What are the advantages and disadvantages of leasing as opposed to buying a car?
Advantages: 1) You know you will be keeping your new vehicle for only two or three years. 2) The car manufacturer is offering a “lease special”, featuring low down payment and low monthly payments. 3) Your accountant advises you to lease. Disadvantages: 1) Salesmen love leases because it’s a good deal for them, which means it’s probably not a good deal for you. 2) There may be a penalty for excessive mileage. 3) You need very good credit in order to lease. It’s not always that easy to qualify. 4) You are still required to maintain the car as if you owned it. 5) There may be a hefty return fee at the end of the lease. 6) You will have to get extensive auto insurance, more than if you owned the car. 7) Leases are difficult to terminate early. 8) Your lease payments may not be that much lower than if you bought the car. 9) The lease payments they quote you may not include sales tax. Also visit www.beat-the.com/school/step4- 4.html for more on this topic.
