When you lease a car, you have to negotiate the selling price exactly like you were buying it! There is no difference in that aspect. Leasing can be simply defined as you are paying for the depreciation of the car for 2 or 3 years depending on your term, PLUS interest on the depreciation. Once you understand this, the rest comes easy to understand.
I have never leased before, I am very much leaning toward leasing my next car. The reason I see is that, in these days, the residual value in leasing is better than your trade-in(resale) value, regardless of the make of the car. My only hesitation is the mileage, I average 15 to 17K a year.

 

If you trade the car in for another, the miles only matter in your trade value. There is no additional fee unless you decide to find another way home after dropping off the keys. I also sold and leased many cars and have been on the purchasing and selling end of leases. Your insurance will be slightly higher on a lease but your monthly payment lower. Hope this helps.

 

Yup, all good info that will hopefully shed this horrendous reputation from mis-information on leasing. Now don't get carried away; don't go lease a Ford Exploder, or a Chevy Malibu!

 

Every individual situation will be different - if you buy the car out of the lease for cash you may be close to even - most folks I've encountered would finance the car again at used car rates for 2-3 more years... there is no way that financing the same car twice for 6 or 7 total years makes financial sense. In this case you'd be better off buying the car at the outset.

Leasing is a great option and works for many but not all folks - I have leased half a dozen cars and all transactions came out OK. When I was over miles, I traded my leased car and negotiated with the dealer so that they would take care of turning the leased car in and help to pay any penalty. Lessees need to go in with their eyes wide open and fully understand the terms - and negotiate the price of the car just like they are buying it (as said previously).

Uninformed folks slam leases just like they slam adjustable rate mortgages, because they don't understand them or how to best use them.