BUY OR LEASE A CAR (3)
Nice thing to post and completely correct. If a person has the money to buy a car, free and clear, then that's the best choice; preferably a one or two-year old car because it looses most value during the first year or two.
Second option is bank financing or dealer financing. What many people do not know is that dealer financing rates are negotiable. So no fear when it comes to hackling. Do a little homework to familiarize yourself with the different types of interest charged and what that means for the bottom line.
Last option is a lease option for a private person, esp. if people do not read the fine print (mileage restrictions, return condition, etc.)
It goes without saying that leasing is pushed by dealers advertising relative low monthly rates for otherwise unaffordable cars, but the long and the short of it is that by the time all is said and done, it is the most profitable option for the dealer, not you.
... and always buy a car with an eye to keeping it at least 10 years... do the math. Less consumption is better for the wallet and the environment.
Second option is bank financing or dealer financing. What many people do not know is that dealer financing rates are negotiable. So no fear when it comes to hackling. Do a little homework to familiarize yourself with the different types of interest charged and what that means for the bottom line.
Last option is a lease option for a private person, esp. if people do not read the fine print (mileage restrictions, return condition, etc.)
It goes without saying that leasing is pushed by dealers advertising relative low monthly rates for otherwise unaffordable cars, but the long and the short of it is that by the time all is said and done, it is the most profitable option for the dealer, not you.
... and always buy a car with an eye to keeping it at least 10 years... do the math. Less consumption is better for the wallet and the environment.
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If, keeping the car for a long time it is better to buy it but if only for a short time then leasing could be the answer.
Also, when leasing a car sometimes they could have some hidden problems that you will have to deal with.
Once I did lease a car and it gave me a serious problem, not that your own car would not give to you but you would know better what conditions your very own car is.
Also, when leasing a car sometimes they could have some hidden problems that you will have to deal with.
Once I did lease a car and it gave me a serious problem, not that your own car would not give to you but you would know better what conditions your very own car is.
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Created: Apr 2012
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Last Commented: Apr 2012
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Fact: You lease a $25,000.00 car for 2 years at a total cost of $7,536.00. ($314.00 per month). The first year the car loses 25% of its value ($6,250.00). The second year it loses 12.5% of its value (2,344.00). When the car is returned you must pay the full diminished value on top of what you have already paid monthly.
Facts:
. Lease contract amount @ 24 months--------------------7,536.00
. First year diminished value taken--------------------6,250.00
. Second year diminished value taken-------------------2,344.00
. Total paid for renting a car for 2 years-------------16,130.00
. Car resale value after 24 months---------------------16,406.00
(If allowed to purchase at end of lease contract, you pay $32,536.00 for a $25,000.00 car.
Fact:
You can purchase to own free and clear a very nice, hardy car for under $16,000.00.
Shop wisely my friends.