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I know a few people that lease Subarus with the 10k miles a year, but put 15-20k miles a year on the car.
For example, you lease a new Subaru Legacy with MSRP of $25k for $300/month with $0 down. Drive it for 3 years/55k miles. Your buyout is $13k. The dealer will buy out the car for $14k and put them in a new Subaru lease with $1k towards the new car, keep repeating the cycle.
Of course this only works with cars that keep their value, like a Subauru in Colorado. The gamble is your car is out of warranty for a bit, which sucks if you need to dump money into a car you are getting rid of. But most powertrains are good to 60k miles, so nothing major.
You're wrong and obviously don't understand how a lease works.
First of all, you're assuming that a car with 36K or 48K miles will become a "money pit". This is FAR from the truth and you're trying to bolster your point which has no leg to stand on. Most vehicles will exceed the 100K mile mark before any major systems start failing and if something fails before 100K miles, it's highly likely that it'll be within the first year of ownership. Modern vehicle components are built to withstand enough abuse and strain that only 1% of them would ever have a major system failure before 100K miles. Your first assumption is false.
The vast majority of leases are NOT "unpopular models" or "unsold inventory", the vast majority are POPULAR vehicles from the likes of Mercedes, Audi, BMW, Lexus, Cadillac, and Infiniti which offer vehicles that are usually cost-prohibitive for many average people to buy outright so they succumb to the leasing scheme. People are not buying average, inexpensive vehicles with leases but are normally buying higher-end, luxury vehicles that they can't afford to finance. Your second assumption is false.
You rarely, maybe 1/2 of 1% of the time will come out ahead by leasing a vehicle. Why do you think manufacturers advertise so heavily the "great leases" they're offering? Do you think they're dumb? Do you think they're advertising leases because they lose money on each lease they offer? NO, they sure as hell know what they're doing otherwise they wouldn't be trying to get more and more people into the leasing scheme. I've started seeing Mercedes advertisements for Christmas and of course, the ads are pushing how cheap their leases are. Mercedes is in the business of making money, they'd be out of business if leasing was such a great deal for the consumer.
Besides leases usually stipulate:
A downpayment (usually a few thousand dollars)
X number of miles (with HUGE mileage overage penalties)
X number of months (usually between 30-36; so YOU are paying the initial depreciation)
Damage penalties
Condition penalties (normal wear and tear)
You don't come out ahead by leasing a vehicle, pure and simple. To think otherwise is simply illogical.
Sorry you are wrong! Also some dealers have zero down payment leases...Acura has that going on right now so you clearly show your lack of knowledge on the subject. You can negotiate mileage before you buy so that's another area where you are uninformed.
Bought my first one at age 12 and still have it... a 1929 Model A.
The last car I bought was 10 years ago and the truck I drive daily is a 91 and the van a 85.
Depreciation drops dramatically over time... in fact, the cars I have sold have always sold for more than I paid... ALWAYS
Just shows if you own something like a car long enough you can actually sell it for more than you paid.
Not too much chance of doing this with a lease.
That's nice some of us get bored of a car after 3 years not to mention new technology becomes standard about every 3 years. I don't care about selling a car and making money I just like cool shiny new stuff and maintenance free driving.
I personally hate payments, and don't see the point of making payments on something I don't really own. None of the really wealthy people I know bother to lease. They all buy their cars outright.
I personally hate payments, and don't see the point of making payments on something I don't really own. None of the really wealthy people I know bother to lease. They all buy their cars outright.
You can still buy the car if you lease...leasing just gives you more options at the 2, 3, or 4 year mark depending on the lease. Putting money down on a lease is what's a bad idea which is why I will only ever do a no money down lease.
That's nice some of us get bored of a car after 3 years not to mention new technology becomes standard about every 3 years. I don't care about selling a car and making money I just like cool shiny new stuff and maintenance free driving.
I grew up around the family car business.
Thank God for people that do like cool shiny new stuff it put food on table in my family
I also learned first hand it comes with a price.
I do all my own maintenance and repairs... and nothing is as inexpensive as parts for older American Made vehicles... Just did the real wheel cylinders on my Truck at 160,000 miles... the total cost for both with tax was less than $10... got to love American Technology
Many of the cars we sold were lease returns and for years it was very profitable... especially when typical leases were 2 or 3 years...
When the car needs new tires, I dump it and move on to the latest and greatest.
Even if you keep a car for 10 years, when you do the math, it cost you over $100/month NOT including maintenance and repairs.
For example, buy new car for $30k. Drive it for 120 months and sell it for $8k. Cost you $22k/120 = $183/month. I'd rather pay $350/month for a new car every 36 months that is always under warranty and has the latest safety. A couple sets of tires bump up your costs $10/month. Sure registration and insurance are cheaper on a 10 year old car, but if that's a concern, you should be driving a 10 year old car anyways.
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