Buying a car and leasing one had been compared to buying a house and renting an apartment. With a car purchase, you make the monthly payments until it's paid off and your lender hands you the car title. The car is yours. Just like buying a house, after a certain number of mortgage payments, the house becomes yours. In an automobile lease, it's just like renting an apartment. You keep paying the rent but the money that you give the landlord goes to him. No portion of it in the form of equity goes back to you. You can say your money goes to waste. But you had a place to stay and as far as leasing a car, you have a car that is useful to you, that enables you to go places.
Leasing isn't for everybody; buying a car isn't for everybody either. They have their own advantages and disadvantages.
With new car , you need money for down payment and that makes the first year of ownership expensive. After that, the costs somewhat goes down but you still have car maintenance and insurance to contend with until it's paid off. Leasing is inexpensive at first, it requires lower or no down payment but remains high each year for as long as you continue leasing.
An automobile lease therefore is for you if you meet the following conditions:
An automobile lease may offer tax advantages. If you own a business, generally the tax benefits of leasing are greater than if you buy a car outright. When you buy a car, the payments aren't always deductible, while lease payments sometimes are.
Car buyers who don't have money for down payment might consider leasing. You may or may not have to put a down payment but be careful.
Some people would like to have a new model every year. It's a personal preference, one in which some people delight in doing. It gives them a kick in owning a new model every few years. Some car models 'tho, especially the sporty ones require a substantial down payment so let's say a BMW's monthly payment is being shown as only $250, the required $3,000 down payment amortized for 36 months actually costs you another $83 per month.
Women especially could be at the mercy of unscrupulous car repair shops. Owning a new car provides them with the peace of mind that comes with not having to deal with car repairs.
And lastly, not having to sell or trade your car when you want a new model is attractive for some people. It's not easy to sell a car . Trading one at the dealer when you buy a new car surely is a money-losing venture. But an automobile lease every 3 years is a never-ending cycle though of never experiencing car ownership and which might prove to be more expensive than outright car ownership.
Leasing a Car - What You Need To Know
Advantages of Leasing.
Disadvantages of Leasing.
Lease vs Buy: Which is the Better Decision?
What To Do To Get The Best Lease Deals
You Can Exit A Lease Through Lease Assumption
Lease Take Over Is A Fine Way To Lease A Car