When is leasing better than financing?

>When is leasing better than financing?

When you have a car with a high depreciation and high maintenance costs. Or if you plan on driving and doing no maintenance.

>When is financing better than leasing?

When something has a high resale, like a Tacoma or something Toyota.

What happens of you go over 10k miles?
They track you down with helicopters and police chases?

Is this just because your car depreciates the fastest right after it's bought?

You get charged a nasty cent/mile charge. You can get leases with higher mile limits but you pay more obviously.

Completely incorrect. You can write off the % used for ACTUAL business. So you use the lease for 60% business, you can write off 60%. But it's not a 1 to 1. It just reduces the total tax burden based on a percent with a maximum amount. So you spend $10k on a lease in a year, you don't magically get $10k back in a return.

Also, on a car you own you can get mileage compensation at about $0.54/mile AND depreciation. Again, it's not a 1 to 1 though. You don't just get a check for the money. It just reduces your tax burden some.

So you own your own home too, right? You've never lived in an apartment or rented a house before, I take it.

First guy you replied to here. Nope, because I'm too poor to afford to own a house where I want/need to live.

Leasing:

Business reasons, questionable to longevity/maintenance(BMW, Audi), to poor to fully buy

Purchasing: Good car that will last(honda, toyota, mazda), intend to keep longer than a lease period, dont want restrictions that leasing has on miles, you want to mawd you car

>When is leasing better than financing?
When you're not paying. Otherwise; never.
I used to structure corporate full maintenance leases when I worked in banking. There's a reason it's the most profitable product the finance industry currently has, and hence why so many auto manufacturers are so keen to get you onto one.
The depreciation and servicing cost are built in with verry healthy buffres.
If we had a deal offering less than 26% ROE, we didn't do the deal...

>When is financing better than leasing?
If those are the two options, then always.

Alternatively, look at buying cash; yes you'll lose a lot of it in depreciation, but it's cheaper over time.
The only caveat, is if you're trying to continue building a good credit record for a new mortgage or something.

I don't think you know the difference between leasing and financing.
Nevertheless, property is a good parallel; better to buy than to rent (excl. one off purchasing costs)

I do know the difference but the fact you managed to misinterpret my post somehow means you clearly don't

So if I own a business, would it be wise to buy/finance a car through the business rather than personally? Is there any downside to being able to write some of the expense and depreciation off compared to buying/financing personally?

I don't care if it costs extra shekels -- being a slave to the automakers by leasing a new car every 2 years = CARE FREE LIVING

never having to visit a tire store, pay for an oil change, rotate tires, catastrophic maintenance, paying for a tow truck...dealing with selling a car, buying a car...all the finance scams... NONE OF IT. oh and all the newest tech and best miles per gallon

if you put more than 15k a year on your car you need to move closer to work or get a new job or your employer should be paying for your car

people with decent jobs get monthly car allowances. $800-1000/month is not unheard of

If you have a stable income and intend to keep a car, then financing is probably better.

At the point of resale you take back some money that you would otherwise not have if you were to lease.

Leasing is probably better if you intend to do a lot of mileage or if you intend to change your car as often as you change your mobile phone.

It's a pretty well known thumbrule that if you aren't planning to own a residential house for 3-5 years before sale, that you should not buy it.

Don't listen to the poor teenagers in this thread.

It varies by situation. For me leasing is usually the better option.

With a lease, basically you're shifting more risk to the bank. If the residuals are lower than forecasts, it's THEIR problem.

For those financially literate, note the "put option" built into the lease contract. It gives you optionality.

And yes a business can write off a lease payment, but the same goes for deprecation of a owned vehicle.

Depends on how far you drive on average ad how long you want the car, I’d never lease because I know I’d go over the mileage limit and I keep my cars for a long time, but my grandparents lease and it works really well for them since they barley drive anywhere and aren’t exactly going to have it for very long so they get a nicer car than they’d usually be able to buy

so, say i take home around 70k a year after taxes and i want the ability to switch cars every 2-3 years. if i'm looking at cars in the 60k range would leasing be a better option for me ?

why would you want to switch cars every 2-3 years? stop being such a consumer whore.

