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But after I pay off a loan on a traditional car, I own the car outright and can use all its features for the lifetime of the vehicle. I can also sell the car to

But after I pay off a loan on a traditional car, I own the car outright and can use all its features for the lifetime of the vehicle. I can also sell the car to someone with all its features intact.

decafninja 5y ago
That probably puts you in the minority these days. The typical buyer is willing to pay $500/month in perpetuity to lease a BMW rather than pay $500 to finance a Honda even if it means they'll own the Honda outright in X years. I don't not-sympathize with them. It's not like when you bought a model year 2000 car. Ten years later it didn't end up being significantly worse than a 2010 car. Nowadays if you buy a 2022 car, you're probably going to end up having a Flintstonesmobile in 2032. Due to the way they're calculated, the lease payments can often be determined in an opaque way that is not apparent to the customer in terms of a car's MSRP. Thus you can end up with a $50,000 BMW whose monthly lease payment comes out to be cheaper than the monthly payment leasing a $35,000 Honda.