What are the disadvantages to leasing a car?
There are three distinct disadvantages to leasing a car. First, if you continually lease your cars, you will have never-ending car payments. If you look forward to paying off your car and owning it free and clear, don’t lease. Second, if you decide to buy the car at the lease-end, you’ll pay several thousands of dollars more than if you had bought initially. For example, if you buy a car, paying $500 a month for four years, you’ll pay a total of $24,000. You might be able to lease it for only $400 a month (total payments of $19,200), but you’ll probably have to pay another $8,000 to keep it — and if you finance that $8,000, you’ll pay even more. Third, most leases charge you as much as 25ยข a mile if you exceed the annual limit — usually between 12,000 and 15,000 miles. If you do extensive driving, leasing probably isn’t for you.