Some dealers don’t penalize you on mileage if you buy the vehicle (obviously) or trade in for another lease vehicle through the same dealership

- i like luxury / high performance vehicles and like having the newest and best
- don't want the headache of "selling" when the time comes to get a new car.
- don't want to hold on to a forever depreciating asset
-already have a solid fully paid for DD

I'm leasing a 2018 GMC Sierra for only $200 month. If you can't afford that you're fucking Taco Bell tier

and in the end you have nothing, faggot.

>When is leasing better than financing?

You have a short commute to work, don't drive long distances on the weekends, and you want a new car every 3 years. If you can afford it, go for it.

>When is financing better than leasing?

You keep your cars longer than 5 years and you want to make the best long term choice for your portfolio. You don't care about having a new car every 3 years.

I buy new cars and drive them for at least 15 years, barring accident or a completely unreliable lemon. But, I write software for a living and don't interface with clients at all. If I were a salesman/real estate agent, I'd be leasing for appearances. Nobody wants to get shown a million dollar property a 2006 model year car, regardless of brand.

Not the OP but that's the trade off for leasing, you don't own it in the end but that can be a good thing.

I leased an Impreza for 3 years and I also pay 200 a month. For 7200 total I get a brand new car with great amenities, don't have to worry about maintenance/service/parts cost, no fear of inheriting a lemon and if something happens to it, I don't care.

I leased 2 years ago personally because I just graduated from college and wanted a cheap starter car. My plan was to work for 3 years and by then have a job that would allow me to comfortably finance a new WRX.

>but for 7200 you could've...

Yeah there are cars I could have owned for that much but I'd rather not get into the used sports car market.

Leasing is good if your company is paying. Otherwise just pay cash.

The only acceptable way to finance is that you could pay cash but you get a good rate and want to be savvy. Even then financing is still a hassle.

>- i like luxury / high performance vehicles and like having the newest and best
>- don't want the headache of "selling" when the time comes to get a new car.

Valid

>- don't want to hold on to a forever depreciating asset

Invalid. Don't try to justify a lease from a financial standpoint. It is objectively more expensive to constantly lease.

>-already have a solid fully paid for DD

I don't see this as relevant. Your leased car gets dealer service and shouldn't have any issues inside of 36 months.

Only reason to keep the DD is for mileage restrictions.

when you're retarded or someone else is paying

or you could've bought a civic for 3k or fixed your old car. subarus and imprezas are shit. the "amenities" are unnecessary or gimmicks.

>An example: Buying versus leasing for six years

>Some people need to see the numbers, so we looked long and hard for a lease deal that would seem to beat out buying.
>We found a promotion for a 2014 Honda Accord Sedan 2014 lease deal listed by Edmunds.com (you can find similar deals here). After $1,999 down, the lease payments are just $199 a month for a 36-month, 36,000 mile lease. The total cost for three years comes to $9,163. Let’s assume you found a similar lease again for another three years. Your total cost comes to $18,326, or $3,054 a year for six years.
>The same vehicle had a target price of $20,840 accordingto car pricing service TrueCar.com. If you put the same $1,999 down and financed the car for 48months at 2.5 percent, your monthly payment would cometo $412.88. At the end of the four-year loan, the total cost to purchase the car (including interest) comes to $21,817. Over six years, your annual cost would cometo $3,636a year.
>So far it seems like leasing is way cheaper … by almost $600 a year!
>But we’re forgetting something: After the loan is paid off, you own your car. You have an asset. According to Kelly Blue Book, a 2008 Honda Accord LX in mid-grade condition fetches about $10,000 on the private market. So whether you sell the car or apply the trade-invalue toward your next purchase, your actual cost of ownership is reduced to $11,817 or $1,969a year. That’s a savings of $1,085a year and $6,508over six years.
>Although one of the drawbacks to buying a car is the need for more regular maintenanceas it gets older, the savings over leasing should provide plenty of cash leftover.

I'd also like to note that your consideration should vary on the type of car you're buying:

>DD

Buy it.

>Weekend sports car

Lease it so you can hoon it and dump it back on the dealer after 24-36 months. Any properly hoon'd sports car will self destruct once the warranty ends. They are designed to do that nowadays.

Lease is good if you move a lot.

Cars aren't homes. They can move with you.

I'd do the reverse simply becuase my weekend vehicle would be the one that i've changed the suspension out and added other go fast goodies.

But I own all 5 of my vehicles so its a moot point.

thanks this study actually puts it in perspective, so it's really only worth it if you are leasing very short and constantly getting new cars