Lease Vs Buy?

While the payments for leasing appear lower it may not be in the long-term. Realise you still have to pay taxes and administrative fees EACH month on those payments. Those advertised payments are the minimum. They are based on the lowest MSRP and it is pretty rare that this will be the car you will leave the lot with. There are definitely extras you wish to pay for - like increasing the allowable mileage for this is where they stick it to you at the end of the lease. So, that car that is advertised leased from $169 a month ends up being double that. At the end of the lease period they evaluate the condition and mileage of the car and you may get penalised. You may have to end up buying out the lease which makes the lease actually more expensive than buying a car in the first place. Finally, when the term is up you have no car.

Leasing however does have its practicality and advantages in certain situations. Fleet vehicles for instance. These are company cars and trucks rotated through often. So too would such a thing be advantageous to someone like a realtor or sales person where it is to their interest and advantage to always have a new car. If you are self-employed you can claim a portion of your lease costs, etc.

But if you are a regular person just interested in a personal car, maybe a lease isn't the thing right for you.

On the other hand, payments to own a vehicle are definitely more expensive which people see as a deterrent. But the big plus about this is that at the end of your payment period, you still have a car. You are not paying hidden costs and it doesn't matter how many miles or kilometers you put on it.