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Buying Or Leasing A Car? Which Is Better?

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Buying Or Leasing A Car? Which Is Better?

Postby Geraghty » Fri Feb 20, 2015 12:17 am

So, I'm just graduating college, my car is a hunk of junk, I'd have to put more money into fixing it up then it's actually worth. My uncle suggested that I lease a car because I don't have all that much money. I'm reluctant to buy because I know I'll have to buy a used car and my family has never had luck with used cars and there is no way I could buy a new car. I know the payments should be cheaper then if I bought a car, but that insurance could possibly be more expensive. I'm just not sure. I'm hoping leasing will save me money, but I'm not sure. So should I lease? Or should I buy?
Geraghty
 
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Buying Or Leasing A Car? Which Is Better?

Postby Crosland » Sat Feb 21, 2015 12:12 am

Many people do not realize that a lease usually requires a higher down payment than "traditional" financing does.
As a young college graduate, you may not have a job, or little time at your current job, and little or no credit history.
Leasing requires much better credit than financing.
Leasing also requires you to have higher limits of liability on your insurance.
Sure your payments are "cheaper" because you are only paying for 24 to 48 months of the car's use.
But after that time, all you have to show for your money is a stack of cancelled checks.
If you decide to lease, you will have to have a co-signer (as you would for a loan).
I'd suggest you find a reputable mechanic and a fairly inexpensive used car.
Pay cash for it and keep saving for a better used, or even new car.
Crosland
 
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Buying Or Leasing A Car? Which Is Better?

Postby Avshalom » Sun Feb 22, 2015 8:43 am

Leasing works best for people who are at least 18 years old, have great credit, have a steady income, drive no more than about 12,000 miles a year, take good care of their cars, like to have new cars every 2-3 years, and can commit to a 2-3 year lease without needing to end the lease early (very expensive). Leasing also works best for people who understand how leasing works because it's a bit more complicated than buying with a loan, and therefore easier to make a BIG mistake.

Otherwise, you should buy a nice used car that is reliable and holds its value well (Honda, Toyota) for cash. If you need a loan, you should get a cosigner if your credit is not so good. You'll still need a steady income however.
Avshalom
 
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Buying Or Leasing A Car? Which Is Better?

Postby Allister » Tue Feb 24, 2015 2:42 am

First of all, it sounds like you are a 'first time buyer' - just graduating college. Do you have a job yet? Income of any sort? With no job, you sure can't lease or buy.
You need a COSIGNER.
With that said, at your age, if you can lease, that's the way to go.
Your wants and needs will change big time in 3 years, so why get strapped into a car for 5 or 6 years? With leasing, your payment is ALWAYS lower than a purchase because you only pay tax on a percentage of the car and you only pay the residual for the car, usually about half the value.
Allister
 
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Buying Or Leasing A Car? Which Is Better?

Postby Padgett » Fri Feb 27, 2015 5:46 am

buying used is better because the price is lower than new cars, and even some used cars can be around 2 to 5 grand, if you do your homework on a car that has good reviews find one used if its out of your budget offer the seller a payment plan per month.
Padgett
 
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