Leasing has many alluring aspects, but for the average person, it may not be the best way to buy a car. The main reason for that is the very reason why leasing is so seductive - because the advertising makes you THINK you can afford a much better car than you would otherwise buy.

But the truth remains - the fact that you're paying for the car in small amounts over a long period of time doesn't make it any cheaper! In fact, if you calculate the total dollars you'll spend over the lease, you may be shocked to find it's almost as much as the purchase price of the car - but you'll have nothing to show for it at the end of the term! In fact, if you want to keep the car, you'll have to cough up even more.

If you hadn't been tempted by that shiny car, but had bought a more modest car or even a second-hand vehicle instead - even with a loan - think of the extra money you would have had in your pocket. Money to go out partying, or to buy new clothes, or to save for a home. And when it was time to trade up to a newer model of vehicle, you would have a car to trade in towards your next purchase.

Leasing is a good option for businessmen, because in many countries there are tax advantages to leasing rather than buying, which offset the higher cost. For the average person, leasing is mainly smoke and mirrors.

Learn more about this author, Marisa Wright.
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