auto
Car leasing ought to be cheaper
Dear Terry,
I just went online to a site that specializes in terminating and exchanging car leases. Wow. There doesn't seem to be a deal at all in any of the options. I thought that leasing a car was cheaper. By the time I've made these kinds of payments I could have or should have bought the car. Does this seem right?
-- Steve
Dear Steve,
Without knowing which cars you were perusing, many people who use these lease exchange services are trying to dump expensive luxury and sports cars that carry high lease payments, because the cars cost a lot new.
Leasing for many people isn't about a low payment -- it's about getting a fancier car for less than if they had used a conventional loan.
Despite what you may think, you really can't buy a $100,000 Mercedes SL, for example, for the same payments as a lease deal, unless you're in a position to put down a huge chunk of money.
Here are this week's reader questions:
- Do economical cars really save you money?
- Is it ever a good idea to roll one car loan into another?
- Why can't I find a good deal on a lease exchange?
- If a car's invoice price is mythical, how can I make a good deal?