Q&A: What is the difference between owning and leasing a car and their advantages.?
Question by joy: What is the difference between owning and leasing a car and their advantages.?
I would like to know the advantages and disadvantages of leasing a car.
Best answer:
Answer by jmorritz
When you lease a car, you are simply renting it for a set period of time. This can often give you a lower payment, but if you wish to keep the car you will then have to buy it when the lease is over. If you are going to keep the car forever, then buy it. If you just want it for 2 years and then plan on getting a new one, you should lease it.
Give your answer to this question below!
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about 1 year ago
Owning a car is when you either purchase the carin full or finance the car and the end result is you keeping it until your ready to get rid of it.
Leasing a car is when you pay in monthly installmets for a car (it’s almost like paying rent); and after you pay the monthly payments you must return the car (you never own it)
the advantage, however, you can turn in the car a get another one if you don’t like the one your leasing, no questions asked.
about 1 year ago
It’s really a difference of ownership. If you buy a car, you pay it off monthly and in a few year’s, it’s yours. When you lease, you most likely pay the same amount, and after a few years, you give it back. If you plan on having a good, quality car for a long time (~10 years), buy it – it’s cheaper. However, when you lease, you don’t have to pay for maintenance (except oil changes). If you want the feeling of always having a reliable car, you just lease it, although in the long run, you’re paying more. It’s just like the difference between renting and owning you house.
about 1 year ago
Leasing is a bad idea, u really are gonna have to pay more. It also all depends, most leases only give you 10,000-12,000 miles a month. In todays world not everybody does less than 12,000, so of course you will go over the mile limit a month, and if you do go over the miles than you get charged per mile, something like 40 cents per mile, but belive me it all adds up to a couple thousand, than you have to pay for any damages when u turn in the vehicle, unless you get a special insurance in the car dealership. So unless u plan on leaving ur car at home alot, a lease may not be that great, the only advantage- A less monthly payment. Just do more research before u lease.
about 1 year ago
When you lease a car your payments are typically less than financing would be on the same car.
When you lease, you only lease a portion of the car (this is why the payments are less than financing). At the end of your lease (leases typically range from 2 to 4 years), you give the car back to the dealer or you can buy it out. the buyout price is stated when you sign the lease.
The nice thing about a lease is that you typically can get into a nicer car than if you were financing (again since you only lease part of the car, the payments are less).
The down side to a lease is that you never own a car (unless you buy it out at the end). You are only allowed a certain number of kilometers a year (24,000km per year is usually the standard), anything over your limit you have to pay for. also, when you return the car, if there is excess damage or wear, you may have to pony up additional cash to pay for the damage or wear.
Now to avoid a lot of the hassles of returning a leased vehicle, I personally sell the vehicle at the end of my term and then just use the proceeds to buy the lease out. This way I avoid any penalties that I may have otherwise incurred.
Financing is good cause you end up owning the car, you can put as many kilometers on it as you want, you can do whatever you want to it. But, your monthly payments are going to be higher.
I personally like leasing cause every 3 or 4 years I am in a new vehicle. And I get a nicer vehicle than I would if I were financing. Of course, until I decide to buy, I will be making vehicle payments, which is a bummer.
about 1 year ago
Advantages of Leasing.
1. You don’t own the car, you’re just renting it so you can get a new one every 2-3 years.
2. You only have to pay for the depreciation of the car. Not the full value of the car.
3. You’ll typically have lower payments since you are only playing for depreciation.
4. The majority of time your lease will be end around the time new tires/brakes and the first or second major service needs to be performed on the vehicles. So you can turn in the car before needing to purchase all these maintenance items. Typically, you’ll only need to do the minor maintenance items such as oil changes.
5. You don’t have to worry about “selling” the car since the car’s not yours.
6. You can mistreat the engine/transmission by reving high and driving the car hard.
Advantages of purchasing (owning)
1. You own the car so you can drive it an unlimited number of miles per year.
2. The car is yours after all your payments are made. So the longer your drive the car, the more cost effective it becomes because maintenance costs in the long run are typically still less than leasing
3. You can make any modifications you want to the vehicle. Adding stuff such as tinted windows, engine modifications, a tow hitch. The car is yours to do with as you please.
