Is it better to Lease a Car or Buy?

Car costs 20k. Residual is 12k after 36mos. you finance the 8k over 36 mos at a typically lower apr than on a simple interest loan. In 36 mos or sooner, you come in and do it again.

Some people have just resigned themselves to ALWAYS have a car payment, and always have a newer car. This is the least expensive way of doing it.

Cautions:

- don't do this to get a lot more car than you would noramlly be able to afford. That's one of the ways that people get themselves into you major trouble. Maybe go up a little bit in luxuries, but don't get silly with.

- read everything carefully and don't buy into their pressures or simple hand waving type of explainations. My sister in law got Titan (horrible truck btw) on a lease. The dealership had a charge on the contract of about $4300 bucks for "rental charge". It was a b/s charge, and the dealership could have been sued. Courts are very simpathetic in these cases, and it is up to the dealership to prove that every charge was justifiable. The courts assume that the dealers are trying to take advantage IOW.

- Negotiate the price of the car BEFORE mentioning lease to the dealer.

- You will have to carry more insurance typically, and usually less than $500 deductable.

- You can do anything with a leased that you can do with a car you're paying a loan on, including trading it in. However, if you try to trade in well before your lease date is up, you will be inordinately upside down. 2 - 3 mos is a usually a great time to do this.

- You only have to worry about excessive milage penalties if you turn the car in rather than trade the car in. And you're only going to turn the car in if you're leaving the country, or if the bank made a mistake and the residual is well above the actual value of the car. It does happen. or if it was a lease special where the manufacturer is inflating the residual to make the payments a lot better.

It depends on your buying cycle with automobiles. For some reason, the vast majority of new car purchasers get a five year loan for a car they only plan on keeping three years, but pay interest on the whole vehicle price. Leasing allows you to only pay the depreciation cost of the vehicle, devided into your lease payments, and never touches the residual value of the vehicle. Bottom line is this... why pay for the life of the car that you'll never use? In addition, you can't get upside-down in a lease. It's true you won't develop equity either, but these days the only way people have equity is if they have the title.

As far as milage goes, you just have to match your milage to what you drive a year and then add a bit. If you drive an average of twelve, I'd get a 15,000 a year lease for peace of mind on milage penalties. The biggest mistake people make in leasing is go for the cheapest payment without figuring out what a more accurate driving pattern is.

Lastly, NEVER EVER DO A BALLOON PAYMENT LEASE! The are actuallty illegal in many states, and the balloon payment is a big chunk of change due at the end of the lease. Bad idea, no matter how good the payment looks.

Hi my name is Arturo Flores I'm a sales rep in Texas I'm going to try to answer your question. When you buy a new vehicle we know that payment and price is very important but what some people don't know is that what ever the price might be is done in a 60 or 72 months.Whit the lease option you would finance 70% of the price of the vehicle for the first 3 to 4 yrs then you have the option to trade, sales, or buy you just have to pay the other 30% that's left of the vehicle that's who they get a lower payment and less term. The average mile for a year is 12K so if you drive that much you should be OK but you could increase the mileage to 15K a year to be safe. Rich people lease there cars that's why they drive expensive cars every 2 yrs for example a Mercedes Ben's that has an MSRP of $75,000 dollars could finance at 52,500 for the first 4yrs or what ever the term people decide so is less payment and could trade whit out being up side down if mileage is under the limit they decided on. Anyway is a little hard to explain but if you have any question you could call me toll free at 1-800-460-2551 ask for Arturo. P.S. If you need a GM product I sell Chev,GMC,Pont,and Buick.

Answer to question #1- Most lease contracts include GAP insurance at no extra charge. GAP pays off the balance of the loan in the event of a total loss. If the insurance says the book value is $10k, but you owe $15k, the GAP pays off the difference, so you aren't left with that burden. GAP is available when you buy a car as well, but it will not be free. Question #2- You can allow for as few or as many miles as you would like. Most banks have a standard of 15k per year, and a low mile option of 12k per yer, but you can set the lease with as many miles per year as you would like. The thing to remember is to set them properly. If you drive 20k per year, don't get a 12k/yr lease. It needs to be realistic. You only pay a mileage penalty if you turn the car in at the end of the lease. If you trade it or keep it, the mileage doesn't apply. Leasing is a great option, if it fits your lifestyle. There are a ton of people that bought big suvs and trucks 1 or 2 years ago that are thousands of dollars upside down right now. They financed for 6 years to get the payments where they could afford them, and now can't afford the gas. They have to keep the vehicle the majority of that 6 year term or come up with a lot of money to trade. If they had leased for 4 years, the payment would be about the same as the 6 year note, but they would be able to get rid of it in 4 years instead of 5 or 6.

If you only drive that many miles each year a lease would be great for you, but it depends on how long you usually keep your vehicle and what it is used for. if you usually trade within 3 or 4 years then you should definately lease. it will save you alot of times when new models come out and your driving the older version that has lost value, the cons are that you never own your car and you will always have a payment which most people never keep their car long enough to pay off anyway.

Leasing is just another way to buy the cra, the only difference is with a lease you have the option after 2 or 3 years to get out of it with no problems and get another car. You can get mileage upto 15000 per year. let me know if there is any other questions you have?

lease because after u lease u can get a diferent car

i own a repair shop,and i had to make this decision once,and i decided to bu y,i looked at all the ups and downs ,in both cases,and i just bought mine,leasing is sort of like renting,which to me is senseless to do,my belief is,if your going to pay out money,at least have something to show for it,and buying is the only way good luck i hope this help,s.

buy it . coz always think of others and mostly our nature try to save the petrol ,and that could be done only when you buy a car/truck and not on leasing.