|
Leasing makes sense if you are the type of person who trades-in a car every 2-3 years and is fickle. But there are other factors. Leasing, on paper, is not quite as straight forward as buying and you need to understand all the terms and conditions of the contract. For example, with buying you know the interest rate over the life of the loan. It is black and white. With leasing you need to figure out what that rate is based on money factor. There are other fees as well such as the acquisition fee. The out the door price of the car is a big factor when leasing (price you pay after price of the car, all fees, and all taxes).
People who just focus on a monthly payment (especially when putting large sums down on a lease) are more than likely to end up paying a lot more long term. It is the worst way to negotiate with a dealer.
|