Overhaulin'

What are the advantages of leasing vs. buying a car?

It seems like this, but please correct me if I'm wrong, and please add more if I missed something Advantages) -Smaller monthly payment -Depending on lease term, you may always have a car under warranty -Residual is guaranteed Disadvantages) -Mileage limit -Can't do anything you want with the vehicle

Public Comments

1. People usually lease cars when they own a business and can write it off as a business expense. At the end of the lease you have the option to buy the car, for a price it usually isn't worth or give it back to the dealer who will most likely find some problems so you have to pay penalties on. Buying is the best if you don't have a business. It's your car at the end of the loan, end of story.
2. Also when you are done with the lease, you do not own the car. you have to buy it out at full retail or you have to give it back. At least with a car you buy you are left with a car that still has value that you own. There are ALOT of different types of leases out there and some might be better deals than others. For a person who wants a new car every 3 years it makes no sense to buy a car. Leasing is better. Speaking strictly in fiancial terms, the best thing is to buy a car that will maintain it's value and keep the car as long as you can. Obviously the decision to buy a car is not always a financial one. There are quality of life issues as well. You may not buy a car because it makes the most financial sense but because it will make you happier than anything else you could do with the same amount of extra cash.
3. Dont lease !!! - it might have a smaller payment at first but you still end up paying for it in the long - and remember in a lease you must carry higher insurance coverage also.