Is leasing a car a waste of money?

Asked by Jun 09, 2017 at 01:10 AM

Question type: General

10 Answers

21,705

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...

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21,705

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...

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21,705

If my answers above were helpful, please mark one of them best answer.. thank you...

76,635

For most people it is a waste but you must decide for yourself.

21,705

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....

21,705

bluecanoe2u-. DID you get your question answered??

76,635

If you turn in a rust bucket the leasing company probably will not eat the loss.

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.

76,635

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.

21,705

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/

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