ANSWERS: 1
  • <h4 class="dechead">On One Hand: Leasing is Cheaper in the Short-Term

    Lease agreements usually have lower monthly payments than those on a loan and typically have a zero dollar down payment or a very small one--making it much easier for people on a tight budget to afford the type of car they want. In addition, leases allow a person to dump a car after the lease ends with no other obligations.

    On the Other: Buying is Cheaper in Long Run

    Most people that lease a car give the leaser the option to buy the car at the end of the terms of the agreement. If a person choose to lease to own, it costs them more in the long run than buying it in the first place, according to LeaseGuide.com. The Boston Globe reports that people planning to keep a car more than eight to 10 years should just buy it and experience many years of low-cost driving expenses.

    Bottom Line

    Ultimately, a person has to factor in his inancial goals and personal driving preferences themselves to determine if a lease is right for them. However, according to The Boston Globe, people who do not mind paying more in the long-term to drive a new car every couple of years and hope to avoid most maintenance costs might want to consider a lease.

    Source:

    The Boston Globe: Does it ever make sense to lease a car?

    LeaseGuide.com: Lease versus buy?

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