If You Resort To Leasing Your Luxury Ride Are You Still A Player Or Simply A Pretender?

If you plan on keeping a car long term, buy it. For someone who wants a new car every few years, leasing is a smarter option, and the more expensive the vehicle is, the more true that is. You could buy an S-class, 7-Series, or A8 and pay $1800 for five years, and after three years when you want a new one you'd be upside down in it. Best case you'd break even versus the payoff. Or, you could lease one for $1200/mo and save $600/mo for three years, and after three years you wipe your hands of it and get a new one with a new warranty. Plus not only did you save $21k in payments over the first three years, but you have a brand new car you're still paying less for than the guy making the $1800 payments on his three year old car.

Buy if you're in it long term. Lease if you're not. Especially with high dollar vehicles, where depreciation is faster.

Not to mention not having to pay for any repairs.

The social assessment is sort of hard as everyone chooses their cars for different reasons. I dont plant to get in the heads of people I dont know.

That said, I personally believe that leasing expensive luxury cars is the wisest way in which to have them. Most financial gurus will tell you that you rent depreciating assets, and buy assets that appreciate.

Most luxury cars after the term of a least take such a huge depreciation hit, that you as a leasee can walk away from. Additionally, most of these cars you dont want any part of when they get past the miles and time (out of warranty). So being able to move from one to another when it starts costing money to keep on the road is also a wise financial strategy.

Gee, I haven't really thought about it.

Real estate use to the "asset that appreciate"
I am sure it is still safe to buy used Infiniti and Lexus though.

Where is the button to deboost this dumb-ass article.

Have done it both ways for years, if you have to own something own it. If like me you change autos very often, leasing is a very clean way to go. I prefer simple interest leases (US Bank)at "Lease by Fax". The "resort to" is a cheap shot, divide and conquer is so yesterday.

Leases can be quite appealing for the right driver. That driver likes to change cars frequently, drives just under the maximum miles on the lease (to get their money's worth and not pay a penalty for extra miles) and has a guaranteed resale value at the end of the lease.

The cool thing about the last aspect is you simply can't lose at lease end. If the car is worth more than the residual you can buy it at the residual and sell it for a profit. If it is worth less than the residual the lessor gets stuck with a vehicle that is worth less than they expected. Or you can negotiate a lower residual any buy the vehicle from the lessor at a discount.

in the article it states that major areas like ny and la most cars are leased. i live in nyc and i can tell you i would never ever buy a car here. after your lease is up you dont want to have the car anymore. there are pot holes that if you hit them on a motorcycle you would be dead, there is construction on every other corner with bumps everywhere, all that lose gravel all over the road that chips your cars paint. the tiny parking spaces where everybody that has a pos hits your nice car, and i can go on and on. the fact is after the 3 years if you drive the car everyday and dont keep in in a garage all the time your car rattles, squeeks,and isnt as solid as it once was and its time for a new one. lastly leasing isnt free so how is it any cheaper then buying everything evens out over time so that argument is tiresome. its only for people that want to say i bought the car fact is if you bought the car unless you keep it for 10 years you are wasting your money.

Agent009, you obviously don't own a business. Do you fault gyms for leasing all of their equipment? Do you think gyms are wannabes for leasing it? Almost every company leases printers as well. There are a lot of benefits, but I dont feel like typing for hours.
You are just jealous you don't drive a "luxury" vehicle.

You hear people saying all the time..."Leasing is the same as throwing money away."

But will someone please tell me...How is buying a car, having the value drop like a rock as soon as you sign the contract, paying all that interest on the full value... for years... so much smarter??

"You still have something of value when your payments end. When you lease, you are left with nothing at the end of the contract."

Uh-huh. But it pales in how much money you've LOST from massive depreciation and all that interest you paid.

And don't forget, repairs cost you nothing during the time of the lease.

For me, it's a no-brainer. Leasing (which is basically renting - with a down payment required), is the best way to go.

What a stupid question. If your business allows you an auto lease expense, why would you be foolish enough to "buy" a car? A car is a tool, and if the car is part of the tools of your trade, whether for transportation or presentation, then by all means lease the damn thing and get whatever your business can justify. No big deal.

Sheeesh.