is it better to buy or lease car?

Question

i just finished my phd so i am looking at roughly 10+ years of very low wages; should i lease a car or should i buy one? is it more COSTLY to keep leasing again and again or buy a car? but i cant afford decent monthly payments, so will the cars i can afford to BUY last me 10-12 yrs? thanks

Answer 1

Leasing may get you lower payments but if you exceed the mileage allowance it will cost you at the end of the lease. Also if you don't keep the car up mechanically and appearance wise and it doesn't meet the expected resale value at the end of the lease it can cost you big bucks. Everything considered, if you aren't buying it for use in a business, it's best not to lease.

Answer 2

The problem with lease is that you have to change the car everytime the lease is over, if you want to have another car...you have to consider the cost of keep it working well, drive safely and don't use more kilometers than allowed per year.
What will happen at the end of a 5 years lease, if you don't have the money to keep the car or to go into another lease? What if you car have problems and you have to pay for it in order to give the car back after the lease?
In the other hand, when you buy a car, you can always sell it if you have an emergency. Once you stop paying (lets say, in 5 years), your car will be still with you if you were careful and take care of it. If it works well, you'll have a car "for free" for at least 2-3 more years, something you won't have with the lease.

Answer 3

Leasing keeps your monthly costs low but since you're leasing a new car every three or four years, the long term cost is greater. It's common sense that leasing or buying new cars every few years costs more in the long term than buying one car and driving it until the wheels fall off.

However, many people love leasing because it does provide a new car every few years with a full manufacturer's warranty, the newest technology and styling, the newest safety equipment, and no headaches with selling or trading a used car.

Some people in your situation choose to lease while their finances are limited, then buy at the end after the finances have improved. Sure it costs more in the long run but, like credit cards, it's a convenience that is often worth the extra cost.

Answer 4

In almost all cases it is more economical to buy. Only in a very high tax bracket, as a business expense, sometimes leasing works. A good small car with proper upkeep and normal driving can reasonably be expected to last over 10 years.

Answer 5

if you NEED a car then lease one to fit in with your income.
you can lease a better car than you can afford to buy.
keep in mind that at the end of a lease you have a residual pay out figure.
if you have looked after the car you could have the option of buying it[maybe refinancing] for the payout residual figure.

Answer 6

In my opinion, it is better to buy a car, unless if you don't plan on keeping the car for too long.