Myths About Leasing - Part 2 of 5

Myth 2: A lease consigns you to everlasting payments.

It's common knowledge that leasing makes sense only for those who get a new car every two or three years, those masochists who hit the showrooms as soon as a loan is paid off. The corollary is that if you love the no-payment years of owning a car, you should scorn leasing.

Whoa. Not necessarily.

If you want to buy the car at the end of the lease, your contract will give you a right to do so -- at a set price.

And as Myth 1's example shows, you wouldn't be a chump if you went the "lease now, buy later" route. In fact, it affords you some protection. If you no longer want the car at the end of the lease, you can just walk away. If you had purchased the car new, you'd be stuck with selling it or trading it in, and there's no guarantee how much money you'd get.