Leasing versus car note

If you're on the fence about it, then you should lease it.

Only lease if your company pays you allowance, otherwise it's a terrible idea.

Buy it

I haven't owned a car since 1992 and have leased more than a dozen since then. Stick to the factory sponsored leases that you'll find on the manufacturer's web page under special offers. These will always be better deals than any lease concocted by the dealer but it means that you have to stick with the stock vehicle specified in the offer, no customizing or upgrading. Don't worry about excess wear and tear; I've never paid an extra penny for that on any of my leases.

Leasing is a lot cheaper? Eh, I doubt that.

Leasing only makes sense if you have a car allowance that pays for it or you plan to drive a new car ever 3 years.

Otherwise, owning assets is almost always best.

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owning assets

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every day vehicle is actually a liability, albeit a necessary one

Hasn't been mentioned yet, check with your insurance company as well. Some manufacturers require higher coverages on a leased vehicle and that needs to figure in.

I leased a really nice car ONCE. Was all happy until I found out that with the increased insurance I could have bought it for less.

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And leasing is a lot cheaper.

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I'll take the bait.

Leasing provides a good deal for four parties - the sales person, the F & I guy, the dealership’s owner and the finance company (leasing company). It is a lousy deal for the customer. You owe something, but you own nothing. Leasing adds a layer of complexity to the deal that allows the salesman to hide or misrepresent the true purchase price.

Leasing has become an incredibly effective tool for dealers to sell their product at a significantly higher price and profit margin and is often “pushed” or “encouraged” through the sales process.

Leasing makes the car more affordable and therefore easier to sell. The buyer gets focused on being able to drive a nicer vehicle for a lower monthly note than what they most likely could not afford to buy.

Leasing allows the customer to afford a more expensive car, and the more expensive the car, the larger the profit.

Leasing allows the dealer to legally hide the true cost/price of the vehicle and charge you a higher price than you would normally agree to.

A leasing customer is more likely to return to the same dealership to get their next vehicle and next vehicle and next vehicle. Even though your original sales person will be long gone, the dealership is able to maintain customer retention and that’s where it pays off in the long run.

Leasing is a convenience that you’ll pay for in the end. Put another way, if you can’t afford to buy your next vehicle with a four-year loan or less, then you really can’t afford it. The better deal long-term is to buy a reliable vehicle (good, late model used vehicle or lower priced new vehicle) and hold onto it as re-leasing every three to five years is no way to build wealth.

But but but .... I don't want the car that I can afford