How many people lease their new cars? I've talked to some of my friends and they seem to think that it doesn't make sense to keep the new cars past five years, especially if it's parked outside in the weather all the time. They all lease their cars and get rid of them after the lease is over. They maintain it's just less of a hassle in the long run. I'm not really sold that that's the way to go.
Speaking as a lender LEASE LEASE LEASE LEASE!!!!!!!! We make a killing on those things. Speaking as a buyer... No way. add up the TOTAL cost after five years and unless you run your own business and can write off the whole lease it doesn't make financial sense. Ask yourself one question for ANY financing: Are they giving me this great deal out of the goodness of thier little hearts? Probably not... look for the hdden costs...
Leasing makes sense for those people who "have to" have a new car every two or three years and don't drive a lot of miles. If you are one of those people, you would probably take a huge loss every time you switch cars (if you bought it) as most of the depreciation occurs in the first two years. With a lease, you just give back the car and start over. You are renting the car, and not building equity, just like if you live in an apartment. Look for leases with low down payments, a short term and small monthly payments, if possible. If you want to go this route and are flexible about what you drive, you could also look at taking over someone else's lease. www.swapalease.com is one place, and if you google it, I am sure you will find more. If you keep your car for 5 years, you would be better off buying.
