What are the pros and cons of getting a car through a lease rather than buying it?

Question

I'm in the process of entering into my first lease for a car. Before I sign my name on the dotted line I want to make sure that I have weighed both sides.

Answer 1

Depends on a couple factors. Ask yourself 5 questions.



1. Is there a good chance I will still have this car in 6 years?

2. Do I drive more than 15,000 miles per year?

3. Is the car I want to buy an American car?

4. Am I the type of person who is not responsible?

5. Do I have poor credit?



If you answered "yes" to any of these questions, you are likely better off if you buy the car.



Leasing is for people who want to have a nicer car, lower payment, and are responsible enough to keep the $100k/$300k car insurance and do all thier oil changes and other maintaining of the car orderly and timely. The car must have good residual (resale) value, such as Volkswagen, Audi, BMW, Toyota or Honda. American cars usually do not lease well, with the excpetion of Cadillac and some Chrylsers and most SUV's. NOt all imports are good lease candidates. Scion, Kia, and some Hyundais are poor lease cars.



You should also be prepared to put down at LEAST $2000 down payment if you want to lease, and remember the lower the miles you buy the lower the payment, but if you go over, you get charged about 15 cents per mile average. If your credit is not good then you are not a lease customer. Period.



Another option is what is called a balloon. It is similar to a lease but you own the car not the finance company, and do not need ot adhere to the strict paramaters set forth in a lease contract. Volkswagen calls it a Drivers Option, BMW an Owners Choice, Chrysler a Gold Key and GM calls it a Smart Buy. Never do a Ford Red Carpet. Never EVER. That said a GM Smart Buy is no so great either. The others are just fine. This would likely be perfect for you since it is designed for folks whom are not sure if they are going to keep the vehicle long term and are torn between a buy and a conventional lease. With a balloon, you also save on taxes.... BIG TIME. You also do not pay as much upfront for other leasing fees with the balloon, and you own the plates and can put however much insurance on the car you wish, so long as you meet the state minimums where you live.



A balloon also gives you more opportunity to have equity in your car at the end of the term, and negative equity is impossible. If you lease, and decide to trade in before the end, it is like breaking a lease on an appartment, and you are going to pay.



I am not saying leasing is bad, its just not for everyone. I lease myself and I am a car salesperson. My payment is less than it would have been buying and I had negative equity in my trade so I will be done with all rollovers at the end of my lease, which I am happy about.



There is no magic wand. You will either pay now or later. The difference is how long is your commitment. Nobody ever bought a car and made money. Anyone who tells you otherwise is not telling the truth.



For another description go to www.bankrate.com.

Answer 2

I guess i disagree with almost every answer on here. There are many pros to a lease. Payments are lower, you dont have to worry about reselling it, if you make leasing cars a habit, you will have a new car every 2-3 years, and the best part about it, all the maintenance is paid for. Need an oil change, take it to the dealer, its free! Sure theres an argument to be made about buying a car, but when you buy a car, and you dont like it in 3 years, the value has fallen so fast, you might not be able to sell that car for anything. You spend $40,000 on a car, you drive it off the lot, the value has already fallen $5-10,000.

Its the same about buying a home, or renting. You rent it, you pay nothing for maintenance, you need a new roof, you dont pay for it, however, you buy a home, your stuck with that home until you pay it off. You want to move, how long will that home be on the deflated market until you sell it, and what are your chances of selling it for even close to your asking price?

LEASE LEASE LEASE

Answer 3

I guess i disagree with almost every answer on here. There are many pros to a lease. Payments are lower, you dont have to worry about reselling it, if you make leasing cars a habit, you will have a new car every 2-3 years, and the best part about it, all the maintenance is paid for. Need an oil change, take it to the dealer, its free! Sure theres an argument to be made about buying a car, but when you buy a car, and you dont like it in 3 years, the value has fallen so fast, you might not be able to sell that car for anything. You spend $40,000 on a car, you drive it off the lot, the value has already fallen $5-10,000.

Answer 4

The only benefit of a lease is that you can drive a car that you really can't afford. Sort of like an interest only or payment option home loan, you pay what the finance company believes will leave you with nothing at the end of the lease term. You are paying only interest and expected depreciation. This means at the end of the lease, you'll be left with no trade-in, no equity, and no car. During the course of the lease, you will likely owe more than what your car is worth, so if your lease allows you to sell, you'll likely have to pay thousands to get out of the car. Purchasing, on the other hand, means you're paying interest, depreciation, and paying toward owning the car. So you'll be building equity as you pay. That means when you go to sell, you might actually have some money to show for your trouble. Most people who are leasing for the first time love it, while those who have leased in the past will tell you to steer clear.



Bottom line: Don't do it. If you have to lease a car, you can't really afford it.

Answer 5

Pros; One has a quicker access to the nice new car, no worries about financing, after the end of the lease you have an option to purchase the car or return it o the dealer, you also get a much cheaper month rate for a nicer car. And you don't have to qualify for a new loan car.



Con; you have put all a (Hugh) no refundable down payment into a car that has deprecated and you do not own it. The price the dealer offers you at the end of the lease is bad compared to if you had out right had bought that car, Or if you bought one for the ongoing able book price at the end of the lease..Cars deprecate r too fast to lease a car. the best thing to do is trade it in every year for a New var if you lease. or if you buy every 2-5 years update.



If you buy a car; it's yours after you pay for it, it has deprecated, but may last 10 years with mini mun mantainence.. IE; Honda's, and some other cars.

Answer 6

I have leased a car, and as a result, I will never lease another car as long as I live. It's no different than renting a car or a house. You throw money away, and at the end you have nothing, and you may even get stuck paying an excessive mileage penalty or for wear and tear. The only entity that benefits is the leasing company, because they charge you up the butt for a few years, make back more than the money they paid for the car, then they either re-lease or sell the car. They make money twice. Then, if you would like to buy the car that you have been essentially renting, YOU are the one who pays for it twice. It's a bad deal. I do not recommend it. The only way it makes sense is if you have a business and it makes some kind of economic sense.

Answer 7

Leasing is for people who want to have a nicer car, lower payment, and are responsible enough to keep the $100k/$300k car insurance and do all thier oil changes and other maintaining of the car orderly and timely. The car must have good residual (resale) value, such as Volkswagen, Audi, BMW, Toyota or Honda. American cars usually do not lease well, with the excpetion of Cadillac and some Chrylsers and most SUV's. NOt all imports are good lease candidates. Scion, Kia, and some Hyundais are poor lease cars.



You should also be prepared to put down at LEAST $2000 down payment if you want to lease, and remember the lower the miles you buy the lower the payment, but if you go over, you get charged about 15 cents per mile average. If your credit is not good then you are not a lease customer. Period.

Answer 8

The benefit of leasing a car is its low monthly payment, since you only pay the difference btw the sale price and the residual value of the car at the end of the lease, over the term of the lease. Your monthly payment on a leased car is anywhere from 1/2- 2/3 of the monthly payment on a purchased car.



At the end of your lease, you can choose to return your car, usually with some fees (returning fee of several hundred dollars, excess wear/tear costs, and over mileage costs, if any). It all depend on how/how much you drive. You can also choose to purchase the car, at its residual value. However, there will be less room for negotiation on the residual value, so whether you lease or buy, negotiate the price up front.



The main thing when it comes to leasing/buying a car is determining if you can afford the payment. If you can afford the payment, buying is a better option since you own the car and wouldn't have to worry paying for additional costs later.

Answer 9

Some pros to leasing:

-Lower payments

-The dealer often takes care of all oil changes, and other matters.

-You are not stuck with the car! In a couple years you can just get a new one. You get rid of it before the usual car problems start kicking in.

-It is an affordable way to get that "new car" smell, and pretty much keep it.



Some cons to leasing:

-You do not own the car, therefore you cannot modify or go on an super long road trip unless you have plenty of miles left.

-You'll have to stay in communication with the dealer.



In my opinion leasing is a good thing if you need reliability, love new cars, and do not want to be stuck with a car that just depreciates!

