Leasing can be a convenient choice for some and here are some of the pros and cons of this option.
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Pros and Cons of Leasing a Car
AutoGuide.com
Leasing can be a convenient choice for some and here are some of the pros and cons of this option.
Read more >>
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Leasing can be a convenient choice for some and here are some of the pros and cons of this option.
Read more >>
The only thing leasing offers is for you to drive a new car (briefly) at a lower price than owning it as the article states.
The down side is that it is more expensive in the long run, again, as the article correctly points out. Leasing or buying then trading early is always front-loaded with depreciation so you never gain any equity. I drove my Patriot for 7-8 years after it was paid for which drove my cost of ownership into the cellar. Yes they all depreciate, but its a steep drop at first that moderates as time goes on.
The down side is that it is more expensive in the long run, again, as the article correctly points out. Leasing or buying then trading early is always front-loaded with depreciation so you never gain any equity. I drove my Patriot for 7-8 years after it was paid for which drove my cost of ownership into the cellar. Yes they all depreciate, but its a steep drop at first that moderates as time goes on.
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I am glad other people lease cars because I love buying cars off lease... My CPO Infiniti Cost me $17k, at just 3 years old (50% off sticker) and has 2 years of bumper to bumper warranty, and is in immaculate condition, the thing looks brand new.
You are taking good advantage of those who lease. Their loss is your gain.
Ditto. Mine was a showroom leftover in January of 2009.
That is the best policy. Financing, especially long-term financing (more than three years) disguises the actual price of the vehicle. Leasing even more so.
My parents always paid cash. Only time they didn't was when my Dad was in college and money was scarce. They bought a new '66 Chevrolet that was a mechanical nightmare and GM was dodging the warranty (pardon the pun). They up-traded for a much nicer Dodge the month the Chevy payments expired -- coincided with Dad finishing school. The Dodge was in Dad's opinion the best car He ever owned. So they made payments for about 6 years total: Three on the Chevy and three on the Dodge.
I would buy cash too, but the trouble with that plan is that when I've got a nice little nest egg I hate to part with it. So I decide how much I'm spending for a car before I go shopping, make a decent down-payment and finance the rest at whatever gives me the best interest rate. Then I PUT EVERY EXTRA CENT INTO PAYING IT OFF ASAP! If there is a tight month I'll just make the payment. Typically the car is paid off in a year or so. I'll have my 2019 Compass paid off this summer.
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Leasing does offer the perk of driving a new car at a lower price, but the downside is the long-term cost. Buying a car with cash is definitely a smart move if you have the means. Your parents had a great approach, paying cash whenever possible.
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