Originally Posted by Slowass
Could someone please explain the advantages of leasing? I don't know anything about it.
If you like to change vehicles every couple years, you can drive a much "nicer" car than you normally could afford if going the typical buy route. And you usually only have to put a couple grand down, most of which is a security deposit. Contrary to popular belief, you CAN get extra mileage added in so you don't screw yourself at the end.
Typical advertised leases have 15,000 mile/year limits, but lately I've heard the advertised radio prices at very low rates (~$100/month for entry level car). When the announcer says the lease details (quiet and fast), a 10,000 mile/year lease for 60 months is announced. So, you pay for 5 years on a car, never really own it, when paying an extra $75/month would have bought the car.
Downside is you never really own it, can't really modify it, and always have to have full insurance.
If you know how to read the contract, don't impulse buy, and follow the lease terms, it's not a bad gig. But the penalty for over mileage is pretty steep, typically $.15 per mile.