new car for a long time (5-7yrs) because you will likely need or want a different car buy then, virtually every car you can get will be worth less than you owe on it for allmost all of the time you have it.

Answer 4

ALWAYS BUY...................

Lease versus buy?

The answer is – it depends. It's not possible to simply say that one is always better than the other because the answer depends on the specifics of each individual situation.

Leases and purchase loans are simply two different methods of automobile financing. One finances the use of a vehicle; the other finances the purchase of a vehicle. Each has its own benefits and drawbacks.

When making a 'lease or buy' decision you must look not only at financial comparisons but also at your own personal priorities — what's important to you.

Is having a new vehicle every two or three years with no major repair risks more important than long-term cost? Or are long term cost savings more important than lower monthly payments? Is having some ownership in your vehicle more important than low up-front costs and no down payment? Is it important to you to pay off your vehicle and be debt-free for a while, even if it means higher monthly payments for the first few years?

So we find out that making a lease-or-buy decision is not quite cut and dry. There are some things you need to consider. Let's take a look at some of these things.

First, it's important to understand that buying and leasing are fundamentally different, not just two versions of the same thing.

Buying and leasing are different

When you buy, you pay for the entire cost of a vehicle, regardless of how many miles you drive it. You typically make a down payment, pay sales taxes in cash or roll them into your loan, and pay an interest rate determined by your loan company, based on your credit history. You make your first payment a month after you sign your contract. Later, you may decide to sell or trade the vehicle for its depreciated resale value.

When you lease, you pay for only a portion of a vehicle's cost, which is the part that you "use up" during the time you're driving it. You have the option of not making a down payment, you pay sales tax only on your monthly payments (in most states), and you pay a financial rate, called money factor, that is similar to the interest on a loan. You may also be required to pay fees and possibly a security deposit that you don't pay when you buy. You make your first payment at the time you sign your contract — for the month ahead. At lease-end, you may either return the vehicle, or purchase it for its depreciated resale value.

Buy vs lease example

As an example, if you lease a $20,000 car that will have, say, an estimated resale value of $13,000 after 24 months, you pay for the $7000 difference (this is called depreciation), plus finance charges wear and tear, mileage, plus possible fees.

When you buy, you pay the entire $20,000, plus finance charges, plus possible fees.

This is fundamentally why leasing offers significantly lower monthly payments than buying.

Answer 5

Leasing has a bad popularity, even regardless of the undeniable fact that it has replaced lots at the instant, it used to purely be for suckers, yet i'm leasing and that i'm truthfully getting a greater constructive deal than if I had merely offered it. that's solid because of the fact your month-to-month funds are decrease, I even have suggestions whilst my hire term is over, i will the two purchase very own and extremely own the motor vehicle, or merely turn it in and get a sparkling motor vehicle, and so on, so if i choose a sparkling motor vehicle in some years I even have that option. If I come to a decision to by using out on the top, that's going to truthfully finally end up being approximately $one thousand greater much less costly than if I merely offered it before everything.. My hire term is approximately 4 years, and if I come to a decision to get a sparkling motor vehicle at that factor, meaning I won't might desire to pay maintenance on it as quickly because it starts off becoming previous. in case you communicate with a pair motor vehicle salesmen, the individuals who comprehend the employer the proper, you will locate out that lots of them (each of those I spoke to) do no longer very own, they hire. be careful, even regardless of the undeniable fact that it ought to truthfully be an extremely solid deal!

Answer 6

It depends on what your use for the car is. If you trade your car in every two years or so why own one. But if you live too far out of town like I do or you drive too much for the allowed mileage, you may not have the option of leasing. I know people who prefer to lease and it works out great for them. It would not work for me. Do your homework before you do either.

Answer 7

Don't ever lease a car. It will cost you more in the long run. Always purchase.

Answer 8

of corse its definitely better to purchase and pay on something that is YOURS than to lease and waste money.