Clark howard should i lease a car

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Subscribe to Your browser does not support HTML5 audio. The downsides of leasing are primarily financial: the lease terms, mileage allowances, wear and tear assessments, and insurance issues. He cites the numbers not working out in your favor as just one example of leases being a bum deal for most people. Other potential drawbacks to leases include:. According to a study by the U. Department of Transportation Federal Highway Administration , the average American drives 13, miles per year.

Those fees are typically around 20 cents per mile. If the car you lease suffers any damage beyond what would be expected with normal use, you may have to pay for repairs when you turn it back in to the dealer. Depending on the severity of the damage, this could add hundreds or even thousands of dollars to the cost of your lease. If your leased vehicle is totaled in an accident, you could be responsible for a giant difference between the amount the insurance company will pay and the stated residual what the dealer says the car is worth in the lease.

Ask the dealer when you lease for free gap insurance to protect you. All of that said, Clark has identified two cases where it might make sense for you to lease a car. They are:. Some drivers see their car as a status symbol. They like to lease because they want a fresh set of wheels every few years.

Some automakers will try to improve the attractiveness of their vehicles through generous leasing deals. But smaller mileage allowances can sometimes be part of these deals. Dealers are constantly tempting potential customers with lease deals, but you should beware.

Unless you meet the qualifications above and are willing to take a financial hit, buying is almost always a better option than leasing. Home Cars. Best Credit Card Welcome Bonuses for - If you're in the market for a new credit card, you may be hoping to cash in on the hundreds of dollars in signup bonuses offered to new customers.