Leasing vs Financing (Leasing vs Buying)

6222 Words13 Pages

Leasing vs Financing (Leasing vs Buying)

When it comes the time to find a car to drive or a place to live, how do you decide whether to lease or to finance? Chances are most people tend to investigate what the monthly payments would be and choose whichever is cheaper. But do you ever stop to think of all the things that should be a part of your decision? Did you know there are websites out there to help you determine how much you can afford? What your monthly payment would be? There is a lot of information available to you to help make this process an easier one for you. Since finding the right car is something most people do before they find that perfect place to live, lets start with determining the difference in leasing and buying a car.

Since the 1990¡¦s leasing of cars has skyrocketed which nowadays most people tend to lease their car because leasing offers an attractive and affordable means of driving a new car every few years. In the past few years, car dealership have been running amazing deals such as ¡§no down payment¡¨ or ¡§low, attractive payments¡¨ these advertisements tend to make leasing even more appealing than financing. And because of these incentives you can often buy a more expensive, more luxurious car for the same payment of financing a lower priced car.

Leasing in a nutshell. When leasing you are paying for the use of the car rather than paying for the car itself. In other words, your lease payment covers the depreciation of the cars over the length of the lease. Usually you can lease a car with zero down but the more you put down the lower your monthly payments will be. You as the lessee, are responsible for maintaining the car during the term of your lease and at the end of your lease you have the option to turn it in and walk away from it or choose to purchase it for the residual value of the car. Seems simple enough but there are many other things to consider before leasing a car.

Leasing is not for everyone, but for those who are willing to except the challenge to stay with in the restrictions you are given on the car and like to have a new car every 3 years or so, leasing may be for you. There are five main questions that everyone needs to ask themselves before leasing a car:
„P Do you become easily bored ...

... middle of paper ...

...opefully Mary decides to follow our advice with buying her home and leasing her home. We feel these decision will be most beneficial to her and will give her the most for her money in the short and long term. Seeing the figures in the format we set-up for Mary really helps a person to understand where there money is going and what goes into consideration when buying or renting a home and buying or leasing a car. It puts the data into a form the anyone can understand not just number people. Good Luck to Mary and the best wishes for her future.

Bibliography

1) http://autos.msn.com/advice/article.aspx?contentid=9274&src=newresearch
2) http://autos.msn.com/advice/article.aspx?contentid=4021832&src=lease
3) http://houseandhome.msn.com/improve/guides/taxes.aspx
4) www.dehanas.com/vs.html
5) http://houseandhome.msn.com/Financing/Experts/Homeownershipforsingles.aspx
6) http://okok.essortment.com/rentinghouse_rzlt.htm
7) http://www.alanford.com/loans_vrs_lease.htm
8) http://houseandhome.msn.com/financing/guides/budgettobuy.aspx
9) http://houseandhome.msn.com/financing/roadmap.aspx
10) http://autos.msn.com/advice/article.aspx?contentid-4021830&src=lease
11) www.timevalue.com

Show More
Related

  • Necession In Jasmine Syedullah's The Abolition Of Whiteness

    1302 Words  | 3 Pages

    What is compassion? It has two components. One component of compassion means to put yourself in another person’s shoes, and ask yourself, What if I were that person? How would I feel? So, compassion means to develop an awareness of the suffering in another person. Another component of compassion is self-compassion, having compassion doesn’t always have to be putting everyone else before you, sometimes compassion can mean putting yourself first. Throughout generations, compassion has played an important role in many people, it’s a natural instinct within all of us. We show compassion towards our loved ones, when confronted with someone in pain, we

    Read More

  • Credit Informative Speech

    981 Words  | 2 Pages

    First, you can qualify for lower interest rate and monthly payments on purchased such as a house or a car. Even if you do not buy leasing a house or a car requires very good to excellent credit. For example, when I leased my car, I had to get my dad to co-sign because I did not have any credit at that time. In other words, the dealer did not trust me and wanted someone trustworthy and responsible. The same goes with renting a house.

    Read More

  • Essay On Buying Vs. Leasing

    438 Words  | 1 Pages

    Monthly payments and the money put down play a big roll in obtaining a vehicle. Buying requires a down payment in the form of trade or cash whereas leasing requires little or no down payment. Monthly payments are based on the purchase price of the vehicle if bought, but if leased payments are based on the use of the vehicle. Although if leasing, the payment terms are incredibly shorter.

    Read More

  • Riverbend Telephone Company

    556 Words  | 2 Pages

    There are not many advantages to leasing the vehicle, since Reliable does not cover the cost of maintenance or registration and taxes. They only cover the cost of tires, a minimal expense, which does not offset the cost advantages of buying the vehicle. The company does not seem concerned with their debt ratios or the threat of default. The main advantage to buying the vehicle, aside from the better price is the depreciation tax shield, which subtracts annual $1800 from the costs of ownership. There are tax advantages to leasing, as the lease payments are a tax deductible expense, but that tax savings amounts to $2,880/ year.

    Read More

  • Napster Is Taking Over

    1846 Words  | 4 Pages

    Shawn Fanning brought the first example of illegal downloading to us in the summer of 1999 (Abbott 2003). Fanning provided the public with downloadable tracks of music using a program known as Napster. At its prime, there were over 80 million registered users downloading from Napster (Lam 2001). Only 6 months after operation, the RIAA (the Recording Industry Association of America) filed a lawsuit against Shawn Fanning and Napster for $100,000 per each downloaded song. The legal problem with Napster was that downloaders were not paying the due royalties to the artist and producers. Napster and its contemporary, Audiogalaxy, were not exact forms of shareware, so the RIAA was able to sue them as companies. The people who were actually doing the downloading got off scotch-free with thousands of free downloaded music tracks. As a result of the case Napster was shut down. Today we are introduced to subsequent forms of downloading, like KaZaA,Bearshare, and limewire would create a whole new kind of trouble f...

