November 12, 2013
Leasing a vehicle is a wealth depleting habit and that is being kind. Why is that and why do so many people do it?
Leasing a vehicle is a wealth depleting habit and that is being kind. Why is that and why do so many people do it?
Because they want lower monthly payments.. That attracts many people because they don’t view the price they pay holistically. It does end up becoming much more than if you were just going to buy a car. Buy used and don’t get into the pitfall of having a lease.
When yo willu lease a vehicle, there are a lot of administrative and other hidden costs tacted onto the contract, for example, if you go over your milage allowance, you will have to pay more. Leasing is almost like renting the vehile, you don’t get to keep it at the end of the lease; unless you shell out even more money.
You are both correct, well done! Let’s recap.
Leasing a vehicle provides the individual to rent a vehicle they cannot really afford, which is why so many people do it. The car company loves it because they make a lot of money on the deal AT YOUR EXPENSE. Stay far away from leasing your vehicle. Focus on buying (with cash) a 3 or 4 year old used car and then drive it FOREVER. Your financial future will thank you.