| Which is better? Well that depends
on your unique circumstances. These are just different
ways to finance a car. When you purchase the car you
pay all of the costs up front, such as taxes, title
and registration, and you own the car once the auto
loan has been repaid to the bank. With leasing, the
leasing company buys the car and you pay the leasing
company for the portion of the car you use, which also
means you only pay for a portion of the costs. Here
are 5 questions to help you determine which is better
for you: |
| Leasing is a well respected financial
concept that has long been used in the business world
as a smart method of financing buildings, equipment, and
vehicles, although it is still relatively new to consumers.
As recently as ten years ago, most automobile consumers
had never heard of leasing, much less done it. Now, approximately
a third of all new cars, trucks, SUVs, and vans are leased;
and the numbers are increasing every year. Why?
Because the cost of new cars has rapidly spiraled upwards
over the last few years, often making them unaffordable,
and changes in tax laws eliminated interest deductions
on automobile loans, further increasing the cost of
ownership. In a nutshell, leasing has become popular
because it offers people a way to drive the vehicles
they want, often better vehicles than they could buy,
for less money and less hassle.
With leasing, you at least have the
option of putting your monthly payment savings into
more productive investments, such as mutual funds or
stocks that have the possibility of increasing in value.
In fact, many experts encourage this practice as one
of the benefits of leasing. As attractive as it may
be, leasing may not fit everybody's needs and lifestyle. |
