Leasing?

In most cases a lease will cost more over the long run than buying the car out right or financing it.

Here's a link to a trusted financial advisor's discussion on leasing:
http://www.daveramsey.com/index.cfm?event=askdave/&intContentItemId=10367

Your best bet would be if you would start putting that $300 a month into savings or some other sort of safe investment. You would save that $3600 per year and in a couple years down the road when it is time to buy, you will have a sizeable down payment (or be able to pay in full!) Then when you are done with payments, you can keep putting that $300 away each month. Then you have money set aside for repairs, or a down payment on your next vehicle if you decide not to repair.

Leasing a car is a sure fire way to lose money. The dealer knows that they will make money off the lease, the mandatory service at the dealership, and then the subsequent sale of the off-lease vehicle. You pay a sizeable down payment and then monthly payments as well as mandated service at dealer pricing and at the end you have nothing to show for it.

I lease all my vehicles. Last three tow vehicles 2005 2500HD Silverado 8.1, 2008 F-350 V-10, 2011 F-250, take delivery next week of 2014 F-250. Why would I invest in a depreciating asset. If it appreciates in value buy it, if it depreciates in value rent it. Let someone else take the depreciation hit and just use cash flow to pay lease. I do not have to tie up my capital, I am using someone elses money at a rediculously low interest rate. Never a problem with leasing and always have a new vehicle. All have been factory ordered to whatever options I wanted. If one turns out to be a lemon (never happened yet) I am not stuck with it.

I've never felt like giving money away month after month for no reason. I bought my truck for cash 10 years ago and I make no truck payments, and haven't for 10 years. But I usually buy used, spend a little money on upkeep and repairs and keep a vehicle until I feel I've gotten all the good out of it, which is usually 10-12 years.

If a person wants to drive a new vehicle every couple years, then leasing would be the way to do that.

Jack_Diane_Freedom wrote:
I lease all my vehicles. Last three tow vehicles 2005 2500HD Silverado 8.1, 2008 F-350 V-10, 2011 F-250, take delivery next week of 2014 F-250. Why would I invest in a depreciating asset. If it appreciates in value buy it, if it depreciates in value rent it. Let someone else take the depreciation hit and just use cash flow to pay lease. I do not have to tie up my capital, I am using someone elses money at a rediculously low interest rate. Never a problem with leasing and always have a new vehicle. All have been factory ordered to whatever options I wanted. If one turns out to be a lemon (never happened yet) I am not stuck with it.

One way to look at it! I think of it as paying for the biggest portion of the depreciation, then someone else comes along and gets a great deal on a used car or truck. I guess I don't like never ending payments. I also don't like being told how many miles a year I can drive my Vehicle.

Jack_Diane_Freedom wrote:
Why would I invest in a depreciating asset. If it appreciates in value buy it, if it depreciates in value rent it. Let someone else take the depreciation hit and just use cash flow to pay lease. I do not have to tie up my capital, I am using someone elses money at a rediculously low interest rate.

Just curious, but clothing is a depreciating asset, so who do you lease them from?

I have leased a few vehicles, never a TV. Sometimes leasing works out better with extra incentives and unrealistically high resale values. Evaluate buying and leasing for any vehicle in which you are interested.

bob_nestor wrote:

Jack_Diane_Freedom wrote:
Why would I invest in a depreciating asset. If it appreciates in value buy it, if it depreciates in value rent it. Let someone else take the depreciation hit and just use cash flow to pay lease. I do not have to tie up my capital, I am using someone elses money at a rediculously low interest rate.

Just curious, but clothing is a depreciating asset, so who do you lease them from?

My girlfriend, who's quite the fashion maven, always consigns her used clothing/shoes/jewelry/handbags and I never cease to be amazed when she walks out of the consignment store with a BIG check about once a month.

In an odd way it's almost as if she does lease her stuff...

You can lease just about anything you want to. It is called a credit card.

I thought about leasing. Thought it was not for me. My policy is; if I want it, it comes with one payment, cash. No lease, no loans, no borrowing of any kind. If I can't afford to pay cash, I'm not ready to buy it. That doesn't work for everyone, but it works for me.