Car salesmen can earn big bucks selling your car, but what if you pay for it?
According to a recent National Review article, a recent study by Consumer Reports and Consumer Reports Research Associates of America found that the average rental car rental company made an average of $4,400 in profits per car they sold.
And, according to the Consumer Reports study, that money can go towards paying off car insurance, maintenance, and repairs.
In short, if you rent a car, and you get charged $1 per month for it, then you are basically paying for a car you didn’t pay for.
If you want to make it clear, you are NOT paying for the car.
In fact, you may have paid for it.
You may even have spent more than the car itself.
The truth is, you probably didn’t know it, but if you have a lease, you do pay for the lease, not the car, according the study.
According to the study, only about 10 percent of leases pay for all of the car’s expenses, such as gas, insurance, repairs, and maintenance.
Even more interesting, about 40 percent of the leases pay no rent whatsoever, and the rest of the lease payment goes to the car company.
And if you get a lease that gives you a car that’s paid for, you can get an additional $500 off the lease if you buy a used car, the study found.
“The lease is not the only payment on the lease,” the study says.
“A rental car is not an equity investment.
If you can afford the cost of a new car, you’ll be more likely to be able to afford a lease.
So, in addition to leasing a used vehicle, the best way to maximize your investment is to lease your car yourself.
If it’s a lease you can’t afford, get a loan or buy the car yourself.”
In other words, if your lease gives you the opportunity to buy a car and the price of that car is more than your monthly mortgage payment, then by all means, go ahead and do it.
But the study also noted that if you do end up with a lease for your car that you don’t pay off, you should also consider taking out a car insurance policy, because, according it, a lease can save you money if you’re in an accident.
So, if a lease doesn’t pay you back on time, and your car does, it’s time to take a long-term, reliable approach to car payments.
What do you think?
Does a car rental service like Craigslist help you make a better financial decision?
Or does it make you feel guilty when you pay a lot more money for your own car?
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