Is Leasing a Car a Good Alternative to buying?
Leasing a car is basically “renting” a car. Normally there are terms of two to five years payments and then the car is returned to the dealer. Sometimes there is an option to buy the car at the end of the lease. After you negotiate a price with the dealer, the dealer sells the car to the leasing company and you pay the leasing company directly. Generally, a buyer should stay with what is called a closed end lease. Here you make payments over a fixed term with specific mileage limitations and then return the car to the dealer at the end of the lease.
Points to consider when determining whether to lease or buy:
• Do you dislike dealing with the trade-in process when buying a new car?
• Can you make a big down payment on a new car or not?
• Do you like to buy new cars fairly often?
• Do you drive under 15,000 miles a year?
• Is the car you are interested in fairly expensive?
If you answered “yes” to most all of these questions, you might be a good candidate for a lease.
Positive lease aspects
If you tire of cars quickly, leasing offers you the ability to get a new automobile every two to three years without big capital outlays.
Lease payments generally are much less on a monthly basis than loan payments. This has to do with how the payments are capitalized on a lease vs. a loan.
In most instances, the down payments are much less for a lease. In addition, that lease payment gets you a much nicer car for the same monthly payment.
There is no hassle to turn that leased car back in, unlike the trade-in process associated with a car that is bought.
Negative lease aspects
Leases can be very confusing to the average car buyer. Make sure the lease you are obtaining is well explained to you in all areas that need to be covered.
Watch out for penalties associated with the lease. Items like early return of the car or excess wear and tear can increase your holding cost by thousands of dollars.
Insurance to cover a leased vehicle can run more than the insurance to buy a vehicle.
Lease with the option to buy is normally not a good deal. If you think you want to own the car at the end of your lease, you are better off buying the car from the start. The option to buy at the end of a lease is usually much more expensive.
Lastly, leasing is good if you feel you will always continue to lease. But if you decide to buy your next car, you have no value in a trade in or sale for cash of the old vehicle.
So how do you lease a car?
First, you have to decide on the type of car you want. As you try to decide what kind of car you might be interested in, take a moment to think about your current car.
• What are some things you like about your current car?
• What would you change if you could?
• What do you want out of a new vehicle? (e.g., more passenger space, more prestige, better fuel economy)
The next thing you need to do is find out the total cost of leasing the car you want. The cost of leasing a particular car includes more than just the lease payment. Insuring the car is a very important factor to consider in the overall price. Once you have figured out as closely as possible the total cost of the lease, make sure you have taken in to account the price you would have paid for the car outright when negotiating with the dealer. That way you know you negotiated based on the actual cost of the vehicle. Bottom line, know the cost you would pay for the car before you start the leasing process.
Points to consider when determining whether to lease or buy:
• Do you dislike dealing with the trade-in process when buying a new car?
• Can you make a big down payment on a new car or not?
• Do you like to buy new cars fairly often?
• Do you drive under 15,000 miles a year?
• Is the car you are interested in fairly expensive?
If you answered “yes” to most all of these questions, you might be a good candidate for a lease.
Positive lease aspects
If you tire of cars quickly, leasing offers you the ability to get a new automobile every two to three years without big capital outlays.
Lease payments generally are much less on a monthly basis than loan payments. This has to do with how the payments are capitalized on a lease vs. a loan.
In most instances, the down payments are much less for a lease. In addition, that lease payment gets you a much nicer car for the same monthly payment.
There is no hassle to turn that leased car back in, unlike the trade-in process associated with a car that is bought.
Negative lease aspects
Leases can be very confusing to the average car buyer. Make sure the lease you are obtaining is well explained to you in all areas that need to be covered.
Watch out for penalties associated with the lease. Items like early return of the car or excess wear and tear can increase your holding cost by thousands of dollars.
Insurance to cover a leased vehicle can run more than the insurance to buy a vehicle.
Lease with the option to buy is normally not a good deal. If you think you want to own the car at the end of your lease, you are better off buying the car from the start. The option to buy at the end of a lease is usually much more expensive.
Lastly, leasing is good if you feel you will always continue to lease. But if you decide to buy your next car, you have no value in a trade in or sale for cash of the old vehicle.
So how do you lease a car?
First, you have to decide on the type of car you want. As you try to decide what kind of car you might be interested in, take a moment to think about your current car.
• What are some things you like about your current car?
• What would you change if you could?
• What do you want out of a new vehicle? (e.g., more passenger space, more prestige, better fuel economy)
The next thing you need to do is find out the total cost of leasing the car you want. The cost of leasing a particular car includes more than just the lease payment. Insuring the car is a very important factor to consider in the overall price. Once you have figured out as closely as possible the total cost of the lease, make sure you have taken in to account the price you would have paid for the car outright when negotiating with the dealer. That way you know you negotiated based on the actual cost of the vehicle. Bottom line, know the cost you would pay for the car before you start the leasing process.