4. You don’t have to clean the car before returning it to a dealer. The car is yours to keep as messy as you want.
about 1 year ago
rent vs ownership. You get 0 equity
about 1 year ago
Leasing offers a lower pmt and the ability to always be driving a relatively new car. it is just a matter of pay me now or pay me later. if you buy and hold the car longer you will have maint pmts. New york just passed tougher inspection laws that say you must keep emmission systems up to specs. This can be an expensive proposition on older cars. It will be leasing for me from here on out!!
about 1 year ago
well, basically, when you lease, you’re just throwing money away…sure, the payments are cheaper, but they’re not going towards an investment…
when you make payments towards buying a car, they’re usually more expensive, but you’re getting the car in return…your money’s going towards an investment…
same goes for renting or buying a house…
about 1 year ago
oh the heck with monthly payments I rather own then lease or rent anything
about 1 year ago
when you lease a car you have to give it back after a said amt. of time when you own it you make your scheduled payments until it is yours.
about 1 year ago
leasing is more expensive and is not actually yours yet
about 1 year ago
If you need a car for just a short period of time say a month or two then leasing is the best for you. More than this then you better buy one. If you don’t plan to stay for more than a year in a place then you can get a two year old used car. You can still sell it later and get a few bucks back. Buy a brand new one if you plan to stay longer in a place.
about 1 year ago
I loved the lease,because you can turn your car over easily.But its like a rental .. and now they have limited milege on it and big deposits which you lose in the end. Those are closed end leases.There are few open ended,where you cam buy your OWN used car later at a better trade in price. those are hard to find. To OWN it.. every penny you pay is to pay it off.. Its yours to keep and run up the mileage. Disadvantage of a lease.. you have limited mileage or charges after a certain amount. AND U HAVE TO CARRY MAXIMUM INSURANCE COVERAGES which can cost alot more than if you OWN and carry what ever you chose to insure your own car for!!
I wish the lease industry made some new concessions like no money down now and slightly higher monthly fees..I wish you could buy a leased car prior to your lease termination.
It helps someone with lower payments but do you wamna pay $2,000 for nothing? i mean you dont own it and you have to maintain it anyway.. wheres the deposit going?
THe business is unsavory and not consumer worthy. They make it so hard to buy a car when its a necessity!@
DIFFERENCE. YOU LEASE YOU TURN IT BACK SOONER AND PAY HIGHER INSURANCE RATES
YOU BUY IT THE PAYMENTS ARE HIGHER, THE CAR COSTS MORE BUT YOU CAN KEEP IT FOREVER..
about 1 year ago
The clear advantage of leasing a car is that all repairs, servicing, insurance, valeting, waranty etc are included in the price usually. If you own the car it depriciates in value month by month and you have to see to everything yourself. Have friends who are now leasing and they get a new car each year. Great many andvantages.
about 1 year ago
I think when one buys a car it starts loosing value the moment you drive it off of the car lot, it is your total responsibility for all of the up keep, when it is paid for it is yours. Leasing is only for a season then one turns the car back in and can walk away from it or lease another.
I stand corrected.
about 1 year ago
owning is once bought it is totally yours for ever.
leasing is you only have it for a set period than you must change it or buy it
about 1 year ago
becuase when u lease it u can do anything to it …. but when u buy a car u can do anything u want to it without being told not to be the dealer
about 1 year ago
Advantages:
-New car every 3-5 years
-Warranties
-Low Monthly Payment
-Low Downpayment
-Low Intrest Rate
Disadvantages:
-Limited Milage a Year (You get a yearly allowance and total milage allotment)
-Cost of going over your milage allowment can be $.10 – $.25 a mile
-Wear & Tear will cost you (dents, dings, blemishes)
-You will make a payment for no ownership (years of car payments if you continue to lease)
-Re-Insuring a new car (new cars usually cost more to insure and you have to have full coverage)
-Dealing with the “Car Dealers”
-Charges for ending the lease early or purchasing it.
