Be honest- are you one of those people who just loves new cars?
I knew it. That's OK, we are in the same boat. I love new cars
just as much as you do. But I like not overpaying just as much
if not more than you do. That's why, when it comes to car
leases, I make sure and really get to know my options and
whether I should be leasing or buying my vehicles. As I've
learned (the hard way) a few times, there are all sorts of
hidden costs involved in leasing a new car. And they aren't what
you think they are. Lets look at a few of them.
1) The monthly lease payment. Did you know that there are
unscrupulous car dealers out there who will blindly rip you off
if you let them. That's right. And your monthly payment might
have been arbitrarily made up by one of these dealers on the
spot just by looking at you and deciding how much money they
should charge you. Make sure and question everything on the
lease form and ask in depth questions as to why you should be
paying what you are. The fine print can be your friend, use it
against the car dealer to negotiate a better deal somewhere
else.
2) Keep an eye on your mileage. This is a biggie. A lot of
people get wooed by the idea of a lease and it's low payments.
However, these same people are living the high life until the
day comes when they have to finally return their vehicle. This
is the day of reckoning because they get charge for overage
miles. It's not a pretty site and it can seriously damage your
bank account. If you lease your car, make sure your mileage
doesn't exceed it's limit.
3) The lack of equity. When you buy a car, you own it (or the
bank owns the note on it). You don't build equity with a car
lease. Your car is basically being rented. Compare the equity
costs and gains before deciding on a least.
There are a ton of other hidden costs involved in car leases
that make points #1-3 look small by comparison. Learn all about
them.
