I'd love to smoke whatever Benbo5 is on. Anybody that thinks a car is an asset is headed towards serious financial trouble. Did you read a word that JEWBU or I posted? Paying for something you are not using is a waste of money, no arguing with that. Its great you will never lease b/c you dont understand anything about the car market but I think this thread was started to get honest answers based on experience, not theoretical opinions from uneducated people.

 

If you fall into the profile of a good lease candidate, leasing isn't technically any worse than buying from a money standpoint. If you lease a G for four years and another guy buys a G and sells it four years later, it's a coin toss who will come out $500 ahead.

However, if the guy who buys keeps his an extra year he will come out ahead of the guy who leased. Same goes if they both sell 3 years in since the lease has early termination fees.

To me it's giving up too much freedom with no advantages except a small amount of opportunity cost in the extra up front money required to buy. The amount is small enough that it's background noise IMHO. Plus, what is the mental opportunity cost incurred if I want a new 2008 G but I still have a year on my lease?

Don't forget a little thing called life and the stange twists and turns it takes. If your lucky and fit the lease profile for the entire life of the lease and would have only kept the car the life of the lease even if you bought, then you won't have the hassle of selling a car and you break even. If not, better have some extra money saved up.

 

but ur car's value depreciate in mean time as well........

 

I'm inclined to go with BEOWULF on this one. If you can afford to buy, then buy. Too many situations and circumstances change during the long lease period, and some lease companies are not mod friendly.
I say buy.
C.

 

Out of serious curiosity, I'd like to know how many people have leased in the past and ended up making money when they turned the lease vehicle in. After mileage, term fee, etc., has anyone turned a car in on a lease and actually owed substantially less than what the pre-determined residual value less miles & misc. fees amounted to?

If you're like a lot of people and would rather slightly overpay your taxes all year long, so you get a return instead of having to come up with a large tax payment later, then buying is likely for you. You can probably swing the $30 more/month to buy over leasing, but you might have more difficulty in getting a lump sum of money at the end of your lease for misc. fees and to put down on something else.

You know, the salesmen at the dealerships always want to sell you on a lease over a purchase. This appears to be more profitable to them, but not just because it allows them to get a buyer into something with a higher MSRP. Go in for a specific car, get down to the paperwork, and you'll still be hit with the same sell on the leasing route. Clearly this isn't getting you into another vehicle with a higher MSRP. The dealerships are just too excited over leasing, which makes me even more uncomfortable than my personal experience has.

The dealerships get excited about profits only, which are directly correlated to what I pay. If you're willing to buy the car, and the deal isn't hinged upon a lower lease-price that you can afford, watch how much the salesman will still try to sell you on a lease. If a lease is going to make them happier, I should beware, regardless of what method they use to entice me.

That doesn't mean that you can't make a lease work for you... ...but as was mentioned, the dealer's incentive to lease vehicles is not tied to your best interest. Buyer/Leaser Beware.

 

Ttt

 

EXACTLY, waaaay to many people think they have an asset.

 

I usually buy my cars, but last year I leased a 04Civic (my commuter)
cause the lease was so damn cheap.
it'll only cost me total $7k at the end of the 36month lease term
(car was $15K new). I get to drive a brand new car with super
smooth AT, full warranty coverage, etc. where as if I would've bought
a $7k old beater it could have given me little problems here and there
and cost me more to fix it. I could probably sell the old pos and net
$2k after the 3 years of owning the beater, but at that point, who
cares. My time of not having to deal with hassles is worth a lot
more than $2k. Plus, if I trade-in the 04Civic for a new car at the
end of the lease, I still get the same benefit of tax reduction on the
next car as if I would've bought the 04Civic...

So, the Civic lease made more sense to me and will make more
sense when it comes time to buy my next commuter.

Lease imo is great for first time buyers who don't have a car to
trade in. Also for cars that aren't attached to you and
serves the purpose of taking you places. The bad part about a lease
is that the lessor will require a certain level of insurance coverage
(as a bank would on a loan) and therefore you can't go cheap on
insurance.

An old beater you can go cheap on insurance and save your money
that way.

 

I'm jumping in late here, but I'm in the same boat weather to lease or buy. My last 2 cars I've "owned". (bank actually owned them). I sold them both after about 2 years of owning them for almost exactly what I owed on them. So basically all I did was lease those vehicles. I never owned them, and paid a higher monthly payment than a lease. Same with my friends/family. And a lot of people end up loosing money on their trade in, and have to roll it into their next loan on the new car. Not saying buying is bad, because if you plan to keep the car more than 3 years, buying is the way to go obviously, but anyone that likes new cars/lower payments/less money upfront, it seems like leasing would be the way to go.