Car Lease Or Fleece Part I

Is leasing a car the right option for you? Well, it depends on a lot of factors. Would you like a new car every two to four years? How about a lower payment? In the next two installments I will go over the pros and cons of leasing a vehicle so you can see if this is right for you.

Pros
1. You can drive a new car every two to four years. This is the most common reason people pick leases. The idea of a new shiny vehicle is a powerful inducement.
2. Lower monthly payments because you only pay for the amount time you use the car.
3. Since the monthly payments are lower, on average one-third less than buying a new car, you can get more car for your money. Goodbye Chevy Cavalier, hello Baby Beemer. It's estimated that between 45% to 55% of new BMW's on the road are leased.
4. Most leases require low or no down payment.
5. If you have a "closed-end lease", at lease end, you can pay any charges due, turn in the car and walk away.
6. Your security deposit is actually the last payment. Just like when you rent an apartment, the company want to ensure that you will take care of their property and return it when the time comes.

There are plenty of good reasons to lease. However, in the next installment I will discuss the downside of leasing.