To Lease or To Buy Your Car


cars

Can You Afford the Car You Drive?

Joan Rivers has a new show called “How’d You Get So Rich?! I have to say, that very question crosses my mind every time I drive on the freeways of L.A. The proportion of Porsches, Range Rovers and BMWs seems to far outweigh the actual population of wealthy people in this town…So, how can all of these people afford such fancy cars?

Appearances can be deceiving – a lot of luxury car drivers may not be so rich after all.  According to Leaseguide.com, 75% of luxury vehicles are actually leased, rather than owned. Leasing is a popular alternative to purchasing a car, and a big reason is because in the short term, it is cheaper to lease than to buy.  So, many consumers like that leasing allows them to “afford” to drive a nicer car than they would actually be able to own. A nicer car for less money…Sounds like it could even be Fab & Fru, right?  Or is it too good to be true?

If you own your own business, there may be tax and cash flow advantages to leasing a car for your company. But as an individual, you really need to take a look at your lifestyle and long-term priorities before leasing your way to luxury…

The Plus Side of Leasing

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auto 2.jpgMore Car For Less Money

The up-front costs and monthly payments associated with leasing are generally considerably less than what it costs to finance and purchase the same vechicle.  In the short term, having the opportunity to drive a nicer car than you could ever afford to buy outright seems like a dream come true…

auto 2.jpgNew Wheels Every Few Years

The typical car lease runs 2-3 years.  That means every few years you can get a “new” car and continually “be seen” in the latest, greatest set of wheels.

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Because you are leasing the car for a set amount of time, it will be under warranty for the entire term of your lease.  And when the lease is up, you just return the car without the hassle of re-selling it or trading it in.

**Hmm…less money, nicer cars, and no hassle – this leasing thing sounds pretty good!  So, what’s the catch?

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6 Responses to “To Lease or To Buy Your Car”

  1. Beth says:

    This is great for information but doesn’t explore or mention the option of buying a lease-return vehicle. I have recently snapped up a fabulous luxury brand vehicle that is in pristine condition that is certified pre-owned. As such it has a limited term warranty from the dealership and is still covered by the manufacturer’s warranty. Because I was paying cash and not financing, I was able to negotiate the price down and wound up with a great vehicle that looks brand new. My mom did the same thing, with a different luxury brand car, and now looks like a queen driving her super fab ride.

    For those who like to drive the a newer looking car and like something with the latest body style, most car manufacturers make body style changes every four or five years. Buying or looking for a lease return in three years from the new body style offering will put you in a good place The people who lease the newer body styles are the one who are car junkies and must have the latest and greatest the second it comes out. Also if you purchase a lease return while the body style is still in production it will look and feel almost exactly like a brand new vehicle from the showroom floor.

  2. tire guy says:

    Beth is right on!

  3. Rob says:

    Leasing is actually the least riskiest way to finance a new car. Despite the popular myth that paying cash for a new car is a good idea, it’s a very risky proposition. Wouldn’t it be better to have your cash still in the bank if something does go wrong? Cars depreciate. Let someone else take the risk of owning them.

    Kind regards,

    Rob

    Monthly Car Lease

  4. Car Leasing says:

    While we’re discussing the matter of To Lease or To Buy Your Car | Fabulous & Frugal: A Girl's Guide To Living Well & Spending Wisely, Taking the time to carefully mark your rental agreement to include any previous damage to the vehicle is an important initial step to the beginning of the perfect vehicle rental. Once you have everything noted then you will have the peace of mind in knowing that you will not be charged for damage that you did not cause and can travel freely in your weekly rental.

  5. Daniel says:

    great post, thanks for sharing

  6. Cars and houses are not very cheap and not everyone can buy it. Nevertheless, business loans was invented to support people in such kind of situations.

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