about 1 year ago
You would be better to buy the car. If you lease, you are limited to the amount of miles driven per year.
about 1 year ago
owning a car you have payments on it and leasing a car you have payments. when you first lease a car you have to put so much money down and you are ressponsable for the maintance as well as a car you bought. but when your contract is up leasing a car you have to buy it out right or give it back after investing all this money on it and also pay for the extra millage you put on the car. when you bring back the car after your lease is up and want another leased car you have to again put money down. I think ill stick to just the good old fashion buying a car out right ,and have the bank own it. lol
about 1 year ago
Im sorry but the thruth is i dont know i dont own a car or such.lol.but i love food!ok im not gonna get off the topic!…….lol……….ok.kk.bye1
about 1 year ago
when u lease,,,, u sign a contract for usually 3-5 yrs. ,,,usually u pay off the car in full and then u godda turn around and give it back…. the good thing is u can get a newer car @ the end of your lease and the bad thing is that they only give u so many miles ,,,if u go over the agreed mile,,,u godda pay 4 that too….And all that money u payed into the car is obsolete…. If u buy,,,,u keep the car u bought ,,, w/ no more payment,,,,when u lease,,,,u always have a payment,,,its better to buy,,,pay off and keep,,,,this will b nice on your pocket book in the long run….
about 1 year ago
Owning a car posseses a lot of risks and maintenance cost too…but you can use it anytime that is not in leasing
about 1 year ago
It pretty much comes down to what you can afford, you should look in to both payment options for both owning and leasing a car. Ussally if you lease a car for say, 3 years, and decide at the end of the lease to buy it you’ll probable end up paying more for it in the long run becuase dealers ussally have these gimmeks they use to make more money. They might have higher monthly payments for the first three years vs. if you bought the car and finnanced. It also depends if the car your leasing/buying is new or used, if it’s new your probable better off just buying, but as I said it all depends on what you can afford.
about 1 year ago
When leasing a car, you just keep paying for it and you get nothing in return- plus you have to keep it really clean which can be hard depending on how long you lease it.
Buying is much better, and you don’t even have to buy a brand new car- I bought a 1996 Chevy Lumina for $2000 in 2000 and it’s running perfectly- 10 years old!
about 1 year ago
if you have the money to spend on just leasing and leasing and trading and leasing a completely new car and you dint think you ll be keeping it sure lease it why not if you dint want the hassle of having a car payment for the rest of your life buy it just make sure its really what you want once its paid for that’s a different story but tell then you know what you have to do
about 1 year ago
It depends on the type of driver you are.
If you are not a regular driver its good with the 12,000 to 13,000 miles that you get per year. If you get a great monthly rate and you can get a new car every 3 years depending on your lease. Any repairs have to be made after they come and inspect the car before you turn it back in.
Owning your own car,its yours and when you are ready to trade it in you can, it yours to do what you want. It just depends on your circumstances.
about 1 year ago
The difference between owning and leasing a car is like the difference between going to a call girl, and your own wife. Leased cars can be changed, as are call girls. But changing your own car is not that easy, just like changing your wife.
about 1 year ago
Its like marrying or not . In both the cases u have some advantages and disadvantages . However choice is urs bcos u r the sufferer.
about 1 year ago
I have owned and leased cars. I absolutely prefer leasing. I would NOT lease a car for more than 3 years, though because then you may get stuck changing breaks, tires, etc. (All the things you don’t want to pay for on a leased vehicle.) I find leasing better because I almost NEVER put money down on a leased vehicle. (Only did once and that was $500) The monthly payments are lower and I get a new car every 3 years with all the updated safety and comfort features (if any). When I owned a car, I usually owned it for 6 years. After firguring in the down payment, monthy payments (because I had to finance it) all the maintainence and the like, there was little or no advantage to owning the car. They depreciate sooo fast.
As for the mileage, you can get as much mileage as you want. If you think you do 12,000 miles/year, then you ask for that. If you think you do 15,000, ask for that. (the monthly cost is higher, but you won’t have to worry if you go over 12,000!)
