Is there any financial benefit to leasing a car then buying it out at the end of the lease?
AudiWorld Super User
Joined: Jun 2003
Posts: 13,834
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Not always. If you can get a low enough finance rate, you ..
will be able to take that cash not layed out and invest. If your investment returns higher than your finance rate than you have made money off that which you would have put into the car buying it outright. Sometimes it pays to have as much cash on hand to invest and to obtain low finance on as much as possible.
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AudiWorld Super User
Joined: Oct 2003
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Not always.... I write my lease off through my business... so there is a benefit. Not too mention I
Dont really keep cars more then 3 to 4 years so I only pay for what I use and don't have to deal with the hassel of selling it at the end.
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AudiWorld Senior Member
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Yes you can make out on a lease, BUT the bottom line is that most people don't
Really there are very few instances where it is better long term to lease. (Yes I'm aware that a lot of people on this board lease and I'm gonna get flamed for this...)
1. If you write off against a business-
2. If you get an awesome APR
3. If you resolve to yourself that you will pay a car payment for the rest of your life and don't mind making payments
4. If you want a new car every 2-3 years
5. If you REALLY want a car you can't afford- leasing can lower the payments enough to by the car later.
6. You lease a car that ends up worth more than the residual at the end of the lease and can buy/sell the car for cash.
7. If you're bad at math.
The dealerships love to lease cars because they get to sell it twice and you pay the depreciation.
1. If you write off against a business-
2. If you get an awesome APR
3. If you resolve to yourself that you will pay a car payment for the rest of your life and don't mind making payments
4. If you want a new car every 2-3 years
5. If you REALLY want a car you can't afford- leasing can lower the payments enough to by the car later.
6. You lease a car that ends up worth more than the residual at the end of the lease and can buy/sell the car for cash.
7. If you're bad at math.
The dealerships love to lease cars because they get to sell it twice and you pay the depreciation.