Leasing equals financing

Monica wants to know what Dave thinks about leasing cell phones. It comes as no surprise to find Dave is not a fan.

QUESTION: Monica asks for Dave’s opinion on leasing cell phones. As you might expect, Dave thinks it’s a silly idea.

ANSWER: In most cases, leasing something is just another way of financing. I wouldn’t lease anything, except maybe a building or office space for a business in the short term.

But leasing a cell phone? Really? If you can’t pay cash for something like a cell phone, it means you can’t afford the phone. It’s as simple as that.