Answer 10

Leasing is a waste of time because you will never own the car and you have to trade it in after 3 years or pay the balance off in order to own it. Also, you only have so many miles you can use (usually about 15,000 miles) and if you go over those miles before your contract is up, it is like 15 cents per mile. It adds up. That is not part of you payment per month. It is a separate charge. Most dealers push people to lease because they get a commission every time you get a new car with them, every 3 years. They call it the "smart buy", rather it is a "stupid buy". Now, if you like of having a new car evey 3 years, it is probably a good idea. You will never own it. But if you buy, you will own it in 3 to 6 years depending on the loan agreement. You don't have to worry if you are going to go over your mile limit. You can drive it as much as you want and if you do get tired of it after 3 years, you can trade it in for a new one. You may not get as much as you paid for it, but you will get something. At least a trade in. And your interest rate depends on your credit, so that is neither a pro or con on the lease or buy. Leasing is not the way to go. Buy.

Answer 11

I sincerely wish that I had asked this question before leasing a vehicle.

I found absolutely NO good reason for a private individual to lease a car. Sure, the monthly payments are a little lower, but:

1. I had to make a substantial 'security' payment

2. When lease ended, I would be required to make a final payment (which totalled over 15% of the car's _sticker price_)

3. According to the lease terms, I was required to return the vehicle to the dealership in _perfect_ condition, excepting for 'normal wear and tear'.

3a. 'Normal wear and tear' did NOT include tires, brakes, any scratch over 1/8" long, any scratch that penetrated to the primer layer, any dent more than 1/4" in diameter, any dulling of finish

BTW, my vehicle was a pickup truck, so it got used as a truck which scratched the bed a bit. It would have cost me an entire paint job. More on that later.

4. There was hidden in the fine print a clause which obligated me to 25 cents/mile over the purchased limit.

5. I was to return the vehicle with a full tank of gas.

6. There were 34 recalls on it. Yep, count 'em, 34. I got NO recall letters or notices since I did not 'own' the vehicle. The leasing company got all that info and did not pass it on to me.

I paid out over 1500 USD in repairs that would have been covered.

7. On final turn in, the vehicle was to be inspected by the leasing company's agent with NO recourse on his decision.



THERE IS NO REASON FOR AN INDIVIDUAL TO LEASE A CAR.

It may be a good idea for a business, but after that experience, I don't think so.

Answer 12

I know you have a bunch of good answers and the advice from salty dog is very good.. however there is another very good option available and if you use it I think you will find it very beneficial.. Buy a factory program model, especially a certified one. Now here is why these cars are attractive. Lets take a Buick Raineer. It is the top of the line, usually stickers at about 32,000.. you can buy a 2007 model for about 50percnt of that when the factory buys them back from the rental car companies. each of them will have only about 15k miles and will be just a few months old. It will still have plenty of new car warrenty and it will be backed by the factory warrenty up to 100k miles. It is also available for a lease option. Factory certified rental car buybacks are excellent values because you are getting the benefit of the money paid by the rental companies.. check with which ever dealer that sells the brand you like and inquire about the Program cars.. they are usually available the end of feb or march.. when you can buy or lease a top of the line vehicle for 50 to 60 cents on the dollar and it have low mileage.. then you get the better buy.. check it out.. let someone else pay the depreciation and you reap the benefits.. buy the time you pay it off it will still be worth just about what you paid for it if you keep it under 50k miles.. check it out..

Answer 13

I've only seen one person where leasing was a good deal. This person had a lousy driving record, and he could his insurance through the car company cheaper then he could elsewhere, provided he leased the car. Other then that, just buy the car.



Think of it this way, why would any car company push leasing? It because it a good deal for the car company. No car company is going to structure a lease so that it’s a good deal for you. They have to take the car back and resell it and they want the car in almost new condition.



When you sign the lease you're going to see something about normal wear and tear, trust me what you think of as normal wear and tear, and what the car company thinks of as normal wear and tear are vastly different. A stain on the seat, in not normal wear and tear, chip in the windshield, not normal wear and tear, stain on the carpet, not normal wear and tear, chipped paint not normal wear and tear, ETC. And guess who pays to fix this, you do. And don't go over the mileage limit, you're going to pay a lot for excessive mileage; last I heard was something like $0.30 per mile.



Now if you own it and you stain the carpet, well, its up to you whether or not you fix it, a chip in the paint same thing.



Yes, you can get into a nicer car for less money, but at the end of the lease what do you have, nothing.



Look I can understand why you would want to lease, a nicer car, low payments. But if you can't afford the buy the car, you can't afford to lease it.



Now, if you were to tell me, I drive 50,000 a year for business and I can right off the lease payment as a business expense. And I’m setting up the residual value to be $1.00 at the end of the least, I’d say go for it. But you’re not going to get a cheap least for that kind of mileage or for that residual value.



But this is just my opinion.

Answer 14

Well I can't really think of any pros of leasing.



Here is some cons

1. You have pay a security deposit. If there are any serious damages you won't get your security deposit back.

2. You have to make all your repairs on the car when anything breaks. You can't skimp on it. The vehicle needs to be returned in almost like new condition.

3. You will have to keep full coverage insurance. Most car dealer and/or insurance companies make you have full coverage insurance on your lease instead of just the minimum.

4. It is like renting an apartment instead of owning a home. You put all this money into something and at the end of the lease you have nothing to show for it.





Personally you are better off buying a used car. Once a car is driven off the lot the value goes down considerably. If you are willing to put a lot of money (repairs, maintenance, down payment, security deposits, monthly payments, etc) than yes leasing is the way to go.

Answer 15

This is not an easy one to reply to. Leasing has its merits over buying because you do not have to put down a huge chunk of cash on the lease. If you are a good negotiator you can get a good money factor (this is like interest rate) of let's say 2.9 to 4 and a very good depreciation over the years that you will hold the car. Over 50% is a good number. Do not lease for less than 36 months because it will cost you heavily. Make sure that the actual cost of the car is as low as you can get it...WITHOUT your putting your own money into it to get the cost down. Let the dealer give you a break and have him deal with his cost plus $125-$150. A Toyota or Honda should give you a depreciation of 53-56% depending on the car. Buying a car is much easier because there is just a selling price and cost for the loan....plus closing costs. I urge you not to take out a lease unless you really know what you are doing. The dealer generally can make much more on a lease because most people do not know how a lease works and the salesman can pull the wool over your eyes. Try to read up on leasing a car. Car salesmen are generally very sleazy. Remember, they make a commission on what they sell. The better the deal they work out, the more money they make.

Answer 16

Remember first and foremost that you are essentially paying a leasing company for the use of a car; not to own it.



Pros: If you can find a way to write off or amortize the expenses and taxes related to the vehicle then your in good shape. If not, the only advantage is allowing you the luxury of driving more car than you could have otherwise obtained through a conventional purchase. On the other hand if you plan ahead and establish a savings account and religiously deposit a fixed amount every month to equal the residual (the amount due at the end of the lease) when it comes due, then you can save quite a bit of cash over a conventional purchase if you intend to keep the vehicle. This is due to the fact that you're not paying the interest charges on a loan that extends over a four to five year period.



Cons: If you intend to drive the vehicle a lot then you will likely incur "per mile" fees associated with the excess usage of said vehicle (typically 12K to 15K per year). At the time you negotiate your lease you can purchase extra miles in order to minimize the costs at the end of the leasing period. You can find yourself stuck with a particular make of car since the dealer will make you a very attractive offer in order to roll you over into another lease. That said, make sure the brand you're considering is one that you really like. In California you can negotiate your next purchase and have the selling dealer buy your previous lease, but I don't have to tell you that they will find a way to recoup those costs on the back-end of the deal for the new vehicle.

Answer 17

Since so many people are refusing to treat leasing fairly, I'll put it very simply:



If you lease you: get better and newer cars for less monthly payments (like renting vs buying a home, the longer the term of the loan, the more similar the two options become financially), avoid the liability of depreciation, gain the option to change cars to meet your changing needs, lock yourself into a neverending monthly payment for the car, introduce extra mileage expenses and other expenses for excessive "wear and tear" on the vehicle. Perhaps you are thinking of adding to the family in a couple of years, but aren't sure about it right now. You don't have to have the higher capacity car right now, if you lease. Perhaps you are unsure whether you are going to be moving in the next year, and would rather not have to worry about the transition of the car or its suitability/performance in the new location (which may be unknown at this time). Leasing lends flexibility. It also allows you to drop the car after the contract and take the bus or carpool, if finances take an unexpectedly sharp turn for the worse, or you need extra money for an outstanding new investment opportunity.



