Leasing?
We are convinced our next car will be leased. $200-300 a month and always have a new car with no repair worries. You either make the payments or put the payments in the bank each month for the next ...
Forum Discussion
spoon059 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.
You can look at it any way that you want. Bottom line is you are LOSING money leasing. The dealership makes money off your lease, then sells the car and pockets the profit. If this is what you feel comfortable doing, that is your right. I certainly can't knock you. I would love a new vehicle every 3 years! But... you aren't dodging the depreciation and aren't saving money.
I don't lease, but you are losing money buying new as well. If you get a new vehicle every 2-3 years you are no worse off leasing. Or, if you have a business it is easier to use it as an expense if you lease rather than depreciate the asset. If you keep the vehicle long term or put on a lot of miles, 15k plus per year purchasing wins hands down.
