Leasing a Car vs Buying a Car, Which is Worse
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Date: 2019-08-27
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Comments and reviews: 9
magicrobharv
I've studied leasing vs buying a new car when I was going to buy a new vehicle. This is what I found out. 1) Unless leasing your car is a business expense, it is not financially wise to lease a car. 2) Generally speaking, you'll pay higher insurance for a leased vehicle. Exact costs vary based on the model you lease. 3) If you decide to keep the vehicle, I. E. buy it fully after leasing it for a while, you have paid more for that vehicle then if you would have bought it outright. Even if you bought it outright with a payment plan, you would have still paid less then leasing it for a while and then buying it. 4) There are limits on how much mileage you can put on a leased vehicle, wear and tear, etc. Go over those limits, and when you turn your leased vehicle back in, you have to pay for going over those limits. 5) You are tempted to lease a model of car / truck that is way more expensive, then you could ever afford to pay for if you were paying just monthly payments with the intent to own it outright. Your small lease payment has set you up for failure. You could never afford to buy that expensive vehicle if you paid for it under normal monthly payments. 6) Balloon payments, other expenses that you were not aware of when you leased your vehicle.
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I've studied leasing vs buying a new car when I was going to buy a new vehicle. This is what I found out. 1) Unless leasing your car is a business expense, it is not financially wise to lease a car. 2) Generally speaking, you'll pay higher insurance for a leased vehicle. Exact costs vary based on the model you lease. 3) If you decide to keep the vehicle, I. E. buy it fully after leasing it for a while, you have paid more for that vehicle then if you would have bought it outright. Even if you bought it outright with a payment plan, you would have still paid less then leasing it for a while and then buying it. 4) There are limits on how much mileage you can put on a leased vehicle, wear and tear, etc. Go over those limits, and when you turn your leased vehicle back in, you have to pay for going over those limits. 5) You are tempted to lease a model of car / truck that is way more expensive, then you could ever afford to pay for if you were paying just monthly payments with the intent to own it outright. Your small lease payment has set you up for failure. You could never afford to buy that expensive vehicle if you paid for it under normal monthly payments. 6) Balloon payments, other expenses that you were not aware of when you leased your vehicle.
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DETROITREDNECK DETROITREDNECK
My wife bought in 05 Avalanche without me knowing about it for 4, 000 9, 000 later after repairs transmission engine suspension brake system Electronics she tells me she wants to lease a vehicle that is more reliable oh and by the way every time she starts the car a quart of oil comes out in Smoke out the tailpipe she's telling me she has bad credit and wants to lease a vehicle I have five family members that work at Ford's she has two family members that work at Forge here in Detroit my question to you sir is should I lease a a truck that can hold a pop-up camper slide in and pulley boat at the same time or should I just continue taking two vehicles to my campsite that is 450 Mi away 900 miles round trip please contact me let me know I am all for using the Dave Ramsey method buy Here vehicle that is 2 years old still under warranty drive it for 3 years and cash it in money is tight on my end please let me know what you think I have an email address if you want it let me know message
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My wife bought in 05 Avalanche without me knowing about it for 4, 000 9, 000 later after repairs transmission engine suspension brake system Electronics she tells me she wants to lease a vehicle that is more reliable oh and by the way every time she starts the car a quart of oil comes out in Smoke out the tailpipe she's telling me she has bad credit and wants to lease a vehicle I have five family members that work at Ford's she has two family members that work at Forge here in Detroit my question to you sir is should I lease a a truck that can hold a pop-up camper slide in and pulley boat at the same time or should I just continue taking two vehicles to my campsite that is 450 Mi away 900 miles round trip please contact me let me know I am all for using the Dave Ramsey method buy Here vehicle that is 2 years old still under warranty drive it for 3 years and cash it in money is tight on my end please let me know what you think I have an email address if you want it let me know message
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Andras Libal
My Audi A4 is 16 years old, bought it 6 years old for 8k, served me well for 10 years now did not have major problems except for a head gasket + oil pump when I bought it and once a repair on the valves. It depreciated about 5-6k during these 10 years, still runs well, I still love driving it every day. Now it is starting to slowly fail and show its age, but I am driving it hard, that is the truth. It is not worth selling it at this point it will probably last for a few more years. I don't think it was an endless money pit, but I do have a very friendly good mechanic that finds cheaper aftermarket parts for me and advises me on repairs. Also, I live in Eastern Europe where mechanics are relatively cheap compared to parts costs (vs the US where service/hour is a high cost.
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My Audi A4 is 16 years old, bought it 6 years old for 8k, served me well for 10 years now did not have major problems except for a head gasket + oil pump when I bought it and once a repair on the valves. It depreciated about 5-6k during these 10 years, still runs well, I still love driving it every day. Now it is starting to slowly fail and show its age, but I am driving it hard, that is the truth. It is not worth selling it at this point it will probably last for a few more years. I don't think it was an endless money pit, but I do have a very friendly good mechanic that finds cheaper aftermarket parts for me and advises me on repairs. Also, I live in Eastern Europe where mechanics are relatively cheap compared to parts costs (vs the US where service/hour is a high cost.
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NavyRider 93
If you are going to take a loan for five or six years to buy a car perhaps leasing could be best for you. A pro about leasing a new car is that you will not have any expenses to repair the car. If you hate having to deal with mechanics, (who most of the time are hard to trust, and it is hard to tell if the mechanics are honest) if you hate working in your car, and if you like the peace of mind of driving a new car that still has the bumper to bumper guarantee then perhaps leasing can be the best choice. Edit: One thing is true though, cash is king but who has the money to pay 40k cash every three years for a brand new car?
