Overhaulin'

Pros and Cons of Leasing a Car vs. Buying?

Thinking of leasing for the first time in my life and want to understand if it really makes more sense than buying a used one that is a few years old (CPO or from a dealership with warranty). And if the car is the type that really holds its value and resells well - low depreciation - is that a pro or con? I understand the tax benfits and the benefit of using the banks money and not your own. Thanks. Just wanted to add that I am talking about sales tax benefits - not income tax. When you lease you only pay sales tax on the portion you pay - not the whole amount.

Public Comments

1. lmao theres a benefit to using the banks money? is that like them coming to get the car even tho you make the payment a week ahead of time every month? or is that like the bank coming to get the car just cuz they felt like it? they repoed my sisters car because she made the payments a week early.they repoed my friends car because he sent money orders but yet thats what the bank required you send.no personal checks were accepted.so no there is no benefit (as so blindly call it) to using banks money.
2. Only buy a car you can pay for outright. Have you ever come out from your job and found your car missing, called the police just to have them say it got repoed. Then called the bank and the bank repoed your car simply because of something that had nothing to do with them? If you haven't, you don't want to start now. I have had several friends I use to work with who would go out and lease new cars or take out loans to buy one, just to spend several thousand dollars out and the bank took the car anyhow. Even if they kept up the payments. Besides, even if you did get a decent bank that didn't treat you dirty, what would happen if you lost your job? Ever walk around getting all sweaty looking for work? Make sure it has a clear title and pay cash. Any depreciation is a con. I have a 1964 Ford Fairlane and a 1970 Ford F-100, both are only going to go up in value. Make a wise investment. Either find a car that already has no blue book value or a classic that is going to be worth more in 5 years than it is now.
3. The worst thing you can do is lease a new car. The 2nd worst thing you can do is buy a new car. Buying used is better than both of the above if you are reasonably prudent and don't overpay. Tax benefits ? Highly unlikely unless you have your own business and you would probably still be better off buying.
4. There are no tax benefits to buying or leasing a car, unless you use a home equity loan. If you are thinking about leasing, you should understand it first. Many people go into leasing simply because it offers lower monthly payments, but they don't understand it and find out later that leasing wasn't right for them. Get on the Internet at sites like Leaseguide.com and Swapalease.com and learn about it first.
5. Financed cars is more expensive to insurance cause it requires full coverage. You can compare how much you would pay for full coverage of this car using this tool - carquotes.fateback.com