Is It Cheaper to Buy or Lease a Car?

it's easy to understand why so many

people lease the payments are lower you

get a new car every three years and you

turn it in when you're done but what's

better for your bottom line buying or

leasing figuring out which is gonna cost

more it's pretty straightforward all you

really need to do is add up to payments

for example see I'm looking at a thirty

thousand dollar car if I buy it with a

three year three percent loan an online

calculator tells me my payments will be

eight hundred and seventy two bucks a

month times thirty six months that's

thirty one thousand three ninety two but

if I sell it after three years I'll

recoup say sixty percent or eighteen

thousand dollars something out of pocket

cost will be thirteen thousand three

ninety two let's call it thirteen grand

next leasing same thirty thousand dollar

car the dealer tells me with a thousand

dollars down a three year lease will be

five hundred bucks a month or eighteen

thousand over three years total costs

thousand down eighteen thousand and

payments nineteen thousand dollars

so leasing will cost me nineteen

thousand buying thirteen thousand in

this case buying cheaper now if you

can't afford nine hundred dollars a

month for a car payment

obviously the math doesn't matter you

may have to lease at least if what

you're looking for is a new car but if

you're gonna do that here's some advice

forget that monthly lease payment

instead focus on the big three number

one capitalized cost that's what you're

paying for that leased car it's a single

most important thing next the money

factor that's the interest rate you're

paying and finally the residual value

the value of the car at the end of the

lease bottom line when it comes to cars

buying is often less expensive than

leasing but if you're going to lease

forget to payments negotiate that

capitalized cost the purchase price and

that interest rate let the payments take

care of themselves what you do now is

more information just go to money talks

news calm and do a search for buy or

lease for money talks news I'm Stacy

Johnson want to get a deal on wheels get

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