Tip o’ the Morning to Ya – Leasing a Car is a Poverty Habit


Rich Habits Word of the Day

Ethos – Customs or beliefs. One of the ethos of wealthy people is purchasing, rather than leasing an automobile.

Rich Habits Fact of the Day

The most important number — whether you buy or lease — is the purchase price. Unfortunately, this number is seldom, if ever, discussed in a lease and is buried in the leasing documents, which you will probably only get to see minutes before you sign. Leasing agreement include something called a “Disposition Fee”. You don’t pay a disposition fee when you purchase a car. Residual value and net capitalized costs are variables that affect your monthly lease payment amount and are difficult to understand. You don’t have residual value or capitalized cost variables when you purchase a car. Each lease allows you to drive a certain number of miles each year without incurring any additional costs. Oftentimes this is either 15,000 miles. If you exceed 15.000 miles you will have to pay an additional cost calculated on a per mile basis. There are so many variables in a lease for a good reason. Each variable is engineered in favor of the car dealer and not the one leasing the vehicle.

Rich Habits Lesson of the Day

6% of the wealthy lease cars. Conversely,45% of poor people lease cars. Leasing a car is a Poverty Habit. Wealthy people don’t lease cars. They purchase their cars and will drive them as long as the engine holds out. 44% of the wealthy purchased a used cars in the last five years. Wealthy people purchase and take good care of their cars. Purchasing a new or used car and owning it for the long term is much cheaper than leasing a new car every three years. The savings can be as much as $2,000 a year. If you want to walk in the footsteps of the wealthy begin by purchasing your cars.

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Thomas C. Corley About Thomas C. Corley

Tom Corley is a bestselling author, speaker, and media contributor for Business Insider, CNBC and a few other national media outlets.

His Rich Habits research has been read, viewed or heard by over 50 million people in 25 countries around the world.

Besides being an author, Tom is also a CPA, CFP, holds a master’s degree in taxation and is President of Cerefice and Company, a CPA firm in New Jersey.
Phone Number: 732-382-3800 Ext. 103.
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