leasing a car

[Pandemic]

My Wife and I are looking into leasing a car. I've got a bunch of general questions:

1). is it a contract saying you'll pay per month for x years?
2). generally is insurance included?
3). would the cost of repairs be covered
4). how does mileage come into play?

[GeoffM]

Not sure on all of your questions, but I know you can pay it off (the lease) and keep it for the remainder of the lease.

[Jonas]

1) yes.
2) insurance is not included, to my knowledge.
3) you are responsible for repairs and maintenance, unless your contract says otherwise
4) you are given a certain amount of mileage that you can drive. if you exceed that mileage, you pay a set amount per mile over the limit.

[Leung]

This might help explain things,

http://www.leaseguide.com/lease02.htm

After reading that it seems you have to have your own insurance, you and the leaser agree to an amount of miles you'll drive for the duration of the lease and you will have to pay for any damages beyond normal wear and tear.

[Clean_4th gen]

Why lease? Financing is usually cheaper(payment wise).

[Pandemic]

We're looking for cheap transportation options and my mother in law mentioned leasing. Doesn't REALLY seem like a good option for us.

[Clean_4th gen]

True, looking for anything specific? If not, I'd look into econoboxes(think that's what they're called...Versa, Yaris, Fit). Base models arent hard to afford...I have one.

[Leung]

We're looking for cheap transportation options and my mother in law mentioned leasing. Doesn't REALLY seem like a good option for us.

I'd only consider leasing a vehicle ONLY if i was not planning on keeping the car after 5 years and depending on if maintainence was included in the contract, usually isn't.

[Accrdwgnguy]

Don't lease, unless you what to get rid of the car as soon as the lease is up.

Otherwise you are pretty much renting the car for 2-3 years

[Clean_4th gen]

I've also heard you can't modify them.

[ChIoVnIdCa]

Why lease? Financing is usually cheaper(payment wise).

Not true

[ChIoVnIdCa]

Leasing almost never works out financially...

You are usually better off buying the car


The only time it makes sense is if you are looking for a company car... Its makes it real easy to track expenses/ costs to write off.

Another time is if you want a new car every three years and don't mind paying a set amount per month for a car for the rest of your life

[Jonas]

leasing is cheaper than buying. that is why it is an attractive option. many people would buy a car and sell it in 3 years. so leasing is a better option for them, as long as they can stay within the terms (mileage is the killer, as some cheap lease agreememnts require very few miles to be put on the car)

[ChIoVnIdCa]

1). is it a contract saying you'll pay per month for x years?

Yes.

2). generally is insurance included?

No.


3). would the cost of repairs be covered

Depends on make and model.. If you do a three year lease many company's give you the first three years of maintenance for "free" and you will still be under the factory warranty for repairs.


4). how does mileage come into play?

You can get difference mileage leases.. The more miles the more it costs a month.. 12k, 16k, etc a year

.............

[Clean_4th gen]

Not true

Not true??? You just repeated what I said.

Leasing almost never works out financially...

You are usually better off buying the car