Posted by
Paul Allen
Notre Dame Fan
Boca Raton, FL
Member since Nov 2007
48385 posts

re: looking to buy a new car soon...
More Car, More Often
Since monthly lease payments are lower than with buying, you get more car for your money and drive a new vehicle every two to four years, depending on the term length of your lease.

Fewer Maintenance Headaches
Most people like to lease for a term that coincides with the length of the manufacturer's warranty coverage so that if something goes wrong with the car, the repairs are always covered.

Lower Up-front Cash Outlay
Most car leases require little or no down payment, which makes getting into a new car more affordable and frees up your cash for other things. However, you can choose to make a down payment, or trade in your old vehicle, to lower your monthly payment amount.

Will Cover
Miami (FL) Fan
Naples, FL
Member since Mar 2007
32623 posts

re: looking to buy a new car soon...
• 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.

• It 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 the equivalent of throwing a $100.00 bill out of your vehicle’s window every week for 3 years in terms of depreciation.

The bottom line is this … any way you look at it, 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.

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Member since Sep 2003
79792 posts

re: looking to buy a new car soon...

Work on the price of the vehicle first. As a backup, you should have your financing pre-approved through a credit union or through PenFed.
Sage advice.

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