3 Month Car Lease – To Lease Or Not To Lease

Oil baron Paul Getty has said: “If it appreciates, buy it. If it depreciates, lease it.” It is more sensible to own and spend for something that acquires value than buy something that will lose its value over time. Cars are not like properties or houses. The older it gets and the more you use it, the more its value depreciates.

A short 3 month car lease is already worth it in such a way that you can drive off with a newer car after you use up the 3 months of your first lease. The car that you return to the leasing company after 3 months has already lost 3 months’ worth of its original value. The average monthly household budget is usually just enough to meet the family’s basic needs with a little extra amount allotted for a bit of luxury. Car leasing makes it possible for people to drive cars that will not fit their usual budget.

In terms of monetary value, you will be able to sell a car that you buy today for a lot less in the future. A car then, is not really for investing if you look at it in that angle. When you spend for a new car, you will never be able to get your money back completely.

In the same page as Paul Getty’s statement, it is generally better to lease something that depreciates rather than spend so much for it. This way, not all your money will depreciate with it. But before leasing a car, it is always advisable to not only know about its advantages, but also to compare and match these benefits to your lifestyle.