Thanks that's even worse!

 

It seems like you are being argumentative regarding a topic you admittedly have no first-hand experience with. You are certainly entitled to your opinion (and it may what is best for you) but the original poster asked a legitimate question and does not deserve to be judged or belittled. It is his money, he can spend it however he wants.

 

I'm a reformed leaser. After losing my a$$ off the last one I thought I'd gently suggest not doing it unless you can afford the big hit, which was my main point!

It amazes me how we can be in economic turmoil but people still have money to haphazardly throw away (~$30-50k at the end of the lease). Either way you choose, you're going to lose serious money.

I guess it doesn''t matter, but maybe the OP hadn't looked at all the factors in leasing because this has been the way of life for so many of us. We can't afford to buy the vehicle out right so the dealers in cohoots with financing institutions push these leasing programs as a great alternative!

Bottom line: I just hate to see people throw away hard earned money so that they can look "good"cruising around in a nice brand new ride every two-three years.

If you like to lease go lease,but take a good hard look at your financial situation before you do it. Ask yourself "can I afford to take a $30-50k hit in two to three years?"

Regards,

 

Fair enough.

 

Thanks for actually answering the OP's question without going off topic like someone else on this thread.

 

This was part of the topic. Trying to edumacate folks on some of the pitfalls is all.

 

I just have something to ask. If the suv msrp is $90k & your payment is $1600/month and its a 36month lease that will equal $57600. So if you take 90k-57600= $32400. Do you think afther 3 years if you bought the car you could sell it for $32400? Alot of dealers are telling me that when people are turning in there lease the car is worth less than the amount if they decided to keep the car after the lease. I think leasing is a way to not have to worry about selling your car every 3-4 years because auto are not keeping value that good right now!! Correct me if im wrong.

 

You are absolutely correct. I have leased 7 cars in the last 10 yrs and not a single one was worth more than the residual. I was glad to get out of it and into a new car without the hassle of a trade.

 

If what you are saying... 7 cars, is absolutely something you're sure of... and there were some other people who have leased can add to it, taking the studied population higher than 7, then this could and SHOULD be a very big point for all of us to take heed of.

 

+2 on leased vehicles with residual values > actual values at lease end.

And add this to the equation: purchased 2006 Ranger Rover Supercharged MSRP: $95K, offered $31K trade-in, auction value $34K, sold to a private-party for $38K, or a 60% three year depreciation (equivalent to a 40% residual) which really hurts becasue the lease residual at the time of purchase was about 57% (43% depreciation).

 

So, it seems like a guy who really understands the industry and knows how much cars from each brand depreciate, despite all the hype created over each new model, could possibly come away much better with a lease... right? Or he should at least be able to smartly decide which way to roll in his vehicle of choice.

I haven't kept a vehicle, ever, as long as I have my 997S. That was in March of 2006.

 

It is difficult to say with any certainty. Personally, I can write-off a lease but not a purchase so it makes leasing more attractive. Without the write-off it is probably a wash. The finance companies have this pretty well figured out.

One thing to watch for on a lease is ridiculous return charges. If you keep your car perfect, then you will have zero problems. If you have a bunch of door dings, curbed wheels, missing manuals, etc. get ready to write a check to cover these items and trust me there is a big mark-up on these charges.

 

I want to try leasing. I just haven't even financed a car in... 5 years? I'm kind of the Ross Perot type.

 

Just curious, how much money did you lose on all those leases?

 

Well, if the vehicles were worth less than the residuals and he would have acquired a new vehicle anyway, he would have spent less money leasing compared to purchasing the vehicles. The leasing advantage would have included upaid sales tax, the difference between the residual value and the actual value, the time value of his unspent money and the reduced hassle.

Certainly, leasing is not for everybody but anyone coming out of a lease in the current economy can tell you, cars are worth far less than most lease residuals and leasing does offer you some protection.

The poster did not lose money on the leases, he just chose to spend some of his money on new cars. I understand your anti-leasing bias but as long as somebody can afford the choice, that is all that it is - a personal choice.