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Leasing Your Next New Car: Is It Really A Good Choice?

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When it gets to be the time and the old car just isn't doing it for you anymore, you might want to consider a lease rather than buying a new car. There are some great reasons to think about leasing but it isn't for everyone. If you have never considered a car like a Lexus for lease, now might be the time to give it a shot. Here are a couple of things you might think about when it comes to leasing; this article will examine the truth of each statement.

Leasing Means You Never Own The Car

That is really not true. A lot of people opt to trade in their leased car at the end of the lease term and get a new car but it is not required. You can keep the car and continue paying the payments for the remaining buyout on the car. The terms of that might be different from one company to the next so you will need to talk to the finance company and see if the terms that they offer are going to work for you. If you go that route, you will own the car at the end of the term, just as if you financed and purchased the car.

Depreciation Makes Leasing A Bad Idea

Again, this is not really true. While a leased vehicle does depreciate, the car is worth more to the dealer if you trade it because they can now sell the car that was leased for 3 or 4 years. Not only did they get your money, they are going to sell the car outright as a previously leased car and most leased cars have low mileage which adds to the value of the car. You get a new car, the dealer gets to sell your old car again, and someone else gets a good deal on a used car. It really is a win-win situation if you are going to replace your car in 3 years anyway.

You Will Always Have A Car Payment

In most cases, people who lease a new car every few years don't mind having the payment because the trade-off is a new, dependable car every couple years. Many of those people would trade in the car for a new one if they bought it but would have more hanging over their head because the remaining price of the car needs to be taking off as part of the trade in deal or added to the new loan for you to absorb. It is not very often that a trade in value covers the entire outstanding loan unless the car is in very good condition. If it does, you would not have any added cost to worry about but if you wanted to get rid of the car payment, lease the car to term and then you can buy it out and you will own it. Just like a traditional loan.