Angie's List: Leasing vs Buying a Car

By: Danielle Wallace
By: Danielle Wallace

For many people, leasing a new car can be more appealing than buying a car.

Auto experts say a brand new car can depreciate in value by up to twenty percent as soon as its driven off the lot.

Lease payments are generally lower than loan payments. Monthly lease payments can range from one hundred sixty dollars to well over a thousand dollars. Depending on a vehicle's make an model. a typical lease lasts for thirty-six months. Though some dealerships offer them for one to five years.

Whether you lease or buy, its important to do your research. Never walk into a dealership uneducated.

Experts advise consumers to read and fully understand the lease agreement before signing. Also ask the dealership about gap insurance coverage. If your leased car is wrecked, the insurance will cover the difference between the car's actual market value and the remaining balance to pay the lease off.

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