So my coworker is trying to get a new vehicle and my boss comes out of nowehere and says he should lease the car his reasons were as follows:
>your essentially paying the depreciation on the vehicle and that's it
>all maintainence is done for you
>you can trade the car back in and lease another newer or latest model
I just don't get it Veeky Forums I feel like he's blowing all this out of his ass but it sounds reasonable
Help me understand
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Depreciation is a meme. In reality, a car, new or used, won't depreciate 3000 dollars every year.
You're paying to not own a car. Leasing or buying new often is the second worst thing to do for retirement planning, next to having kids.
Only large businesses lease in my country die to tax write-offs.
If it is just for an a to b car and not for a motoring enthusiast, I'd imagine that it's simply cost of ownership vs cost of leasing
Leasing is one of those things I'll never fucking understand. You're paying to DRIVE a car, not even own it, you can't change a single thing on the car or even drive over a certain mileage, and at the end you have to pay MORE money to buy the car. It's one of the dumbest things I've ever fucking heard of in my life
sometimes I wish I leased just so I wouldn't have to deal with having to sell my shitbox eventually, or just scrap it. Such is life in a place where yearly insurance cost more than the car itself.
>my boss comes out of nowhere
>why don't you rent a car long term?
>you're essentially paying money for no equity
>any extra repairs outside of maintenance will be blamed on you if possible
>you can trade the car back in and pay penalties to rent the latest model
your boss is a retard
>>your essentially paying the depreciation on the vehicle and that's it
Like... uhhh.... what other expense would be more than that?
>you can trade the car back in and lease another newer or latest model
Enjoy having a car payment forever and never owning anything. You can buy a shitbox for the down payment and put work into it for the monthly payment and at the end the dealer isn't going to want it back or charge you for excess miles or fart removal from the seats.
> In reality, a car, new or used, won't depreciate 3000 dollars every year.
Maybe not every year, but it will the first years you get to lease it.
For buying a new car it's not that bad. No one keeps a brand new car for the 8+ years it would take for it to make financial sense over rolling leases.
Even then you have an option to buy, where you've paid near nothing for the option of renting or buying the car
Leasing is acceptable in the following conditions:
-You are on a really long business trip and you need a car for more than a few weeks but less than a year. More cost effective to lease.
-You are a business and you're leasing some sort of truck or work vehicle and in doing so, whatever it does for you earns you more money than you're paying for the lease. Especially works out if you need a truck for a service team for example and you're not sure if they're going to stay long term so the truck can just go when they do.
Too bad 99% of leases are poor faggots trying way way too hard to pretend to be rich to their friends who don't give a fuck.
As an individual for a long term basis, you're a total fucking moron if you don't buy used either privately or from the dealer because you're targeting the perfect 2-3 year period in which you've saved 60% of the cost and you still get something fairly new.
What is a vehicle to you?
>I want to get somewhere or do a job
You buy used
>I'm a poor faggot and I want to look flashy by "trading it in" every year and I pretend it's a status symbol
you lease
Leasing is a good deal in a few situations. If you get a new car every few years anyways or want a particularly unreliable car (like anything Italian), a lease is a good idea because you save money over the period over financing it, and you only drive the car while it's still under factory warranty.
However, if you actually want to own the car or not get a new one every few years, it's a waste of money.
If only it was that simple
>buy privately
>shitbox breaks down because shitbag flipped a vehicle with major issues
>buy used from dealership
>same thing but more expensive
If only there were some way to see if a used car is in good mechanical condition before buying it!
Read the small print.
> You will not own the car
> Charges will be incurred for damage or excess mileage
> You will not own the car
> Lump sum due at end of lease or they take it away and force you to sign another lease for another car you can't afford because you were leasing a car you couldn't afford.
> YOU WILL NOT OWN THE CAR
> CAR BELONGS TO XXY MOTORS
> YOU
> WILL
> NOT
> OWN
> THE
> CAR
it works for people who have money and must for whatever reasons also have a new car.
If you "had money" you'd buy the new car and then own it. Leasing is literally just for poor shits trying to pretend to be rich.
I think this thread is full of people who have never actually leased/looked into leasing a car.
i currently lease a 2016 Camaro. Before that, i had a mustang.
in my opinion, leasing only makes sence if
1. you KNOW you are only going to keep the car for 3 years or less
2. you KNOW that you can stay within the mileage range of your lease.
contrary to what you may hear on Veeky Forums there are some benefits to leasing. you can switch cars relatively often,your car will always be under warranty, and you have more options at the end of your contract.
it really just depends on your situation and your budget. i know myself and i know that i like having the newest and best. Leasing allows me that freedom. I would never advise someone to get a lease on something like a family car or a something that they want to keep long term.
This is the only right answer in this thread. I never leased anything but I performed extensive research and came to the conclusion that the only real reason to lease is if you’re somebody that wants to be driving a new car every 3 years. The value proposition of this will vary depending on your personal financial situation and how you value your driving/car time, but for some people it’s worth it and leasing is the most cost effective way to do it.
Any other approach to leasing and I can guarantee you that the cost differences are going to be negligible.
Yeah by ripping out and taking apart the engine and transmission and analyzing every part. I'm sure the buyer won't have a problem with that at all. Unless you go through the the cars "black box" or know it's entire history you never know. Service records can be faked and used cars have lots of tricks u their sleeves t cover up issues.
tldr: people lease so they don't have to worry about these things.
Do you really want to make car payments forever?
My last car I bought $5k and used it for 7 years before replacement. I didn't make any payments for like 15% of my life on that car.
My car i have now I just bought for 10k cash. No payment to the Jews, and I floated that 10k on personal credit at 0.99% while my money goes to investments that pull 10%.
I've never made a car payment in my life, and I feel like my life is far less gay for it. My only bills are rent, electricity, phone and internet.
Leasing to me is like saying "I'll always lose and I'll never own this".
That's prob one of the easier parts of car ownership
>this is the only right answer in this thread
Ant yet it's still wrong. I was driving to work the other day (NY Metro) and I heard an ad to lease a Ford Explorer. $7000 down $290 or some shift a month.
What fucking moron would lay $7000 to rent a car for 3 years at $290 a month? I can only accept leasing if you're a poorfag who can get a stripped down essentially rental car version of a Hyundai or Kia for $0 down and $100 a month so you can commute.
That explorer better be fully fucking loaded with unlimited miles and ""free maintenance"""even then that's fucked. Wealthy and smart people that lease never put that much down. They just write off part of the high lease payment as a business expense. Normal people shouldn't be spending that much.
>I feel like my life is far less gay for it
user, I don't believe it's your finances that you are in denial over.
Leasing typically costs a bit more (if you compare holding on to the car for the same amount of time ) vs. buying/selling, but frees up more of your own money that you can invest or do other things with, so the opportunity cost of buying can be higher. It's harder to qualify for a lease than it is to buy, poor people aren't using leases to get into cars they can't afford, they are buying them with exorbitant rates from buy here pay heres. Here's an interesting thread about leasing, it's easier to get a feel for the differences when the car is very expensive, obviously if you are talking about a Hyundai shitbox it's not like the $600 you keep liquid when leasing vs buying will make a difference, but when you are talking $50k you can see how leasing can be the best option in some situations.
Because you don't get to own the car. For the same ammount of money as a lease you can get a very good used car with low miles that's a few years old. Driving a brand new car is unimportant to me.
Puerto Ricans man. They're retarded.
Are you going to replace the car in 3 years? Then lease.
Are you going to keep the car for 10 years? Then buy.