Five Point Capital, Auto Leasing<br><br><br><br><p>Leasing a new car can be tricky business. Often, buyers are lured by
the low monthly cost of car leasing, but leasing isn't always the best
option. Experts agree that leasing is a good idea if you regularly
change cars every 2 years and prefer to drive new cars. By leasing a
car, you only have to worry about monthly payments and mileage limits –
not about trade-in values or selling your car privately.</p><p>The
advantages of car leasing become clear for most people who have bought
several new cars in a relatively short period of time. Paying those
high monthly payments can seem like a waste of your budget, not to
mention the depreciation hit you suffer on trade-in. Most people who do
trade their cars in every 2 years or so tend to see a car as a monthly
expense as opposed to an asset anyway, so for them it makes sense to
either pay less or get more car for the same amount per month.</p><p>On
the other hand, car leasing is not the best idea for those who
typically keep their car for more than 2 years. The biggest problem
with car leasing is that it appeals most to those who can afford it
least. Let's look at an example. Say you bought a new car at a monthly
payment of $400 per month for 5 years. Assume that the car will remain
in good working order for about 10 years. That's a total cost of
$24,000 over 10 years, or $200 per month. Let's assume that the car
retained 15% of its original value when it gets traded in after 10
years of service and subtract the remaining $3,600 of value from the
total cost. That brings the average monthly cost to about $170 per
month. Obviously, a lease price of $250 per month would be no bargain,
especially considering the fact that car prices go up and your payments
will probably increase with each new lease.</p><p>In short, leasing
isn't for everyone. If you feel your economic situation is stable
enough, and you like to drive new cars, then car leasing is probably a
good fit. But whether you lease or buy, I would always recommend using
a <a target="_new" href="htp://www.cars-for-cheap.com" title="new car buying service">new car buying service</a>
to get competitive lease or pricing quotes first. That way, you can do
the math yourself and decide whether you should lease or buy.</p><p>Nate Landerman is a veteran of the Internet automotive industry. His website, was built to provide consumers with accurate vehicle pricing information and access to a select group of trusted auto dealers.
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