If you lease, know that it is difficult to impossible to break the lease so make sure you like the car your leasing for the 3 or so years. If not, at least you know you’ll be getting a new car.
It is not advisable to buy the car once the lease is up. You’d pay too much in interest. If you were just going to buy the car after the lease, then just buy it up front.
about 1 year ago
leasing only makes the leaser rich buy it with less hassle leasing is almost like renting
about 1 year ago
The Advantage of leasing a car is that beside of spending more money for better living standard we can use the car by taking on lease if we have less finance, but the disadvantage is of leasing a car is that if by fault we have lose to pay the installment then we have in loss of car & payment earlier given by us.
about 1 year ago
To make it simple: You don’t have the large cash outlay up front and normally your payments are lower….BUT….If your even thinking of a lease, do have someone who is knowledgeable in this area look over and explain the paperwork or you WILL get screwed. The car dealers LOVE the average person to lease. They can, and do, hide a lot in the paperwork and you never know what hit you ’till it’s too late.
about 1 year ago
interesting!
about 1 year ago
the advantage of leasing a car : affordable way to having a car.
the disadvantage : is still not our car yet
about 1 year ago
Leasing a car allows you to fit into your budget a monthly allowance for a car, especially if you don’t have alot of money to put down to buy a car.
Also allows you to get a new vechicle every 3 years or so.
about 1 year ago
I saw a program on TV for budgeting your money…
it stated
buy a car, keep if for 10 years, have 5 years of payments, 5 years of no payments
lease a car, always have payments from lease to lease (plus you can’t drive it too much, many have mileage restrictions)
so in the long run, you save by buying a car, paying it off and have no payments for 5 years
about 1 year ago
Consider a situation. You want to drive a £25k car. Leasing is cheaper if you need to pay by the month. A LExus IS250 will cost you around £350 per month to lease. After 3 years or whatever your term is you walk away and get another brand new car.
If you want to buy that car you’ll either need to find £25k or finance it. Over 5 years you’ll be paying about £500 a month. At the end yes you’ll own the car outright but it will be a 5 year old car needing a higher amount of maintenence. If you had been leasing you’d be in another new car. If you buy you’ll eventaully have to buy another new car anyway.
If you want decent cars – lease.
If you’re happy driving older cheaper cars – buy.
I’m a big beleiver in leasing as its less painful when things go wrong and you’re always sat in a decent car with lower monthly outgoings.
about 1 year ago
The advantage of owning a car is simple: TAXES
When you buy a car, you only pay the taxes on it one time
only.
When you lease a car, you pay the taxes on the lease & if
you want to buy that same car, you have to pay taxes on it
again.
Automobile OWNERSHIP saves you cash all the way around.
about 1 year ago
the advantage for me was to drive very nice cars/suvs and they were warrantied bumper to bumper and in three years i would trade it in. never had to purchase anything for it, . Watch for dealer incentives so you don’t have to put any down. I had 0% interest.. Downfall of lease if you default you turn vehicle in and get a LARGE FINE. If you were buying which i do now, find a car you like,research it, rent it for 3 days (same model from car rental). if you buy make sure you get what you want cause you will be driving it forever. which i now see as more economical and makes better sense
about 1 year ago
owning a vehicle is yours to keep but leasing a vehicle is only temporary cuz the dealership can take the vehicle anytime they want
about 1 year ago
Leasing is only for someone who is in sales or another occupation in which you can write off milage and your employer may pay for your leased car. It is maintained by the car company and you will turn it in at the end of the lease period. For other folks there is no incentive to lease as you never really own anything. It’s better for you to buy. You may have to maintain your own car and pay payments but in the end you have something and can sell or trade up. Much better option for most people.
about 1 year ago
Everyone has given an excellent answer so I won’t dwell on this but I did want to tell you that in listening to consumer advocates on various television and radio programs, not one has said that leasing is an excellent idea as opposed to ownership of the vehicle. You, of course, must decide what is best for you, however. Good Luck with your decision.