The Mudcat Café TM
Thread #61904   Message #997415
Posted By: NicoleC
05-Aug-03 - 05:21 PM
Thread Name: BS: Leasing a car - Pros & Cons?
Subject: RE: BS: Leasing a car - Pros & Cons?
LH, if you plan to keep it, don't lease. When you think of a lease, think of RENT. When you buy it, you may be paying interest but a good portion of that is paying yourself because eventually it's paid off and you can get some of that money back either by not making payments of selling.

When you lease, NONE of the money you pay is recoverable unless you buy it out at the end of the lease. Depending on the lease, that buyout price can be good or bad depending on how much of your monthly lease goes toward the price. If you don't buy it out at the end, that money is gone. Period.

Don't forget, unless it's included in your lease, you have to upkeep a leased vehicle even more so thatn one you own. Failure to do so can be costly at the end of your lease. Don't think you will necessarily walk away at the end of your lease owing no money even if you do -- it really depends on the car company and the appraiser, but you can get hit for a lot of cash if you have "too many" door dings, etc.

So in general, there are a lot more costs associated with a lease than it seems, and dealers will push them hard because they are more lucrative for the dealer and the leasing company. It's not a wise idea to lease unless you really want to have a new car all the time, or just can't afford to buy something outright.