Leasing a car is basically “renting” a car. Normally there are terms of two to five years payments and then the car is returned to the dealer. Sometimes there is an option to buy the car at the end of the lease. After you negotiate a price with the dealer, the dealer sells the car to the leasing company and you pay the leasing company directly. Generally, a buyer should stay with what is called a closed end lease. Here you make payments over a fixed term with specific mileage limitations and then return the car to the dealer at the end of the lease.
Points to consider when determining whether to lease or buy:
• Do you dislike dealing with the trade-in process when buying a new car?
• Can you make a big down payment on a new car or not?
• Do you like to buy new cars fairly often?
• Do you drive under 15,000 miles a year?
• Is the car you are interested in fairly expensive?
If you answered “yes” to most all of these questions, you might be a good candidate for a lease.
Positive lease aspects
If you tire of cars quickly, leasing offers you the ability to get a new automobile every two to three years without big capital outlays.
Lease payments generally are much less on a monthly basis than loan payments. This has to do with how the payments are capitalized on a lease vs. a loan.
In most instances, the down payments are much less for a lease. In addition, that lease payment gets you a much nicer car for the same monthly payment.
There is no hassle to turn that leased car back in, unlike the trade-in process associated with a car that is bought.
Negative lease aspects
Leases can be very confusing to the average car buyer. Make sure the lease you are obtaining is well explained to you in all areas that need to be covered.
Watch out for penalties associated with the lease. Items like early return of the car or excess wear and tear can increase your holding cost by thousands of dollars.
Insurance to cover a leased vehicle can run more than the insurance to buy a vehicle.
Lease with the option to buy is normally not a good deal. If you think you want to own the car at the end of your lease, you are better off buying the car from the start. The option to buy at the end of a lease is usually much more expensive.
Lastly, leasing is good if you feel you will always continue to lease. But if you decide to buy your next car, you have no value in a trade in or sale for cash of the old vehicle.
So how do you lease a car?
First, you have to decide on the type of car you want. As you try to decide what kind of car you might be interested in, take a moment to think about your current car.
• What are some things you like about your current car?
• What would you change if you could?
• What do you want out of a new vehicle? (e.g., more passenger space, more prestige, better fuel economy)
The next thing you need to do is find out the total cost of leasing the car you want. The cost of leasing a particular car includes more than just the lease payment. Insuring the car is a very important factor to consider in the overall price. Once you have figured out as closely as possible the total cost of the lease, make sure you have taken in to account the price you would have paid for the car outright when negotiating with the dealer. That way you know you negotiated based on the actual cost of the vehicle. Bottom line, know the cost you would pay for the car before you start the leasing process.
Points to consider when determining whether to lease or buy:
• Do you dislike dealing with the trade-in process when buying a new car?
• Can you make a big down payment on a new car or not?
• Do you like to buy new cars fairly often?
• Do you drive under 15,000 miles a year?
• Is the car you are interested in fairly expensive?
If you answered “yes” to most all of these questions, you might be a good candidate for a lease.
Positive lease aspects
If you tire of cars quickly, leasing offers you the ability to get a new automobile every two to three years without big capital outlays.
Lease payments generally are much less on a monthly basis than loan payments. This has to do with how the payments are capitalized on a lease vs. a loan.
In most instances, the down payments are much less for a lease. In addition, that lease payment gets you a much nicer car for the same monthly payment.
There is no hassle to turn that leased car back in, unlike the trade-in process associated with a car that is bought.
Negative lease aspects
Leases can be very confusing to the average car buyer. Make sure the lease you are obtaining is well explained to you in all areas that need to be covered.
Watch out for penalties associated with the lease. Items like early return of the car or excess wear and tear can increase your holding cost by thousands of dollars.
Insurance to cover a leased vehicle can run more than the insurance to buy a vehicle.
Lease with the option to buy is normally not a good deal. If you think you want to own the car at the end of your lease, you are better off buying the car from the start. The option to buy at the end of a lease is usually much more expensive.
Lastly, leasing is good if you feel you will always continue to lease. But if you decide to buy your next car, you have no value in a trade in or sale for cash of the old vehicle.
So how do you lease a car?
First, you have to decide on the type of car you want. As you try to decide what kind of car you might be interested in, take a moment to think about your current car.
• What are some things you like about your current car?
• What would you change if you could?
• What do you want out of a new vehicle? (e.g., more passenger space, more prestige, better fuel economy)
The next thing you need to do is find out the total cost of leasing the car you want. The cost of leasing a particular car includes more than just the lease payment. Insuring the car is a very important factor to consider in the overall price. Once you have figured out as closely as possible the total cost of the lease, make sure you have taken in to account the price you would have paid for the car outright when negotiating with the dealer. That way you know you negotiated based on the actual cost of the vehicle. Bottom line, know the cost you would pay for the car before you start the leasing process.
posted by zzzzzzzzzzz at
3:45 AM
<< Home