Asked & Answered
Does Leasing a Car Make Sense?
Q - I am thinking about leasing or purchasing a new car. How can I get the best deal without getting taken to the cleaners?
A - If you don’t want to get ripped off, then don’t lease. Unless you absolutely must have a new car every three years, you are spending way too much to lease. With a lease, you will have payments forever, and you will be paying for the first three years of depreciation, which are the most expensive. Your best bet may be to buy a car that comes off of a 3-year lease. Someone else paid most of the depreciation, so you don’t have to.
Check out Edmunds.com or Kelly Blue Book and see what the car is worth. I’ll give a more extensive write-up on cars in a couple of months. If you just can’t help yourself, ask the dealer what the Money Factor is for the car you are going to lease. Multiply that number by 24. That is comparable to an interest rate. |
