Is there ever a good reason to lease a new car?

Question

Financially speaking, a lease is a bad deal in the long run. But a lot of people still do it. Is there ever a solid rational justification to lease a car rather than purchase (finance) it?

Answer 1

Sure.. You can give it back and trade in. You are not stuck w/ that car whjen your payments are done. And you hve an option to buy at the end of your lease term.

Answer 2

You think it's a bad deal because you have some misconceptions about leasing.  My dad leased his last car to keep his payments a little lower.  When it was time to upgrade, the car was worth more than the residual value or the pay off of the vehicle so he had money to put down on the new car.  People think they lease a car and it's like renting it and they have to return the car when the lease is up but you can buy the car or trade it in just like any other way of buying it.  If you know you like to have a new car every 3-4 years, leasing makes perfect sense.  When you buy a car, you have no idea what the value will be in 3 years if you decide to trade it in.  When you lease, as long as you follow the conditions, the value of the car when the lease ends is set at the time of signing.  People think buying is better because it means you own the car but you own nothing till you make that least payment and if you trade it in before paying it off, you just made higher payments for nothing.  Should have leased.

Answer 3

yeah, i wanted a new car and leasing got me payments I could afford, and be it that im sick of driving around old junkers i like to get new cars every few years that are always under warranty. On top of that my car will be worth more than my buyout at the end so i will just buy it and then use it as a trade in right away on a new car. Even if my buyout was upsidown I could just turn the car in and not have to worry about it and combined with that fact that my payments are so low I will have plenty of money saved up for a downpayment on another one when i get it.

As opposed to buying where I would have had to finance for 6 yrs to get the car I wanted and even then my payment would have been at least $100 more per mnth and I would have paid ALOT more in interest, then I have to keep the car all that time and pay out of pocket to have it fixed for the last couple yrs I have it. Now when my car is paid off I can use it as a trade free and clear of any lien, but by then It wont be worth much, I did the math on it when I got my car, I saved $106 per month going with a 36mnth lease instead of a 72 mnth buy, which totals $3,816. If I had bought my car and kept it all six yrs it would be worth about $2,500 - $3,000 assuming its in good shape when Im done.

I like cars, nice cars, so I want a different one every few yrs, I work in the car business ( no im not a salesman) and I have  B.A. in financial planning so I am well aware of the true costs of what Im doing and for me its worth it to lease.

I do understand that the best way to get your monnies worth out of a car is to buy it and run it until the wheels fall off, but I dont want to do that, I want newer cars, and leasing is better for me.

Answer 4

idk

Answer 5

If you are planning to sell a new car 2 years after buying it, you might as well lease a car; it will be cheaper and less trouble. But when you buy a new car, it's YOURS. Not when you lease it. When you lease a car, there is usually a limit on how many miles you can put on it. That is why I wouldn't want to lease a car.

Hope this helped!

Answer 6

No, it always cost more.

Note that the one positive answer you got is from a car salesman.

Answer 7

One suberb answer above. You never own the car until it is paid off. After 6 years  of payments you are left with a vehicle with little value and needing more than likely lots of maintenence.

One common  way leasing is bad.... younger people tend to get into a lease and mileage is ok at that moment, than they switch jobs and have to drive more and go over the miles. If you would have leased a truck about 3 years ago and lease is almost up, you are thanking the man upstairs, because someone that purchased 3 years ago and is looking to get out now is probably more than 10k in the ditch. Negative equity you don;t worry about in a lease as if it is that much the manufacturer and bank eats it and not you.

Answer 8

I lease because I drive relatively few miles per year. (Around 15k per year)

I don't want to buy someone else's problem.....(that would be a used car. You never know the reason they are getting rid of it)

And it's not a good idea to buy a new vehicle if you trade every couple of years.

And I also like to trade every couple of years and with leasing I'm never in a negative equity situation.

I will lease cars for the rest of my life.