Teach me about leasing a car
10-22-13, 09:25 AM
#16
IF you plan on purchasing the vehicle at end of lease...you can sometimes get better finance costs than actually financing. Look at it like a "loan" with a balloon payment. IF you understand the calculations of effective interest rates you CAN determine what your actual finance cost are...again...assuming you plan to purchase the car at the end of the lease. No excess miles penalty and no refurb/damage charge potential...IF you buy it.
Also, sometimes a manufacturer will have a special promotion on a lease program to sell a lot of vehicles...again if you have a full understanding of lease agreements so you do not enter into something you don't understand there may be occasion where a true lease (where you turn the car in at end of lease) still makes good sense.
BUT it is buyer beware...AND buyer be knowledgeable! Tom
Also, sometimes a manufacturer will have a special promotion on a lease program to sell a lot of vehicles...again if you have a full understanding of lease agreements so you do not enter into something you don't understand there may be occasion where a true lease (where you turn the car in at end of lease) still makes good sense.
BUT it is buyer beware...AND buyer be knowledgeable! Tom
everyone's situation is different, but like Tom said...once you are knowledgable about the lease itself and how well it benefits you, you usually come out winning
10-22-13, 10:55 AM
#17
and yes, everyone is different. like i said you have to smart with numbers and money and figure out what's better option for different situations. it's simply a false statement to say one is better / worse than the other because i have seen both ways. in short, i am not saying lease is the best option, but it's not the way to go always either
10-22-13, 11:24 AM
#18
Lexus Fanatic
It all depends on your situation. If you're going to trade the car anyways every 3 years or so, leasing can save you some money. If you write a vehicle off for business it makes it even more attractive. If you're planning on buying the car and keeping it, barring any sort of rebate or tax advantage you should probably just buy it from the get go.
My problem with people like Dave Ramsey or Suze Orman is that they preach a certain way of doing things for all people. That works for people in plain vanilla situations, but for those of us who are a little more sophisticated, a little more capable of making decisions for ourselves, and have situations that are a little more complex than somebody being paid a salary there are other options that work better.
For me, leasing saves me money.
My problem with people like Dave Ramsey or Suze Orman is that they preach a certain way of doing things for all people. That works for people in plain vanilla situations, but for those of us who are a little more sophisticated, a little more capable of making decisions for ourselves, and have situations that are a little more complex than somebody being paid a salary there are other options that work better.
For me, leasing saves me money.
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09-06-16 04:55 PM