*A friend of mine recently bought a new car. I was surprised because I knew she had bought a new car only about two years ago, and she doesn’t drive a lot so the mileage is still low. She said that she went to a dealership and asked for a lease because she was “upside down.” I had never heard the term before, but learned it means that you still owe money on a car. Because her old car, the one she had bought two years ago, was still in great shape, she got the lease.
Thinking about this I realize many of us may have this same concern. I purchased a car nearly a year and a half ago, and I love it. But I drive a lot, and don’t want to be concerned with mileage limitations — something a lease forces you to consider.
I also don’t mind having the same car for more than 5 years; whereas most leased cars contract for 3 years. Then you have the option to renew or lease a different car.
If I want to make any changes whatsoever to the car I purchased, I can. Darken my windows, add a spoiler, anything — I can. But if I were to turn around and lease, they want me to return the same car I leased (minus normal wear and tear).
Below are four questions anyone thinking about leasing versus buying their next ride should consider first.
Question #1: How much can you comfortably afford to pay each month for your car? Continue reading