Overhaulin'

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

detailed answers appreciated. Thank you!

Public Comments

1. The only time it is good to lease a car is if you are going to get a new one every year and you drive very little. Otherwise you are going to pay for the car twice over again, then you still dont own it. Then if youve driven alot they are going to charge you extra. And any wear and tear. You have nothing to show for it after years of payments. There is a reason it is so much cheaper to lease...they get the money out of you in the long run!
2. Benefits of leasing. Cost less for payments in most cases, You can get a new car every few years. If you lease often you don't have to put money down. Disadvantage of leasing. First lease you have to put money down, insurance is higher for leased cars, you have a set number of miles if you go over them you will pay a stiff penalty, you have to maintain and keep up the car. If its dirty or has scratches you will have to pay to get them fixed. You don't own the car you drive. Buying you can get longer payment and insurance will be less. Its your car when you pay it off. I would not recommend leasing for a 1st time buyer. If you don't drive allot of miles and you keep the car detailed its an ok program.
3. A lease is only beneficial to one type of person. That's the person who likes a new set of wheels every 2 or 3 years, and can stay within the mileage limits. That's the only time it's cost effective. Otherwise, it's always more cost effective to buy a car. Assuming you never get upside down on the loan, you have a lot more flexibility in that you can trade it in whenever you dislike the car, you can keep it and drive years and years with no car payments, and in the long run there is less money going to the bank or dealership in the form of financing fees.
4. The primary advantage of leasing is lower monthly payments, but in exchange for lower payments, you do not build up any ownership equity. This may not be important to someone who trades cars every 2-3 years anyway. So the advantage of buying is that you make higher payments to get some ownership equity, which is important if you like to keep your cars for years. Here is an article that has a whole list of pros and cons of leasing: http://www.firstcarguide.com/lease/car-leasing---pros-and-cons-explained.html .