If you’re in the market for a new car, you shouldn’t even consider leasing one, according to financial expert and bestselling author Suze Orman.
“I personally think you should never, ever ever ever, lease a car, do you hear me?” Orman tells CNBC’s “Make It.”
So why shouldn’t you lease a car? Orman explains that when you lease, you are spending a considerable amount of money every single month with nothing to show for it at the end of the day.
“If you rent a car, you’re going to rent a car year in and year out,” she says.
Orman explains that if you don’t have the cash to purchase a car outright, financing is a fair second choice, so long as the payments don’t continue for longer than three years. If you need to finance for longer than that, then “you can’t afford the car that you’re going to buy.”
Orman also suggests buying a used car, because unlike a home, a car will never increase in value. “The second you drive that car off the lot, it depreciates, 10 percent, 20 percent… Let somebody else get that depreciation and be smart with your money.”
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