Car Leasing 101 - Car Depreciation, an Advantage to Leasing a Car

Investments 101 – Buy What Appreciates, Lease What Depreciates

The average cost of driving a new car is rising faster than the average income. It makes economic sense to consider leasing your new vehicle. Vehicles can be one of the worst depreciating investments. As soon as you purchase a car and drive it off the lot, that vehicle has depreciated substantially. Your residual value is returned upon a fair value sale, but why wait out the years before that happens. So as to not loose on that investment into your vehicle, an option is to lease. Leasing a car may require no money down with approval, giving the consumer more money in their pocket – immediately.

Leasing means you only purchase the portion you agree too use, not the life time expectancy. This will reduce your monthly payments (define: base monthly payments). Financial advisors and experts agree that you should purchase items that appreciate in value, and rent or lease items that depreciate in value.

Part V: Advantages of Car Leasing - More Cash