Quote:
Originally Posted by jmg
You haven't even mentioned secondary depreciation immunity. Economy goes to shit? Doesn't matter, your depreciation was locked. Car gets into an accident? No loss of value there. Car has major recalls and dependability issues? Don't matter. Car explodes? Gap insurance. Car is stolen? Lease another one.
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I agree, leasing removes many of the risks but then adds additional ones. If you are talking leasing vs. financing a new car -- Depreciation immunity - kind of, both parties agree to an expected value at the end, if the purchased car isn't happy with the value at the end of the lease they can also decide to hold onto the car. Recalls and dependability? - both in the same boat for first 3 years, if the car is constantly in the shop you will both deal with it. Out of warranty repairs, I'll take the possibility of a future expensive repair over the guaranteed depreciation hit that comes with the next lease.
Car explodes or is stolen? - not seeing this as a major difference, both have insurance. Maybe if stolen or blows up right after you get it and you didn't have gap insurance you would be out. I would never buy gap insurance unless required. A tiny chance I could lose $5k?, and this number drops each month I have the car..
The person on the forever lease removes the risks buy paying a premium to not deal with them. Added risks include this original post. If he had purchased, all options available would be available without reading paperwork or calling anyone. If he decided he wanted to get rid of the car now or keep it longer, he can do it. If he is allowed 12k miles but decides to drive 15k, or 7k it is up to him. Do you get money back on the lease when you go well under mileage limit (my driving went from 15k a year to 4k about 2 years ago)? When lease is soon to run out he has to make a decision on what happens next. Turn in a BMW lease and take out a Toyota lease, probably need to get the Toyota lease early. Returning the lease and having charges? Nothing I have ever had to worry about. When I decide I want a new car I go get one, what I have done to keep it in above or below average condition is all on me.