Buy Vs. Lease ( joel)

By Automotive Staff | March 16, 2009
You're one of the (fortunate) few who got approved by the banks to get a car. But do you buy one -- making payments for the next five years -- or do you lease that dream machine? Here's some advice from MSN: To the typical lessee, perhaps the best aspect of a lease was that dealers bought the car back at the end of the term, regardless of its current value or demand. Furthermore, dealers realized it was to their benefit to ensure that these rentals were taken good care of, because after all, they'd own the car at the end of the day. In most cases, when you leased a car, you'd get not only the new-car warranty, but also free maintenance for the duration of the term, which is even more likely today. Despite the obvious pluses, the downside was simple: You paid for the convenience. At the end of the lease term, it almost always would have been cheaper to buy the car outright and use it over more years, taking advantage of decreased depreciation over time and selling it when you were done. You didn't really think the car dealer was trying to help out little old you, did you?
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