today we learned about the advantages and disadvantages of leasing.
there are 3 main reasons people lease, rather than buy a new vehicle:
*people who like to drive a new car every few years will pay much less leasing than if they buy. they also don't have to deal with getting rid of their old car, they just turn it in at the end of the lease period.
*lease payments are usually lower than loan payments for any given car.
*leasing gives people the opportunity to drive a more expensive car than they could afford to buy.

There are 3 distinct disadvantages to leasing a car.
first, if you continually lease your cars, you will have never ending payments. if you look forward to paying off your car and owning it free and clear, don't lease.

second, if you decide to buy a car at the lease-end, you'll pay several thousands of dollars more than if you had bought initially. for example, if you buy a car, paying $500 a month for four years, you'll pay a total of $24000. you might be able to lease if for only $400 a month(total payment of $19200), but you'll probably have to pay another$8000 to keep it and if you finance that $8000 you'll pay even more.

third, most leases charge you as much as 25 cents a mile if you exceed the annual limit, usually between 12000 and 15000 miles. if you do extensive driving, leasing probably is not for you.