Leasing Tips

It is possible to lease cars for two, three, four or five years. However, the three-year lease is the best choice for most people. The majority of carmakers offer three-year bumper-to-bumper warranties. If your lease is for three years you will always be under warranty without paying extra for an extended service contract. Furthermore, a car really begins to show its age at about three years — right at the time the lease is expiring. Remember, one of the reasons for leasing is to drive a new, or nearly new, vehicle on a constant basis. Why would you lease for five years and be forced to deal with extended warranty fees and higher maintenance costs? If paying for these items doesn't bother you, maybe you should consider buying the car.

Of course, everyone wants a low lease payment, and extending the length of the lease will drop the monthly cost. But extending the lease means you're investing more and more money into a vehicle that will never be yours. It's better to shop aggressively for a competitive lease deal and keep the length of the contract to three years.

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