Comments on: 25 Rules to Grow Rich By #21: Auto Leases

By: Sam

Sam — Sat, 01 Sep 2007 06:54:54 +0000

I work in Auto sales and let me tell you all one thing, leasing is for fools PERIOD. A car is a car, it gets you from point A to Point B. The guys selling cars know one thing you don’t. Here is the secret. You can lease a car but dealerships KNOW FOR A FACT That you will go over in your mileage by a big chunk of $$$$. Then to not pay 5,000 in over mileage fees or wahtever amount is due, they will minimize the debt and “roll it over” into a new lease..its a vicious cycle that never ends. I know one guy who has rolled over his car “debt” 5 times in the last decade.

The best advice I can give is this: buy a recent model, LOW Mileage, PRACTICAL CAR (No luxury cars because wear and tear will cost an arm and a leg) and then drive it till its junk.

Remember: Cars are made for people, people aren’t made for cars

By: Rick

Rick — Mon, 23 Jul 2007 19:04:54 +0000

If you need a dependable vehicle and don’t have access to a shop or otherwise can’t live without your vehicle, leasing or buying new is quite often a legit option. I think the word “never” should be omitted from this article. The word “think” before leasing should be inserted instead.

By: Bruce

Bruce — Sat, 21 Jul 2007 20:05:43 +0000

As an extension on this article, my advice that I give to everyone I know is this. Buy a two year old car, you miss most of the depreciation and get the car for half price. Drive it into the ground or until you can’t stand to look at it. Cars with a little care will last 30 to 40 yrs. Currently of the four cars we drive one is 36, one 30, the other 22. The wife has the newest at 8. None are beaters. Just my advice, but I did retire at 39 with over 2M on a waiters’ salary.

By: Mike

Mike — Thu, 22 Feb 2007 17:14:24 +0000

The problem with that is that 90% of people wouldn’t do it. Oh sure, they’d hang in there and would save the difference for a couple months, but would eventually quit for one reason or another (”Money is tight this month,” or “I NEED those new jeans,” or “I’ll just catch up next month.”). Then you’re still stuck with a crappy lease.

By: localbuyer gordon

localbuyer gordon — Thu, 22 Feb 2007 15:17:24 +0000

what if you lease a car like a jetta that can be leased for $248 a month and take the difference between what you would be paying if you bought it and put that in a savings account.

By: jake

jake — Mon, 05 Feb 2007 10:32:46 +0000

I think it comes down to personal beliefs. I for one want to own what i pay for. To me it just isn’t logical that i pay some entity large sums of money only to walk away with nothing.

I do agree, and you hit it on the spot when you spoke about image being a deciding factor for those who lease. I have a woman, who is very attractive in my work place, and of course she knows it. She has a brand new car about every 1-2 years. She also has two jobs. Some people equate image to success, which a lease is perfect for.

By: Trent

Trent — Fri, 15 Dec 2006 15:07:44 +0000

Obviously, if someone is offering great compensation for leasing, you should lease, but without employee discounts and the like, you shouldn’t lease.

By: Amy

Amy — Tue, 12 Dec 2006 14:58:53 +0000

Never? My MIL leases a new car every 2 years. If she were buying, she would be trading in her used car for a new one every 2 years for the peace of mind. She’s not the sort to haggle, and would take whatever the dealership offered in trade-in. I agree with the original rule: if you know you’ll be just paying for the depreciation either way, leasing is much easier. It might not be cheaper, but I bet it’s close.

Of course, it doesn’t hurt that she gets the Ford employee discount, which makes leasing crazy-cheap in Detroit.