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Originally Posted by jmg
Regarding recalls and dependability, a leaser and a purchaser both have to deal with them, yes, but the perceived cost of ownership affects the depreciation. That car will sell for less on the secondary market whereas the leases car's depreciation was set by the lease terms.
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So just possible depreciation differences which you already said.
Quote:
Originally Posted by jmg
Gap insurance is dirt cheap, why wouldn't you get it? Insurance covers the value of the car, not what you owe. Gap covers what you owe that wasn't covered by insurance. It's a no-brainer.
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It's dirt cheap because the chances of it paying off are minuscule. Insurance company knows this, covers all of their costs and still has a profit. Self insure with extremely high chances of coming out ahead.
Quote:
Originally Posted by jmg
Purchasing and leasing both have tons of paperwork unless you pay cash. If you finance, both have liens on them. Where leasing has an advantage: someone can take over your lease with a credit check. When financing, the lien has to be paint off in full.
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If you recently leased or recently purchased with little down, both cars will be impossible to get rid of without you kicking money in. Try leasing a car and then a month or two later trying to get someone to assume your lease. Not sure when during a lease someone would want to start leasing your used car.
Quote:
Originally Posted by jmg
Yes, mileage can be tricky. Leasers have to plan. Additional miles can be bought at a discount, but only a small refund can be given for going under miles. However, leases have control of ownership. If they are under or over miles, they can keep or sell the car, whichever makes more financial sense.
IMHO the most financially responsible thing to do is buy used. Buying new and leasing both are more expensive and require the consumer to take the big depreciation hit. I can't say leasing is better than buying new in all cases, what I am saying is that leasing is a viable strategy that works for a lot of people and blanket statements that leasing is horrible is not really accurate for everyone.
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More of the "you should plan better".
I never said leasing was horrible, if you want a new car every 3 years and are ok with the negatives than have at it. The idea that there are no negatives to leases or that they are an inexpensive way to have a car are wrong.
I prefer to buy slightly used with cash, don't have to plan for the future (I can easily sell it at any time), zero paperwork, I drive how much I want, fine with the highly unlikely high repair, gap insurance isn't relevant, if I decide to sell I am not calling the leasing company, getting credit checks or anything else, car is worth what it is worth. There isn't a date on the calendar when I have to start dealing with getting rid of one car to get another, could be tomorrow, could be years from now, if I am busy it can wait.