What is the difference between leasing a car as oppose to making regular car payments?
Stardust asked:
Is the car mine when I lease? Do I have to put down payment down to lease or have to pay a transfer fee? Do I have to have good credit when I lease?
I’ve made car payments before.
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Is the car mine when I lease? Do I have to put down payment down to lease or have to pay a transfer fee? Do I have to have good credit when I lease?
I’ve made car payments before.
pros/cons?
October 2nd, 2009 at 1:25 am
a lease is a car payment without actualy owning the car. you pay onthly for 3 years and in the end give the car back to them or have to option to purchase. Srt-4-Life
October 2nd, 2009 at 5:08 am
when you lease a car, it’s not really yours and once your lease is up you have to give the car back. But, if you make car payments (im assuming you purchased the car) then its yours. leasing is good if you want to get a newer car more frequently, but in the long run it’s cheaper to buy a car. Josh
October 2nd, 2009 at 8:34 pm
Leasing is more like renting a vehicle. It is not yours to keep its a contract to return the vehicle after a certain amount of time. You have to have decent credit to lease in the first place esp. a brand new car. Miss Ann Thrope
October 3rd, 2009 at 5:36 pm
The pros are that you can get a new car more frequently, typically without changing the payment too much. Also, no hassle of selling your vehicle if you lease. The downsides are many. You are responsible for any damage, even very minor damage (door dings) when you return the car. There is a mileage limitation with a high price/mile if you exceed the limitation. You can get different mileage limitations but the higher the mileage allowance, the higher the lease price. Your credit rating will affect the lease price you can get. Usually, you will have to put a down payment (almost always). millerscrossing
October 7th, 2009 at 3:24 am
Cons:
Personally I don’t like the idea of leasing because you are paying monthly payments on a car that your not buying, when your lease is up you do have an option to buy the car, but it’s pointless if you’ve already made payments on it then you pretty much have to start all over again. You do have to have decent credit when leasing. They give you a mileage restriction depending sometimes its 15k per year or 12k. If you go over that mileage expect to pay 20-25 cents per mile.
The pros:
of leasing you get the pleasure of driving a new car every couple years. The payments are a little bit cheaper, and there is no or little down payment. Maintenance will probably be your biggest benefit, lower cost. Michele
October 7th, 2009 at 3:58 am
Is the car mine when I lease?
No, technically it’s the bank’s car that you’re borrowing.
Do I have to put down payment down to lease or have to pay a transfer fee?
Technically, no, but you’ll have to have good credit and you will have higher payments if you don’t have a down payment.
Do I have to have good credit when I lease?
Yes, always.
I’ve made car payments before.
Great, stick with doing it that way, it’s a much smarter option. Leasing is only for the rich that always want to have a brand new car and the stupid. Gabriel
October 8th, 2009 at 8:46 am
Leases require better credit than a loan.
Leases also generally require a larger down payment than a loan.
At the end of lease the car isn’t yours. At the end of the loan you own the car.
At the end of a lease there are several fees that you must pay. If you want to keep the car to avoid these fees you need to get another loan to pay off the remaining balance of the car.
At the end of the loan the car is paid in full and you get the title.
The long story short. A lease is a loan but with a lease they defer most of the money you owe until to the end of the lease. With a loan you pay higher payments but at the end the car is yours. At the end of a lease you either pay lease termination fees and give the car back or you get another loan and pay for the rest of the car.
In the long run, if the goal is to own the car, a lease will always cost you more. mccoyblues