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Hi everyone! Just a link to an easy reading, unbiased article on the pros and cons of both. I thought it might be helpful to those who have asked in the past, or are trying to decide between the two now.

I am not taking a stand as to which is better. I have my own opinion (but will not express it unless asked), but as far as I am concerned, if you are educated to the pros and cons, it is a strictly personal decision for each individual.

It is just a short, very easy reading and informative article. Hope the link works!

http://autos.aol.com/article/general/v2/_a/lease-or-buy/20060818155009990001

Good luck everyone! :D

PS - I checked, and as of this edit, the link works! Enjoy!
 

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Leasing is great for those who want to have a new car every year or two. But you are putting your hard own money towards borrowing someone else's property. To me that is a great misadvantage. But if you are comfortable, more power to you.

Owning is not that different either. There are pros and cons to each one. But at least with owning you can do whatever you want to YOUR vehicle. When giving the payment you know the car is yours and yours alone. Sure the car starts losing value, and the factory specifications of them go after a few years. But you know that, that killer bomb ass machine overthere is YOURS. I keep my vehicles until I cannot fix them any longer. What I mean by that sentence is, when something mechanical goes out and it is not covered under the warranty you must put 2-3K out your pocket, it is pointlessfrom there. And reality is that, that happens after 8-10 years later. Example I bought my Ford Explorer in 1994, she died in 2006. She lasted me 11-years or so, that is damn good in my book. She gave all she could. I admire that greatly. But then again there are lemons, but that is another story... :)
 

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My family has always bought cars and kept them five years and then bought something else because well they get tired of a car after that long. I haven't decided yet if I'm going to keep my car for 5 or so years and sell it once the warranty is gone and I've paid it off or I may keep it for a decade or so which is what is generally recommended-buy new and keep for a decade. Thats what my home ec curriculum recommended back in highschool haha.

Plus it seems with a lease I wouldn't be able to do things I've done already, tinted windows, kn air filter and coming soon painted calipers and possibly a hydraulic hood kit. Among other things.
 

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I lease my cars and then sell them right before my lease it due so therefore i never pay fees for the extra miles, i'm able to mod the car without getting hassled by the dealer at the end of the lease term... plus I end up with enough money for another nice down payment for the next car to lease... just my $0.02
 

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Leasing a car is a good deal if:

The car you are leasing has a good residual value, like a Toyota, Lexus, Honda, Mercedes etc.

The factory has a lease deal with great lease incentives (bumped up residual and low money factor)

You like a new car every 2-4 years

You take reasonable care of you car

You can tint the windows and they don't care, the thing is any mods you do after you buy the car either stay on the car when you turn it in or you get nothing for them. If you have the dealer add them before, many times they can be residualized since they too can add vaue.

Leasing is bad if:

You drive a lot of miles and you do not factor them in to your payment, standard leases for 12,000 to 15,000 miles a year, but they can be written for as many miles as you want, they reduce the residual and increase your payment. It is the pay me now or pay me later argument. People think that if they buy the car miles do not hurt them but they do, if you try and trade a 3 year old car with 90,000 miles you will just take your hit at the end

You like a new car every two years, but you decide the only way you can afford the car is to lease it for 3, 4 or even 5 years :shock: Leasing is designed to cover the depreciation only, that is why the payments are cheaper. DO NOT EXPECT TO TRADE OUT A LEASE MORE THAN 6 MONTHS EARLY.

I have bought dozens of cars in my life, I have lease about 25% of them. Leasing is the best deal in some cases in other it is not. Cars are not like fine wine they do not go up in value (unless they are a muscle car from the 60's) so that is why most people lease cars, you do not buy what goes down in value. This is why 75% plus of Lexus, BMW, Mercedes, Porsches that are financed are leased.
 

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Not necessarily. You buy a house because you need one and plan on keeping it awhile (although many do otherwise) I bought my car intending to keep it for some time probably ten years so long as it makes it. I have a friend who owns a 20 year old car she bought new, its been paid for for 15yrs now I like the idea of owning and not having payments someday. Though I like new things and may buy a new one
 

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There is no general rule about leasing or buying being the better option. There are way too many variables involved.

It really boils down to understanding your own particular situation and your own particular options better than anyone else does so you don't get conned.
 

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Leasing has never made sense to me. In the end, it's just not worth it. It's a tool used to sell vehicles to people that are only worried about the monthly payment, not the total cost.
 

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[quote author=hwm3 link=topic=70432.msg1238962#msg1238962 date=1172685383]
Leasing has never made sense to me. In the end, it's just not worth it. It's a tool used to sell vehicles to people that are only worried about the monthly payment, not the total cost.
[/quote]

I few years back they were leasing Grand Ams for 24 months for $199, so for $4776 you got the use of a new car for 2 years and 24,000 miles. If the mileage (24,000 over 2 years) is good for you, then that was one hell of a deal (and I hate GM). Unless you keep a car for 5 plus years to make the blanket statement that leasing is not worth shows that you haven't looked at it from all angles, sometimes leasing makes the most sense.

One other advantage to leasing is that you have the option to walk away reguardless of what the market on your now used car is, the leasing company is on the hook for the difference. If the car has better than expected resale you can also, buy or sell the car and keep the profit.

The problem with leasing is that most people are ignorant of the facts and they either lease when they shouldn't or buy when they shouldn't. Many people are still trading cars every 2 years with little to no equilty ($$$ down) and rolling negative equity from one car to another, for those people that want a new car every years leasing often makes the most sense, but they are fooled into a low payment over 5, 6 or 7 years instead. Then they try and trade it 2-3 years later and find that they are buried.
 

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[quote author=Texaswj link=topic=70432.msg1242452#msg1242452 date=1172791093]
[quote author=hwm3 link=topic=70432.msg1238962#msg1238962 date=1172685383]
Leasing has never made sense to me. In the end, it's just not worth it. It's a tool used to sell vehicles to people that are only worried about the monthly payment, not the total cost.
[/quote]

I few years back they were leasing Grand Ams for 24 months for $199, so for $4776 you got the use of a new car for 2 years and 24,000 miles. If the mileage (24,000 over 2 years) is good for you, then that was one hell of a deal (and I hate GM). Unless you keep a car for 5 plus years to make the blanket statement that leasing is not worth shows that you haven't looked at it from all angles, sometimes leasing makes the most sense.

One other advantage to leasing is that you have the option to walk away reguardless of what the market on your now used car is, the leasing company is on the hook for the difference. If the car has better than expected resale you can also, buy or sell the car and keep the profit.

The problem with leasing is that most people are ignorant of the facts and they either lease when they shouldn't or buy when they shouldn't. Many people are still trading cars every 2 years with little to no equilty ($$$ down) and rolling negative equity from one car to another, for those people that want a new car every years leasing often makes the most sense, but they are fooled into a low payment over 5, 6 or 7 years instead. Then they try and trade it 2-3 years later and find that they are buried.
[/quote]

Without know all the upfront costs as well as the residual value there is no way of knowing how good a deal that really is.
 

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I agree that is why I said that your blanket statement was not the best advice, each deal, vehicle and situation is different. The residual only matters if you plan on keeping the vehicle (most people that lease walk away) and its effect on the lease payment. If your goal is to own (pay it off) a car, then buy it. If you only want to drive a car for 2-4 years you should investigate the numbers and do what makes most sense for your situation, like I said every car and situation is different.
 

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Once I already leased my Fusion back in Jan. 06, I found out a couple of months later from a friends of mine that I could have leased e46 bmw 330ci..... for about $60 less in monthly payments than I pay for the Fusion :bash: :dur:
 
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