The advantages of ownership: Psychological power, long-term consequences/rewards for bad/good maintenance and care of the car, fast depreciation, increased financial risk associated with collision or damages depending on insurance levels, and maintenance and other miscellaneous costs. Stronger credit, if payments were all made on time.



On that note, I must say that whether you lease or buy, the automobile is one of the worst investments a person can make, because of the rapid depreciation. Therefore the more money put into a car overall, the more deterioration of financial potential.



Personally, five years ago, I bought a 4-year old Honda Accord on a 3-year loan, and I care for it for maximum life and service quality. I've lost about $7k by depreciation alone (almost half of its value at time of purchase), but since I expect it to serve me very well for many more years to come, this is an acceptable loss to me.

Answer 18

If there were no pro's to leasing it would be a practice that quickly went bankrupt. If you only want the vehicle for a certain period of time leasing may be the way to go. In the first year or so a new vehicle would depreciate anyway. A car is not an asset, it is a tool. It gets you from point A to point B, but it is not an investment because it will only depreciate. That being said, if you have a vehicle that you plan to keep for 10 years and drive a lot, it may pay to buy, because after a few years it will be paid off. My advice is figure out how long it you want the vehicle for, figure out how much it will depreciate, then figure out which you'd end up paying more for, leasing or buying.

Answer 19

If you are not good with car repairs and enjoy having that "new car feel" every couple of years, then a lease is probably right for you. If you drive 20+ miles to get to work, then, within a few months you'll have used most of your allotted miles. The overage fees are insane if you go over. On the plus side, you can get a new car for much less than buying a new car. Either way, do what's right for you and remember that every little place you go adds miles to your car and can be potentially stressful during the final year of your lease.

Answer 20

In 2000 I leased a 2000 Honda Accord. This was the worst financial decision I've made in my entire life. At the time of the lease I had a different job, and never would have imagined switching to a job where I would have to travel so much. When the lease was up my only options were to return the car and pay about $20,000 for being over on my miles by over 60,000, or buy the car for $11,000. this sounds like a good deal on the surface, but I had already paid about $20,000 in payments, and I had to stretch this $11,000 out over more years. By the time I'm done, I will have paid close to $35,000 for a $21,000 car that is now worth about $4,000. Just buy a car you can afford unless you plan on keeping the miles VERY low. I would only lease again if I was loaded and this was a 2nd car driven only for leisure.

Answer 21

You should lease:

1. when the residual cost of the car at the end of the lease is likely to be below the blue book (retail) value of the car at the end of the lease; And

2. you are likely to keep your mileage within the allowable limits of the lease (often 12,000 miles per year).



For example, if you are looking at a 3-year lease. Compare the residual cost if you want to purchase the vehicle at the end of the lease, to the current blue book (retail) value of a 3 year old vehicle of the same make & model. If either of the above listed conditions are not met, I recommend buying the vehicle. If you should buy the vehicle, you might want to consider buying a low mileage, 1 year old version of the car of your choice. Sadly, new cars almost always lose substantial market value the moment they roll off the lot. You will be far less likely to owe more than the vehicle is worth if you buy a low mileage, recently used vehicle with a standard down payment. Good luck!

Answer 22

The pros are, if you have a slow income, then i would think that a lease would be the best route. But if your income can handle the monthly payment, then go for it. The cons for the monthly payment is if you don't meet the monthly payment, your car can be taken. But under a lease it won't hurt your credit. I am only 15, so don't take my word for it. But i do know that the best way to go is to is to wait till you have the money and then buy your car. Then you will be able to keep good credit and still have your car.

Answer 23

Regardless of anything else you might read or any other advice you might receive... NEVER LEASE A VEHICLE.



The only person that does NOT make out in the whole deal is YOU. You pay and pay and pay for something you will never own UNLESS you Buy Out The Lease, which is ALWAYS too high and the only one that does NOT make out is YOU.



Buy the vehicle through a credit union (now anyone can join a credit union, new federal laws) where the interest rate is reasonable and YOU do make out as you can resell the vehicle later and pocket some change.

Answer 24

A great question and one for which there's a lot of misconceptions amongst a great many people. First, Ieasing is totally OK and a great way to finance a car.



The chief amongst the misconceptions is that 'YOU NEVER OWN THE CAR OR BUILD EQUITY IN IT'. Please do not fall for this. A car, unlike land property, is a depreciatable asset that leaves little or no salvage value unless you are a Tycoon with a Ferrari collection. Even if you think you have equity (your car value is higher than your loan) its only equity that you paid for with your payments. It never builds in a car unlike property. That same equity can be yours in a lease if you decide to purchase the car at the end of your lease when the residual value is less than the market value. Of course, you will pay tax on the residual.



Equally disturbing is people thinking they can buzz around the country with limitless mileage if they purchase finance rather than lease. Don't be even more stupid. Go buy the car, go galore on road trips raking up 25,000 miles in the 1st year and see what that does to the value of the car and how upside down you will be. In my case, I also like leasing because it does incline to some discipline. Don't think if you are going over the 12,000 miles you are any worse off than in a buying situation. The car is depreciating with mileage - leased or financed.



The Pros are:



- More bang for your buck. By breaking down financing into 36 or 48 month with the utilized value (the one you will be using - the depreciation) it lowers payment and your can open your heart to

a bigger better car. Same goes for tax payments. Only pay for what you use.



- Live! Change cars every 3 to 4 years!



The Cons are:



- Doesn't work too well with cars that loose value faster or are ill-reputed with durability. You're better off leasing with Hondas and Toyotas.



- Check your agreement thoroughly. There may be a slipery slope or two. Some agreements will require you to fill in the difference between residual value (the written value after the lease period is up upon which your payments are based) and the current market value at lease expiry in case some unforeseen negative event (like bad rep on the carmaker who is discovered to employ out-of-school kids in its factories in some 3rd world country) has caused further lowering in the market value.



But these risks are present for purchase financing too.



Overall, leasing is better cause it gives your more options and you don't have a real risk that a purchase finance option can fully avoid other than contract provisions that can lead to a lump sum payment. Avoid those and you're golden.

Answer 25

A lot of people say things like "Pay it off right away" and such. If someone interested in a new vehicle could pull $15-$25 K out of their pocket, and not finance, or lease, they would. The truth is, many of us can't afford a high monthly payment for a new car they need/want. Maybe they're in rough times, and need to get through it. So they choose the lowest payment they can get. Which is leasing. I have "Financed" and I have "Leased". Both do have pros & cons. By the way, you don't own your financed car, or home for that matter until it's PAID for.

Answer 26

I scanned the first 30 answers. Most seem well-thought out. One point not covered: If you lease a vehicle, you are stuck with the lease payments for the length of the lease. You cannot turn in the vehicle if you no longer want or need it.

Go to www.leasetrader.com and you will find many people trying to pass on their cars and lease agreements to others.

A relative of mine leased a new car. Within 6 months he got a new job and got a company car with the new job. He had a "no transfer of lease" clause in his rental agreement. It meant he would still be responsible for the car and the payments even if he turned it over to someone else.

He put the car up for sale at the book value. He then found that he had to buy the car from the leasing company, apply for a new title, pay 7% sales tax to the state of PA, then sell the car.

A final caution about lease transfers. Leasetrader charges both parties $175 for their broker service. GMAC charges $600 fee to transfer a lease.

Answer 27

there are good reasons for someone to lease and there are good reasons to buy. It absolutely depends on your situation.



If you prefer to always drive a "new" car, then a lease might be the way to go. You tend to have lower payments so you can afford to lease more car then you could buy for the same money. Since you have a leased car for short intervals your car is generally always under warranty. You generally should keep the mileage low but for some people that is not an issue.



If you really love the car and want it for the long term then you should consider buying it. If you keep it for 8= years you come out financially ahead (unless it is a lemon). If you can afford to buy it outright you save even more since you do not have the cost of a loan. You can drive the car as much as you want and as far as you can.



Buying a car means you will have something of value (albeit rapidly decreasing value). Leasing means you maximize what you can get, but let go of it soon and have nothing to trade for your next vehicle.



Either choice can be the right one it just depends on what you want out of the deal.

