Leasing makes sense only if you really want to trade your car in every 3 to 4 years. In addition, I believe that the fewest number of deals you make, the better off you will be in the long run.

Think about it. The dealer is entitled to make a profit off every transaction (s)he makes. Who pays that profit? You do! So, every time you purchase a car and make a trade, your contributing twice to your local dealer's retirement fund. Oh, they will say they are giving you "more than book" on you trade-in. If they were really doing this, how would they stay in business?

That being said, how does leasing beat this system? You are not risking capital on a depreciating asset. Basically, you are insuring your cost of ownership of the vehicle. In reality, your particular leased car may be worth more to you than the set residual value. If so, then buy the car at the end of the lease with the portion of the monthly payment you should have been setting aside for such a purpose. But pay cash and don't refinance. Why pay interest twice on the same principal?

Some advice on leasing from one who had been there. Don't make a large down payment simply to lower your monthly outlay. If something happens to the car and it is totalled, neither the gap insurance nor your auto insurance will reimburse the down payment. If you have to make a down payment in order to be able to afford the monthly, you should reconsider whether this one is right for you.

The object here is to put the least amount possible into a depreciating asset and invest the difference in something that will have a chance to make money, even if it's the 1% paid by money market funds.

Just think of leasing as an alternative method of financing.

Hope this helps,
gatorcpa
'03 9-3 convertible

posted by 208.249.92...

• All you who have leased... why? advantages? [+], Bjorn, Mon, 31 Mar 2003 13:45:56
  • Saab leases are NOT a level playing field...., Mike Lynch , Tue, 1 Apr 2003 16:27:04
    • Costs are Costs are Costs, Mike, Wed, 2 Apr 2003 09:07:11
      • Re: Costs are Costs are Costs, SaaberNaut, Thu, 3 Apr 2003 10:17:31
    • Re: Saab leases are NOT a level playing field...., SaaberNaut, Wed, 2 Apr 2003 00:22:25
  • Re: All you who have leased... why? advantages? [+], Ken , Tue, 1 Apr 2003 13:42:12
  • Re: All you who have leased... why? advantages? (long), gatorcpa, Mon, 31 Mar 2003 19:33:13 <-- Viewing This Message
  • Largely Personal Preference, Brian B., Mon, 31 Mar 2003 17:11:16
  • Here is a dissenting opinion..., SteveB, Mon, 31 Mar 2003 16:37:09
    • Ditto, Noel, Tue, 1 Apr 2003 09:58:50
    • Agree..., Lutfisk, Mon, 31 Mar 2003 17:06:51
    • where did you find such a deal? (car, not the women), Bjorn, Mon, 31 Mar 2003 16:54:42
      • Re: where did you find such a deal? (car, not the women), SteveB, Mon, 31 Mar 2003 17:02:50
        • no doubt about that. I have a friend who lives in [+], Bjorn, Mon, 31 Mar 2003 17:22:17
  • Down payment + payments = Option to buy +, ChrisB, Mon, 31 Mar 2003 15:42:20
  • Re: All you who have leased... why? advantages? [+], Tony C, Mon, 31 Mar 2003 14:53:50
    • Great insight... thanks. Do you feel that a lease [+], Bjorn, Mon, 31 Mar 2003 15:05:10
      • Re: Great insight... thanks. Do you feel that a lease [+], tony c, Mon, 31 Mar 2003 15:25:09
        • so after leasing. would you recommend it??? nm, Bjorn, Mon, 31 Mar 2003 15:35:57
          • Re: so after leasing. would you recommend it??? nm, Saabdealerguy, Fri, 4 Apr 2003 22:36:57
          • yes ! n/m, Tony C, Mon, 31 Mar 2003 15:40:22

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