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I think that's a bit uncharitable. There's a far more rational reason which is that many people don't have all the money to pay upfront and finance makes it man
by aidos 8y ago
I think that's a bit uncharitable. There's a far more rational reason which is that many people don't have all the money to pay upfront and finance makes it manageable and predictable.
In terms of lease options, if all the maintenance / repairs are covered then, again, it kinda makes sense, right? You're effectively paying a bit more each month, but you know what you're in for and there's no chance of a massive unknown catastrophic failure breaking the bank.
It's all well and good saying that car maintenance isn't scary, but as the owner of car that's started smoking — it's not much fun taking it to 5 mechanics, all of whom haven't managed to diagnose the issue.
It's the same reason people have insurance.
- pc86 8y agoLeasing is a very specific financial instrument, like balloon financing (which I think Mercedes is the only manufacturer that still offers), which is pretty overused. The "I don't want to worry about maintenance!" type of person would typically save money buying the same car on a 4 year loan and trading up every 4 or 5 years compared to leasing for whatever the optimal term is (typically 30-39 months, usually 36). You're not necessarily overpaying on leasing. It's just a math problem where a few of the variables (base MF, residual) are static, a few are easily negotiated (cap cost), and a few are less easily negotiated (dealer MF mark up).