Answer 28

I have been leasing for years and I find that it serves me well. First, I'm only making payments on the lease value and not the entire cost of the car. I don't put a lot of mileage on, and I really benefit at the end of the model year because they give incentives to lease customers to upgrade. Here's an example:



I was driving a 2002 Jeep Grand Cherokee Loredo in 2004 when we decided we needed a second vehicle so I went to the dealership and leased a 2004 Wrangler Rocky Mountain. Because I was a returning lease custome, they knocked $3K off the price and my lease is $239 a month.



Additionally:



While I was there the lease guy asked me how long i had to go on the GCL and I told him about 10 months. He stated "bring it in today and I'll put you in a brand new one for $100 less per month." I did and he did so I picked up a Grand Cherokee Rocky Mountain for $100 a month less that the 2002, and it was a vehicle that had a sticker price that was $8K higher than the 2002.



We're getting ready to trade both now and the dealer is amking me a good deal to trade both for a 2-door and a 4-door 2007 Wrangler, and our payments are going down again. Of course, the 2004s have 18,000 and 19,000 miles on them.



Another thing:



A friend purchased a Corvette. He had it about a month when they painted the building next to his and got overspary all over the Vette. Under the disclosure rules, he took a $5K his on the trade in value of that Vette. Had it been leased, you just turn it in and then end of the lase and walk away.

Answer 29

pros are you get a new car at a low monthly payment. cons are

you are stuck with the lease until it's over, you are limited to 1000 or 1200 miles per month, and are responsible for excess mileage, plus damages, every scratch is going to cost you. After the lease is over, you give the car back and either you buy or lease another one or you walk. If you pay for one, at least after the payments are done, you own the vehicle, and like me, drive free until the wheels fall off.

Answer 30

It is much more beneficial just to finance a car a lot of times, because it is often possible to own a car in nearly the same amount of time as you would lease one. At least when the payments are over you will have something to show for it! It is kind of like, why rent an apartment for 15 years when you can own a house in the same amount of time. When your lease is up, you will still have to make payments on another one (or the same car I guess).

Answer 31

Its the same about buying a home, or renting. You rent it, you pay nothing for maintenance, you need a new roof, you dont pay for it, however, you buy a home, your stuck with that home until you pay it off. You want to move, how long will that home be on the deflated market until you sell it, and what are your chances of selling it for even close to your asking price?

Answer 32

. It is much more beneficial just to finance a car a lot of times, because it is often possible to own a car in nearly the same amount of time as you would lease one. At least when the payments are over you will have something to show for it! It is kind of like, why rent an apartment for 15 years when you can own a house in the same amount of time. When

Answer 33

2. Do I drive more than 15,000 miles per year?

3. Is the car I want to buy an American car?

4. Am I the type of person who is not responsible?

5. Do I have poor credit?



If you answered "yes" to any of th

Answer 34

Most importantly, it makes sound business sense. If you have an asset that will appreciate, buy it and make money. If your asset, like 99% of the cars on the road, is a depricating asset, lease it, pay just the depreciation, and write it off if you can.

Answer 35

You get to ride a nicer automobile for a lower monthly payment and have the choice of updating more often. They say you'll never own it unless you end up buying it but, let's me honest, what's a car worth once it's paid off?! my point exactly...!

Answer 36

If you lease a car you end up paying a lot more for the Car.

It is better to buy a good used car perhaps on Ebay=l like my friend.did.

Happy New year and car shopping.

Answer 37

get of your butt and get a job.

Answer 38

pro: you get to get a new car every few years.



con: you have to watch your miles. if you go over you'll pay through the nose for the miles. most plans only allow 10-12 thousand miles per year. if you drive a lot you are better off buying a new car.



i leased a neon in 96 and had to buy it out of the lease because i was over my 36,000 miles with in the first year and a half. i ended up paying $17,000 for a neon. and the cost of it new was $14,000.



i will never lease again!!!

Answer 39

when u lease a car u get a new one in a couple of years. if u buy it u keep tht same one for a long time

Answer 40

There is almost no pro for leaseing unless you use it for buisness and write off the milage.



Always when possible buy and buy a vehicle with good resell value, Toyota , Honda.



Leaseing covers maintenance...but new cars seldom need to be maintained much.



limited milage, overage charges for milage, stuck with car, not having anything of value at end of lease are all reasons not to lease!

Answer 41

Pro: If you lease you can get more car for lower monthly payments. That's about the only good thing about a lease.



Cons: At the end of the lease, you must return the car and you won't own anything. You will have just about paid for it but it won't be yours. If you go over the allotted miles you'll pay big time for each mile over. You won't have a trade in. You still have to pay for maintenance and insurance just like you own the car.

Answer 42

There are no pros and cons with leasing. If you look at the terms, they are not in your best interest. Leased a vehicle once and when the lease was up, the agent tried to have me pay an exorbitant cost to turn the car into the leasing company. the hidden cost of leases reside there.



Purchase does set the most reasonable terms.

Answer 43

lease a car is foolish ..if you can buy buy ....because your just renting the car from them ....at the end of the lease they will say

to now buy said car you need to pay another ten grand....even

though you have paid them 20 grand already...the car is now worth about 5 grand...get it....thats how they make their money

Answer 44

Leasing cars is a system for dealerships to make more money by creating the illusion of getting "more" car for less money. When in fact you end up paying the same as you would for a car payment and don't get to keep the car.

Answer 45

lease may give ya a lower payment,but there's some really bad mileage rules. Also insurance is usually higher priced as they require top shelf replacement parts if the car is in an accident

Answer 46

I lease a Saturn Ion right now and I love it! This was my first lease after purchasing a brand new Pontiac Sunfire in 2000. I paid the car off a year early, in 2004, and within a year my warranty was up. Literally, within 6 months of my warranty being up, my transmission went on the car. That was a nice $3000 repair job. Within the next 6 months I had to replace the starter, the motor for the power window on the driver side and the brake sensor/switch went and I had to have that replaced so I wouldn't have to listen to the "dinging" constantly! I finally got fed up with it and decided to get something new. I wanted to keep my payment low, so I decided to lease. I pay $171/mo, it's a 3 year lease and it includes all of my maintenance. That's oil changes, tire rotation, brakes, etc... That was an option that Saturn offers, and for me it was an excellent choice! And they wash your car anytime you take it in. I guess in the long run, paying for the repairs on my car would have been cheaper than a car payment but it was a combination of coming up with $3k at once and just the hassle of things continuing to go wrong that put me onto leasing.

Answer 47

Man, there are a lot of idiots out there that think the know everything about everything. So you can make an informed decision, here's leasing 101:



When you lease a car, you negotiate your best price, and then using figures set up by the leasing company, NOT the dealership, you establish the residual value of the car. The difference between the purchase price and the residual is the depreciation, which is the same amount the car would depreciate if you were buying on installment, paying cash, or leasing. You pay this depreciation, plus intrest, devided by the number of months you lease for, and that's your payment.



Although some folks say you never own anything, the important question to ask yourself is this: Do you keep cars until you have them paid off, or trade them? If you trade them before you pay the bank back, you never owned it anyway, as the bank has the title, which is the exact same thing as a lease. The benefit of leasing, however, is that the you can't be upside down at the end of a lease. When it's over, it's over, and you can either buy the car at the residual value that was set at the beginning of the lease, or just turn it in and walk away.



That being said, the drawbacks on a lease have to do with milage. If you can't come up with a reasonable idea of what your average annual milage is, then don't lease. A 12,000 mile a year lease, which is considered a low milage lease, has some pretty stiff milage overage penalties, but the these fees are based on the assumption that when you signed the papers, you would be turning in a car with 36000 miles (or whatever the milage stated in your lease may be), and the estimate of the residual value is based on that figure. If you put on a bunch more miles, the car is worth less, and you pay for that through milage fees.



The basic ideas behind a lease are that you are protected from market fluctuations, you can usually get more car for less money, and you can get a new car more often without ever getting upside down.



Most importantly, it makes sound business sense. If you have an asset that will appreciate, buy it and make money. If your asset, like 99% of the cars on the road, is a depricating asset, lease it, pay just the depreciation, and write it off if you can.



One last note, however, is the most important. NEVER EVER sign up for a balloon payment lease, which is where you owe a huge chunk at the end of the lease. Although they are illegal in a great many states, they might not be in yours. Read the fine print and ask specifically if there is a balloon payment at the end, aside of any milage overages or excessive wear and tear, and if they say yes, run.

