Leasing. Or Fleecing?

Take a closer look. 

Leasing or Fleecing. Take a closer look.

At first glance, leases can look attractive. But while car companies are shouting about your low monthly payments, here’s what the small type quietly has to say:

You’ll pay extra tax. In Pennsylvania, taxes on car purchases are 6% – but they’re 9% for leases. And there’s no tax credit when a lease is traded in. 

You’ll pay for extra miles. Typical leases allow 10,000 miles, when the average driver covers 15,000 miles a year. So your choice is to ration your driving, or pay a per mile overage – at rates like 25 cents a mile. It may not sound like much, but 5000 extra miles at that rate is $1250 per year. 

You’ll pay for repairs – even if you’re not technically the owner. And you can’t customize with add-ons like an auto starter, because it’s not your car. You’re just renting. 

The focus on monthly payment obscures the real cost. Leasing is actually a more expensive option. You never recover the money down that you put in in the beginning. Should you choose to finance the balance of the vehicle after the lease term, there are additional years of payments. And if your credit is sub-optimal, you may never be approved for a lease at all. 

You’ll pay extra fees. You may not know it, but substantial fees are quietly rolled into the car cost – as high as $1200 at acquisition, and $850 at disposition.

You’ll pay for wear and tear. Every little nick in the car’s finish or chip in your wheel covers can be assessed against your deposit – and often is. 

You’re likely to pay more to insure it. The amount of insurance required is not up to you. 

You can’t get out of your lease. If you experience a change in lifestyle or career, you may not be able to terminate the lease. And if you can, early termination penalties are severe.

Your kids may not be able to drive it. Leases require drivers to be at least 21, and in many cases 25, to drive the car.

You’ll pay extra tax. In Pennsylvania, taxes on car purchases are 6% – but they’re 9% for leases. And there’s no tax credit when a lease is traded in. 

You’ll pay extra fees. You may not know it, but substantial fees are quietly rolled into the car cost – as high as $1200 at acquisition, and $850 at disposition.

You’ll pay for extra miles. Typical leases allow 10,000 miles, when the average driver covers 15,000 miles a year. So your choice is to ration your driving, or pay a per mile overage – at rates like 25 cents a mile. It may not sound like much, but 5000 extra miles at that rate is $1250 per year. 

You’ll pay for wear and tear. Every little nick in the car’s finish or chip in your wheel covers can be assessed against your deposit – and often is. 

You’ll pay for repairs – even if you’re not technically the owner. And you can’t customize with add-ons like an auto starter, because it’s not your car. You’re just renting. 

You’re likely to pay more to insure it. The amount of insurance required is not up to you. 

The focus on monthly payment obscures the real cost. Leasing is actually a more expensive option. You never recover the money down that you put in in the beginning. Should you choose to finance the balance of the vehicle after the lease term, there are additional years of payments. And if your credit is sub-optimal, you may never be approved for a lease at all. 

You can’t get out of your lease. If you experience a change in lifestyle or career, you may not be able to terminate the lease. And if you can, early termination penalties are severe.

Your kids may not be able to drive it. Leases require drivers to be at least 21, and in many cases 25, to drive the car.

Our prescription: a CarSense Certified car

In the long run, buying is less expensive. The average consumer will own their car for 10 years, but pay it off in just 5 – enjoying 5 years with no car payments.  You also save on depreciation. But that’s not all: 

You get more for your money. More options and features. And unlike leases, you can often drive off with no money down.

You get more money in the end. When you own, you have something to trade in on your next purchase. With a lease, you don’t – and you’ll need a down payment for your next lease. 

You get more flexibility. Own the car as long as you like. Sell or trade it anytime. Drive as many miles as you like. Add modifications at will. After all, you own it. 

You get more at CarSense. You can buy a car many places, but there’s no value better than a CarSense, Certified car. You get our one lowest price, with no negotiation, on cars with no dings, no dents, and no scratches. A 5-day return guarantee, a 6-month 6,000 mile warranty on absolutely everything, and a lifetime engine guarantee – all so you can rest assured. And there’s no small print with our payments.  

You get more for your money. More options and features. And unlike leases, you can often drive off with no money down.

You get more flexibility. Own the car as long as you like. Sell or trade it anytime. Drive as many miles as you like. Add modifications at will. After all, you own it. 

You get more money in the end. When you own, you have something to trade in on your next purchase. With a lease, you don’t – and you’ll need a down payment for your next lease. 

You get more at CarSense. You can buy a car many places, but there’s no value better than a CarSense, Certified car. You get our one lowest price, with no negotiation, on cars with no dings, no dents, and no scratches. A 5-day return guarantee, a 6-month 6,000 mile warranty on absolutely everything, and a lifetime engine guarantee – all so you can rest assured. And there’s no small print with our payments.  

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Chester Springs, PA