Is it better the Lease a new car or to finance it to own?
Is it better the Lease a new car or to finance it to own?
user
That’s a very interesting question, and one that comes up often. It’s true that leasing often costs more than buying, and also that you can pay off your car in a few years with a financed car and then own it. But there are other trade-offs. It’s often easier to lease, and to get a nice car without having to pay extra for an upgrade.  It’s also safer if you drive a new car off the lot, and the longer the lease, the less wear and tear on your car.  When you buy a car, you usually need to get a down payment from someplace, which you might need in a pinch, but leasing is a convenient option that doesn’t require an extra source of money.  In general, I think it’s a very good idea to be buying new cars.  What do you think?
assistant
Oh yeah. I really would prefer to get a new car! I just am not sure if I can afford it.
user
Can you tell me more about why you’re hesitating to get a new car?
assistant
I am afraid to add more payments to my budget.
user
That sounds wise!  Many people run into difficulties when they have too many payments.  How much extra would it cost to get a new car?  Are you familiar with the words “APR”, “interest rate” and “principal”?
assistant
I have a general understanding, yes.
user