Answer 48

To greatly simplify the issue: If you are the kind of person who cannot be seen driving a car more than 5 years old (in other words, you need a brand-new car at least every 5 years or so), you are better off leasing. If you are the kind of person who "drives a car into the ground," you are better off buying.



Also, if you are self-employed, you may be able to deduct the leasing of your car from your taxes as a business expense so leasing may be a better deal that case.

Answer 49

A company should lease,,,but just plain folks shoul buy

Answer 50

If you keep the car in EXCELLENT condition and drive less than the number of miles in the lease agreement, and you will be returning the car at the end of the lease, you can benefit from lower payment on a lease. It ANY of these conditions MAY not be met, you are almost certainly better of buying.



Try this test: Find out the interest rate you would pay if you bought the car. Compute an amortization table for a loan with the same payments as the lease. Compare the principle balance on the loan at the end of the lease with what you would pay to by the car at the end of the lease. I promise you will owe less on the purchase.

Answer 51

if you have 12,897.68 you have money for a 06 honda civic

Answer 52

Being poor the rest of your life if you make payments.. if you buy (pay it off immediately) lower insurance... more money in your pocket down the road...



If you make payments - full insurance required... you are constantly broke... :)

Answer 53

Leasing is okay as long as you keep tabs on your mileage.

Answer 54

Pro: lower down payment , Con: costs more in the long run

Pro: Trade-in value already negotiated, Con, leases are harder to negotiate, more hidden costs that are hard to calculate, Pro: new car more often, con: high charges for damage on returned car

Answer 55

The only pro is that you get a new car after the lease is up (which of course you have to pay for). There are lots of cons to leasing. Basically you pay a lot of money into the car, but at the end of the lease you don't get to keep it. You'd do much better to buy a car.

Answer 56

Pros: You get the car sooner. Leasing is only a good option if you only need the car for a short amount of time and it's only a temporary lease. (Like visiting a different country for a few months.)



Cons: Payments and lack of keeping a car when the lease expires.



As a further note, buying a car on a car payment plan or a loan is ALWAYS a bad financial move. When making a decision like that, the car salesman holds all the cards, and can put you in debt for years and years. The better option is to buy an old junker, and save up money to buy a just slightly used car straight out.



When you hold all the money, able to pay without taking a loan, you can haggle to get significant cuts in the sticker price, also, the dealer will hold NO cards over you, since you have no need for financing options. With all the financing options, in the end, you'll usually end up paying around double to ten times what the vehicle's worth, but paying without a loan will usually get you the car for less that what it's worth.



The rule is: Don't take out loans for a car. Ever.

Answer 57

yea you should have bought the car rather leasing it. on a lease your payments could change because of the taxes changing. also like others have said there is no value of the car,cant go over the mileage, & its not your car. youre paying all this money for what,to turn the car back in after leasing over 15,000 wehn you could put in a loan for 15,000 then keep the car. I say you should have bought the car rather leasing it,but its your decision & no one can make you do what u dont want. just be careful!

Answer 58

My sister and her husband leased a car and regretted it after the first month. You get lower payments but you can only drive so many miles a year without having to pay mileage and the miles add up quicker than you think. So they would have to rent a vehicle to go on long trips. Buy a car you can afford no more than 15% of your monthly income.

If you are not in business and can not deduct the milage ,"BUY"

Answer 59

just one pro it help built your credit

cons many

Answer 60

There are mileage restrictions on a leased vehicle. Also with a lease vehicle you tend to be able to get more car for your money because the payment for the identical vehicle is higher when you buy. A lease is good if you're not a heavy traveler by auto. However, some people feel that once they return a leased vehicle they paid thousands of $ and have nothing to show for it.

Answer 61

if you buy a car then you own it free and clear when your payments are done.

but if you lease it then you make payments for about 50-60% of the total vehicle cost and when payments are dompleted they try to sell you the vehicle for 50-60% of what the vehicle costed new.

its a ripoff

oine other thing i saw some people saying. when you lease evn though they car has a 36k mile warranty the dealership has to cover repairs past that till your lease is up so dont get duped into buying an extended warranty with a lease. <----also a ripoff

Answer 62

There simply are no 'pros' to a lease unless that car will be used for business purposes...period

Answer 63

Actually, neither. Leasing is just plain dumb, and buying brand new isn't that much smarter. As soon as you drive a brand new car off the lot, it depreciates like 40% or something like that. Buy a new-used car. That's always better. You still get warranties and all that, you're just not paying an exorbitant amount of money that you'll never ever see again, and if you decide to sell it later, you can get alot of it back.

Answer 64

to mr 101: you cant negotiate the residual value its set by the lending institution--on a lease when you neg price of car whats being reduced is payment and/or money up front.



If you plan on keeping the car for longer than 3 years then buy dont lease.



If you get a new car every 3 years then leasing makes sense. You spend less money than if you were to purchase it.



Im a former car salesman. Leases also require you to have higher insurance coverage(100k-300k) mileage restrictions(10,12,15k per year if ya go over and only if you turn car back into leasing company you pay 15-20cents for every mile over)

Answer 65

I leased a car the last time and will never make that mistake again. I ended up buying the car after the lease was over because I was WAY over on the miles and would have had to have paid a lot more in mileage and repairs. I will purchase my cars from now on.

Answer 66

I think cars are one of those things that lose their value so quickly, it doesn't make sense to lease. Leasing is just an excuse to get yourself into a car you can't afford. You end up at the end of the lease having paid a lot of money for the use of the car but have nothing to show for it, and the price they give you to buy the car at the end is generally not a great one.



Be sure to ask the dealer about their GAP policy. If something happens to the car, say it is totaled while you are in posession of it, and the amount you get from insurance is less than the residual value, you may be responsible for picking up that different. The laws on GAP are different in every state, and you can, but you do not have to, buy insurance to cover this difference (not expensive). It should be listed in the lease what happens in this situation.

Answer 67

When you go into a lease, the car company is generally responsible for the cost of repair / maintenance on the car. Although, if it's a used car, warranties can be limited to certain features on the car.

At the end of a lease, you turn the car back in and you can pick a new one. Think about how much wear and tear, mileage, things that will be with the car at the end of the lease. If it's going to be something you don't want to deal with- in a lease, you walk away.

If you buy, you bought it. If you're going to drive the car for 80-90,000 miles, you probably don't want to be stuck with that at the end (most leases do have mileage caps or rewards).



Just a few thoughts.

Answer 68

Well, your insurance and payments will be higher.. It is much more beneficial just to finance a car a lot of times, because it is often possible to own a car in nearly the same amount of time as you would lease one. At least when the payments are over you will have something to show for it! It is kind of like, why rent an apartment for 15 years when you can own a house in the same amount of time. When your lease is up, you will still have to make payments on another one (or the same car I guess).

Answer 69

Hopefully what happened to me will help you... My car was parked in the Library parking lot area (I was studying for a test inside) when an old man hit my car and when the insurance company inspected the car... was declared TOTALLED.. I was more than livid.. I didnt have anything to do with the accident and because my car had more than 170,000 miles was almost worth nothing.. well insurance company paid me (not enough money of course) and I faced the same dilemma you are facing... new car or used, leased or financed.. and my best advise would be.. how much you are using the vehicle and where you are going with it, also how much you are planning to spend and how is your credit.. also how much would be the insurance... if all worked out for you and the only problem is leased or financed.. then I will tell you what I did... I dont drive that much, my job is two miles away from my house and then I go to the gym, total miles for the day... 10 would be too much.. besides that I didnt have too much money... and financing was three times more expensive for me $300 a month vs $150 so I went with the lease vehicle.. besides that when you finish with the lease if you really like the car you have option to buy it.. so you dont loose and you will pay less money than if you would have decided to buy it in the first place.

I hope my answer helped you. Good luck.

