Leasing: A Waste of Money!
Posted on September 8, 2010
Filed Under Corporate Greed
For some drivers, purchasing a new car can be more of a need rather than a desire. You have to have a car in most areas to make having a job practical, and it turns into this vicious cycle. We all wish we could walk into Birmingham Jaguar Dealers and lay down a wad of cash, but the fact of the matter is, many of us will never be able to do that in our lifetimes. As you visit places that are a little more affordable than Shreveport Mercedes-Benz Dealers, you will be approached with some amazing incentives that will make you want to purchase right away. But, there might be one catch: it is a lease.
So why is leasing not a great option for someone who is on a tight budget and fell in love with a little commuter car from Memphis Ford Dealers? Well, the lease rates may seem incredibly low at the time of purchase, but when your three year term is over, then what will you do? Your option is to take out a loan to pay off the residual value, and it is near impossible to accurately predict residual value from three years away. Dealers will make a guess for you, but a lot can happen in three years; the auto brand might not even be in existence anymore! Or your other option is to turn the car back in to the dealership and either lease or purchase another vehicle.
Leasing makes sense if you must have a brand new vehicle all the time. Perhaps part of your business is impressing clients, and that is certainly easier in a new car rather than an old clunker. But for most of us, leasing is pretty frivolous and all you are doing is continually renting a car. After all the money you spend, you will still never have the title to a car!
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