Best Answer

I think you should get an auto loan instead of leasing a car. You can get an auto loan easily at a lower interest rate and you would get a new car which would be your own . Where as in leasing a car you would get a used car and there are many other problems in leasing a car.

AnswerThere are many benefits to a traditional auto loan. An auto loan is easier to understand and easier to shop for than an auto lease. The complexity of leasing makes it easier for dealers to take you for a ride.

Another advantage of an auto loan over leasing is that you end up with a valuable asset that belongs to you ? the vehicle. After you have made all the payments on a traditional auto loan, you own the vehicle. In contrast, after you complete payments on an auto lease, you have to return the vehicle, lease it for an additional term, or find the money to purchase it. A traditionally financed auto loan is a fiscally more conservative approach than a lease. With the loan, you are investing in an asset; with a lease, you are not.

Also, with a traditionally financed auto loan, you can set the level of body damage and liability insurance you want. A leasing company might require you to take a coverage limit or deductible level that costs more than what you would otherwise want.

A big advantage of car leasing for some consumers is that you can generally arrange a lease that allows you to pay less per month for a given vehicle than you would pay with traditional financing for the same vehicle.

Another advantage of a car lease over a loan is that you don't have to sell the car at the end of the lease. You can simply turn it in to the leasing company. If you know that you will want a new car after, say, three years, you can lease for that period knowing that you can easily get rid of the car at the end of the lease. You don?t have to worry what the car will be worth. In contrast, with a purchase, you have to trade in the car or sell it at whatever the market will bear.

In some states, car leasing might seem to have an additional advantage: you pay taxes only on your payments, not on the full purchase price of the vehicle. That is true in the District (not in Maryland or Virginia). But this apparent advantage is generally roughly offset by the fact that the tax rate on lease payments is higher than the tax rate on a purchase. In the District, for instance, you pay a 10 percent rate on car lease payments and a six percent rate on the purchase price of an automobile.

User Avatar

Wiki User

βˆ™ 2010-12-19 07:48:52
This answer is:
User Avatar
Study guides


21 cards

Im with someone in the army and we want to get married asap but would he get into trouble he is 21 and im 16

What does teachorous mean

What is the first aid treatment for arterial bleeding

What is the difference between an intentional and unintentional injury

See all cards
45 Reviews

Add your answer:

Earn +20 pts
Q: Should you get an auto loan or lease a car?
Write your answer...
Still have questions?
magnify glass
Related questions

Where should I get an auto loan?

The good place to get an auto loan is GMAC, Acura, Car Max and many of the car rental companies has good auto loans. They also have real good deals and rates on their auto loans.

Coverage on auto insurance when you have a car loan?

Yes, you should get auto insurance coverage when you have a car loan, and even when you don't have a car loan. The law requires it either way anytime a motor vehicle is operated on public roads..

Is it a better deal to lease or buy a car?

Usually buying a car outright is a better deal if you can pay upfront without a loan. If you do need a loan, then depending on the deal you get for the loan vs. the lease it can be a better deal to lease, but not usually.

Is there a difference between a term business car lease and a commercial auto lease, or are they one and the same?

A car lease is an individuals person lease for their car. A commercial car lease is the lease for a commercial vehicle which are used for businesses.

Your husband is not on your car lease loan will he be held responsible if you do a repo?


How do I find a calculator for car loan payments?

If your looking for an auto loan calculator, Bankrate is a great place to start. They provide car loan and auto loan calculators to help with your buying decision.

Can you buy rims with a auto loan?

No the car is security for the loan.

What kind of loan is an auto loan?

An auto loan is a secured loan. A lien on the car helps the lessen the risk for the lender.

Can you return auto if titled owner dies?

There are a number of ways of resolving it. Any loan against the car has to be resolved. If it was a lease, it could be returned to the title holder.

Will a bank help you take out car loans?

Auto Loans - Save time and money with an auto loan from Capital One. Apply for auto loans online in minutes and lock in our competitive auto loan rates.Looking for an auto loan calculator? Bankrate provides car loan and auto loan calculators to help with your buying decision.

Will the bank give an auto loan on a 1960's car?

as long as you have good credit a bank should give you a loan no matter what it is for.

Is it smart to get a car loan through the auto dealership?

It really doesn't matter where you get your loan. You should look at the bottom line, the rate.

People also asked