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What's the process of leasing a car?

Whats the difference between leasing and buying a car?

  • Alright so here's the deal. I've never bought a new car. I'm planning on getting a smart car within the year. They have this thing where you only pay $99.00 a month for 36 months but thats leasing. What happens after those three years? Do you roll over from leasing to buying or what? I mean, that's what...$3564 you've just spent not including the $999.00 down payment. What's the smartest thing to do in this situation?

  • Answer:

    Leasing is essentially long term rental, after the term is up you own nothing. Note that the car has to show nothing but normal wear and tear, or you will be billed for damages, lease is also a binding contract which cannot be broken without hefty penalties. You also have to have 100% liability insurance on the leased vehicle, to protect the leasing companies interest. Smartest thing to do is not to lease, unless you own a company which will lease the vehicle for you and write off the cost as an expense.

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Leasing is really renting. You own nothing. Generally speaking leasing is a bad deal, because if you lease a car for 36 months with a 36K mile allowance and come up well under that number, you'll get nothing for being low so you've basically paid for miles you didn't use. If you go over you have to pay some amount extra for every mile. Then if you have scratches, etc, you'll pay for those too. Usually there will be a fixed price in the lease agreement on what you can buy the car for when the lease is up. Most economic experts will tell you to buy, not lease.

PMack

Buying a car is paying the full amount of it and it becomes entirely your property. Leasing a car is paying monthly for a car's value with restriced number of miles allowable to drive.

Most of the time leasing is really a harmful option, for the reason that in case you rent a motor vehicle to get 36 months that has a 36K mile allowance and created properly under of which number, you get nothing at all for being reduced and so you have quite simply purchased kilometer after kilometer an individual don't utilize. In case you talk about you must pay out a few volume excess for every mile. Subsequently in case you have scuff marks, or anything else, you are going to finance these as well. http://www.12vcity.com

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