If you have ever bought a new car you have probably asked yourself whether you should buy or lease. Advertisements make leasing sound so attractive. After all, how can you lose with a lease payment that is only half of what a new car payment would be, right? Wrong. Leasing is a wealth trap that you must avoid if you want to build a smart nest egg.
Leasing is worse than borrowing
The first thing you need to recognize is that a lease is debt in a different disguise. But lease debt is much harder to manage than a car loan. When you take out a car loan, you actually own the car. If something happens and you need out of the . When you sign the lease to a new car, you obligate yourself to make those contractual lease payments. If you fail to make the payments