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MPoWeRMAN
10-23-2004, 08:48 AM
just curious, i've never leased, it seems like its always better to buy than lease, at the end of the lease, you have nothing, plus youre limited on miles, when you buy, at least you have something to sell or trade, what is everybodys thoughts on leasing vs buying

MPoWeRMAN
10-23-2004, 12:31 PM
:banghead:

search!


thanks

x3me
10-23-2004, 02:00 PM
I looked at it this way:

When I needed a new ride, I wanted a certain monthly payment. I could have bought something in the low $20's with a substantial downpayment and been happy, or I could have leased the X3 for a similar monthly payment, almost no downpayment and a rather generous allotment of miles. The way I looked at it is do I want a better car that will have no value (trade in) and invest the downpayment or do I want to use the downpayment and have to repeat the same process in a few years of finding a way to finance the new car again. For me, this is the first time I've leased something. I see a car as the worst investment you can make, so if I am going to be making a payment, I certianly don't want to throw money into it ahead of time for it to not be worth that much after I am done driving it!

b-y
10-23-2004, 05:18 PM
Here are several reasons--take your pick. Not all are true in every case, but they might give you an idea why leasing is popular:

(a) "Buy things that appreciate; lease things that depreciate."

(b) There may be substantial tax advantages to professionals and small business owners who can document that they use the vehicle for business purposes for a substantial fraction of its yearly mileage. (Business use does not include simple commute miles.)

(c) It provides another option in the pattern of cash flows that may fit a family's needs.

(d) In many areas there is a good market for 2 to 4-year old vehicles coming off leases, so it is rather straight-forward to make a decision about whether to turn the vehicle in at the end of the lease or keep it.

We have leased four cars, keeping two (MBs) when the lease was over and turning the third back with no regrets (a Volvo wagon that was a major disappointment). With the BMW lease promotions this summer, we chose to lease the new X3. We have also paid cash and financed other cars. Leasing is just one of a set of options.

pjo1966
10-23-2004, 08:30 PM
Here are several reasons--take your pick. Not all are true in every case, but they might give you an idea why leasing is popular:

(a) "Buy things that appreciate; lease things that depreciate."

(b) There may be substantial tax advantages to professionals and small business owners who can document that they use the vehicle for business purposes for a substantial fraction of its yearly mileage. (Business use does not include simple commute miles.)

(c) It provides another option in the pattern of cash flows that may fit a family's needs.

(d) In many areas there is a good market for 2 to 4-year old vehicles coming off leases, so it is rather straight-forward to make a decision about whether to turn the vehicle in at the end of the lease or keep it.

We have leased four cars, keeping two (MBs) when the lease was over and turning the third back with no regrets (a Volvo wagon that was a major disappointment). With the BMW lease promotions this summer, we chose to lease the new X3. We have also paid cash and financed other cars. Leasing is just one of a set of options.

(a) was a big reason for me. As an example, last year my Infiniti FX35 was worth $40,000. Now it's worth $28,000. I would have been really pissed if I had invested money in something that depreciated so quickly.

Another major reason for me is that I like to recycle cars every couple of years. With a lease I know my car has an expiration date and I can start looking for the newest and next best thing a few months in advance. If the unlikely happens and I can't bare to part with my car at the end of the lease I can purchase it for a predetermined amount... no haggling involved.

One more reason is that I am never driving a car that is out of warranty. I have friends with 10-year old cars who are complaining that they are falling apart. These same friends say they don't understand why I lease. Personally I don't understand pouring money into repairs on something that continues to depreciate.

jabud3@aol.com
11-13-2004, 11:45 AM
just curious, i've never leased, it seems like its always better to buy than lease, at the end of the lease, you have nothing, plus youre limited on miles, when you buy, at least you have something to sell or trade, what is everybodys thoughts on leasing vs buying

What people have been saying is so true! Unless you're going to drive the car and run it into the ground, (and keep it for many years after it's paid off), it's a bad investment. Also, you'd need to buy a very reliable car like Japanese or more expensive type of good car like a BMW. Personally, I'd pick the Japanese vehicle to buy since they are so reliable and have very low maint. costs. But if you love cars, and are bored with the Japanese cars, but can't afford to buy say, a BMW brand new, or pre-owned, for that matter, LEASE! It's much less out of pocket. But remember, giving a down payment, (more than the 1st month's lease + plates, tax) is not a good idea for a lease! Put down as little as possible! First negotiate the price of the car. Then worry about monthly payments. Also, I never go beyond 36 months to lease--and mileage--I am low, so I go for 10K miles a year. Most go for 12.