The Stanly News and Press (Albemarle, NC)

Features

March 26, 2013

The pros and cons of leasing a car

(Continued)

We'll start with an expensive car, like the Audi S5 coupe.

To lease the vehicle, the dealer determines how much depreciation should occur from the $50,900 MSRP when it's in the showroom until you return it three years later. The dealer applies an interest rate and amortization schedule, adds in some other fees and charges, and comes up with a monthly payment.

To purchase the same car a consumer would have to put down as much as $10,000, with the monthly payment reflecting the full value of the vehicle.

For that reason the buyer would likely be making payments longer than three years. Some payment plans for a car in this price range could easily extend six or seven years.

The Chevrolet Cruz, with an MSRP of $17,130, would most likely carry a much smaller lease payment but would lose a greater percentage of its value than the Acura.

To purchase the Cruz you would need a down payment of no more than $2,500 and the montly payment, while higher than a lease payment, might only be for three or four years. At the end of that time you would own the vehicle. So it would seem a lease probably makes more sense for an expensive car and less sense for an inexpensive one.

But many personal finance experts say it depends on a lot of factors. Do you change cars every three or four years or do you drive one until the doors fall off? If it's the latter then buying is a better deal. But if you change your wheels more often, then leasing starts to look like a better deal.

Just like buying, it only becomes a good deal if you negotiate one. Many consumers don't realize that a dealer will negotiate a lease, just as they would a sale. To dealers, there's very little difference. The consumer should view it the same way, and that means not paying so much attention to the monthly lease payment, which is what the car commercials flash on the screen.

Three things

Text Only
Features
  • Can black women have it all?

    In a powerful new essay for the National Journal, my friend Michel Martin makes a compelling case for why we need to continue the having-it-all conversation.

    July 29, 2014

  • This Weekend in Stanly County

    After a week at work, weekends are a good time to get out into the fresh air on these long, balmy summer days. Stanly County offers plenty of places for you to do just that.

    July 29, 2014

  • Ruth Moose Author inks book deal from 26-year-old draft

    After 26 years tucked away in a drawer, one might think the story had grown stale, that it had sat in the dark too long to be revived into something palatable.

    July 28, 2014 1 Photo

  • Uwharrie Players No. 1 Anyone know whodunit?

    So whodunit?
    Forget Col. Mustard, the library and the candlestick, this time it was the drama student in the Jesse F. Niven Center with the bottle of poison.
    At this year’s Uwharrie Players Drama Camp, campers took the stage not just to act, but to figure out who poisoned Gladdis, the talent scout.

    July 21, 2014 3 Photos

  • Kudzu Quiche A Bonus in Study of Invasive Species

    High School students who chose to study invasive species during their week at the National Environmental Summit at Catawba College probably didn't think they'd be baking a kudzu quiche. But they did, and they served it, along with other kudzu creations, at the final festival.

    July 19, 2014

  • Pottery No. 1 Wheel of Clay

    Rome wasn’t built in a day and a potter wasn’t made in one either, Seagrove potter Sid Luck, 69, said at his pottery class at the Niven’s Center Tuesday.

    July 15, 2014 3 Photos

  • Archie Smith Psaltery Sounds

    About two years ago, Archie Smith got into an argument with his table saw.
    As he says, the table saw won.

    June 30, 2014 3 Photos

  • P1160049_zps0528ec83.jpg Jammin' at Junior's

    Benjamin Franklin once wrote: “ … in this world nothing can be said to be certain, except death and taxes.” If Franklin was alive today in western Stanly County, he would need to amend his statement to include “and Friday night jam sessions at Junior Harris’.”

    June 17, 2014 2 Photos

  • KelliePickler_TheWomanIAm_LPCover.png Kellie Pickler set to release album with limited edition vinyl pressing

    NASHVILLE, Tenn. – Black River Entertainment announced the release of a limited edition vinyl version of country music singer/songwriter Kellie Pickler’s critically-acclaimed current album, The Woman I Am.  This is the first vinyl album for Kellie Pickler, and it features exclusive cover art, different from the CD version.

    June 16, 2014 1 Photo

  • wedding (12 of 21).tif Fairy Tales Can Come True

    Once upon a time in Stanfield a little girl was born, but experienced problems during her delivery. Five years earlier, a little boy was born in Georgia with similar complications. Both suffered a brain bleed during child birth and had ventricular shunts placed in their heads.

    June 16, 2014 3 Photos

House Ads
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Featured Comment
Twitter Updates
Seasonal Content
Poll

Will you participate in March Madness?

Yes I watch the games and complete a bracket.
Yes I complete a bracket.
No
     View Results