Perhaps the most frequent question asked of us by our friends and clients shopping for a new car is whether they should finance or lease their next vehicle. Car dealerships and manufacturers promote leases heavily in their advertisements, and some dealerships push lease deals pretty aggressively. They point out lease payments are lower than the car loan payments. But, is leasing really cheaper on a long term basis?
The short answer to the question – most of the time – is no. Many consumer advocates emphatically state that “Leasing is Fleecing.” But, the reality is more nuanced and complex.
Over the next couple of weeks, we will publish a series of nine blog articles that will explain how leases work. We will discuss the good, the bad, and the ugly aspects of leasing. We will also discuss some of the games that dealers play with respect to leases. And, we will give you our recommendations on whether you should lease your next vehicle.
Here is a spoiler alert: we do NOT recommend leasing for most people. There are significant downsides to leasing, and there are several scenarios where a decision to lease could have very serious financial consequences for a consumer. We will discuss those potential risks in future articles. We will also discuss those situations where a lease can be advantageous.
If you are considering a lease for your next new car, or if you are currently leasing your vehicle, you might save some serious money by checking out this series. New articles will appear on this blog every couple of days. If you are on our email list, you will receive a new installment every week for the next couple of months. If you want to see new installments as soon as they are available on our blog, you can receive notice of updates by liking us on Facebook or by checking our site every couple of days.
Future Installments: The links below will go live as each new article is posted.