I am getting to the point that I will need to either purchase or lease a new automobile.
If anyone here has ever leased an auto .. what, if any, are the advantages to leasing over purchasing?
Insurance?
Maintenance?
Thank You
Getting a good deal on lease requires educating yourself on many aspects such as money factor, what % do you pay for the lease and what is it worth at the end of the lease. For example, if the vehicle is only worth 40% of the MSRP at the end of the lease, you have paid 60% in total payments which is very bad. Interest rate,Gap insurance, up front money, mileage, penalty for early termination, excess mileage over 10 or 12K miles per year are other considerations. If you turn the vehicle at the end of the lease in lousy condition, you will be responsible for having dents fixed, tires replaced, etc. The dealer can hit you with a fee for returning the vehicle. Many business lease vehicles because of the write off. You do not want to pay more than $2k up front on any lease. Insurance and maintenance should be about the same as purchasing a new vehicle as long as you do the scheduled maintenance.
If you keep a car many years, you are better off buying IMO. The interest rates are so low now that I do not think a leasing dealer can come close to matching them. At the end of the lease, you own nothing. However, if you like to drive a new car every 3 years, a lease may be for you. A certified car maybe the way to go if you can find one at a good price. I have bought many new cars and do not consider leasing a good deal for ME.
