Leasing a Car

Leasing isn't for everyone. It's a rare individual for whom leasing will be a better arrangement than buying outright. If you're one of those individuals, great. But if not, be very careful. Never let yourself be talked into a lease unless you're absolutely sure that's what you want.

If you want to own your vehicle, obviously a lease is not for you.

And if you're considering buying the car at the end of the lease, think again. You'll be able to do so, but you'll pay far too much for the car.

If you always trade for a new car before your old one is paid off, then you might be a candidate for leasing.

You should have a stable income if you're going to lease.

If you anticipate ever having trouble making your payments, avoid leasing. You won't be able to get out of the lease without paying severe penalties. If you're buying a car, you can always sell it if you can't handle the payments. So before you lease, make sure your job situation is certain.

Avoid leases designed for people with poor or non-existent credit. They're always sub-prime leases, and they're usually on used clunkers.

If you drive a lot, be careful. There are mileage allowances built into lease agreements, and if you put too many miles on your leased car, it will cost you.

Shop at two different leasing agencies. Make them compete for your business.

As always, read everything carefully before you sign it. If you do your homework and you're careful, you can get a good deal on a lease.