A potential car buyer who is stuck between a good car they can afford and a great car just out of reach is a prime candidate for this next tactic! 'Why not lease!?' We'll tell you!

If you find yourself trying to choose between the car you love and the one you can afford, you're salesperson may drop the 'L' word. 'Why not lease?' they'll say, urging that the monthly payment will be precisely what you were willing to pay for the other car. Tempting? Try to resist. There are a number of reasons leasing is worth avoiding.

Do the Math!

When you lease a car, you are often expected to pay some cash up front, much like a down payment, and then pay monthly for the remainder of the contract. You'll get a great car with more manageable payments, but there's a catch. When you lease a car, you're putting money toward something you will not own. That means if you decide to get another car, you can't sell and hope to break even. You can also pay a fortune for something, fall in love with it, and then be forced to actually buy it later if you want to keep it, assuming that option is even made available to you. If you do take it back, you could be forced to pay for any damage the car incurred on your watch, and these fees are often higher than you'd imagine.

While it would be extreme to call leasing a scan - there are, after all, situations where it may be appropriate - the truth is you're often raked over the coals while the dealer makes out like a bandit. The best way to avoid being caught up in a leasing agreement is just stick to your budget. If you just have to have the car, discuss extending the loan term to reduce the payments. According to Edmunds, www.edmunds.com, extended loan payments often compare to lease payments. While it will take you longer to pay off your car, at least you'll own it in the end!