Answer 70

Well ill tell you my dad's story, and some of the pros n cons. Well bascially he bought a 2001 Jeep Cherokee 4x4 Limited. ( top of the line they stopped production in 01) Anyway, the car to buy was 19,000, so my dad just leased it and traded his intrepid in for it ( 96' with 90K miles) and they bullshitted him over the trade and the agreement was 3K off the price, and they only took off like 500 dollars. So bascially to buy it, it would have been over 300 dollars and such, and my dad got his car forr about 220 bux a month. Everything was cool exept that he bought a van in 05, and when they took his cherokee, the van was 13,000 maybe 14.500 with tax, but either way they added the payment and stuff from the cherokee and it put the van to 19K literally to buy. And so, to conclude, lease is good on the payments monthly, but to get out of a lease or to trade it later, its not worth it. Unless your mid to higher class, leasing i would never do, since your bascially putting money into a car your going to have to give back after a while, and whats the point of that? but of course theres the buy option, which my dad did so thats why they added the price of the cherokee to the van's price. I personally wouldn't lease, because you want a car that you can trade, not have to deal with lease problems later.



good luck sry 4 the long paragraph i hhope i helped

Answer 71

Personally, I would never get a lease. I see no positives about it, other than being "forced" to turn you car over to the leasing company at the end of the lease and "needing" another car at that point.



WIth the upfront costs, leasing does not make sense to me. It does not go onto the value of the car, like what happens in purchasing it outright.

Answer 72

I just got a 27 month lease. What I like about it is after the 27 months, the car will still be under warranty and I can decide if I like the car enough to buy it and I probably will if it doesn't give me any problems, otherwise, I walk away.



What else I like, I don't have any out of pocket expense other than the payment which is about the same as if I would have bought it. The only difference, the dealer takes care of tax and license under the lease.



So if you want a new car, no out of pocket expense and the option to dump it, you may like the lease. I would stay at or below 30 months though (still under warranty)

Answer 73

It really depends on what you are looking at purchasing and how you take care of your cars. Leasing is good as you pay the taxes monthly and not up front so you are not financing the taxes on the car. A lease with a guaranted buy back at the end not only lets you know what the value of the vehicle at the end of the term will be it will also let you take a look a similar vehicles and see if they are holding that value.



The best thing to do is read the fine print. In the long run, financing and lease work out to about the same price. Leasing is more like renting. You drive the car, someone else takes the depreciation hit.

Answer 74

"It's no different than renting a car or a house. You throw money away, and at the end you have nothing, "



I dont think you guys understand your not paying the full price to buy a car when your leasing. and the house thing is really stupid, we pay 1400 a month for apartment if i buy a house in socal to buy a good house with 3 bed and 2+ baths thats at least 500k.



Thats probably more than 3000 a month and a 50k down. Not alot of people have that kind of money lying around. And its completely different from renting an aartment you pay ALOT more for a house than a car (most ppl i hope) apartments dont lower in value as time goes on or anything its a stupid comparison. You cant just go around selling houses every year after you dont want it. With a car you can buying a house is a MUCH bigger financial decision. A better comparison would be renting a eletronic like a tv or something.





Im LOL @ the people who are saying "at the end you have nothing". LOOK PEOPLE when at the end of my lease for the r350 is over I pay 18 grand to use a 50 grand car for 3 years. At the end of those 3 years the 50 grand car is probably around 20k. Look your still paying high monthly payments to own this car but at the end you will have a 10-20k car. hey guess what IF YOU SELL YOUR CAR AT THE END OF 3 YEARS YOU SPEND 30K ON THE CAR TO USE IT FOR 3 YEARS. I SPEND 18K TO USE THAT SAME CAR FOR THE SAME AMOUNT OF YEARS. yes you dont end up with anything at the end of the lease but you dont have much of a car either. With me leasing I saved around 30k than buying it. I can lease 2 more times for 3 years each, And if you still have that 9 year old r350 its worth >7k. Guess what When your driving your 9 year old r350 I have a shiny new r350 for 3 years!.



BASICALLY

WIth leasing you use 18k to use a car for 3 years. BUT HEY I STILL HAVE 30K IN THE BANK. I CAN GO LEASE FOR 6 MORE YEARS. I ALWAYS HAVE A NEW CAR TO DRIVE IN AND IM NOT GETTING RAPED BY DEPRECIATION.



with buying you have 50k spent but at the end of your payments on the car your left with 20k. Doesnt this sound worse.? It does to me.



@ the end of the day I would lease. But i would even more buy used. IDK why some people dont want a used car. Drive off the lot bam there goes a few thousand. Buy a used 07 its basically brand new.

Answer 75

I think I can offer some info on this one.



In '04 I bought a new Cadillac and put down $15,000. I paid $450 a month and kept it for about two and a half years. I had a lot of minor problems with the car so I thought I would get a new one. When I traded it in with 43,000 miles on it all they would do was pay what I owed with was about $15K. They turned around and put it on their lot within the week at $23K.



Anyways, I figured since I dont want a car after the warrenty is up (which for my car was 50,000 miles) I would try leasing. I got an '06 and put $0 down and pay $540 a month for 15,000 miles a year for a 36 month lease. So basically I threw away $15,000 when I put it down on my first car as within two and a half years it was only worth what I owed. Had I kept it another year I would have started to go upside down on it. With my lease I never have to worry about owing more than its worth cause I'm done with it in a few years. Also for what I put down on it I could have almost paid for an entire three year lease and had NO payments! For me it seems to be working out good as with $0 down to buy one it would be over $800 a month. Oh and another thing is I just moved to NC and here you have to pay taxes on what your car is worth every year (or so I am told) or at least when you first register it in the state so had I been buying my car it would cost me nearly $750 just to register it. Since I am leasing it only costs about $70.



It depends on your situation, how much you drive, if you want a nicer car for a lower pmnt, etc. to see if leasing is for you.

Answer 76

I think there is no reason for you to rent a car, I mean lease a car unless you are a millionare. A lease is kind of like an interest only home loan without the equity gained. It just doesn't make sense unless you are more than finacially secure.

Answer 77

If you enjoy driving a new car every two or three years, want lower monthly payments, like having a car that has the latest safety features and is always under warranty, don't like trading and selling used cars, don't care about ownership equity, drive an average number of miles, properly maintain your cars, and are willing to pay more over the long haul to get these benefits, then you should lease.



If you don't mind higher monthly payments, prefer to build up some trade-in or resale value, like the idea of having ownership, like paying off your loan to be payment-free for a while, don't mind the unexpected cost of repairs after warranty has expired, drive more than average miles, prefer to drive your cars for years to spread out the cost, like to customize your cars, and don't like the risk of surprise lease-end charges — then you should buy.



I personally prefer to buy a car, rather than lease it, but everyone feels differently. :-)

Answer 78

depend son your purpose. If you lease, your payments lower, you avoid depreciation issues when trading in for a new car, keeping you in a new car when you want it. It allows you to establish a good credit rating so you can eventually purchase a car with a better finacing status if you have bad credit issues. Instead of having a 10 yr payoff you can choose a 3yr lease, make your payments and choose to buy it in end, refinace and adjust payments. So say you want a bmw, you lease for 400 a month for 3 yrs. end of lease, at this time get finacing from a lender to purchase car at agreed payoff price. the amount you will now pay monthly might or might not be more then the monthly lease price but it will also be much less then if you tried to purchase from begining.

Answer 79

The residual value on contract is thee most important but the dealer whats you to do the math. In other words, What are you spending for this vehicle, And, Does it make you money, exp: you can lease equipment. Then you can call it a write off towards tax season.

Answer 80

Leasing is like renting an apartment or a house...when it comes to car or vehicles it is best to buy than lease/rent.



This way when you pay that car off it is yours.

Answer 81

never buy car on lease ..always buy it!

Answer 82

If you Buy a Car:



#You have to bear the full cost which will definitely deduct ur capital

#You have to buy a car which has a very good secondary market to cover maximum of your cost when you dont need the caror sell it.



If youu lease a car.

# Initial cost is minimum

#But you have to pay a considerable amount during a long period

# Total expenditure will be much higher than the value of the car

# If you are unable to pay a single premium god bless to you and ur car



My suggession :- if you have enough money to buy one bye it. Dont lease private vehicles coz leasing designed for commercial vehicles. One can pay while he earns.

Answer 83

Cons: You don't own the car

Answer 84

Pro's: if it breaks down, you don't have to worry about it- the dealer will pay for it. actually, the only thing you have to worry about are tires and oil.

Con's: if you keep leasing, you'll always have payments.

and limited mileage.



p.s. I've had older cars all my life, and TRUST ME- I'd rather pay every month and feel safe and in a new car, then worrying about what's gonna brake next, when, and how much is it going to cost me.

