It basically gives you guaranteed resale value with no haggling when you turn the car in. If you’re the type of person to keep a car for a while after it’s paid off, leasing doesn’t make sense, but if you’re probably going to trade the car while you’re still making payments, it can be a good way to go.
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Is leasing a car Smart Reddit?
Most of the time, leasing a car is not the most “financially smart” way to go about having a car. However, you don’t have to do everything in life the most “financially smart” way. Sometimes you pay more for something just because you like it more and it is worth it to you.
Is leasing a car a smart move?
Leasing a car can make more sense than an outright purchase under a certain set of circumstances. The biggest factor is your annual mileage. If you put less than 15,000 miles per year on your car, then leasing might be a good option. Mileage is the most important element in determining your car’s resale value.
Why is leasing a car a bad idea?
The major drawback of leasing is that you don’t acquire any equity in the vehicle. It’s a bit like renting an apartment. You make monthly payments but have no ownership claim to the property once the lease expires. In this case, it means you can’t sell the car or trade it in to reduce the cost of your next vehicle.
What are the pros and cons of leasing a car?
Pros and cons of leasing a carProsConsAbility to drive the latest modelAdditional insurance coverage is necessaryWarranty protection through the lease term (typically three years or 36,000 miles)The need to get a new car at the end of the term2 autres lignes•11 août 2020
What is the point of leasing a car Reddit?
The advantages to a lease are simple – lower payments vs. purchasing (since you are only paying depreciating costs over the life of the lease), lower exposure to high repair costs (but don’t be fooled – you could still find yourself paying for expensive maintenance) and the ability to drive a new car every few years.29 avr. 2015
Does it ever make sense to lease a car Reddit?
If you no matter what are going to be buying a new car every three years and don’t put a ton of miles on the car, leasing is not horrible, and saves you time selling the old car. However, buying a new car every three years is not a good thing to do if your goal is to keep your transportation costs low.28 juil. 2016
Can I wrap a leased car Reddit?
You’ll have to buy back the lease at the end of the term before selling to a dealership. It’s really up to you if you wanna vinyl wrap it or not, as vinyl wraps are not permanent. It has to be in “Original Condition” with only minor wear and tear when returned to the LESSOR.29 oct. 2016
Should I finance or lease a car Reddit?
leasing is an option where you want the monthly expenses low, want no liability to the depreciation, need the functionality to be guaranteed, and like a new car every 4 years or so. Financing works if you can afford higher payments and don’t want to give it back to the dealership.
Why you should never put money down on a lease?
Putting money down on a car lease isn’t typically required unless you have bad credit. If you aren’t required to make a down payment on a lease, you generally shouldn’t. … This is because all of the interest charges are computed into the lease price up front, so the total cost of a lease is set ahead of time.
What happens if you crash a leased car?
You still owe the leasing company for the value of the vehicle when an accident occurs. However, you may cover repairs with your insurance policy. You may also have gap insurance that pays the difference if you total a leased car, and you suddenly owe the leasing company for the entire value of the vehicle.
Is it a waste of money to lease a car?
You don’t normally earn equity when you lease, typically because what you owe on the car only catches up to its value at the end of a lease. This could be viewed as a waste of money by some, since you’re not gaining equity. Like buying a vehicle, you’re required to maintain full coverage auto insurance while you lease.10 jui. 2020
What does Dave Ramsey say about leasing a car?
All cars go down in value. Let’s say a new luxury car loses $50,000 in value over a two-year period. If you lease it, that loss in value has to be factored into the lease payment or the leasing company loses money. And they’re not going to set themselves up to lose money—so your bank account is going to take the hit.18 mai 2021
How many miles can you put on a leased car?
3. Underestimating how many miles you’ll put on a car. It’s common for leasing contracts to have annual mileage limits of 10,000, 12,000 or 15,000 miles. If you exceed those mileage limits, you could be charged up to 30 cents per additional mile at the end of the lease.13 jan. 2021
Do lease payments go towards purchase?
In a lease, your payment goes toward the use of the vehicle plus the finance charge. You never pay off any principal. … If the purchase price of the vehicle was $25,000 and your lease term is 3 years, you will be paying interest on the full $25,000 for that entire term.