If you’re deciding whether to lease or buy a car, focusing only on the monthly payment can be misleading.
According to one expert, you should also ask yourself, “What kind of car owner am I?”
How you answer this question will reveal what you value — if you want frequent “upgrades” or have a “pay as you use” mindset, then leasing may be the better option. If you’re motivated by long-term cost, buying could make more sense.
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Cars are expensive to maintain and seldom considered a lucrative investment, but having one is a necessity in many cities across America.
Most people focus on two things when they’re weighing the decision to lease or buy a car: the monthly payment and how much they’ll use it.
“The conventional wisdom has been that whether you buy or lease is most dependent on how many miles you drive — i.e. if you drive more than 15,000 miles per year, you shouldn’t lease. It’s important, but it’s not the only factor,” Alain Nana-Sinkam, a vice president of strategic initiatives at TrueCar, told Business Insider.
Leasing is popular among millennials aged 25 to 34, according to Nana-Sinkam, making up about one-third of …read more
Source:: Businessinsider – Finance