Chris CiarloChannel 2 News
Low interest rates have boosted car sales the past three months, but many Americans still choose to lease their cars rather than buy.
There are some inherent issues that come with leasing. How much you drive determines how much you pay. And if you go over the limit, you will feel it in the pocketbook.
Patty Hidalgo leases a Lexus. She said if she didn't lease, she wouldn't be able to buy one.
"I can drive a luxury car without paying the price tag I'd have to pay if I purchased it," she explains.
Hidalgo has been leasing for more than a decade and said she loves trading her car for a new one at the end of each contract.
"I just like having a new car every three years because I give it back before the problems start happening."
However, that convenience comes at a price. Leasing means you will always have a car payment.
As for buying, that comes with higher monthly payments up front but you will eventually pay off the loan and own the car.
John Bruno has owned a GM dealership in New York City for 15 years. Two years ago, 70% of his business was leasing. Now it's about 50%.
"The reason is because you have 72 months of financing at zero percent. So, people say maybe I'll take advantage of the zero percent financing and a lot of the lease customers are moving toward buying."
Leasing does pose problems, but Hidalgo said she stays within her mileage limits and doesn't care about owning a car.
"At the end of the day it's not worth much because cars depreciate."
