New car sales are red hot in 2013.
And almost 25 percent of new cars now being leased – that’s the greatest proportion since the 2008 recession all but ended leasing for several years.
But, when does it make sense to lease? And when should you stick with a purchase?
Reasons to Lease
The average new car now costs more than $30,000.
That makes the average loan payment now $464 a month, according to MSN Money . And, for many potential car buyers, that's a deal breaker.
As a result, leasing is back in a big way. You can get the same car for a lower monthly payment if you lease. If it’s a car with great residual value after 3 years (the Honda Civic, for example), your lease payment could be half a purchase payment.
The car buying site Edmunds.com says you could be a good candidate for leasing:
Reasons To Purchase
But, there are times when it doesn't pay to lease.
Edmunds.com says you should purchase a car if:
If you do decide to lease, you can try to haggle on the price. And, make sure that you take that sometimes hefty up-front fee, divide it, and add it to that low monthly payment a lot of companies advertise.
Remember: While leasing will typically get you into a more expensive car than you could afford to buy, you have nothing to show for it at the end of the lease.
Copyright 2013 Scripps Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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