Why car leasing is a bad deal
If you're the type of person that likes a new ride every few years, leasing makes sense. And if you're attracted to the small monthly payments as advertised on TV, what's not to love about a lease? Plenty!
One of the biggest factors to consider, at the end of your lease agreement you own nothing, but have made thousands of dollars in payments. That's like pouring money down the drain. If you purchase an auto instead, you're holding equity in your car. Of course it loses its original value, but your car still has equity even when you drive off the lot.
If you want to sell your car once the loan is paid off, you can sell it privately and use the cash towards your next purchase; or use it as a trade-in to negotiate a better price at the dealer.
Still not convinced? Here' are a few more facts you should know before you lease:
⁃ If you need to get out of your lease for any reason, you will be subject to heavy penalty fees.
⁃ A lease also comes with mileage limits. Exceed that and you're in for a surprise with a per mile charge.
⁃ Anything beyond normal wear and tear or ding and dents can add up to more money too. What's normal? You'll find out once your lease agreement is up.
If cost is a factor in considering a lease, think of buying a good pre-owned vehicle or low price new car. Either way, once your loan is paid off, you've got money in your driveway.
Musicians' Interguild does auto loans and offers affordable rates with extended terms for easy monthly payments. Whether you're looking to buy new or used, we can help you find a payment plan that fits. No down payment and up to 120% financing is available. Call our lending specialists for more details.##