Leasing = renting
Leasing is the same thing as renting. I have leased a number of cars in the past quite successfully. I am an ideal leasing candidate; I'm "easy" on a car, I take care of it, and don't have a passel of chaps tearing things up and spilling ice cream all over the upholstery, etc. If you're confident that you won't exceed the mileage allowance, and if you prefer to drive a new car every few years, and the thought of never "owning a car" doesn't bother you, leasing allows you to drive much more car than you might otherwise be able to afford with monthly (purchasing) payments. You can lease a used car as well, though after awhile you're renting a car that might cost you serious money if it's no longer covered by a warranty.
Case in point: the 2014 BMW i3 that I drive daily. The retail price on it was $50,300.00. I decided to LEASE it primarily because:
~It was BRAND NEW technology,and covered for every bit of it's 3 year, 36,000 mile lease by BMW factory warranty (which is a 4 year/50K warranty). I can (and probably will) walk away from it at the end of the lease, or purchase it (refinance) for the $26,000.00 residual. If I walk away from it, there is a $350.00 "disposition fee" (for reconditioning), which will be waived if I lease or buy something else in the BMW family...which I may do.
~I put $2,000.00 down, and my LEASE payments are $454.00 a month; roughly the monthly price of financing a $20,000.00 car if I were purchasing it for 60 months. But remember, that $2,000.00 ain't BUYING me anything, it's reducing my LEASE payment. I could have put 0 down, but my lease payment would have been higher.
~There was also a Federal (and state) tax credit available to lessors and purchasers of this particular car, since it's alternatively fueled.
Purchasing that same car for 5 years would have been $5,000.00 down minimum, and more than $800.00 a month monthly payment. So not in the budget!
All those 20 and 30-somethings out there you see in those Mercedes and BMW's and Audi's and $50,000 pick up trucks? They're LEASING!
Because I'm a gadget freak (hey, I'm a member here, ain't I?!), I'll see what new whiz bang technology is available in 3 years. Maybe by then, a pre-owned Tesla will be affordable.
Buying a car makes sense if you plan to keep it for a long time. I purchased (not leased) my 2004 Mercedes station wagon, because I knew I was going to keep it 10+ years. It's not particularly "whiz bang" any more, and it's relegated to hauling 3 dogs to the vet and going camping occasionally. We also take it on road trips, outside the 60 mile "gotta recharge me" limit of the BMW.
As always, YMMV. My thoughts only..[this post was last edited: 1/10/2016-17:20]