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If you are going to take a loan for five or six years to buy a car perhaps leasing could be best for you. A pro about leasing a new car is that you will not have any expenses to repair the car. If you hate having to deal with mechanics, (who most of the time are hard to trust, and it is hard to tell if the mechanics are honest) if you hate working in your car, and if you like the peace of mind of driving a new car that still has the bumper to bumper guarantee then perhaps leasing can be the best choice. Edit: One thing is true though, cash is king but who has the money to pay 40k cash every three years for a brand new car?
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Lawrence Jensen
My last car is a 1999 Toyota Corolla LE I paid 2, 000 for that 120000 Miles that's the most I paid for a car in all my 51 years of driving and being a shade tree mechanic my first cars were only 50 each 1960 2 door Chevy Biscayne Simca Pontiac Catalina 1960 Chevy station wagon 1964 Pontiac Catalina Convertible 63 Ford Fairlane a 67 Dodge Charger 3 68 Dodge Chargers a Coronet wagon a 68 Ford Torino 63 Dodge Dart a 98 Dodge Neon Ford Ranger 2. 3 Chevy S10 2. 5 now I got the 1999 Toyota Corolla LE the other ones I didn't pay over 500 for mostly 50 to 100 I'm cheap like Scotty
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My last car is a 1999 Toyota Corolla LE I paid 2, 000 for that 120000 Miles that's the most I paid for a car in all my 51 years of driving and being a shade tree mechanic my first cars were only 50 each 1960 2 door Chevy Biscayne Simca Pontiac Catalina 1960 Chevy station wagon 1964 Pontiac Catalina Convertible 63 Ford Fairlane a 67 Dodge Charger 3 68 Dodge Chargers a Coronet wagon a 68 Ford Torino 63 Dodge Dart a 98 Dodge Neon Ford Ranger 2. 3 Chevy S10 2. 5 now I got the 1999 Toyota Corolla LE the other ones I didn't pay over 500 for mostly 50 to 100 I'm cheap like Scotty
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mkaufer05
In my opinion, I prefer to buy a car instead of leasing one, because leasing a car you are only renting it, and almost all leases has a max of 11, 500 miles per year, not good if you live far from your job and you are not allowed to customize it either, it must remain in original condition, and full car insurance is higher on a lease car then if you was to buy it, I know that at least with the car insurance company I am with, it might be different with other companies. Leasing a car may be better for some people, depending on ones situation, but not for me.
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In my opinion, I prefer to buy a car instead of leasing one, because leasing a car you are only renting it, and almost all leases has a max of 11, 500 miles per year, not good if you live far from your job and you are not allowed to customize it either, it must remain in original condition, and full car insurance is higher on a lease car then if you was to buy it, I know that at least with the car insurance company I am with, it might be different with other companies. Leasing a car may be better for some people, depending on ones situation, but not for me.
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Mark Martin
Back in the day. Many many days ago. When the wife always wanted a new car. I leased a Ford. I drove that thing all over the country. Way over the annual mileage limit. But we intended to buy at the end so did didn't care and there were no penalties. So we leased our next car. A Honda. Went a little over the mileage limit each year and though we bought it out, they still wanted their mileage penalties. No more Hondas for me. The wife kept it in the divorce. Perfect match.
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Back in the day. Many many days ago. When the wife always wanted a new car. I leased a Ford. I drove that thing all over the country. Way over the annual mileage limit. But we intended to buy at the end so did didn't care and there were no penalties. So we leased our next car. A Honda. Went a little over the mileage limit each year and though we bought it out, they still wanted their mileage penalties. No more Hondas for me. The wife kept it in the divorce. Perfect match.
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Edward Anthony
Dead and no ownership is better? Depends if one has to move place to place due to their job etc. or one who wants an expensive car for image etc. I keep three 20+ year old clunkers in tip top mechanical condition and spend up to 500. 00 a year for each on maintenance & some years it costs nothing more than insurance & registration on one or 2 of them + the miles are distributed so no vehicle gets more than 5000-6000 yet all get adequate usage.
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Dead and no ownership is better? Depends if one has to move place to place due to their job etc. or one who wants an expensive car for image etc. I keep three 20+ year old clunkers in tip top mechanical condition and spend up to 500. 00 a year for each on maintenance & some years it costs nothing more than insurance & registration on one or 2 of them + the miles are distributed so no vehicle gets more than 5000-6000 yet all get adequate usage.
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Brett Garrett
Paid 1200 for a used low-ish mileageToyota Celica convertible. drove it for 2 years having a blast with the top down, sold it for 12200. 00It r onlyy ever replaced the battery and had the upholstery redone by a cheap vietnamese upholstery shop. I was very, very happy. I used the 26 hundred as a down payment on a Solara convertible with all new leather interior and top. the car is now paid for, and I plan on keeping it at LEAST another 3 years
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Paid 1200 for a used low-ish mileageToyota Celica convertible. drove it for 2 years having a blast with the top down, sold it for 12200. 00It r onlyy ever replaced the battery and had the upholstery redone by a cheap vietnamese upholstery shop. I was very, very happy. I used the 26 hundred as a down payment on a Solara convertible with all new leather interior and top. the car is now paid for, and I plan on keeping it at LEAST another 3 years
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