Thursday, August 11, 2011

Leasing a Car

I thought this was an obvious no-no but it has come to my attention that there are still smart people out there who trick themselves into thinking leasing a car is a good idea.

Think about this: Anytime a convenience factor is added in there is a cost associated.

There is the price of buying a car outright.
For people who do not save up the money to buy a car outright, 
there is a fee added (called interest), which makes the total price of the car higher.
For people who cannot afford the payments on a car, 
there was created another product called a lease. 
The fees are even higher and the restrictions stricter.

If leasing is so expensive, why do people still lease cars? The most popular reason is because they erroneously make judgment calls based on the size of the payments instead of on total cost. The payments are indeed small, but the total cost of the car is higher AND one never gets to own the car! If people took the time to do the math, they would never throw thousands of dollars at a car they will never own and thus will never be able to sell or trade in for another vehicle.

Bottom line: If you lease a car for lower payments, it means you cannot afford the car. Leases were created for people who cannot afford to buy.


  1. One of the most unique blog I have ever come across is this one! Yes, the major factor highlighted by this blog is that leasing car option was created for the ones who cannot afford to purchase a new car.

    Cheap Cars For Sale

  2. And then the other type will be interior detailing it includes brushes not to mention liquid chemicals. Each not to mention every surface with the car i just. e. dashboard, visors in the instrument aboard and control system is rinsed up in your interior showing. edmonton car shipping

  3. Even if you are a new car dealer and you have so many cars to transport, all situations are usually taken care of in Auto Star Transport and Logistics. This is because the entire staff organization is trained to maintain a positive relationship with their clients and the best car carriers in the entire shipping

  4. While you are driving turn off the radio or C.D player to focus on the driving experience and to be able to hear any unusual noise especially from the engine.
    Garanzia Auto

  5. The car loan rates that you choose may also be determined by where you intend to get your car from. Imported used cars are not liked by most car loan companies, or they have a very rigorous process for those applying financing for such. In such a case, getting a unsecured car loan may be the best

  6. What time of day/time of year are you going to do the installation? If it is in the summer where it is 100°F you will be very hot and sweaty. viper remote start

  7. In the event that you need to find out about them you can look at the affirmed pre-claimed vehicle programs at Ensure that you don't purchase a lemon utilized car. Acura Wheel Size

  8. A salesman does not have to know everything - they just need to know where to discover the appropriate responses that are important to the client to move them through their purchasing choice.

  9. An individual is frequently judged by the auto he drives. For the individuals who have extravagant vehicles and costly models like games autos, they are unquestionably thought to be a well-off part.Mohammad Amani

  10. I would like to pay special thanks to my fellow Jim. Without his support and encouragement, I could never have been able to get an insured car at such low price. Jim