Answer 85

in one u own and the other u have to return it and pay any extra mileage fees and stuff.

Answer 86

Buy don't lease. At tje end of a lease you have nothing. Owning a car gives you equity in the car,

Answer 87

PRO - not yours. No property tax. Low payments.



CON - can't go too many miles.

Answer 88

Buy used, invest the balance in real estate. Cars are all a waste of money. If U care for a new car and don't mind wasting money, primary drawback of lease is mileage limitation.

Answer 89

easy u cant pay one payment..they take it away..u buy it all its urs.....u knoww

Answer 90

hi!



I think it depends on alot of things. Leasing you never own, but you always have a new car at the end of your lease. Read all the fine print. I think if I was to get anew car I would lease. You buy a car and then when it is paid off you spend all the money you would have spent in payments on repairs!!! Good Luck

Answer 91

I can say no no no to leasing a car. I did that once and fell in love with the car. When the 3 years was up I had to return it. I had went over the miles, and then on top of that they inspect the car to make sure everything is working inside and out. If not you are responsible to pay for it getting fixed. Then the worse part is, what do you have after the lease is up? When it goes back you have to start all over again.

Answer 92

well ihave only heard horror stories abotu leasing cars. you are basicall renting it much liek paying rent for a house. you will always be paying and when you move you wil lnever see a dime of it again!



leasing a car is exactily the same way. you pay 300 or more bucks a month for like 36 months or less3years



thats arounf 10,800 dollars! plus you need to make a down payment liek 2,000 thats 12,800! enough to buy 2 used cars almost. or one nice used car



and once you return it they nickle and dime you for any dings sctractes, stains in/on the car. and also charge you if you go over the mileage..





i would always buy a used car



all of the economics teachers have told my and fellow classmates that if you buy a care new, when you drice it off the lot you already loose 5 thousand sollas off the price tag you already bought it for.



If i were you i would keep saving my money and buy a car! a used one preferable so you would get money back from it somedat if you decided to sell it rather than just giving it back tot the leaser adn not gettign a penny back....

Answer 93

Its not yours you can return it whenever you want and you are not responsible for the rapairs as far as I know.

Answer 94

Another thing to consider besides what has been posted already is your long term financial situation. If you are more likely to get into worse debt and ruin your credit thru buying, leasing might be better, especially as economic crisis in US (serious fall of the dollar) rears its head from the US debt of $4.6 trillion and the pending economic collapse. Easier (but potentially costly) to get out of a lease sometimes than to sell a car, esp in some areas of US, esp if more rural.



Also important to consider: Since buying a gas guzzler might be risky this decade as we are past peak oil, leasing an ELECTRIC car shorter term might be better so you could try electric out. Plus you would be doing something that is GREEN and unselfish! Also, you can rent solar panels as a homeowner and just plug in your car overnight and go without paying for gas. Electric cars cost 1/10 th the cost to run based on current gas prices of about $2.16/gallon where I live. There are even some new electric cars that can charge in ten minutes! See Phoenix Motorcars. Cute! Exciting times to RETHINK electric cars and solar energy. Have you seen "Who Killed the Electric Car." Rent thru Netfflix.

Answer 95

I think SaltyDog has answered the question *** LAUDE. Nothing else to be added, he rocks !

Answer 96

on lease you don't have anything to show for it but it really depends on who you are and where you are in your life if you travel a whole lot and need to keep up your image then lease or if you travel alot if you want to own something then buy if you are old and about to die then it does not matter

Answer 97

When you buy a car, you know what the invoice, the MSRP, and sometimes the dealer incentives are. On that basis, you have the facts to base your own assessment on what it's worth.



When you lease, you don't have equivalent data. So, you speculate on what the car might be worth at the end of the lease. You don't know. Nobody knows. So, you guess.



I buy my next car when the old car is wearing out and I have saved the money to pay cash for it. You may be one who wants to have the latest, greatest, shiniest. Over a lifetime, that's a very expensive approach. When it's time to retire, will the memories of all that newness sustain you in your old age?

Answer 98

The only pros to leasing are

1 - establish credit

2 - you can get a new car every so often



cons

1 - you pay never to own

2 - when you go to trade there are depreciation charges

3 - you must keep it in prefect condition.

Answer 99

Pros for me - low monthly payments and then have the opportunity to turn it in and purchase a new car (or lease another new model). Cons - I will miss my Toyota Corolla sport when the lease ends. It's been a terrific car to drive.

Answer 100

If you lease a vehicle verses buying you will be much better off,for the long haul that is.My wife and i signed to lease a brand new vehicle in 2005.It is a 3 year lease,which can be turned back in and you get a brand new vehicle again on a new lease.If you buy the vehicle instead you will have lower payments for a longer period of time,which comes out to paying more interest on the loan.The depreciation value plays a big roll for most people because your trade in is worth less.And you have paid out a larger sum of money to begin with.You may want to lease rather than buy due to a few reasons.A lease will give you shorter term in a vehicle you may not want to keep,or get tired of after a short term.it has a bumper to bumper warranty for the term of the lease,(when buying,it will run out before you pay for it,unless you spend more money to extend it).If you get the red carpet lease,and buy the ins. for a few hundred dollars,it will cover incidentals on lease return up to 2500.00 or more,1 less headache for you.Now,if you go get your own financing first you will be very glad you did.This will give you more leverage with the dealer for negotiation on your terms.Look and ask for all dealer incentives,factory rebates,etc.Absolutely do not fall into their trap of selling you the vehicle at invoice price.Do not tell them you have your own financing until they give you a price after all incentives,and you have exhausted them to the lowest price they will give.then you make them a cash offer(the funds you have already set up with the bank)and see what they say.Whatever you do,negotiate negotiate,negotiate,everything.And then make sure you read the contract thoroughly before you sign.Even if that means leaving the dealership and going back again.No 1 make sure you have the upper hand and you are completely satisfied with everything.Remember you are shelling out your hard earned dollar to them,make them work for it.Also you can buy extra mileage at lease beginning so you don't get hacked at the end.Their are much better programs out there for leasing these days.

Answer 101

The only con i can think of for leasing is that if you like the car you have to get rid of it before you know it.

Answer 102

Pros; you change cars frequently

Con's you are limited to 12,000 miles a year.

And every scratch, dent, depreciation - YOU PAY for it when you payoff the lease.

Answer 103

don't lease unless you or your family own a business.

Answer 104

Personally, I'd rather buy.



Cons of Leasing:

-You can't keep the car.

-If you make a mess, you have to clean it bIefore you return it.

-If you make a permanent stain, you sometimes have to pay extra.

-At the end of the lease you do not have an asset.



Pros of Leasing:

-You don't need to sell it if you are tired of it.

-You don't have to take the depreciation risk.

-You get a fresh car every 3 years, you don't need replase the tires (Total Maitnence)

-You always have an up to date car under warranty

Answer 105

PRO- LOWER RATES (U ARE ONLY PAYING FOR THE DEPRECATION)

CON YOU CAN RUN UP A BIG BILL AT THE END OF YOU LEASE IF YOU GO OVER YOUR ALLOTED MILE (USALLY 10K A YEAR)

Answer 106

well i think they can take it away from you and you wont get your money back if youve already [payed half theres a time where you have to pay all the money back by andif you stuff it up you'll be stuffed i dunno im just guessing hope it goes well. i'd personally buy my own car but im not you .. and im 15 =D cya good luck xx

Answer 107

Factor in the short and longterm costs. Ask yourself: How long do I plan to use this car? If I am leasing, can I afford to keep it in tip top shape until it's time to hand it in? What are the mileage restrictions?

Answer 108

rather go buy

'

Answer 109

I'd check out what the professionals have to say about it. Check out http://www.daveramsey.com/etc/askdave/?intContentId=5991



No pros to leasing. It's a way for car dealers to make maximum profit on their vehicles.



Buy a nice used car so that the previous owner takes the depreciation.



Best wishes.



DB

Answer 110

leasing: limited milage, lower car payments, higher insurance.

buying: it's your car so unlimited milage, higher payments, but lower insurance.

