anyone with experience with auto leases in here

[badass98vert]

so i need a winter vehicle and im considering leasing and wanted opinions on it. what are the advantages/disadvantages to a lease vise financing. i was playing around with a lease calculator and the monthly payments seem to drop considerably with a 5000 down payment, how exactly does that get figured out? i heard something a while ago that the payment is determined by how much the car will depreciate in value during the term of the lease, is that correct? also, is it harder to get approved for a lease than a loan? i dont have the greatest credit but my debt to income is low and i can definitely afford it.

 

[SWThomas]

If you're leasing something that you could possibly want to end up keeping, make sure you have the option to buy in the contract.

 

[wvmystichrome]

When you lease you are paying interest on the full amount of the vehicle. If you turn it in after 2 - 3 years the biggest part of your investment is interest. The way I always felt and the reason why I DID NOT lease was I deemed this unfair. I am using only 2 - 3 years worth of the car. Why should I pay interest on the full amount for that 2 - 3 years when the person buying it afterwards is getting the benefit of it? Example. $30,000.00 car. $15,000.00 value after 3 years. You are paying interest on the full $30,000.00 for 3 years but only getting $15,000.00 worth of use/benefit. Why not figure the interest on the $15,000.00 you are using? Also figure in the monthly payment the taxes (sales and personal property), fees, insurance, and other hidden things you have to pay that if you purchased it you would only pay once or yearly. It is a losing proposition except to those who want to buy/drive a new car every 2/3 years.

 

[ScareCrow]

what are the advantages/disadvantages to a lease vise financing.

I've done both so heres my $.02

With the lease , you'll have a warranty the entire time if needed
Cheaper payments
New vehicle every 2-3 years
At the end of the lease , with all you car payments , you end up with nothing

With the purchase
Typically higher payments
Stuck with it until you feel like selling , then that can become complicated depending on the desire factor of that car.
The car is yours to change / mod / whatever