Angie's List: Leasing a Vehicle

BOISE, Idaho (KBOI) - For many people, leasing a new car can be more appealing than buying new. That was the case for Citrana Harmon Forgenie.

"When we compared both costs we realized that we were better off leasing, and again, considering the fact that we only wanted it for a short period and then needing a new car after several years," Citrana Harmon Forgenie said.

Auto experts say a brand new car can depreciate in value by up to 20 percent as soon as it's driven off the lot.

Lease payments are generally lower than loan payments.
Monthly lease payments can range from $160 to well over $1,000, depending on a vehicle's make and model.

A typical lease lasts for 36 months, though some dealerships offer them for one to five years.

"When deciding whether to lease or buy a car you need to think about your lifestyle. Remember that when you are leasing you're going to get a new car every few years but you're also going to have a car payment even though your car payment is less than if you were buying the car. Additionally, remember that if you are leasing there is usually limitations on mileage so if your office is a long distance from your home you want to be careful you have enough miles on the lease," Angie Hicks of Angie's List said.

Whether you lease or buy, it's important to do your research. Never walk into a dealership uneducated. You need to know what you want and what you can afford.

"When leasing a car it's just like buying a car. You should be prepared and understand how much the car is really worth and go in ready to negotiate. Don't just think about the monthly payment," Hicks said of leasing.