What are the pros and cons of leasing a vehicle?

Billy

I've leased three times. The pros somewhat depend on the deal. I've only ever leased when I found a great lease deal that made it way cheaper to lease than to own. That's not always the case. I've chosen to buy instead of lease because leases can also be very financially disadvantageous. You really have to financially evaluate each lease individually. You can't assume that one is better or one is worse. That said, the pros when I leased were: 1. Lower payments than buying. 2. Only paying for what I use, not tying up my capital in buying and selling portions of the car I won't use. Like if I own a $30,000 car for three years, such that it's worth $20,000 afterwards, I only have to come up with paying for the $10,000 portion I used. I don't have to wrap up $30,000 in it and then try and get the $20,000 back out after three years. I get to just pay for what I use and then walk away from it. 3. I like new cars, and whenever I've leased, it meant that I got to get a new care in 2 years or 3 years, but if I bought, I might find myself in that car for 4 or 5 years because maybe I'm still upside down in it financially at 2 years or 3 years as I'm paying on a loan for the entire value of the car instead of just paying on a lease the balance of how much the car will depreciate in 2 years or 3 years. 4. You can get a lot better car. Really good cars, like BMW, they depreciate very slowly. So when you lease a BMW, the residual value after, say, a 3 year lease will still be very high. This is as opposed to a Hyundai, which depreciate very quickly. So, say I find a couple of 0% APR lease specials, if I lease a $50,000 BMW that'll depreciate to $35,000 in 3 years or I lease a $30,000 Hyundai that'll depreciate to $10,000 in 3 years, it's actually cheaper for me to drive the BMW because I'm only paying $15,000 to drive the BMW but $20,000 to drive the Hyundai. So I pay less money and get to drive a way better, where more expensive, way more luxurious car because the car I've picked has a very slow depreciation rate. Cons: 1. You really have to know how many miles you're going to drive in 3 years. If you estimate 36,000 miles and drive, say, 50,000 miles. It'll suddenly become hugely disadvantageous to lease because you'll get charged a certain number of cents for each mile you went over. All leases by design very quickly lose any advantage you might have gotten if you go over your mileage. But it's also just as bad under-driving the mileage. If I do a 36,000 mile lease and only drive 25,000 miles, that makes that car worth thousands of dollars more, thousands I shouldn't have paid, but they won't give you any rebate on miles under like they'll give you fines for miles over. 2. If you are hard on cars or you have a bunch of kids who spill things in the car or leave their crayons in the back window where they melt, a lease is not for you. Leases result in the lessor reselling the car while it's still relatively new. It's expected that you return the car in new or like-new condition, free of any marks, stains, dents, scratches, smells, etc. If you aren't gentle with your cars, you can see yourself paying a lot of money to bring that car up to the condition it's required to be in. This aspect leaves many who lease feeling like they don't really own their car. It always feels like they're driving a borrowed car because they basically treat it like a car that they're going to have to give back one day in still looks new condition.

don r

At the end of 5 years, though you paid for the car, you do not own it. Leases can be had for no down payment.

Diane A

The biggest con is the mileage limits, if you don’t drive much it’s ok. You have to run the numbers out to see if buying v leasing saves you anything

AlCapone

Here's an article that answers the question: https://www.leaseguide.com/lease04/

Kyle

less down payments. but it's never permanently yours. though gives you the option to keep leasing every five years the newer cars with possibly better features of what may arrive. here's a good article on consumer reports. https://www.consumerreports.org/buying-a-car/pros-and-cons-of-car-leasing/

Robert M

97 BENZ C280! It is AWESOMEin every way! SUPERB FLAWLESS finish and after my tweaking, gets 32 highway and 0-60in six seconds! The BOSE STEREO is AWESOME and this car gets LOOKS everywhere I go! AND INSURANCE is only $2 per DAY< without comprejemsive! .OH WELL! BYE for NOW!

nt

Leasing is a ripoff, almost no lease is 5 years. And it takes better credit to lease than to finance. Meaning you probably don't qualify.

FlagMichael

Leasing is attractive to businesses, not so much for individuals. For businesses the cost of a lease (although higher than outright ownership would be) is perfectly clear, making the tax deduction much clearer. For an individual that does not produce enough saving to justify a lease.

regerugged

It is the most expensive way to acquire a vehicle and you get locked in for three years or more. the only benefit is lower monthly payments. Visit this site: www.swapalease.com and see how many people are trying to get out of leases.

Anonymous

Not really worth it unless it is some luxury or sports car. You still have to pay full insurance coverage on a leased vehicle. The amount you will pay over the lease you can get a good used vehicle.

Stpaulguy: Pro

Pro: It conserves cash (although most leases still require a down payment). You get to drive a new car with no repairs. Cons: It's NEVER cheaper than owning because you're still paying for all the depreciation you normally would if you had bought the exact same car. You're also paying a leasing fee, which you never get back. You have nothing to show for your payments when the lease is up. You still have to pay for wear items like tires and brakes, depending on how many miles you put on and the length of the lease.