Thursday, August 14, 2008

It's Getting Harder to Lease a Car

Leasing a Car is the Most Expensive Way to Operate a Vehicle.

A Marketwatch article addressed many issues that families are facing in a changing economy. Many families have felt the pinch of rising gasoline and food costs.

Most people do not realize that leasing is the most expensive way to operate a vehicle. Both Kiplinger’s magazine and a working calculator point out this obvious fact. I for one am glad that car leases will be slowing down in the near future as I have seen many families get stuck in a lease they cannot afford.

A better option is to bank a car payment for a few months and buy a car with cash. In America we need to live below our means, get out of debt and save enough to buy a car with cash. It is not an easy plan, but doing the right thing never is.

3 comments:

Nick said...

That is the worst financial advice I've ever heard. Live below our means? Buy a car with cash? Taking on huge debt is a good idea? If somebody finances a car, that person doesn't own anything but the depreciating liability. If buying a new or used car, look into leasing.

Why do you think most rich or wealthy people lease? It's all about being in control and not liable for as much.

Justin Lukasavige said...

At first I thought this comment was a joke, but I really don't think it is. My guess is that you don't have much money to your name Nick. Not to make fun of you, but I tell my clients not to take advice from broke people.

I'm not sure where in the post you read that it's a good deal to take on huge amounts of debt. I certainly don't advocate it.

Thomas Stanley points out in The Millionaire Next Door that the average millionaire drives a 2-year old or older paid for car. I'm not sure where you see most rich or wealthy people leasing. My guess is that you just think they are rich because of what they portray. Sam Walton was the richest person in North America when he died and he drove a beat up pickup.

By the way, according to my calculator and Kiplinger's magazine, leasing is the most expensive way to operate a vehicle. Leasing is the same as renting. Are you advocating that we all rent our homes as well?

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