Hey all was away for the weekend. Great discussion here about leasing vs. buying.. The reason why I recommend leasing in todays car market is that you are getting a guarenteed downside. You know going in that your car is worth $x at the end of the term of the lease. This is especially important in todays market. since October used car wholesale prices are off 30%.
Here is an example of a customer of mine that i am dealing with right now.
He leased a 2006 E350 MB. his lease is up next month and the residual on the car is $48,000. In todays market i can buy that car in the wholesale market for $38-39k. in september i was paying $50k for the same car... so by turning the car in at the end of the lease the leasing co is only going to get the $38k for the car and is taking the $10,000 hit. If he owned the car it would be his $10,000
Now with a lease you have first option to buy at the residual amount so if the market was the other way and the car was worth more than the $48k he could excercise his option to buy and get his equity out.
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