Overhaulin'

Should we lease instead of buy our 2nd car?

We have never leased a car. We have been sharing a car for a few years and now we need a 2nd car. My husband is thinking of leasing his car since he only wants to use it for going to and from work. I know you are supposed to be careful of mileage put on the car etc but I think it might be easier to lease. Does anyone have any experience with leasing? Anything I should know ahead of time or why I shouldnt lease?

Public Comments

1. Would you stop some pimply faced 14 year old kid on a skateboard and ask this question of him?... then why are you asking it on Yahoo answers? The decision to lease or buy a car can have some serious tax ramifications... you need to be asking you accountant or lawyer and not 15 year old kids in baseball caps being worn backwards.
2. I'm leasing my car. Miles doesnt matter if in the end your going to purchase it anyways. The upside is that my payment are low, but the downside is that for 3 years, I could've been 75% paid off on my car, but now when my lease is up, I have to start over with payments to keep it. so in turn, I end up making payments for 7 years, instead of 5. If you plan on returning it, I would consider leasing it, but be very careful with the miles and the condition of the car. its its usually not worth leasing a car that isnt worth much. the example is lease something that is going to be worth it and can give you money back if you decide to sell it. Say I leased a BMW for 45k..in 3 years, the value of the car is probably about 38-40k. but if I get a standard car worth 25k, in 3 years, it will only be worth 15-18k. not much. So think about that.
3. LEASING IS NEVER A GOOD IDEA, UNLESS YOU ARE A BUSINESS OWNER. IN YOUR CASE I SUGGEST HE BUYS RATHER THEN LEASE. GOOD LUCK.
4. You are right about the miles. If you dont trade cars often a lease is a pretty good deal. One thing for sure, you are pretty well locked in when you lease. If your situation changes and you need to sell the car it is about impossible until you are close to the end of the lease. You can usually lease a car for a cheaper payment compared to a purchase. A lease is based on the residual value of the car (this is what the car is worth at the end of the lease). Usually higher end cars work better in a lease because they put a higher value on the car than it is really worth at the end of the lease. I would suggest not going over 36 months on a lease as things change in life when you least expect it. Good luck....I wonder if Garrison is a 14 year old pimply faced skateboarder???
5. Leasing isn't the financial blackhole that many clueless people make it out to be. Here are some benefits: 1) Lower monthly payments.... typically about 60% of financing 2) No down payment required 3) Free GAP insurance..... most leasing companies include this for free. It covers you in case of a total loss 4) Easier to get rid of...... since leases are transferrable, they are easier to rid of. OTOH, most banks will NOT allow you to transfer loans. FORD allows it but most will not. 5) You can trade it in and sell it just like a financed vehicle 6) Manufacturer backed leasing usually reduces costs of the lease so much that even if you decide to purchase it, the total cost is competitive to financing
6. BUY BECAUSE 90% OF THE PEOPLE THAT LEASE GET HAMMERED AT THE NEED OF THE LEASE, IT MAY BE BECAUSE OF THE MILEAGE, MAINTENANCE, EXTERIOR AND INTERIOR WEAR AND TEAR, SOMEHOW YOU WILL GET THE RAW END OF THE DEAL.
7. There is nothing wrong with leasing the car. You should be prepared you are still liable to maintain the car and any damage must be fixed before turn in. Just make sure you allow enough miles so you don't have any issues at the end of the lease and pay a penalty. You don't need to talk to an attorney or an accountant if it is for personal use. I have been selling cars for 30 years so it really is going to depend on weather it will work for you in this situation. Be prepared to turn the car in three to four years from the date you take delivery. We as dealers love people to lease it puts them in a faster buying cycle. The upside is you a re pretty much in warranty the whole time you lease. But please do not ever lease for longer than 42 months. It will end up costing you more if you do. So if you can handle the parameters involved then leasing is a good idea. Also do not purchase at the end of the lease bad idea. You will then have paid way too much for the car. To wazup Get a clue. Leasing is not for business owners anymore. You can lease a car for a lower payment than buying it. Also I agree i only buy used cars why should I take the hit on depreciation let the other guy pay for it. But you also beat the depreciation game by leasing.
8. Leasing is the worst idea any person can do. Leasing is only worth FOR BUSINESS OWNERS. They car write the car as a tax write off. The individual are paying a lot of money for a car, and never have a car. You will have to keep the car inmacualte without any scratch if you don't want to pay a lot. You can't do big trips with the car. But hey, the people who lease are the same people who are in the mortgage mess, with the ARM loans. Buy a good used car and if you can, pay cash. Even you can buy a car who was leased before to a clueless person who liked to flash a new car every 3 years. Leasing is what smart entrepeneurs do and dumb living paycheck to paychech people do.
9. I would recommend buying a vehicle instead of leasing it.