Difference between leasing a car and renting a car?

[DeepBlueX]

I live in boston and plan to stay here for 2 years because of school.

My friend suggested me to lease a car rather than buying one, because roads and weather here sucks and damage cars easily. I think that's a good idea, but then I want to know what's the difference between leasing a car and renting a car? What are the advantages and disadvantages for both?

 

[RossMAN]

Lease = affordable
Rent = super expensive

Perhaps you mean something other than rent?

 

[ElFenix]

if it was only for a couple months renting might make sense, since anything goes wrong with the car they give you another one right away. but two years? either buy a cheap but reliable used one (civic) or lease it. if you lease make sure you get gap insurance to cover anything between the pristine condition the dealer wants it back in and how the car actually is. since you're a student you could get lower mileage, but higher mileage is only like $10 more a month last i checked.

 

[DeepBlueX]

<< if it was only for a couple months renting might make sense, since anything goes wrong with the car they give you another one right away. but two years? either buy a cheap but reliable used one (civic) or lease it. if you lease make sure you get gap insurance to cover anything between the pristine condition the dealer wants it back in and how the car actually is. since you're a student you could get lower mileage, but higher mileage is only like $10 more a month last i checked. >>



so you mean buy a cheap one and then sell it after?

 

[ElFenix]

yeah you could buy like a '94 civic or accord and run it and put a few thousand miles on it (you won't drive much in college) and if you're handy with a wrench fix it yourself and who knows you might sell it for $500 less than you bought it for two years from now. thats damned cheaper than a lease.

 

[RSVandy]

I'm kind of in the same situation. Can college students be able to lease cars easily? Is it easy for a college student to get a car loan? My current car is falling apart.

 

[DeepBlueX]

When you return a car after leasing, do they have to been in a certain condition? My friend told me it doesn't matter.

And what's the minimun leasing period?

 

[ElFenix]

college students will get crappy rates. horrid, actually. see if your parents will let you use their credit. cosign it.

as for lease terms, they're 2 years up to 39 months, in general. i haven't seen any out of that range. and hell yes the car has to be in really good condition. the dealer wants to turn around and sell it as a used one, and they're not here for charity. to avoid penalties you have to be under the miles, have a near pristine interior, and it would be better if your car was not in the sun all day (which fades the paint)

 

[Gusfo0]

To rent a car, at least in Pennsylvania, you have to be at least 25 years old.

Correct me if I'm wrong.

EDIT: Actually they just charge you more if you're under 25. But according to enterprise, you have to be at least 21.

 

[RSVandy]

Yeah, I've heard you have to be 25 to rent a car. I've seen car leases for 24 to 48 months.

Thanks for answering my question, ElFenix.

 

[DeepBlueX]

<< college students will get crappy rates. horrid, actually. see if your parents will let you use their credit. cosign it.

as for lease terms, they're 2 years up to 39 months, in general. i haven't seen any out of that range. and hell yes the car has to be in really good condition. the dealer wants to turn around and sell it as a used one, and they're not here for charity. to avoid penalties you have to be under the miles, have a near pristine interior, and it would be better if your car was not in the sun all day (which fades the paint) >>



In Boston, it's hard to avoid scratches on the car. When I see ppl park, they actually bump the front car and the rear car to create more space.

 

[Gusfo0]

<< In Boston, it's hard to avoid scratches on the car. When I see ppl park, they actually bump the front car and the rear car to create more space. >>

haha you are kidding right? Hitting a parked car won't make it move. It might rock back and forth, but definately won't create more room. UNLESS they are driving at it really fast. Which I seriously doubt.

 

[RSVandy]

I've got another leasing question: What kind of cars can you lease? Are they usually sedans or can you lease anything? I've seen ads where you can lease Jaguars for like $700+ a month or something like that

 

[ElFenix]

you can lease pretty much anything. you pay to drive the car for its best years. that final payment where you can buy the car outright is huge, i call it the dumbest thing you can do financially. making a huge payment on a 2 or 3 year old car, might as well use it as the down on an entirely new one. if you don't make the payment the dealer makees a lot of money selling it as a certified used car with some extra factory warranty tacked on.

 

[Thegonagle]

<< When you return a car after leasing, do they have to been in a certain condition? My friend told me it doesn't matter.

