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When is leasing a vehicle actually a good, financially sound idea?


A good rule of thumb is that if you want a new car or truck every couple of years, leasing makes sense because a lease typically involves lower up-front costs than buying a vehicle and you'll always have something that's new or newish. There is a negative side to it, however: Lease contracts call for a maximum number of miles - often not very many - before the firms start making additional charges. If the vehicle is turned in at the end of the lease period with blemishes, scrapes or whatever is deemed to be excess wear and tear, there can be charges for that too. You could end up feeling as though your wheels aren't really yours. That's the truth, of course, but will you really be comfortable driving a car that doesn't feel like yours? On the other hand, if you have to take out a hefty loan to buy a vehicle, then it's liable to feel as though it belongs to the bank and not you. That will be fairly close to the truth.
-Conrad de Aenlle