I read an article about leasing a car. I actually thought leasing a car is a good idea. Especially for people who like the idea of having a different car every year or so. This does not seem to be the case anymore.
If dealerships want customers to come back, they should provide the consumer a reason to come back. By charging extra fees when returning the vehicle, I am pretty sure a customer will look elsewhere when buying a car.
The problem I find with leasing, renting, or any other method where you are not purchasing an item on the spot, is that the seller may include stuff that may make the person pay more than what he/she expects. In most cases, the person is unaware of this until it is too late and the purchase is repossessed and/or the person is charged extra fees.
The problem seems to be that there is no real standard when creating contracts of these types. If a standard contract is created, people will know what to expect. Furthermore, a dealership should put a fixed price for possible repairs on the end. This way the person will know how much to pay. It maybe more or less the actual repair cost, but at least the person will know beforehand. It is not a surprise.
I look at mortgages, and see that there are conditions, but this is standard. Everyone knows what to expect when taking out a mortgage. If you don’t pay, you lose your house. There is no surprise here.
The article can be found here.
Another option that many people like is to purchase a used vehicle. Everyone should know that a vehicle loses most of it’s value during the first few years. Therefore, purchasing a used vehicle can be a very economical thing to do.
Unfortunately, there are a few things that can make a used car more of a liability than an asset. A used car will have wear and tear. If you don’t know how to check the car to see if it needs servicing soon, you may end up paying more than the car is worth in repairs. Therefore, hire an independent mechanic to check the vehicle first before buying the vehicle.
Next, check the car for any liens. It may seem like a waste of money, but if you drive your car for a year and then it is repossessed, I am pretty sure you will regret not paying the extra $50 or so dollars to get a lien check done.
These are two of the most important things that can be done before purchasing a used car. There are others, but I will leave it up to you to decide if you would like to do the other stuff too. I find that the other stuff to check for can be skipped, but I could be wrong.
You can read the article here
In any case, for any purchase that you make that has your name on it, do a lien check. Houses and cars need to have this done. Businesses too, but this is rarely mentioned. It is a small price to pay for peace of mind. Everyone knows that stress shortens your lifespan, so do the right thing and live long and be happy.