Edit: The above example assumes the same car, to keep things constant. So I had this in mind when comparing the two options. So in the end, the leasing-to-own route keeps monthly payments always lower than financing outright would be, both during and after the lease period.
I've always financed my cars, but I have a friend who swears by leasing-to-own. Didn't really explain that in the post, my bad. Lease-to-own
h1>Cars: Financing w/ large down payment vs. Then, once that's up, to own it, you can finance the remaining value of the car, which is less than the amount you would've been financing had you financed from the get-go. What are they? Is it b/c you end up having payments for longer? Or do you end up paying more in interest?
So surely there are some drawbacks/trade-offs to leasing-to-own. I know some leasers tend to go with fancier cars b/c payments are lower during the lease. She described her reasoning yesterday and made it sound great, but I Jeep liberty 2008 in nigeria was left thinking, what's the catch?
Edit 2: "w/ large downpayment" is in the title b/c when I finance, I always make a large down payment to keep monthly payments low. I'm new to leasing, so can someone with experience weigh in? Thanks! Sounds pretty good, but if this were correct, everybody would lease and no one would finance. Her reasoning: When leasing, your monthly payments are comparably lower for the duration of your lease than financing the same car would be.
Beyond that, all maintenance is paid for during the lease (as opposed to financing where it's on the owner), so you save money there too.