Jul
Financially talking, 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 automobile rather than purchase (finance) it?
Answer:
yeah, i wanted a new vehicle and leasing got me payments I could afford, and be it that im sick of driving around old junkers i like to get new vehicles each few years that are always under warranty. On top of that my automobile 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 automobile. Even if my buyout was upsidown I could just turn the automobile 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 vehicle 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’ve to keep the vehicle 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 have the ability to 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 purchase, 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 vehicles, nice cars, so I want a different one each few yrs, I work in the car business ( no im not a salesman) and I’ve B.A. in financial planning so I’m 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 automobile is to purchase 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.
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Only people who know nothing about leasing would ask this question. Report Abuse
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You think it's a bad deal because you have some misconceptions about leasing. My father leased his last car to keep his payments a tiny lower. When it was time to upgrade, the automobile was worth more than the residual value or the pay off of the car so he had money to put down on the new vehicle. People think they lease a vehicle and it's like renting it and they have to return the vehicle when the lease is up but you can purchase the car or trade it in just like any other way of buying it. If you know you like to have a new automobile every 3-4 years, leasing makes perfect sense. When you buy a automobile, you’ve 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 vehicle when the lease ends is set at the time of signing. People think buying is superior because it means you own the vehicle 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.
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One suberb answer above. You never own the automobile until it is paid off. After 6 years of payments you are left with a automobile 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 nearly up, you are thanking the man upstairs, because someone that bought 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.
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I lease because I drive relatively few miles per year. (Around 15k per year)
I don't want to purchase someone else's problem…..(that would be a used automobile. You never know the reason they are getting rid of it)
And it's not a good idea to purchase a new car 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 automobiles for the rest of my life.
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If you are planning to sell a new vehicle 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 automobile, it's YOURS. Not when you lease it. When you lease a automobile, there is usually a limit on how many miles you can put on it. That’s why I wouldn't want to lease a car.
Hope this helped!
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Sure.. You can give it back and trade in. You’re not stuck w/ that vehicle whjen your payments are done. And you hve an option to purchase at the end of your lease term.
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No, it always cost more.
Note that the one positive answer you got is from a car salesman.
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