Lenders Begin To Gamble Again As Leasing Stages A Comeback In 2010

Personally, I don't think it's a good business model to lend money to those who are least able, or likely to repay it. The sub-prime financial melt-down has lead me to think this way. Others may disagree.

I personally don't like it, but if the residual is realistic it doesn't pose much of a threat.

Leasing rates have come down to levels not seen since the end of 2008. Approvals have become harder as banks have looking for any reason to decline or charge a higher rate for the car.

Example: a 719 Fico instead of a 720 Fico can translate into a per month payment difference of $15 - $30 depending on the car. Whereas before you could have had a 650 Fico and still gotten a Top Tier approval at most banks.

Leasing is still crap to me. I have no desire to drop 3-4k down and pay what I would want for a typical monthly payment to OWN a car $350-400 then have to turn it in in 3 years, or sign-up for a finance at that point, or have to worry about mileage, or pay for scratches, etc.

I've never leased and never will. I keep cars at least 5 years and use them as equity in a trade or sell for cash. Not to mention most "lease specials" advertised are for base models which is why they appear to be so cheap.

No thanks, I'll just keep living within my means.

Leasing may not be for you, but it is far from "crap". I put no money down, pay significantly less per month than I would by financing the car for the same term (24 months), and I don't come anywhere close to the mileage restriction with daily use and weekend roadtrips. I also benefit from tax deductions that I wouldn't get if I purchased the vehicle.

You pay for scratches and damage whether you lease or own. You are correct, if you have scratches that extend beyond acceptable "wear and tear" (usually longer than a credit card or wider than one MM) you have to pay to have them repaired. However, I would argue that a similar scratch would cost you some resale value/equity in a personally owned vehicle.

You keep cars 5 years, I prefer to have a new one every 2-3, that is a matter of preference and attributed to the fact that I have vehicle ADD.