In this economy, which is better: to lease a car or to finance a car?l was thinking about a 2009 Scion TC.

Leasing is a lot more difficult to get approved today. And it is no longer supported with low interest, high residual rates anymore. leasing use to be a cost effective way to get into a new car. But now many lease payments r as much as a purchase payment.

If u drive 12,000 miles or less per year & plan to keep the car no more than 36 months, a lease may still be better than a purchase. But not by much. It used to be u could save a lot even with a 15,000 miles/yr lease. But those days r over.

Ask the salesperson for numbers on a lease & a purchase. How much do u have to put down to start a lease? How much to purchase? And most importantly, have them run ur credit so they will know if u even qualify for a lease.

The rule of thumb in leasing today is that it works well for u if u drive 12,000 mi or less per year & want the car only for 36 months. Never take a 48 month lease. The residual is so low that it wo not be cost effective over a purchase.

The one advantage to leasing that will always be there, u only pay for a portion of the car, not the whole cost, over the time u use it. The lessor takes most of the depreciation hit since yours is fixed into the lease.

depends on the person and their needs and financial situation.

Leasing is always risky, most who lease seem to feel trapped into continuing the leasing cycle, you also do not have the real pride of ownership. In all honesty, only the rich should buy new cars, most of the financial smarties will back me up on that.

In this economy, & any economy, it is better to pay cash for a car. HOWEVER, if u insist on buying stuff u can not afford, there is no doubt that the lease is the higher priced option. Leases r for rich people who drive a new car all the time. Sure, they get to pay the big hunks of depreciation, but they're rich. That is one of the privileges of being rich, driving a new car all the time.

People who buy cars have the option of driving the car for a decade or two after it is paid for. Those r not rich people, they're just people in the process of getting rich.

You may be better to buy, assuming u can make a good down payment or have a valuable trade vehicle. This prevents u from being upside down on ur loan for most of ur loan term, which is good in today is uncertain economy.

With leasing, u r nearly always upside down, making it difficult if u have to get out of the lease early, which can happen if ur finances r at all unstable. However, if u feel confident about ur finances, leasing might make sense for you, as long as u understand how it works & if it is a good option for you. Here is an article that might help:

http://leaseguide.com/lease01.htm

.