Is leasing a car a waste of money?
20 Answers
Really depends on your point of view.. allow me to explain. When you lease a car you're paying down the depreciation... In essence, you are buying three fifths of the car...if you had financed the car for five years and you pay only three years or 36 months, the depreciated value is what you should be buying the car for in the last two years... Many people don't look at it like this and they just want a lower payment...at the end of the lease, they walk away or sign a new lease starting all over again from the beginning... You have the benefit of driving a new car every three or two years if you decide to lease for 24 months.. Cars today are very expensive and a lot of people want more car than they can really afford, so, they lease the car... It's a long term rental....and some people write off the expense on their business..it's perfectly OK to do so provided you are in your own business and use it for that purpose... call your tax consultant.. Most people should not be leasing cars, it's generally the most expensive way to get a car.... IF you lived in a snow climate and there was a lot of rust, I think there's a better argument for leasing..WHY?? Well, you would turn the car in every two or three years and get a brand new car, there would not be any rust in that short of a time and if you kept the car for 10 years on a purchase, it would be VERY DIFFICULT to keep it nice and sell it privately after 10 years... Good luck...
When you negotiate the lease, if you decide to do that, it's VERY IMPORTANT to make sure that you don't go over the annual mileage allotment.. it's usually 12,000 miles per year.. Sometimes, people run up 20,000 miles per year and they have to pay a huge penalty or purchase the car.... OR, the dealership will hold it over you to sign a new lease when you are done... And, when you lease, you are totally responsible for the maintenance of the car and all the repairs... YES, you have to pay for a car that's really NOT yours even though you're paying the monthly fee.. Make sure that you get a good deal on the financing...
If my answers above were helpful, please mark one of them best answer.. thank you...
For most people it is a waste but you must decide for yourself.
F_O_R-. I agree, EXCEPT for the case with harsh winters....Cars in Michigan don't hold up well...they salt the roads and cars die an early death.. PLUS, unless you keep it garaged, wash it every week or only drive it in the summer, the entire car just rusts out.... No one wants to purchase a ten year old rust bucket.... That is why cars in Southern California hold their value so much better....
bluecanoe2u-. DID you get your question answered??
If you turn in a rust bucket the leasing company probably will not eat the loss.
bluecanoe2u answered 6 years ago
That's what I thought. Can't do it. Perplexed - buying used is such a gamble. Buying new car insurance too high and depreciation factor is a bummer. Looking at every alternative as my last purchase I hoped to last for 5 years didn't ... My third Subaru Forester. First two great. This 2009 got new spark plugs, covers and wires new battery, new brakes last year - Glad to do it at under 1500.00. Took it into dealer for recalled airbag install and mentioned it smelled a bit always - seemed to use coolant. They said it needed a Head Gasket - 2700.00! It also Needs body work from deer damage and new windshield and tires, rear light package. Seems stupid to fix that much on a car with 124,000 miles. Thoughts...? Sell ? Trade ? Need the clearance of an SUV for country driveway or would get a hatchback.
Your car sounds like it is a little rough. You could fix the head gaskets and drive it the way it is and it could last a long time. 200,000 miles or more is possible on the engine if you take care of it. I would try some Subaru anti-leak in the radiator as it may buy you time. Shop around on the HG price. A good independent shop may give you a better price. The tires are no big deal but the windshield should be replaced.
bluecanoe2u- IF you decide to get the head gaskets done check out the multi layered head gaskets for the 2009 Subaru.. Subaru corrected this starting with the 2010 models... https://allwheeldriveauto.com/six-star-subaru-head-gasket-kits/
Why not just cut the crap leasing anything is a bad idea you will get ripped off
Hi!- I have a 2012 Mazda xxx with 65,600 miles on it. The engine light is coming on. Mechanic says it could need a need engine. Let me mention that I just replaced the computer board and air conditioner house. The car is paid off. My question. Is it worth the repair or should I lease a luxury vehicle? I never leased so I'm nervous
I used to not be too interested in leasing but I'm more open to it now. Mainly because I've found car ownership to eventually just become a massive headache. Yeah, when financing eventually you will get to say you own the car, but by the time that happens, so what. You start putting more money into something that's losing value and declining reliability. The peace of mind is hard to put a price on. I suppose I'm questions the value of owning a car by the time you get to year 6, 7, 8....etc
My wife and I just started leasing a vehicle. We have been owners for a while of used vehicles. Mine was paid off and hers was upside down. So leasing for use with teenage kids was a no brainer. We left the dealership with no money down, 2 brand new vehicles and 100 increase to the monthly budget, which we could totally work with. We had a really good and honest sales person and we got the oil change and bumper to bumper coverage on both vechiles for 20 more a month on my truck and 21 for my wife's SUV. The extra dollar was for the higher tier coverage on hers. Pluse this time of year the new models are comming in and they are trying to get rid of the 2019's. So timing was key here. So It will be a 3 year experiment, but we can always walk away after the 3 years. Good luck, with you future purchase.
The pain with a lease comes later when you go over your miles or they hit you up for thousands in repairs for little things.
I don't see the difference in leasing or buying. The car is not yours until 3 - 5 years with leasing or buying. With ownership you make your monthly payments and it is your responsibility to make repairs. If you lease, you make your monthly payments and you are responsible for repairs. It is the same with both. My problem with ownership is when you finish paying for the car, that's when all the big repairs are needed. By then the car is not worth anything so you have to buy another one and start with the 5 year payments all over again. I am leaning toward leasing.
Guru99H24C answered 3 years ago
Bottom line forever: drive a “beater” until you can pay cash for a better vehicle. Leasing should only be considered if a business write off exists and confirm it with your accountant. Analogous to debit card versus credit card: don’t have the cash-do without. I’m an advocate of the Dave Ramsey philosophy.
1FemaleView answered 3 years ago
As a woman, driving a car or "beater" with a lot of miles becomes a safety issue in many ways. Plus I don't have a husband who can work on my car for free. I agree with the person who stated that there is no difference between buying or leasing a car. In the end you are making payments and repairs on vehicles all the time unless you are a mechanic and know how to work on cars (which is not most people). Dealerships/individuals don't give you much money for your old car. Leasing is starting to look attractive to me.
I don’t know why you’re stating that when leasing we need to pay for repairs. When you’re leasing all the maintenance is free, your lease car is covered and repairs are seldom needed
Lease a car means do not be worry about repairs, that is covered. And, if you are conseus on how many miles you are using the car per week, you can be careful and avoid surpassing that quote. It is to be respondible with yourself and care for your wallet. Been leasing for a year and its great