@ImprovingYouth wrote:
@skoop wrote:
Interesting view point. A lease is a liability and not an asset. Had not looked at it in that way. What is appealing is a three year commitment instead of 5 or six years. But food for thought.Doesn't matter as all cars (non-collector cars) are depreciating assets. Leasing is of value particularly to cars with low depreciation in the first 2-3 years as the lower the depreciation during this time the lower the total lease cost, and lower payments overall. This pertains to economy class vehicles, as most luxury vehicles will depreciate MUCH faster, loading the depriciation to the leasee. Honda, Hyundai, etc. are all good cars to lease IMO.
The same applies if you buy. What is the incentive to lease?
@Dustink wrote:
@ImprovingYouth wrote:
@skoop wrote:
Interesting view point. A lease is a liability and not an asset. Had not looked at it in that way. What is appealing is a three year commitment instead of 5 or six years. But food for thought.Doesn't matter as all cars (non-collector cars) are depreciating assets. Leasing is of value particularly to cars with low depreciation in the first 2-3 years as the lower the depreciation during this time the lower the total lease cost, and lower payments overall. This pertains to economy class vehicles, as most luxury vehicles will depreciate MUCH faster, loading the depriciation to the leasee. Honda, Hyundai, etc. are all good cars to lease IMO.
The same applies if you buy. What is the incentive to lease?
It limits your exposure to the depreciation. You only incur the expense of depreciation for the first 2-3 years opposed to the life of the vehicle.
Edit: This rarely works out in the favor as most cars will have very heavy depreciation in the first 2-3 years some 30%+. The reason 99% of people go with leases is to keep monthly payments low or to save money while continually buying newer cars.
) //CK:692, Sesame:656