I prefer leasing. You never have to worry about the car breaking down or replacing parts, and you always have a new one.
As someone who worked within a dealership for a few years within the service, reception, sales, and billing office (yeah, I moved around a lot within the same dealer), I have to say that it truly depends on you, your needs, and preferences.
For instance, do you like getting a new car, then having the ability to hand it in at the end of your lease and leaving with another new car about 3 years later? Or are you the type of person who likes to OWN your property?
Leases typically require a down payment, there are times, though, when you can find lease deals that require $0 down, and personally, those are the deals you should look for as the amount you put down just gets thrown to the wind. It doesn't go to the principle of the car and typically tax, license, title, and other fees aren't included in the down payment, whereas a finance deal is the opposite, the amount you put down goes toward the fees and dealership fees they impose within your deal.
I worked with a sales manager that loved leases, however he would only lease $0 down for the reason I just mentioned above, but he loved being able to constantly trade in his 3 year old car for the newer model when the time came.
If you want to own the car in the long run, it isn't the best choice to lease then finance when the lease is up, as you'll pay more in the long run.
When you lease a car, you're basically just paying for the depreciation of the car over the course that you are using it. You also can pay out of pocket as there are mileage caps, usually anywhere from 10k to 14k miles over the course of the lease, and if you're someone who drives a lot, a lease might not be for you as the overage of miles could result in thousands being owed (after you hit your mileage cap, a typical price is .25/mile over the cap, which gets pricey!). If you smoke, you risk burning the interior of the car and also paying out of pocket. If you put dings, rips, scratches on the car, you may pay out of pocket. You also typically cannot customize the leased car, either.
Therefore, it really depends on your personal preferences, how you plan to use the car, the amount you drive, and whether or not you prefer to own your car in the long-term instead of 'renting' one.
I hope this helps, please feel free to ask if you have any questions! I'd be happy to try to assist!
TLDR; It depends on your preferences, how you plan to use the car, how much you drive, etc. for a lease option. Financing has much less restrictions and risks of taking a financial hit for mileage overages, damage to the car, etc.
Take a look at the leases offered in S Cal. These lease typically allow less than 10,000 miles a year, and charge 25 cents a mile after that. People commute long distances in S Cal, so the cost of leasing is high. There are no real zero down here,
Brad, yes it appears to be the new 'thing' to offer ultra low mileage leases now, but it truly depends on you. I leased a car @ 14k/yr @ 36mos and used it as my main vehicle and didn't touch the allotted mileage. After 3.5 yrs I only put 25k on it.
Neither financing nor leasing are the best options. Paying in full for the best used car you can manage is the best option.
Americans waste so much money each year on cars because they feel they owe it to themselves to have a newer car every few years, even if it puts a strain on their finances by adding debt to do so. Admittedly, it will take some spending discipline to accomplish this, but if you swallow your pride, do your research, and maybe get some help picking out a reliable car, it will be worth it eventually.
Now I know I may get comments about not being ABLE to go this route, but if you consider all the money you're wasting on interest, you're actually making it financially harder on yourself to finance. This is the option that will save you the most money in the long run and you'll actually have something to show for it---a paid off car that you actually own.
However, many people don't have 10k+ to buy outright. There is also the fact that any less than 10k, you're typically looking at a very used vehicle. While you own your car, you have to worry about whether or not the vehicle was properly cared for.
Kelcie, I'd have to respectfully disagree with your 10k figure. There are many decent vehicles to be found for well less than 10k. But it is important to do your research before purchasing. That fact remains that you're wasting lots of money financin
Levi, I didn't say it was impossible, however the search doesn't always prove to be worthwhile. The amount you spend in interest you could very well be spending just as much if not more on maintenance plans, fixes, and so on. Either way, U pay to own
I have never spent more that $2,500, for any car I have bought. My '95 Honda ($1,000) sat in a guys front yard for 5 years, I bought it, got it running, took it to my mechanic, spent $1,200 (including new tires) and it runs like a dream. Case Closed!
I am 53 years old and have never had a car payment in my entire life. I have always paid for my cars outright usually for around 1 to 2 thousand dollars and used the money that I saved from buying a new car into getting anything on the car fixed so I know it will run without having the fear of it breaking down.
In 2006 I bought a '91 Honda Civic for $900.00 and put $500 hundred into to get it running right, I sold it in 2014 for $900 dollars. In 2013 I bought a '95 Honda Civic for a thousand dollars and put $1,200 into it and it runs like a dream, gets 40 mpg and never breaks down.
Buying a new car is a complete waste of money to me, a car is a tool, that you use for transportation, not a trophy to put on your mantle to admire.
How can people continue to pay top dollar have an expensive car payment, when that car doesn't even get the gas milage that a car made twenty to twenty-five years ago does?
Because they are conditioned and told what to think by their TV, period end of story!
If your country has a leasing facilities ,I think it is the right choose,some countries there is no leasing only finance
by davidkaluge 8 years ago
A woman that menstruates without getting pregnant, and a woman that gets pregnant which will reach menopause first?
by remobush 10 years ago
My self remo I have started new small business in Hartsville, SC, USA My job is transporting type job I need a car but right know I unable to pay cash amount that’s why I decided to take a car loan but I don’t know nothing about car loan I need help about car loans, interest rate and down...
by BlissfulWriter 5 years ago
What is the difference between renting and leasing?Why some say "for rent" and others say "for lease"? Aren't they the same? Or is there a technical difference in definition?
by websclubs 8 years ago
What is best to Lease or Buy Your Car?
by kamranamn 8 years ago
How many people are required to lift a car?
by Debra Allen 4 years ago
Is it better to re-finance a car or to just buy a newer model?We are thinking about re-financing our car at the end of the year. We have another car payment wrapped up in the loan. We would like for our car payment to be less than it is and I am wondering what would be the best option.
Copyright © 2019 HubPages Inc. and respective owners. Other product and company names shown may be trademarks of their respective owners. HubPages® is a registered Service Mark of HubPages, Inc. HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.
HubPages Inc, a part of Maven Inc.
|HubPages Device ID||This is used to identify particular browsers or devices when the access the service, and is used for security reasons.|
|Login||This is necessary to sign in to the HubPages Service.|
|HubPages Traffic Pixel||This is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.|
|Remarketing Pixels||We may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.|
|Conversion Tracking Pixels||We may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.|