We are out car shopping and we are confused. Should we buy or lease a car?

This is a question that we are asked many times during the year. The answer depends on your answer to a few questions. It also depends on whether or not you understand exactly what you are signing on for when you lease a car. 

Leasing is paying for the use of a car rather than actually paying for the car itself. Your lease payment covers the cost of the vehicle's depreciation over the length of the term of the lease, instead of the actual purchase price. In short, at the end of the lease, you will not own the car.

This is not an issue if you are comfortable with some basic aspects of the deal. Ask yourself the following questions:

1. Do you become bored with a car after only a couple of years? Do you want a new car every three years?
   
2. Is driving a car more important to you than owning the car? Put another way, do you mind always having a car payment?
   
3. Are you someone who will maintain a car and keep it in very good condition? Remember, you do not own the car, and when you turn it in, you can be charged extra for damage beyond what is considered normal wear and tear.
   
4. Do you drive 12,000 miles or less a year? If not, the charges for driving extra miles can be very high. A car depreciates faster when the mileage is high, and you will have to pay for the additional mileage.

• Pay any balance on the card in full.
• After calling the card company's customer service representative to cancel the card, write a letter to the company saying that you canceled the card and that you want your credit report to indicate that you requested the cancellation.
• After 30 days, get a copy of your credit report; make sure it says, "Closed at customer's request"; if not, call the company to report the mistake, then send a follow-up letter by certified mail; include a copy of your original letter.
• Check your credit report again.