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Originally Posted by Wagner
So you'd rather lease a 50-70k ride and have nothing to show for it at the end but money gone and no vehicle to trade in on a new ride.
Guess it is just two different types of thinking.
IMO, if I'm paying $500+ a month on a car, I want a car to show for it.
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It depends on the type of person you are. Do you keep a car for more than 5-6 years? How many miles do you drive? Do you have other vehicles available to drive?
I used to work at a car dealer selling cars. I would often see people coming in stating that they only have 1 or 2 more payment left on their purchase, and wanted to look for a new car. They paid on a car for 5 years and wanted to make another 5 year purchase. Why would someone want a car for 5 years when they can get a new one every 3 years. And with a lease,
most of the time your payment would be less than a purchase. In business class, they teach you to purchase items that will appriciate, and lease/rent items that will depriciate. Plus, if you are making payment on a purchase, you don't really own the vehicle, the fiance company does.
If you calculate the amount of your total payments (60?) made and then subtracted the amount of trade in of your vehicle, you would come up with (x) amount of dollars. Then if you calculate the amount of the lease payment (36?), you would be suprised to see that the amounts are not that much different. Also, you don't have to worry about purchasing an extened warranty, which usually runs into the thousands.
Also, at the end of a lease, you do have options. The residual value is calculated at the beginning of the lease, no more open-ended leases. This value is a guess as to what the vehicle would be worth at the end of the lease. If you wanted to purchase the vehicle, this would be the price. It is usually a bad idea to purchase a vehicle this way. If you are able to sell the vehicle for more than the residual, you get to keep the difference. If the vehicle is worth less, you just give it back to the leasing company.
For me and my family, leasing is a great way to go. We have 2 other cars, and 3 motorcycles to drive. So the miles on a lease are not a concern. One of the main problems with leasing is credit score. You must have almost perfect credit to lease. At the time I purchased the x5, my wifes credit wasn't the best. I don't know if we would have qualified for a lease on a lux vehicle at that time.