5. At the end of 7 years, the accumulated upkeep will have cost more than the car is worth so you do not come out ahead. If you had leased, at least if in the (lets say) 4 years that you were in your lease, if an accident happened, you wouldn’t have to worry about the mileage. Well you either have to go to court, or make sure you never have an accident where the car is written off. A three year old 2013 acura rdx awd base goes for $29.500, Now if I bought a used 2013 acura base to begin with you save thousands but you have a used car with a limited warranty. Why does every article that supports owning never talk about the thousands in maintenance you spend every year (yes hundreds per month) after the car is around 5 years old. This article is very one sided, and not entirely accurate. It’s not an asset to me. Sometimes it’s best to lease and purchase after the lease expires. Leasing vs Buying isn’t a simple choice. Leasing a car gives you a vehicle to drive for a fixed number of miles and months. Leases, by contrast, allow you to drive a car for a fixed period of time (often three years) while making monthly payments until the lease expires. Also, when you lease, you’re not financing the cost of the sales tax amount up front like to do with a purchase (if you’re paying interest). Well it's all nonsense, well sort of… Leasing is designed for people that enjoy driving and being seen in a nice new car every few years and who appreciate reliable, worry free motoring. Of course, there is a lot of time spent as well in bringing a car in for repairs. So lease all the way! Let’s assume you found a similar lease again for another three years. During that time, I spent thousands on repairs, especially towards the end of the life of the car. I love when I hear spreadsheets are used in the long term calculations. Secondly, I don’t know anyone who is paying “massive” repair bills during the first six years of owning a new car…..unless you are buying German luxury cars at which point you probably don’t care about maintenance/repair costs. “Your transmission goes out and you are stuck with a $5k repair bill” In addition to the above point, there are the people who say that if you drive MANY MILES/KMS that you shouldn’t lease. After $1,999 down, the lease payments are just $199 a month for a 36-month, 36,000 mile lease. I simply want to point out that this article is not thorough in its analysis. As an engineering student doing economical analysis with p/a or a/f I found in order to break even you must do this: own the new car at a minimum of 10 years and hoping no problems ever go wrong, buy used and keep 6 years and hope nothing goes wrong, or lease and have a piece of mind and still have it better. Though, I choose neither option and buy 1 year old models every 3-4 years for 75% the MSRP. I think everyone will be leasing vehicles in the future vs owning them. I mean why would anyone prefer cleaner air, lower emissions due to better economy, air conditioning, pollen filters, electric windows, parking sensors, dab radio with usb connectors and bluetooth phone connection for hand-free telephone calls and all the other mod-cons one enjoys with a modern car? This comment makes me so mad I can’t see straight, especially since I hear it repeated over and over again. If you lease and took the extra $200 a month you would have been paying on the car loan and put it in an investment fund that was diversified against the market you would be better off. Enzo claims: “The best financial advice is to always lease depreciating assets and buy assets that appreciate.”. When I arrived here we bought a “cheap” car for 3500 euros + the initial payment of 800 euros, the car was so damaged in the first year we had to repair it a couple of times and ended up paying around 2000 or more euros. Most leases nowadays include all maintenance and you don’t have to worry about paying for an extended warranty because everything will be covered for the duration of the lease. Equity can happen if the car is in great shape aND less miles are driven that paid for. Along with aesthetics and performance the most important factor in the design of mainstream car manufacturing is making sure that the car is cleaner and greener. 2nd. Well the same day you get that cheque, the bank that you owe the money to will want the loan payed off. Totally agree. Since I am planning on purchasing car at lease end, I am build equity in the car during lease and do not have to worry about going over the mileage limit. So many times the new owner is getting an abused and minimally maintained vehicle. You said “There are some exceptions for business owners or others who can deduct certain vehicle costs.”. If you buy, once your loan is paid off, you own the car… I kept the Focus for three years and probably lost money on it. What the article does not discuss is how dealerships make the bulk of their money. You like to pay more for road tax than your savvy neighbour. Better to drive a new one all the time, watch the miles and then have leverage with the car lease company. You might not know it but cars are becoming greener every year. First of all, cars are NOT assets. Total cost for lease: $21,600. #2 Factory warranty associated with CPO cars is usually only 1-2 yrs and the CPO warranty might get you to year 3-4 of ownership but it doesn’t cover a multitude of wear/tear items that typically fail on a vehicle that’s 5-7 yrs old. 2. This article is geared towards those who can actually get a low rate. I think at this point if you like to drive “nice” cars then it may make sense to lease. Once rolls up in an old jalopy smoking like a coal factory wearing stonewashed denim, the other in a shiny new Jaguar as quiet as a mouse yet as powerful as 200 horses wearing a beautifully tailored suit from Saville Row. Yes leasing will cost more compared to buying a used car or buying new but like many posters have stated there are benefits of leasing but first ask yourself how much do you drive, how long do you think you need a car, and what condition do you keep your cars in? She enjoys – and deserves – a comfortable, new, reliable car. That’s what matters to me in the long run. Pay to use the car, not for some fantasy of ownership. – Timm. I don’t think so – you’re spot on. 10 Reasons You Should Lease a Car. feature easy online applications and rates that can be significantly lower than traditional banks. We transitioned from partially subsidized cell phones that consumers own, to upgrade every other years plans that are essentially leases. Yes, you own an asset at the end of your car loan, but you’re conveniently ignoring the fact that it’s a DEPRECIATING ASSET that is out of warranty, and in the zone for big maintenance repairs. So what if the cheque is for $14,000 and you still owe $20,000? Value of a 3 year old model in good condition with 45000 miles: $27,000. We commit to never sharing or selling your personal information. Bear in mind that loans do pay off debt (which is good), but it’s also forced savings — which is a colossal restriction in other ways.