Why the leasing option is to be avoided

Jun 30 2010 When you are at the car showroom and looking to buy a new or a used car and the dealer has got your interest on a particular car, it is natural that he tries his level best to facilitate a purchase by suggesting options before you.
One such option is the leasing one and something that appears quite affordable, especially if at that point in time, the car you have selected is a bit out of reach due to the price. The reasoning advanced normally is that you would be paying a much lower monthly payment and in line with what you were willing to pay for the lesser priced model.
The reality however is that when you lease the vehicle, you are required to make a down payment and it is only for the balance that you would be charged a monthly lease charge. Another catch is that you would drive away with a vehicle that you will never own and that is not something that is ideal especially when you want to go for another car, since you would not be able to sell this one.

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