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Leasing wins against having a new car every few years. It fails badly if you keep your cars longer or buy when they're a few years into the depreciation curve.

Leasing wins against having a new car every few years. It fails badly if you keep your cars longer or buy when they're a few years into the depreciation curve. Personally I decided buying cars a few years old made far more sense.

ianai 8y ago
Leases are literally the option to purchase a car at a much later date at a predetermined price. You’re betting you can keep the value of the car above the price difference of the vehicle at that later date. The manufacturer is just raking it in - they’ll rarely not be able to fix a vehicle up for a great profit. I wouldn’t be surprised to learn the lease contract price (Ie sum total of downpayment and monthly payments) more than covers the manufacturers per vehicle cost.
ams6110 8y ago
> Personally I decided buying cars a few years old made far more sense. I think it absolutely does. I actually go for older than that, Typically 6-8 years or even more. Right now my newest car is a 2006 which I bought last year.
taeric 8y ago
So leasing wins if you've already decided to pour money out the window? I see that you said buying used and older makes far more sense; which means we are probably on the same page. However, is that really the only selling point for leasing? If so, how in the world do so many folks get suckered into doing it?
- crysin 8y ago
  Lots of people like new cars and being able to have the latest year's model every 3 or so years is a big bonus for people. Same a majority of people like having the latest iPhone or Android flagship phone. Not everyone places value purely in the monetary realm. Some people view cars as a status symbol. There is also less hassle with leasing.
  - taeric 8y ago
    Saying people don't place the value in the monetary realm is amusing, since money is supposed to be fungible for all value. :) That said, I get it. Some people place a ridiculously high value on having the latest. I think I used to be in that population, to an extent. Nowadays, I confess this mentality leaves me ridiculously confused.
- NeedMoreTea 8y ago
  Pretty much, along with the fixed and known cost per month with fewer possible surprises. I can understand the appeal of new if you are buying to keep for a long term, or something exotic. Outside of those I don't know why anyone would buy new a thing that loses half its value in the first two or three years. Still it provides plenty of choice in the secondhand market. :)

ianai 8y ago

Leases are literally the option to purchase a car at a much later date at a predetermined price. You’re betting you can keep the value of the car above the price difference of the vehicle at that later date. The manufacturer is just raking it in - they’ll rarely not be able to fix a vehicle up for a great profit. I wouldn’t be surprised to learn the lease contract price (Ie sum total of downpayment and monthly payments) more than covers the manufacturers per vehicle cost.

ams6110 8y ago

> Personally I decided buying cars a few years old made far more sense. I think it absolutely does. I actually go for older than that, Typically 6-8 years or even more. Right now my newest car is a 2006 which I bought last year.

taeric 8y ago

So leasing wins if you've already decided to pour money out the window? I see that you said buying used and older makes far more sense; which means we are probably on the same page. However, is that really the only selling point for leasing? If so, how in the world do so many folks get suckered into doing it?

crysin 8y ago
Lots of people like new cars and being able to have the latest year's model every 3 or so years is a big bonus for people. Same a majority of people like having the latest iPhone or Android flagship phone. Not everyone places value purely in the monetary realm. Some people view cars as a status symbol. There is also less hassle with leasing.
- taeric 8y ago
  Saying people don't place the value in the monetary realm is amusing, since money is supposed to be fungible for all value. :) That said, I get it. Some people place a ridiculously high value on having the latest. I think I used to be in that population, to an extent. Nowadays, I confess this mentality leaves me ridiculously confused.
NeedMoreTea 8y ago
Pretty much, along with the fixed and known cost per month with fewer possible surprises. I can understand the appeal of new if you are buying to keep for a long term, or something exotic. Outside of those I don't know why anyone would buy new a thing that loses half its value in the first two or three years. Still it provides plenty of choice in the secondhand market. :)