Some Car Leasing Thoughts

There are a few things to keep in mind before getting into car leasing. This may help you better understand the advantages over buying a car.

1. It's cheaper to buy than to lease. – Although this may seem to be the case because leasing ties you down to a contract wherein you have to pay every month for the duration of that agreement, this is not true at all in some cases. For example, let's say you lease a car for 3 years and have a monthly payment of $489. Turning in the car means you pay you pay a $395 turn-in fee and then you can walk away. But if you bought it and paid for 5 years at 7.9% then that makes your monthly payments up to about over $500. Of course, at the end of the five years the car will be yours to own but you would have paid a substantially higher amount.

2. You can't negotiate a good lease. – This is not true at all. You will be surprised at the offers that are made to you if you know how to haggle. Remember that car lease companies will try to add a little extra so that they can gain a little. You don't need those extras so make sure that you bring down the contract to as small a price as you can.

3. You get a tax break. – Yes, individuals can get a tax break, and they are not exclusive to just businesses. In many states you pay sales tax on monthlies but not on the price if the car.

4. Turning in a car means huge fees. – Untrue. You can actually negotiate a higher limit when it cones to mileage instead of a higher monthly payment. The result? Significant savings for you.