And what's the minimum leasing period? >>


Condition matters a lot. How's your credit? You need very good credit to lease, not so much for financial reasons, but for reasons of perceived responsibility. You are responsible for taking good care of a leased vehicle while it is in your possession.

A lease can be as short as a year, but that's the most expensive, because a new car depreciates the most in it's first year. A longer lease usually means a lower payment.

 

[Cyberian]

There is a large Auto group around here (Long Island) named Potamkin that sells and leases new and used cars.
Check the Auto section of your Sunday paper to see if there is something similar in the Boston area.

 

[StageLeft]

I am confused. I think I'm not the only one!

DeepBlueX are you trying to compare the difference between leasing a car (ie, go to a dealership and lease a car for a year or 4 years or whatever) or renting a car (ie, go to thrifty and rent a car for the weekend) ?

If you're talking about leasing vs. renting renting is for short term and costs a lot of money - like $50 a day or something after insurance and what not. Leasing you do long term - its like a long term rent.

Now, if you're talking about financing/buying a car in this case you end up owning the vehicle at the end. Generally the monthly payments for buying a car will be higher than a lease but you build equity. If you're really looking to spend the absolute minimum amount of money buy a used car.

As mentioned to lease a vehicle you need at minimum some decent credit. You can buy even a new car with limited credit (it acts as collateral against the loan) but if you want to lease anything more than a toyota echo you need some credit. Just because you think you can afford a Jaguar for $700/month sure as hell doesn't mean the dealership is going to let you take one!

 

[andylawcc]

wait, what if I pay by installment? let's say a car cost me 0 down payment, and 299 a month and it will be mine after 36 months.

is that a Lease? or its something completely different

what if I stop paying after 24 months?

 

[Gunbuster]

andylawcc thats called financing (a loan)

 

[Shazam]

<< haha you are kidding right? Hitting a parked car won't make it move. It might rock back and forth, but definately won't create more room. UNLESS they are driving at it really fast. Which I seriously doubt. >>

Sure it does. I once saw a guy in a convertible squeeze into a position by hitting the front and back cars repeatedly. Nutso.

 

[andylawcc]

gunbuster:
what happen if I stop paying the loan? do I get penalized as much as if I do so in a Lease?

 

[Shazam]

Whoa nelly!

Ok, if you're going to keep a car for a couple of years and expect it to get damaged, DO NOT UNDER ANY CIRCUMSTANCES LEASE THE CAR!!!! DO NOT!! DO NOT!!

Why? Because when you lease a car, at the end of the lease term (in your case, 2 years) you have two choices:

&quot;Buy back&quot; the car for a lump sum of money.

Give the car back to the dealership.

Now, it sounds like you won't need the car anymore after two years. So, option #2 is what you would do. Now, when you bring back the car, you will have to PAY for ANY damage done to the car since you got it. So, any scratches, dings, broken glass, spills, funny smells, engine damage YOU HAVE TO PAY FOR!! Not a good deal for you!!

If I was you, I'd get a LOAN from somewhere, and PURCHASE a USED CAR from somewhere.

Go to Edmunds for more info.

 

[Shazam]

<< what happen if I stop paying the loan? do I get penalized as much as if I do so in a Lease? >>

Not paying back a loan is a crime.

My God, are people's financial skills this bad?????

 

[vi edit]

Andy, FWIW, there are no *long term* options for cars that allow you to just &quot;stop&quot; paying.

There are three basic options you have available when &quot;buying&quot; -
1) financing the whole price of the car
2) leasing the vehicles
3) doing a drivers program

In none of those situations can you just stop paying on the car. If you stop paying on a finaced car, the bank will come out and repo the car and wreck your credit history.

If you stop paying on a lease, the dealership (or bank) will come out and repo the car, take you to court over the termination fee, and then wreck your credit history.

In the drivers program, since it is a combination of financing and a lease, the vehicle will still be repo'ed if you fault on your payments, and your credit history will be tarnished.

The only method that I know of that you can just drop a car off and stop paying on it would be going up to an Enterprise or Hertz rental agency and nabbing a car from them. Look forward to paying about $800 for a full months worth of rental.

That would be the only way that I can think of that would allow you to just stop paying on a car at your leisure.

 

[andylawcc]

shazam,

yeah, apparently I am,
I know alot of ppl go bankcrupt temporarily to get out of a loan...


so which way you say would be best way to get a new car? loan or lease?
lease seem quite nasty if sh|t happen to your car... and it could be quite costly.