By Renee Morad
NEW YORK (MoneyTalksNews) —Should you buy or rent a house? Buy or lease a car? Date the office cutie or avoid workplace romance? These are questions that come up in most lives at one time or another.
Jack Otter, executive editor of CBS MoneyWatch, tackles these issues in his book, Worth It… Not Worth It? In an easy-to-digest format, he sheds light on some of the most complicated personal finance decisions.
We recently caught up with Otter outside the New York Stock Exchange to get his advice about some of these common questions. Check out what he had to share with Money Talks News founder Stacy Johnson, then read on for more.
Since the author answered 10 questions in less than a minute in the video, let’s take another look – this time with a bit more detail, as well as the Money Talks take.
1. Buy or lease a car?
Buy a car. Otter’s take on leasing: It’s “like always going to the more expensive restaurant, or making sure you never, ever, pick up an item at the sale prices.” He says you’re essentially paying for the vehicle to depreciate.
Bingo. In Should You Buy or Lease Your Next Car?, Stacy says, “To put it bluntly, most people who lease are paying lower monthly payments so they can drive a car they could otherwise not afford. And if they aren’t setting money aside, and insist on a new car every three years, they’re going to get stuck in a leasing cycle because their budget and lifestyle won’t allow them to ever afford to buy one.”