Monday, August 16, 2010

Trying to decided which is better Lease vs Finance vs Rental Car long term?

I am buying a car next month and im trying to figure out which route is better for me. Should i Lease or Finance or Rent my car. I don't want to deal with maintance on a car. I want a newer car. I thought about Renting a car from Hertz or Avis for about $1000-$1500 a month so i don't have to deal with maintance and other problems plus i can switch out cars when i want too. But for that type of money a month if i lease or finance i can have a expensive car than what i get from long-term renting. So what should i do??





ThanksTrying to decided which is better Lease vs Finance vs Rental Car long term?
I can't think of a more absurd waste of money than a ';long term'; rental form Avis or Hertz. First off, it's going to be more effort on your part than routine maintenance since most rentals are limited to 30 days; you'll have to return the car every month and re-rent it. With a lease or purchase you're probably looking at routine service every 3 to 6 months if you're a typical driver. Insurance would clobber you financially as well as you'd have to take their add-on coverage at their absurdly high rates which can easily double the daily rate; you can't put a rental on a regular insurance policy.





If you're the type who just has to have a ';new'; vehicle every 2 - 3 years AND you know for sure that you will drive less than 15,000 miles per year then leasing MIGHT be for you.





You can save a ton of money on leasing if you limit your choices to vehicles that hold their value better than average such as Mercedes, BMW, Toyota, Honda, etc. (Bad choices would include most Cadillacs %26amp; Lincolns and many US brands.) This is because the residual value is higher on vehicles that hold their value well and a high residual value will lower your lease payments.





If you tend to run up a lot of miles, purchasing is the only way to go. Stick with cars that hold their value well and you'll do much better at trade-in time and minimize your long-term costs.





Leasing or trading in every 2 - 3 years will cost you more in depreciation in the long run but the up-side is that you will always be driving a car that is under warranty so your only additonal expenses will be insurance and routine maintenance.Trying to decided which is better Lease vs Finance vs Rental Car long term?
Finance and buy would be more cost effective. You may have to deal with maintenance on either. The end of a lease you have nothing, at the payoff of a loan you still have a car worth something
lease would probaly be best for you it's a new car so mantenance would be low and there will be a wrrenty you can trade in every year or two depending on the lease contract you choose


financing you are stuck with car and value goes down much further if you want to trade it in and all repairs are up to you past the warrenty.


rental os way too expensive.. think about it this way in 10 monthes at 2000 a month you could have saved and paid cash for brans new nice car.
Leave rental out of the mix, that isn't what it's designed to do. Given you will switch often and don't want a lot a maintenance to worry about, lease.

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