    Read More

  • Renting Versus Buying

    807 Words  | 2 Pages

    Buying a home can be an exciting experience for anyone. However, in some cases you just might be better off continuing to rent your home. There are many advantages to buying a home. However, it is not for everyone and buying varies from individual to individual. Currently more people are leaning towards renting but this could change in the near future.

    Read More

  • Old Car vs. New Car

    1515 Words  | 4 Pages

    ...a higher insurance as well the rates and how much it would go up if you wrecked also because a new car has a better chance of being stolen over an older car. There are a ton of other reason to choice new as well as old and ton of reason not to choose either, but that would just go on forever and lead to more research on this topic but plain flat out and simple is that the choice is a hard one and in the end it could be a bad choice or good, but at the same time in the end you can still get from point A to point B or C or K or whatever by driving rather than you having to walk all over the place.

    Read More

  • Buying a Used Car

    1318 Words  | 3 Pages

    When you hear the term “used car”, what is the first thing that comes to mind? Some may think of an old rusty Cadillac that belongs in a junkyard. Others may think of that nice Camaro at the used car dealership for sale. Over the years, used car sales have skyrocketed. In 2012, over 40.5 million used cars were purchased in the United States (Atiyeh, 2013). Used cars are in high demand in today’s economy because of the lower prices, slightly higher gas mileage, and that they can be more trustworthy against some of the newer models. With used car sales always climbing, how do buyers know what they are looking for in a vehicle? How do they come down to the final decision of where to purchase the vehicle? Most importantly, how can buyers make sure that they do not get scammed? This paper will take you through the process of purchasing a used vehicle, from deciding on a budget, all the way to the final purchase of your “new” car.

    Read More

  • Napster Problem or Solution

    1933 Words  | 4 Pages

    As one can deduce from the information presented in this essay, the court case involving Napster

    Read More

  • Music on the Internet and Copyright Infringement

    3491 Words  | 7 Pages

    Napster quickly became a very popular web site with a 15 million registered users in less than a year, according to company sources. However, Napster’s remarkable success was not at its best interest. It had drawn the attention of the Record Industry, and raised its concerns of Copyright infringement in large volumes. Barely a year after its launch, it was sued by the RIAA, which represents major recording companies such as Universal Music, BMG, Sony Music, Warner Music Group, and EMI. The RIAA claimed that by allowing users to swap music recordings for free, Napster’s service violated Copyright laws. Eventually, the judge ruled against Napster, and, failing to complete the sale deal with Bertelsmann AG, it had to shut down its operations and liquidate its assets [3].

    Read More

  • Essay On Buying A Car

    540 Words  | 2 Pages

    We all dream in the day we get to purchase our first vehicle. The day we stop asking our parents to take us here and there. Some may say buying a vehicle is a pain in the you know what. It can seem like a stressful situation if you're not familiar with the process. However, working in the car industry has taught me valuable tips and tricks that will help me teach you to save money when car buying.

    Read More

  • Short Term And Long Term Capital

    839 Words  | 2 Pages

    If you need money to purchase assets for your business, leasing offers an alternative to traditional debt financing. Rather than borrow money to purchase equipment, you rent the assets instead. Leasing typically takes one of two forms: Operating leases usually provide you with both the asset you would be borrowing money to purchase and a service contract over a period of time, which is usually significantly less than the actual useful life of the asset. That means lower monthly payments. If negotiated properly, the operating lease will contain a clause that gives you the right to cancel the lease with little or no penalty. The cancellation clause provides you with flexibility in the event that sales decline or the equipment leased becomes obsolete. Capital leases differ from operating leases in that they usually don't include any maintenance services, and they involve your use of the equipment over the asset's full useful life.

    Read More

  • Essay About Compassion

    1447 Words  | 3 Pages

    Most people find it hard to show compassion towards others, compassion requires the willingness to go to that place where feelings of weakness, vulnerability, and loneliness reside, this sense of vulnerability often makes it difficult to be able to express emotion. An example of this is not being able to look someone in the

    Read More

  • Child Abuse Essay

    725 Words  | 2 Pages

    Child abuse is a very serious problem that continues to happen all over the world. The Federal Child Abuse Prevention and Treatment Act, defines child abuse as a failure to act as a parent or caregiver which results in physical/emotional harm, sexual abuse, and in some cases death. There are many different types of child abuse such as emotional, physical, neglect, and sexual. With each type of abuse there are warning signs you can spot before it is too late. When a child is abused there is a huge possibility that it can cause them to have many long term effects.

    Read More

  • Essay On Advantages And Disadvantages Of Owning A Car

    980 Words  | 2 Pages

    With convenience comes cost. There are many costs associated with owning a car. Firstly learning to drive can be prohibitive, with lessons often out of a lot of peoples budgets. Once you have passed your test buying a car can also prove expensive. It is often the case we have to buy cheap second hand cars as new cars are very expensive. Sometimes this is fine and you can have a reliable car, but other times you pick one up that’s not been well maintained and can cost you a fortune in repairs and keeping it on the road.

    Read More

More about Leasing vs Financing (Leasing vs Buying)

Open Document