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ken0042 · 10-15-2011, 12:06 PM

I buy my cars; but I typically keep those cars as well. In my ~25 years of driving I have owned a total of 5 cars, and I still own 3 of them.

There are a few downsides towards leasing that have not been mentioned:

- Difficulty in selling. My 10 month old vehicle that I bought new; I could essentially walk away from it at this point. With a lease you are in a contract to keep that vehicle for the term. So not only do you have to find somebody to take over the lease (which limits your buyer pool), you also would have to give up quite a bit of money. With a lease you are agreeing to buy the car for one price, sell it back at a specific time for another price, and finance the difference. So while the depreciation is spread over even payments, if you try to get rid of the car early you now take the hit for the biggest depreciation that happens when a vehicle is new.

- Returning the car- it has to be in a certain condition. So not only do you have to worry for your own peace of mind about damaging the vehicle, but you may also face a hit when you return the vehicle. I know of one poster in this thread who was stressing when he had to turn in his last vehicle as he had a minor accident just before returning it. As it turned out the dealership worked with him; but I have heard other stories where they do not. What is the value of that extra stress.

- Along the same lines- mileage. You have to decide when you sign how many kms you plan on driving, and how much you want to pay for additional kms. You get a better price at signing by saying you will pay 50¢ for extra kms than paying 10¢ for extra kms; will that work out for you?

- You are forced to return on a specific date. That date may not work; maybe you have a trip coming up and you would rather return it later. Yes, you do have the advantage of not having to try and sell your vehicle, but you lose all flexability.

- Modifications. The car is not yours to do with as you wish; any modifications have to be un-done before you return the car.

- Insurance- the cost for insurance is higher on a leased vehicle.

So yes, for many people leasing is a great option. I know people who always lease vehicles and would never buy. However it's good to have all the facts to decide if it is worth it for you.

The other thing to add- Pylon's post earlier mentions dealers stopping leasing. Because that post is an older post, I believe that info may be out of date. During GM's restructure a few years ago they had to stop leasing, but now that is an option again.

10-15-2011, 12:06 PM	#37
ken0042 Playboy Mansion Poolboy Join Date: Apr 2004 Location: Close enough to make a beer run during a TV timeout Exp:	I buy my cars; but I typically keep those cars as well. In my ~25 years of driving I have owned a total of 5 cars, and I still own 3 of them. There are a few downsides towards leasing that have not been mentioned: - Difficulty in selling. My 10 month old vehicle that I bought new; I could essentially walk away from it at this point. With a lease you are in a contract to keep that vehicle for the term. So not only do you have to find somebody to take over the lease (which limits your buyer pool), you also would have to give up quite a bit of money. With a lease you are agreeing to buy the car for one price, sell it back at a specific time for another price, and finance the difference. So while the depreciation is spread over even payments, if you try to get rid of the car early you now take the hit for the biggest depreciation that happens when a vehicle is new. - Returning the car- it has to be in a certain condition. So not only do you have to worry for your own peace of mind about damaging the vehicle, but you may also face a hit when you return the vehicle. I know of one poster in this thread who was stressing when he had to turn in his last vehicle as he had a minor accident just before returning it. As it turned out the dealership worked with him; but I have heard other stories where they do not. What is the value of that extra stress. - Along the same lines- mileage. You have to decide when you sign how many kms you plan on driving, and how much you want to pay for additional kms. You get a better price at signing by saying you will pay 50¢ for extra kms than paying 10¢ for extra kms; will that work out for you? - You are forced to return on a specific date. That date may not work; maybe you have a trip coming up and you would rather return it later. Yes, you do have the advantage of not having to try and sell your vehicle, but you lose all flexability. - Modifications. The car is not yours to do with as you wish; any modifications have to be un-done before you return the car. - Insurance- the cost for insurance is higher on a leased vehicle. So yes, for many people leasing is a great option. I know people who always lease vehicles and would never buy. However it's good to have all the facts to decide if it is worth it for you. The other thing to add- Pylon's post earlier mentions dealers stopping leasing. Because that post is an older post, I believe that info may be out of date. During GM's restructure a few years ago they had to stop leasing, but now that is an option again.