"Is Leasing a Pitfall for Consumers? Not Exactly..." Strategies for Smart Car Buyers

Is Leasing a Pitfall for Consumers? Not Exactly...

People keep asking me if it's safe for them to lease now. They've heard a lot about all the problems with leasing that have plagued Chrysler and the other domestics.

The short answer is that a good lease (if you can find one) might be even better now. Here's why.

When you lease a car you don't have to worry about how much the car depreciates. You just give it back when the lease is over. If you decide you really want an SUV (and can afford the gas) go ahead and lease it. When you're done driving it in three years, the thing might be worth nothing, but it's not your problem.

(By the way, if you want to hear more about trends in the leasing business, you should check out the interview with GM's Troy Clarke when he visited Edmunds.com's Santa Monica, Calif., offices yesterday.)

Here's another little wrinkle that's interesting for people already in leases. If you're currently leasing a fuel efficient car, you might want to check its Edmunds TMV price. It's possible you could buy it at a bargain price and resell it at a profit. But be careful of sales tax -- that can wipe out any money you would otherwise make. Here's an article about buying your leased car.