What is your take on purchasing versus leasing a new car?
David , a question like that will have so many different opinions it will make you have a head ache .
This is where your search engine will be of the most help.
Just put ( pros and cons of leasing ) in and read several of the many articles about this subject.
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Leasing is the single most expensive way to own a car. Period.
If you buy new, keeping it a very long time is an economical way to own a car.
The cheapest is to buy a 2, 3 or 4 year old car (off lease… see what we did there?) and own until it is 10, 15 years old. Let the person who leased it pay for the big drop in value in the first 2-3 years and you get a very nice car with 10-15 years life left in it for small money.
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A lease is a fixed amount of time
Buying a car has no time value associated with it.
Apples/oranges
Business sometimes have a better tax advantage with a lease than a purchase. Monthly cost write off vs amortization. Someone who only cares about a monthly payment and wants a new ride will lean toward a lease, but they will have a monthly payment for a long time. Someone who factors in the long term cost and eventually wants to own free and clear (no monthly payment) will avoid a lease. Just depends on what the buyer wants
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The tax advantages are no where near as good as they use to be. We have a few company cars. The field service engineers - we lease. A few executives have cars - we buy.
Yup…There have been people in this forum who tried to argue (unsuccessfully) that leasing is cheaper. No way - no how is leasing cheaper.
Two top reasons people lease.
#1 - They want a more expensive vehicle. Monthly lease payments will be less then a purchase payment. Only problem is…you’re always making payments.
#2 - People get bored easily and they want a new vehicle every couple years.
Dealers make more money on leases (or at least they use to). And many dealers will push leasing…and some people get suckered into it.
There’s a local dealer that’s advertising TODAY…saying people should come in and trade their 2018 car in for a 2020 lease. Says they’ll save thousands by doing so. Sucker born every minute.
If you want a new vehicle when the full coverage warranty runs out, leasing may make sense. A friend’s wife was like that. She wanted a new Lexus every three or so years when the warranty expired. It didn’t make sense to him, but he did it anyway. Love makes us do some crazy things. BTW, don’t remind me it was a Lexus. He went through all that stuff with her, and she was more comfortable with the fully warranties Lexus.