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Should I lease or buy my next car?Leasing accounts for more than 35% of the 15 million-plus vehicles sold in the United States each year according to some estimates. The large increase was experienced in the earlier years at the time the idea of "better car for less money" was extensively used by leasing company as the marketing tool. Recent trends indicate a slow-down in auto lease as consumers became more aware and better educated about the advantage and disadvantage of auto leasing. The lease lower monthly payment and possible tax advantage are highly offset by the restriction and limitations on use, loss of equity, reduction in networth, and higher operation costs. We invite you to see the comparison table we provided for your convenience. For self-employed and small business owners, lease may not provide the better solution. Why? Because the lower monthly payments will be the only "privilege" associated with auto leasing, in comparison to the severe disadvantages produced by the auto lease contract, particularly the reduction in networth which may affect the small business owner ability to acquire loans or operating capital. Lease may allow you to drive a vehicle you cannot afford to buy; however, it will not give you "more car for less money" or "something for nothing". Consideration in a lease or buy decision should provide the highest weight to the decision maker's "objective" in the acquisition of the vehicle. |
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