A friend of mine just leased a brand new Honda Civic for $199/mo with no money down for 36 months. His limits are 36,000 miles during the leasing period with $0.15/mi for each additional miles over the limit. His commute is only 15 miles round trip per day, equating to 75 miles a week. I’m not sure what his driving habits are during the weekend, but assuming 50 miles per weekend day, that adds up to 175 miles driven in any given week. Multiply that out by 3 years and you get a total expected miles driven over the course of 36 months to approximately 27,300 miles. This gives him an extra 8,700 miles of flexibility over the course of the leasing period. Total money spent at the end of his leasing period would become $7,164. He told me that he didn’t have to pay anything else at signing, except first month payment of $199. He also told me that he’s not expected to pay any additional end of lease fees either. He may be wrong about this, but that’s what he told me. Tax and tags are included in the 199 monthly payment.

So, is this a good deal? Everyone’s situation is different, but for my friend, I believe it’s a good deal.

5 Reasons to Lease Your Next Car

1. Get a brand new car every 2-3 years, depending on your leasing period.

2. Never pay for maintenance, except for everyday wear and tear such as oil change.

3. Free gap insurance, in case car is totaled.

4. The money you saved from lower monthly payments is the “equity” you build every month.

5. Option to purchase the vehicle at the end of the leasing period for reduced price.

There you have it. Remember to get an insurance quote before you buy or lease your car. You can get free online quote from Geico or Allstate insurance. Oftentimes, a leased vehicle has slightly higher premium than purchased vehicles.

I went a little further in calculating which is better, Lease or Buy Your Car – Explained in my other post.

• Lease or Buy Your Car – Explained