Advice on leasing a car?

[wesgerrard]

Anyone suggest why I should or should not lease a car and how it works! I am 22 year old male and not sure whether to go down this road? Thanks in advance! Need anymore info let me know!

[Loosehead]

Leasing:
You get a new car for say 3 years and after that time you have to a) give it back or b) pay a lump and buy it.

if you choose a you done your money, you own nothing, if you choose b) you will be paying over the odds for a 3 year old car. Ie it's value will be a lot less than you end up paying to keep it.

Very little up side to leasing.

Now buying:
you get a new car and it's yours, after 3 years it'll be worth about 30-40% (depending on model etc) of what you paid.

conclusion: Forget it! buy a decent 2 year old car at auction for less than half a new one!

[Caladon]

I concur. There are very few upsides to leasing and it depends what sort of lease you do go for.

If it is like a company car lease then sure the lease company pays for servicing and replaces everything etc...
But very few lease companies give such a contract to private leasee's (sp?)

So you are paying more for a car that is worth a lot less and own nothing but the contract you signed.

Buy a new car and its value drops 15% once you give your autograph, let alone before you drive it off the forecourt.

I agree that it is better to buy a 6 month - 2 year old car so that it is a) cheaper b) still under warranty (and you can nag and have it extended) and c) yours! all yours!