With leasing it is more difficult to determine if you are getting a good deal. The interest rate is hidden in the money factor. Depreciation is predicted at signing (residual value). Cash is generally required in the form of a security deposit and down payment. This gives the dealership more ways to sweeten the deal for itself.

That said, one can get good lease deals on some models and sometimes. It just takes more work on the buyers part.

My father used to say “Buy a used car, buy another man’s problem.”

A lease is just another loan, just without the down payment and with no prospect of acquiring equity.

There's really no right or wrong here. We leased a new Honda Accord about 18 years ago and it worked out fine for us. Staying under the mileage limit and taking good care of the car is key when leasing.

I just bought a new Chevy Colorado. But If I was planning on getting a new vehicle every 3 years I would probably lease.

It can be a very good option for the right situation.
One last thing, make sure you really like whatever car you lease and will be happy with it for 3 years. Trading out of a lease is difficult and can be expensive.

Good luck!

I hear you. But, paying cash is difficult when NEW vehicle prices are anywhere from $35,000 and up. You can invest that money. In 2024 my portfolio made 23%. Returns are not going to happen like that every year but it is something to consider when deciding to buy or lease.

For the same term, say 3 years, a loan payment will be higher than a lease payment. This is because for the loan payment you are essentially paying for the depreciation and the residual value of the car at the end of the term. With a lease payment, you are only paying for the depreciation at the end of the term. Yes, you will acquire "equity" with a loan but you have paid extra each month, over leasing, to acquire that "equity" (aka residual).

Bought a new car in April 2018 have thirteen thousand miles that’s less then two thousand a year. The car still has that new car smell. Buy it probably will be your last car

Bottom line, at least for me, is that leasing gives me the opportunity to drive a much more luxurious car than I could afford to buy outright.

Always way ahead of the game if you pay cash for the vehicle and then keep it for at least 8 years. Car/truck purchases are the worst investment one can make. Our 2017 Toyota is a fantastic vehicle and will keep it for years to come. We would rather spend money on travel.

Owning a vehicle inexpensively:

rule # 1
vehicles are always future junk, so the only way to own a vehicle inexpensively is to buy a used car with low mileage within three years old.

rule # 2
keep it until the maintenance is more than oil and tires. These days, 10 years plus is easily doable.

rule # 3
no one cares what kind of car you have, as long as its safe when you are driving in some else's car.

Its always amazing to me what people pay and what people buy when dealing in future junk

Likely in an era where the average lifespan of a car was well under 10 years.

Average lifespan of a new car in 1985: 7.5 years

Average lifespan of a new car in 2023: 12.5 years

These are just averages. If you stick to brands like Toyota you're going to get 15+ years.

New technology is worth paying for. My new vehicle will pull itself over if it detects that I’ve become unconscious, it will correct me if I swerve, and it will stop me both forward or backwards if I’m about to crash into an obstacle or person. Thankfully, I haven’t needed those features but nice piece of mind to know they are there. With a 6 year warranty, hoping it won’t be junk in that time frame, so no repair worries.

Exactly right. That and tax consequences are really the only 2 reasons to Lease a car.

Please share the math. :oops:

A lot of educational info at LEASEHACKR.

Funded by car dealers.