Hi, can you leasing owners explain to me the benefit of leasing ? Do i have to pay my own insurance for it and what else do i need to look for? small things like that.. i am a current owner of IS 250 2010.
Thank you

 

First off yes you need insurance just like when you rent a car.

Benefits of leasing CAN include:

Always being in something new... so major issues could be covered under warranty

Knowing the exact value that the car will be in 36 months or whatever term your lease is. You are free to walk away from the car at that point (it could be worth less than your residual on the open market, but then that burden is on the bank)

Payments are generally less than what a 5 year loan payment would be for the car with a small downpayment. So in this line of thought, you can lease "more" car than you might be able to buy. Example, maybe you could lease a GS vs buy an IS. with similar monthly budget.

In some states, you then pay only sales tax on the monthly payment amount, not taxed on the full value of the car as a purchase would. Understand mileage limitations, and all associated fees (acquisition, disposal, etc)


When it comes to leasing, you need to understand the actual purchase price of the vehicle, the residual, money factor, and any available security deposit options.

 

pbm317 explains it well.

One should also discuss the negatives of leasing, which include: Never gain equity/ownership of the vessel, continually having to put down down payments every few years, restrictions on how many miles you can drive per year, and responsible for wear and tear.

 

Look at the sticky at the top of this forum.

 

of course don't forget the possibility of writing off the lease payments for those who can

 

So there is a restriction for mileage?
What do you have to pay for wear and tear ?

 

Have you literally never looked into a lease before? Most are priced at either 10K, 12K or 15K miles per year. Most advertised are 10-12K.

Wear and tear will depend on the brand, if you re-up to lease another of the same brand, how well you take care of the car, etc.

 

I think you can write off payments if you finance a car as well, not just if you lease. Is that not right?

 

Welcome back. Haven't seen you post here for quite some time.

 

yes, if you fall under the criteria....

 

In a business situation, if you have financed the purchase of the vehicle you can only deduct the portion of the monthly payment that is the interest on the note, whereas the entire lease payment is deductible.