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Hello everyone. I'm thinking about leasing a vehicle, but have heard a few horror stories about it. Is anyone in here currently leasing or have done it? If so, I would appreciate any information and shared experiences. Thanks in advance.
 

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Hey man...I have not leased a car before but like the idea in one sense...u get to have a new car every 2-3 years. My biggest downside is that u rly cant mod it that much. Also u must read every portion of the contract cuz there's a bunch of hidden costs that will kill u at the end of the lease if it's not right. I wouldn't do it cuz of the modding thing but that's just me.
 

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What you need to know about leasing is that it is _the_ most expense way to drive a vehicle... hands down.

New vehicles are leased. When a new vehicle turns into a lease it takes a 20% depreciation. The lessee pays this 20% depreciation and then after a few years walks away with nothing. What is the interest rate on a leased vehicle? That is right... you don't know.
 

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you're better off buying and financing a new car and then trade it or sell it after you don't want it...and if you do pay it off..you get to keep your car!!!
 

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I see leasing as a way to get into a more expensive car than you could afford to finance. Monthly lease rates are generally lower than the financed rate (if you have no down payment).
 

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I have not personally leased a vehicle, but I would think it be worth considering if you did not rack up the miles. Most dealerships make money from you going over your mileage limit and you pay through the nose for how much you have gone over. Also, it would be good if by some chance you decided during your lease you did not like the car and you would not be stuck with the payments. I fhat might even be a slight concern, I would recommend you buy a new car if you can't pay it off right away. If you can pay it off right away, buy used because depreciation happens so fast, especially wirh kias unfortunately.
 

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I am currently leasing my Koup but only because im 20 and could only afford $190/month that I pay. At the end of the lease im going to buy the car out right because Ill only owe a little over $8000

What that being said leasing a car just to lease it for 3 years and then turning it in is a horrible idea. Yes you get a new car every 3 years but you leave with nothing to bargin with on another vehicle.
 

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some nice info

Twenty years ago, nearly everyone bought their new cars directly from a dealership. Only those individuals that were driving a car for business purposes were leasing their vehicles. Today that's all changed, and many individuals are now leasing a new car instead of buying.

Buy or Lease a Car?

At the one end of the spectrum there are individuals that like the idea of driving a new car every couple of years. At the other end of the spectrum are those individuals that decide to buy a car based on simple economics. If you're one of those persons that sit at either of these two ends, then you can stop reading now. The decision to buy or lease a car is an easy one.


If you're wondering what the best decision might be for your situation, then you'll want to keep on reading. In this article, we're going to be discussing the pros and cons of buying or leasing a car. Then we're also going to introduce you to some online tools that can help you make an informed decision.

Advantages of Leasing a Car

One of the primary reasons many individuals lease their cars is the satisfaction they derive from driving a new car every couple of years. But there are also some other advantages of leasing a car that are worth discussing too.

New Car Reliability

Most leased cars are returned to the dealership before the manufacturer's warranty has expired. That means most of the expensive repairs, such as installing a new transmission, never come into consideration when leasing a car. In addition, due to the mileage cap provision of a lease contract, the car usually has relatively few miles. This makes the car a very reliable source of transportation.

Financial Commitments

Another big advantage of leasing a car is the lack of financial commitment to the vehicle. Most leasing agreements include a capital cost reduction payment, which is similar to a down payment that is made when buying a car. These capital cost reduction payments are relatively small, and quite affordable, in comparison to a down payment.

In addition, the monthly lease payment for a car is very likely to be lower than a car loan's monthly payment. That's because with a lease, the monthly lease payment only has to cover the car's depreciation and a financing charge.

Tax Deduction

Finally, the other big advantage of leasing a car is the tax deduction you might be able to take if the car is used for business purposes. The tax laws have been tightened in recent years, but in general, when the car is driven for work-related purposes, the cost of operating the car is deductible from your federal income taxes.

Advantages of Buying a Car

As mentioned earlier, perhaps the biggest advantage associated with buying a car has to do with economics. We're going to discuss several more advantages below, but most of these fundamentally revolve around economics. In the long run, it's less expensive (cheaper?) to buy a car than to lease one.

Car Depreciation Rates

During a car's first year of ownership, the loss in market value (or depreciation in the car's value) is the greatest. In general, depreciation for a car slows as the car ages. When you are leasing (or even buying) a car every couple of years, you are paying for this high rate of early-life depreciation. If you buy a car, the longer you own the car, the lower the annual depreciation expense.

Owning an Asset

Another advantage of buying a car is that when the loan is paid in full, then you own the car, which is an asset. If you were to fall on hard financial times, then you can always sell the car for another asset - cash / money. If you can no longer afford your monthly lease payment, then you might be faced with some pretty stiff lease termination penalties.

Lease versus Buy Decisions

Some people might point out that we've forgotten about the added maintenance expense associated with aging cars. It's true, as cars age you will start to experience a higher rate of mechanical failure. That's engineering 101. But in many cases, even an expensive repair is less costly than continuing monthly lease payments.

