3 Questions
What is the main disadvantage of leasing a car?
You are paying for the car while it is depreciating the most
What is one of the requirements when you turn in the car at the end of the lease?
The car must be in the same condition it was when you leased it
What is the difference between leasing a car and borrowing the same amount of money?
Leasing costs more because you are paying for the car while it is depreciating the most
Study Notes
- Leasing a car usually costs more than borrowing the same amount of money, because you are paying for the car while it is depreciating the most.
- If you lease one car after another, monthly payments go on forever.
- You need to bring the car back in “as it left the showroom” condition, minus usual wear and tear, and configured like it was when you leased it.
- You are still on the hook for expendable items such as tires, which can be more expensive to replace on a better-equipped vehicle with premium wheels.
- You may have to pay a fee when you turn in the vehicle at the end of the lease.
Learn about the costs and considerations of car leasing compared to borrowing money to purchase a car, including the impact on monthly payments, maintenance responsibilities, and end-of-lease fees.
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