What are the good things and bad of leasing a car? It sounds like a good deal to me to ALWAYS have something pretty new, never have to pay for high end maintenance problems... Like my car, Im on a plan for 60 months or something, by the time I finish paying it off, I'm going to have maintenance out the wazoo as the car starts to deteriorate. Give me your opinion. Thanks.
Pros: -Won't be paying too much monthly, (ie, Mercedes E320, Sports Package, and Navi Package, for a little over 700 a month, that is 14,000 Miles) -If you don't drive a lot, price goes down even more -If business owner, can offer tax advantage. Cons: -Set number of miles -Sometimes not economically smart -Be aware of any "wear-and-tear" clauses in the contract, you don't want any surprising costs at the end.
some people dont wanna dump money into something that will be GUARANTEED to depreciate. then again, some people dont want to pay for something they will never own. it really comes down to what fits your lifestyle.
Pretty simple.... Financing a car means you'll own it at some point with no restrictions on mileage or anything else. Leasing a car means you'll never own it but you'll have it for a shorter length of time and pay less but you'll be stuck with a list full of technicalities and limitations.
www.carbuyingtips.com good section on leasing vs. buying leasing isn't bad if you don't plan on owning a car for 5 years and a 5 year note is the only way you can afford the car you want
You are throwing your money away with a lease unless you just don't like dealing with selling your cars. Leasing was a good idea a while back when interest rates used to be over 10 percent and there were tax benefits. If you want a new car every few years and you don't drive much, you can always sell your car before your lease is up and you would still come out ahead over a lease.
It turns out badly for many people because they get sucked into buying more car than they need or can afford. Salesmen at the stealership will always try to get you to discuss monthly payments rather than price for the same reason. It's really simple - if you can't afford to buy the car you want, buy it used. Never finance a car purchase unless you are getting 0% financing - and you might want to reconsider even then. Not that anyone is likely to pay attention to this advice but: Living below your means while you are young doesn't hurt - you get used to whatever standard of living you choose. Being old and poor would suck the big one though. Don't waste potential investment money on a depreciating asset.
This is great advice. I own a '98 Saturn that I bought brand new 10yrs ago. It has 130,000 miles on it, but needs very little service. I spend less than $500 a year in upkeep on it. My next car will probably be 2yrs old when I buy it. That makes the most economical sense for most people. The problem is that today, most people want more car than they should own because it is such a status symbol.
