Buying vs. Leasing

March 26th, 2008 at 2:18pm

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Are the doors rusting off your favorite hatchback? Does your trusty old pickup burn more oil than it does gas? If so, you’ve probably thought about treating yourself to a new set of wheels. The only problem is there are so many different vehicles to choose from on today’s new car market, picking the one that’s right for you can be difficult at best. But choosing the right car is only half the battle. The other half is deciding whether to buy or lease. Each option has its plusses and minuses; which one is right for you?

One Comment to “Buying vs. Leasing”

  1. Tom Martin Says:

    As usual, very informative video.

    One additional negative of leasing is the terms of the contract determine when you need to trade up. When you own the car, you can sell at any time.

    I leased a 1996 Nissan Altima for 39 months for my wife. Near the end of the lease I started looking for a replacement. I found a 1999 Maxima selling for $8K below MSRP because the 2000 Maximas were selling, but I had 4 months to go with my Altima lease. Nissan would not let me out of it and I knew the 99 Maxima would not be there in 4 months. I had to buy the Maxima and my wife had two cars for four months–and I made her mainly drive the Altima and let the Maxima sit. I also had a $250 monthly lease payment and a $350 car payment for those four months.