Overhaulin'

Should I Buy or Lease a car?

Okay...I want a Toyota because I just really like them. I have one but it's way old. My thing is that the life span on a car isn't much...so should I buy or lease? If you have bought a car, buying a car, and have experienced leasing...which do you prefer?

Public Comments

1. Leasing is better, you bang it up a little over four years, so what, you get a new one in a little while. If you buy, your stuck with it.
2. Lease a car they fix anything that breaks and you do not pay for it
3. if you drive a lot its better to buy, if you change up cars a lot its better to lease
4. i feel that leasing is a waste of money, unless you are going to want a new car years. i would buy a car. also, if you are thinking a new car think about this: you may buy a new car, buy everyone drives a used car. as soon as you drive it off the lot, it drops in value. good luck
5. I leased my mazda last year. I think it was a mistake. I'm constantly worrying about scratches or dirt because the dealership will charge for wear and tear when I bring it back. Also, when I turn the car in next year I can't use it as a trade in. I'll give it back, pay whatever money they think I owe to fix the wear and tear then I have to come up with a down payment for a new car...Next time I'm buying!!!!
6. Leasing can get you into trouble - if you "bang it up" like Michael suggests you will have to pay the difference in the value of the vehicle at the end of the lease and what it is actually worth. This could be a few thousand dollars if you are not careful. Also, a leased vehicle has a warrant the same as if you buy it - you also are required to have greater liability insurance on a leased vehicle...
7. Leasing is NEVER better. My family owns Car dealership, they do Leases or Buy, trust me Leasing is a big fat rip off, but its great for the dealer and the manufacturer! My suggestion is to purchase! good Luck
8. buying it
9. Leasing can be good for the right people. Essentially, in a lease, you never "own" the car. You make payments for 2-3 years, then hand the car back. Think about it almost like a long-term rental. There are some advantages to leasing under the right circumstances. First, if you trade out of cars every 2-3 years, it might be right for you. In a lease, you have a contract for a fixed amount of time. I discourage leasing past 3yrs - 2 is better. In a 'loan', after 2 yrs, if you try to trade you will probably be upside down, and owe more than the car is worth. So, in order to get out of it, you have to have a lot of cash, or finance that negative on the next car. The contract will tell you that your payments are $x per month plus tax. At the end of the term, you will have a residual value for the car. The lease company basically says "In three years, we feel this car will be worth $Y" You have the option to buy the car at the end of the lease for that amount. If you are in love with the car, or it is worth well above the residual, you may want to consider that. However, in most cases, you simply hand over the keys and walk away. In a lease, there is a specified amount of mileage. Most leases are constructed around 12K or 15K miles per year. If you go over the mileage, there will be a per-mile penalty at the end of the lease. So, if you drive a lot, it may not be for you. Leasing typically allows a person to get a nicer car for the same payment as a lower-end car on a loan. that is because of that residual. You are only "financing" the difference between sales price and residual. In a loan, you are financing the entire purchase price. In other words, if a car has a sale price of $25,000. on a three year lease, lets say the residual is $15,000. You are only "financing" $10,000 for 3 yrs. If you were to buy that same car, you would finance $25,000 either for a longer term, or a much higher 36 month payment. Lastly, in a lease you pay less sales tax. In a conventional purchase on that $25k car, you pay tax on the whole 25,000. In a lease, you pay sales tax on the monthly payment. In other words, your payment of $300/month is actually $300+sales tax. BUT you are only paying tax on the leased amount - in the earlier example you are only paying sales tax on $10,000. To those who say "never lease" -- read this forum for 30 mintues. For every lease 'horror story' you read, you will see 20 people who are upside down on a 6 yr purchase and no way out. The key is to be thoroughly informed about the pros and cons of both, and make an educated decision based on your needs and lifestyle. Times leasing is good: You trade cars ever few years, you dont drive more than 12-15k per year, you want to put less down Times it is bad: You like to keep cars a long time, you drive a lot, you want to put a lot of cash down. Hope that helped some