Answer 111

Leasing a vehicle is actually a far better way in todays day and age of vehicle ownership. First the expense of out right ownership is quite a payment, e.g... A $30K car would run you about $600 a month to own as opposed to $400+-to lease. There are many die hard car buyers that will argue that leasing is worse they are wrong. I sold cars for awhile. Was the best at it too. I also have had 15 cars to my name at 29 yrs old. Many argue that they want to "own" the vehicle so they make the higher payment. If you are making payments in any way you DO NOT own it till they are all made. Therefore you are in a sense "leasing" to buy from your financial institution. Another "reason" people give " If I damage it I don't want to pay the repairs." Cmon you are not going to fix your brand new car that your paying out the duff to own because you want to own a damaged car, right? That's what insurance is for, leased or not! Also try trading in two of the exactly identicle vehicles. One with the interior trashed, one with it spotless. Believe me you will pay for it then. Then there's "I drive to many miles." Many think this one is solid reason. Wrong!You can chose various mileage plans, 10k,12k,15k,18k......etc.Even if you drove 20k/yr making your lease payment almost as much as a purchase payment your not locked in to as many payments.(600x60vs565x36) If you had bought it what do you think all this milage does to trade value? Considering it takes the average car loan 3 years to "break even" (meaning what you owe is what its worth) leasing will always save money. E.g... If you leased at 400x36 vs 600vs60 buy after 36 months you think I got nothing 0 notta well the buy has got equity, wrong. You probably have lease cash towards your next vehicle and the buyer is hopefully just breaking even. So, your actually both at 0. Just you got some incentives toward the next one, and the buyer still owes over $14k on the same vehicle. You both drove the same vehicle...You kept $200/mo in your pocket(or$7200) more than him don't owe a thing and most likely have $500-$1500 lease cash toward the next one. You will be getting into a new car with better technology and still paying far less than the buyer with the older one. You get your "equity" in each and every payment not hoping and suffering to the end. Lastly guess who is often covered bumper to bumper(std leases) You. A buyer unless they purchased an extended warranty. Some people just want to write a check for $30K and be done. Buy $30k of oil or gold or even in one of those 5% int. checking funds make money with it do not dump it into the "worst" investment Cars. Lease it! Please keep in mind some leases are more "aggresive" than others and good luck.(which you won't need if your smart)

Answer 112

Think of a Lease as a break from your loan. Most People think when they lease a car its like if they are borrowing the car. Like if you dont own it. When you finance a car to buy, you dont own the car either. The bank owns the car untill its paid off. Think about a loan as a trip from Los Angeles to New York (60 month finance, 5 yrs) non stop all the way there. (long ride huh?) Now think about a lease as the same trip...but with a stop in Houston with the choice of getting off the plane, going somewhere else or keep going all the way to New York. Same as to lease instead of 60 months payments is 36 with the payment cut almost down to 40% . At the end of the lease term you have the choice of buying the car(risidual value).A car that is worth 20k at the end of the lease you can probably buy it for 10k....making sence? Now not all leases are nice and sweet. YOu need almost exellent credit to do a lease. Usually leases are a privilige to some car buyers. You also need to keep the car almost imaculate due to the charges at the end if you decide to return the lease as to buy it. Milage limitations are also added. anywhere from 8k, 12k, 15k, and up to 24k miles a year. Also 12, 24, 36, up to 60 months leases...but if you need to go that high you might as well buy the car. CHarges will apply for any damge done to the vehicle during your lease and also the miles that you went over the chosen milage anywhere from 10cents to BMWs 25cents a mile you go over so chose wisely. I would recomend a lease to someone who does not drive the car that much and keeps it nice all the time. That keeps you away from being stuck with a car you dont like for 5 years or more and then having to trade the car in while you still owe money on it. Enyoy that new car!

Answer 113

If ecconomy is your long term goal with a car, buy. A year or two older car is your best bet. If you like a new set of wheels often, then lease. But with a lease, watch your miles and other add-ons as they can really hike up the price over the terms of the lease.

Answer 114

My advice FWIW: BUY a slightly used car with low mileage.



I bought a 1997 Subaru Impreza wagon with <20k miles in spring of 2000. It cost me MUCH less than a new car, and it had the same resale value both before and after I drove it off the lot. Nearly seven years later, it looks and runs great. Best if all, it's paid for and costs very little to maintain. I've had it a lot longer than many of my friends have had new cars, and saved a lot of $$$ too!



Leasing is throwing away your money IMO.

Answer 115

Just watch out for the lease that only allows 12,000 miles per year. that may sound like alot of miles; but it's not and at the end of 3 years you have to pay for every mile over your limit!

Many people get screwed over on that one!

Other then the mile thing...Lease is great if you can get away without a high down payment!

Answer 116

Don't lease. You're basically paying the depreciation, and there are insurance minimums required in some states that may force you to purchase more insurance than you'd like. Also, since you don't "own" the car, you've got to remember that you've got to turn it back to the dealer at the end of the term. Then you'll get nailed for excess wear and tear charges, over mileage charges, etc...

Answer 117

there is no good reason lease unless it is through or for busniess

unfortunately leases are harder then heck to break once you sign

that's it you have lost all freedom concerning "buying" a vehicle

until a reason pops up that allows to opt out of the lease which

is almost unheard of

trust me on this one-buy your next car do not lease it you will be miserable if you do.

Answer 118

leasing gives u more options when ur lease is up on the vehicle u are driving, when u are buying u have the right to call it your own.



leasing can be seen as money wasted

owning can be seen as not being to have options if something better is for sale a few months down the road.

Answer 119

If you are able to, pay cash for the vehicle. The interest portion of your monthly payments to buy, adds to the original cost of the vehicle.

Answer 120

Leasing gets your payments to where you can afford them. But ironicly - if you cant afford to BUY a car, you cant afford to lease one. Best bet is to buy a car that is few yrs old unless you have money to burn.

Answer 121

Well in my opinion, the obvious Pro would be somewhat cheaper payments. As for Con, you can only put so many miles on it.

Answer 122

realmente no entiendo lo que preguntas I no speak english sorry good bye

Answer 123

Leasing is ALWAYS against the best interest of the customer!!!!

Answer 124

first thing you wont own the car after the lease bad, second you will get nailed to the wall for dings and dents bad, good lower payments new car evrey 2-3 years and usually a car you couldnt afford with a loan

Answer 125

ENDS UP COSTING YOU MORE MONEY ALL AROUND..IT SEEMS COOL BUT REALLY MORE MONEY...

Answer 126

with a lease you never own the car when you buy even though the bank owns its better... I truly think to purchase any car from a dealership is a rip off.. I prefer to buy from a peson that has had the car.... cars are very bad investments...

Answer 127

u could pay for it every month and then give it back and with the amount that u paid u could have had a new car,its NOT a good idea to get a car on lease

Answer 128

leasing is good if you can stay within the milage constraints. Buying is better if you don't get board of the car and you keep it for at least the total term of your loan.

Buying is better if you are a business buying the car because it is more tax deductible.

leasing is less expensive than trading in your car you've had for less than 4 years because of the money you will lose on the trade in value verses real market value

Answer 129

Leasing is a rip-off. During a few years your payment equal 60-70% of the car's value and you own nothing.

Answer 130

If you stay within the mileage...your payments will be lower and you get a new car every two to three years.

Answer 131

your situation determines your needs. my daughter need a car after college and getting to her job.i leased a car for 220 per mo

sign and drive. to buy a new car it would be 300 plus per mo.

couldn't afford it. once she got settled ,then she could buy or lease.

my self i lease the deal not the car, because you are going to give it back. plus you can drive a nicer car ..most nice cars are

28-35 k. 60 mo your payments ave 350 plus per mo.after 5yrs

the cars is worth 5k depending on condition and miles. plus repairs. i drive 2 new cars in 6 yrs. have no value . no headaches

bumper to bumper protection and cost are close to the same. this has value.

Answer 132

I leased back in 1998 and my insurance payments were outrageous!!! I say finance.

Answer 133

At the end of the lease, they give you the 'option' of purchasing your car at the same price of a new car! I don't think its worth it.

Answer 134

If you don't like the Car, your stuck with it. If you like getting a new car every couple of years it's good. leasing is cheaper than buying.

Answer 135

don't lease unless you or your family own a business.

Answer 136

WHO CARS IS IT AFTER THE LEASE IS UP ? CHECK VERY CAREFULLY