To Purchase or Not to Purchase - That is the question

I wrote software for a company that helped business owners run their business successfully. In addition, many times the company also helped these individuals with their personal finances as well. So, I learned a great deal about what people did that helped them keep money in the bank. I also learned a great deal about what people did that affected their financial value.

Value Loss
Unfortunately, once you purchase a car and drive it off the lot, the car looses a great deal of value. Of course, there are some cars that retain more of their value over time. Since, these makes and models constantly change, I cannot list them here. So, if you care about future value, I suggest performing trending research.

As for me, I haven’t purchased a new car in 12 years because of this fact.


Leasing - Modern Cars Are Built Pretty Well
In my humble opinion, modern cars are built with reliability in mind. Most leases usually last from four to six years. So, after the lease expires, modern cars will probably have four to six more years with little issues.


Leasing - Mileage Considerations
A lease will always specify an upper limit on miles. So, if you go over this predetermined number of miles, you will have to pay for the miles over this agreement. But, on the other hand, if you are way under, you get no credit.


Leasing - No Customization
The lease agreement will require you to return the car with only normal wear and tear on the vehicle. For the most part, it cannot be modified. You had better not chip it, not upgrade the wheels, not modify the suspension …


Leasing - Zero Ownership
After all the lease payments, you end up with nothing. You don’t own the car. So, you will either need to purchase a car or enter another lease. This differs from when you purchase a car. Although, once a car leaves the dealer’s lot its value decreases, it is still worth something.


Leasing – The Dealer Determines What is Normal Wear and Tear
After the lease, the Dealer will examine mileage of the car to ensure it is below the mileage specified in the car. In addition, they will examine the car and any damage that isn’t considered normal wear and tear. For anything they find, you’ll have to pay for it to be fixed.


Therefore, because of these facts, I have never leased a vehicle.


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