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Buying a car has many advantages as well as disadvantages. Opposed to buying a car you have to pay a lot of money compared to leasing. In the end, it all depends on the balance of your bank account and how much do you think you should spend.

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2013-05-29 02:52:40
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Q: What are the advantages of personal car leasing compared to buying a car?
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When taking into consideration the prices to lease a car is it better to buy?

The choice of either leasing or buying a car depends on the original price of the car; depending on the price, either leasing or buying can be the better option. However, buying a car is usually cheaper than leasing it.

Which term describes an alternative to car buying where monthly payments are paid for a specific period of time after which the vehicle is returned to the dealership or bought?

Car leasing

What is leasing objective?

What leasing does: A leasing company (the lessor) buys the asset (could be a property or equipment or vehicle or computer hardware) which its customer (the lessee) requires it. The customer hires the asset from the leasing company by paying a deposit plus recurring lease rentals over a specified lease term, for use of the asset.In a finance lease, rental covers virtually all of the costs of the asset; lessor claims deduction for tax depreciation whilst the lessee could claim deduction of all the lease rentals in his taxable income, even as substantially all risks and reward incidental to ownership in the asset gets transferred to the lessee though title may not be transferred.In an operating lease, lease doesn't run for the full life of the asset (usually equipment like aircraft or vehicles), lessee wouldn't be liable for the full cost of the value, lessor or the original manufacturer will assume residual riskThe leasing objective is a way of financing to use an asset by the lessee (the end-user) without actually having to buying the asset outright. Though buying is a good option if business has got funds or it is essential to own the equipment, but it is not always the best option because buying results upfront outflow of cash.Instead of buying, leasing of equipment/asset for the business of the end-user allows such an entity (lessee) to use an asset over a fixed period by spreading the cash outflows over a longer period, in return of making regular lease rental payments.In both types of leases, the lessee (hirer) ends up paying much more than paying upfront as for purchasing such an asset, because the lease payments include interest cost element plus principal on the capital employed by the leasing company (the lessor).

Suppose you are buying a car how would the trade offs discssed above affect your decision?

Trade offs make a huge impact on car purchases. This is especially true when it comes to new cars. Trade ins will also determine how much money you can save on leasing or purchasing costs.

What are a few pros and cons of leasing versus buying a car?

Some of the pros are that someone is not stuck with the same car for a sustained period of time, the car can be driven for a smaller amount of money per month, and the cars are protected by the dealerships so that they can have them later. Some of the cons are that someone does not actually own the car and the car is more expensive in the long run.

Related questions

What are the advantages and disadvantages of leasing and buying?

As with everything, there are advantages to leasing or buying. If you plan to stay in one place for 5 or more years buying is likely the best option. If you plan to move in the near future, then consider leasing.

Where can you obtain advice on whether you should by or lease computer hardware?

The online website Nolo Law for All offers advice on buying or leasing computer hardware. This website lists advantages and disadvantages of leasing computer hardware, and then lists the advantages and disadvantages of buying computer hardware.

Should I consider buying a certified used car or lease a car?

Buying or leasing is a personal preference. There are advantages and disadvantages to both ways. In leasing, you use the car for a specified number of years, making payments on it just as you would if buying, except that at the end of the lease, you return the car to the dealership and basically walk away owing nothing more. When purchasing/buying, one assumes all the costs of maintenance as well as depreciation values.

Where can one find more information about leasing versus buying a car?

You can find out about leasing versus buying a car on How Stuff Works. Other places with info about leasing versus buying cars is dmunds, and NN's site as well.

What is considered real property and what is personal property when leasing commercial property?

Real Property is defined as real estate: the land on which you stand, or the house that you are buying or the space that you are leasing. Personal property are items that belong to you that go into the real property such as your tv or cash register.

What are the advantages of a shorter term for auto leasing?

With auto leasing the monthly payments are usually lower than they would be if you were buying the car. You can upgrade sooner, or more often with a car lease. However, you will usuually pay more interest with a lease and you will not own the car, therefore you do not generate any equity. To calculate the costs of leasing versus buying online, visit:

When taking into consideration the prices to lease a car is it better to buy?

The choice of either leasing or buying a car depends on the original price of the car; depending on the price, either leasing or buying can be the better option. However, buying a car is usually cheaper than leasing it.

What are the advantages and benefits of buying skull caps via wholesale?

The advantages of buying skull caps via wholesale is that when you buy items in bulk you get a small discount per item, thus saving you money compared to buying each item individually.

When one is buying options is it the same as leasing with option to buy?

When you are buying options it is considered the same as leasing with the option to buy. You can consult with your financial adviser for additional information on this process.

What is the advantage of leasing Rims and Tires as opposed to buying them?

The only advantage would be the intitla cost is less when leasing rims and tires.

What are the benefits of leasing equipment instead of buying it directly?

Leasing equipment is typically cheaper than buying the equipment directly. In addition, they are tax deductible and are usually easier to upgrade than when the equipment is bought.

What are the advantages of buying something on an installment plan?

advantages of installment buying

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