You don't need to take our word for it; you can run through some lease versus buy scenarios yourself. We have quite a few resources that you can use to work through some of these types of scenarios.
 

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I see leasing as a way to get into a more expensive car than you could afford to finance. Monthly lease rates are generally lower than the financed rate (if you have no down payment).
Yes... another con that I did not list.

Allows people to live outside of their means in order to have a luxury that they don't need at all.

As I said, leasing is still _the_ most expensive way to drive a vehicle. It does not matter if you buy it at the end or not (the finance properties of the lease itself ensure that the customer ends up paying _far_ more on the vehicle then if they would have bought it to start with... those lease companies are not staying in business for free). If a person cannot afford a new vehicle then they should not be leasing a new vehicle... as (wait for it) they cannot afford that new vehicle (if they could not afford the new vehicle to start with then they certainly cannot afford a new vehicle AND all the leasing fees!).

Some people can afford to pay more (yes... it's more) to lease the vehicle they are driving. But many lease the vehicle as they want a new vehicle (and everything that goes with it) but they cannot afford it. It's just like buying something on credit. It does not make it any more affordable. If you can't afford that $2000 LCD TV then why do you think you should end up paying $4000 for it?

I've only said that a lease is the more expensive way to drive a vehicle. I did not say it should not be done by anyone. But the person needs to understand what they are getting into and determine _why_ they want to lease.

Sorry... if you can't afford a new car so you lease... it's a bad decision.
 

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Yes... another con that I did not list.

Allows people to live outside of their means in order to have a luxury that they don't need at all.

As I said, leasing is still _the_ most expensive way to drive a vehicle. It does not matter if you buy it at the end or not (the finance properties of the lease itself ensure that the customer ends up paying _far_ more on the vehicle then if they would have bought it to start with... those lease companies are not staying in business for free). If a person cannot afford a new vehicle then they should not be leasing a new vehicle... as (wait for it) they cannot afford that new vehicle (if they could not afford the new vehicle to start with then they certainly cannot afford a new vehicle AND all the leasing fees!).

Some people can afford to pay more (yes... it's more) to lease the vehicle they are driving. But many lease the vehicle as they want a new vehicle (and everything that goes with it) but they cannot afford it. It's just like buying something on credit. It does not make it any more affordable. If you can't afford that $2000 LCD TV then why do you think you should end up paying $4000 for it?

I've only said that a lease is the more expensive way to drive a vehicle. I did not say it should not be done by anyone. But the person needs to understand what they are getting into and determine _why_ they want to lease.

Sorry... if you can't afford a new car so you lease... it's a bad decision.
you are so misinformed about leases
 

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you are so misinformed about leases
In what way? Feel free to share.

Going back to the website you quoted, nothing what I mentioned disagrees with what that person wrote. If you really read what was written, they are actually all bad points:

"Most leased cars are returned to the dealership before the manufacturer's warranty has expired. That means most of the expensive repairs, such as installing a new transmission, never come into consideration when leasing a car. In addition, due to the mileage cap provision of a lease contract, the car usually has relatively few miles. This makes the car a very reliable source of transportation."

Huh? How is this any different from buying? If a person leases a new car or buys it, they still have the same warrenty. What is not mentioned is, how much extra is the leasee paying over the course of them having the vehicle as oposed to a person who buys? Without considering that, the warrenty point is.... pointless.

"Another big advantage of leasing a car is the lack of financial commitment to the vehicle. Most leasing agreements include a capital cost reduction payment, which is similar to a down payment that is made when buying a car. These capital cost reduction payments are relatively small, and quite affordable, in comparison to a down payment."

If you really read this is a waste of verbage. So a lease requires less down? First... ummm, no How many people here are buying their new car with no money down? A LOT! How many leased with no money down? But still... this does not change how much more a lease actually costs the person (for the return). It's just a way to make a lease _sound_ good (and it still fails that test).

"Finally, the other big advantage of leasing a car is the tax deduction you might be able to take if the car is used for business purposes. The tax laws have been tightened in recent years, but in general, when the car is driven for work-related purposes, the cost of operating the car is deductible from your federal income taxes."

Okay.. now we are just getting in the plain _dumbness_ area! This has to be hands down the dumbest statement made. The same right off exists if you are buying the car or lease... it's the _same_ deductions that apply! This statement clearly shows that the orginal author is a moron.

But then we get to this statement:

"As mentioned earlier, perhaps the biggest advantage associated with buying a car has to do with economics. We're going to discuss several more advantages below, but most of these fundamentally revolve around economics. In the long run, it's less expensive (cheaper?) to buy a car than to lease one."

This is from _your_ quoted post. Right there your quote supports what I have stated all along. I actually read what you posted.

If you continue to read what you copy/pasted from that website you will see _why_ leasing _is_ more expensive then buying.

I am not misinformed and I have not simply copied/pasted some info from a random website.

People can spend their money how they see fit. I have very little loan debt so it does not affect me. But I'm giving honest, correct and supported information. I'm not trying to attack anyone for leasing... that is their choice.
 
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