Lease or buy a car? both deals would cost about the same?

Question

ok. we are looking into leasing a car. at the end of the 3 year lease, we would end up paying about 15, 000. and then what, get another lease and start paying another 15,000 dollars? now if we buy the car that costs about 19,000, wouldnt that be a better choice? i just dont see the benifit in leasing anymore.

Answer 1

I also agree with previous commenters.

You will also need more expensive insurance with full coverage if you would lease.

I guess you should also check insurance quotes for these 2 options before buying car, for example here: http://carquotes.imess.net

Answer 2

Leasing is basically renting ...you will never have anything that you "own" at the end .....so if you always want to be able to have a new car every few years, but never own one ...leasing is ok

However, if you buy ...you will have a trade in at the end ...or it will be yours once it's paid for ..

It really depends on your situation and what you want in the long run.

Just make sure if you lease, you don't go over the miles allowed ...they will get you if you do ..and it is very expensive

Answer 3

Both might cost approximately the same if you compare a 36-month lease to a 72-month purchase. If you compare a 36-mo. lease to a 36-mo. loan it will be approx. half, exp. 300.pr.mo. vs 600.pr.mo. You have many more options available with a lease, shorter term agreement, no negative equity at the end, buy, trade, or sell the vehicle at the end, a savings on sales tax (pymt. is taxed vs. full purchase price) When you purchase, you don't own it until it's payed off, and usually you'll have no equity until the last year of ownership. And with that ownership you get ALL the repair bills for that car.

Answer 4

Unless you get a writeoff for a business expense by leasing, don't do it. The only reason most people do is low payments. It is false economy because they have no equity when the payments end.

Answer 5

At the end of the lease term you'd have the option to buy at a set amount or walk away, so yes I think buying outright is a better option.  Also, don't forget that there are mileage restrictions on leases that if you go over you're charged heavily for at the end of the term.

Answer 6

buy don't lease.

Answer 7

Leasing is just another name for LONG TERM RENTING.

In fact while leasing you don't even own the car, but you are fully responsible for the car.

===

I'm so glad you see the farce in leasing.  For some reason so many people go leasing - stupid...

Whenever you can, buy and hold till you squeeze every little penny's worth out of it.   I own 2000 Audi A4 (bought new) and 94 Civic (bought used) and they both still runs like new.  I plan  to hold it for years to come.  That's how you squeeze till Lincoln scream for mercy.  ;-)

Good Luck...

Answer 8

There are good reasons for going either way.   The advantage to leasing is that you're only paying for what you use.  In other words the payments are based on the period of time that you have the car in your posses ion whereas if you're purchasing in (financing) your payments are based on the entire selling price of the vehicle.  If you compare the lease payment to the finance payment on the exact same vehicle, the lease payment should always be less.  The only time that a lease payment might be the same or, God forbid, higher than a lease payment is if the resale value of the car is not good.  That's because with leasing, like I said, you're only paying for what you use.  If you decide to lease a vehicle for 36 months, the lessor is going to approximate what that vehicle will be worth at the end of the lease three years from now.  He will take that number and subtract it from it's current value and that, along with the taxes and interest is what your payment is based on.

Answer 9

There is no benefit to leasing unless somebody else (like a company car) is paying for it.

Purchasing a car using a traditional loan is always a better deal.

Well, cash is the best deal but few of us can afford to pay cash for a new car.

Answer 10

The problem with leasing is that you are not the legal owner of the vehicle.  As others have stated, it is essentially a long-term rental agreement.  There are quite a few restrictions that come with leases, especially when it comes time to return the vehicle at the end of the contract.  If you do some online research, you can quickly find many stories of hidden clauses and other leasing nightmares.

Unless, you are a business owner and you can write off a lease as a business expense, buying is a much better option in my opinion.