Leasing Back On the Rise Which Beckons The Question: Are You Leasing Or Are You Buying Your Car?

A comeback in leasing continued in the second quarter.

The comeback is partly due to fashion and improved consumer confidence, and partly due to cold-blooded economics for customer households and for the car companies themselves.

General Motors said last week that not counting GM, leases accounted for 24.3 percent of U.S. auto industry sales in the second quarter, up from 21.8 percent.

Agent009 - 8/1/2013 4:03:46 PM

+3 Boost

Due to mileage accumulation, for me buying is the route to go.

I offset the depreciation somewhat by buying certified low mileage vehicles 2 years old. Works well for me.

TauronB2G - 8/1/2013 4:38:49 PM

+3 Boost

I drive waaaay too much to lease a car. In addition sometimes I do minor customization to my cars. I don't want to be penalized for that.
T

USNA1999 - 8/1/2013 4:54:46 PM

+1 Boost

I also drive too much but for someone who doesn't I think leasing is the way to go. Here in Jacksonville you can almost get anything from a C-Class, 1 & 3 series, LEX RX, ES or IS, and AUDI A4 for around $350/month. I pay way more on my daughter's MINI which is basically stripped.

Bosshog - 8/1/2013 5:30:25 PM

0 Boost

Your daughter strips?

Nice....

LexSucks - 8/1/2013 5:36:34 PM

+5 Boost

Bosshog,

Either you need to go back to school, or you need to figure out how to be funny.

LexSucks - 8/1/2013 5:40:14 PM

+4 Boost

Doesn't matter. It's a depreciating asset. You lose if you purchase, you lose if you lease. It depends on your own personal situation (miles that you drive, finances, etc...)to detemine which is best for you.

enthusiastx11 - 8/1/2013 7:19:45 PM

0 Boost

in the premium auto market, leasing has been the MAJORITY of sales for many years. it just makes sense....why pay for more of a depreciating asset than you will use? factor in the tax deductability if you are self employed and it's a no brainer.

unless you are a high mileage driver...then leasing never works.

Agent001 - 8/1/2013 7:49:49 PM

+3 Boost

If it's an import car I lease and if it's an American truck I buy.

BTW, the last 4 American Trucks I bought held their value way better than the BMW's I leased.

F-150 and Wrangler unlimited resale has been astonishing.

001

supermoto - 8/2/2013 11:48:26 AM

+1 Boost

Next one will be a lease. A car is not an investment.

001, the beauty of a lease is that you have no risk on the residual. If the car is worth more than the residual, you can buy it at the residual and turn around and sell it for a profit. If it is worth less than the residual the dealer is required to buy it back at the residual and eat the loss.