have you considered a lease lately?
November 8th, 2006Conventional wisdom says that leasing is like renting and financing is like buying, which is why many people prefer to finance their cars.
But is financing owning? The bank owns the car until you’ve made your last payment and often the term is so long you end up driving a car that’s out of warranty. Worse yet if you don’t pay the car off with a shorter, more aggressive term you often end up ‘upside down’ – i.e. owing more money on the car than its worth. And not a lot of scenarios in car buying are less pleasant than having to roll what you owe into the next loan. It’s a slippery slope and one reason the rich get richer and the poor get poorer.
Next time you’re faced with a purchase, consider leasing as well as financing. The former has changed a lot in recent years and not only might it possible for you to drive a safer or more desirable car for a extended test drive before a longer commitment but if the manufacturer is offering lease incentives it might just turn out to be the cheaper option even if you decide to buy the car at the end of the lease.