Leasing vs. Buying a Car 5/8/15

Leasing a car is becoming increasingly popular

Amy Scher epitomizes the loyal leasing customer. She always leases a Volvo.
Amy Scher,
“We have leased cars seven times. We love leasing. It really works for us.”
People who lease are just about as satisfied with the value of their cars as people who finance according to the latest Consumer Reports reader survey – 66 percent compared to 69 percent.
Leasing also creates brand loyalty. The survey found people who leased their last car are twice as likely as people who bought their last car to get the same brand again.

“The big attraction to leasing is the lower monthly payment. You can drive a pricier car than you may be able to afford to buy.”

Leasing a Hyundai Sonata for instance can cost as little as 199 dollars per month with a
19-hundred dollar down payment.  Monthly payments on a five year loan for the same car would be around 350 dollars, depending on the terms.
But Consumer Reports says a lower monthly payment should not be the only consideration when it comes to cost.
Margot Gilman,
“When you lease you’re essentially renting the car long term and own nothing at the end of the contract. With a purchase you’ll almost always have some value in the car at the end of the loan.”
And with leases, you can face extra costs if you terminate the lease early or exceed the mileage,  typically around 12 to 15 thousand miles a year.
Margot Gilman,
“Our survey found that the main reasons people decide against leasing is they think they’ll save money by buying, they plan to keep the car longer than the leasing terms, and they don’t want the mileage limit.”
Amy Scher epitomizes the loyal leasing customer. She always leases a Volvo.
Amy Scher, “We have leased cars seven times. We love leasing. It really works for us.”
People who lease are just about as satisfied with the value of their cars as people who finance according to the latest Consumer Reports reader survey – 66 percent compared to 69 percent.
Leasing also creates brand loyalty. The survey found people who leased their last car are twice as likely as people who bought their last car to get the same brand again.
“The big attraction to leasing is the lower monthly payment. You can drive a pricier car than you may be able to afford to buy.”
Leasing a Hyundai Sonata for instance can cost as little as 199 dollars per month with a
19-hundred dollar down payment. Monthly payments on a five year loan for the same car would be around 350 dollars, depending on the terms.
But Consumer Reports says a lower monthly payment should not be the only consideration when it comes to cost.
Margot Gilman, “When you lease you’re essentially renting the car long term and own nothing at the end of the contract. With a purchase you’ll almost always have some value in the car at the end of the loan.”
And with leases, you can face extra costs if you terminate the lease early or exceed the mileage, typically around 12 to 15 thousand miles a year.
Margot Gilman, “Our survey found that the main reasons people decide against leasing is they think they’ll save money by buying, they plan to keep the car longer than the leasing terms, and they don’t want the mileage limit.”

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