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Originally Posted by doctorgonzo
Yes, paying for something that depreciates is a waste. That's why you should buy a car that is 2-3 years old. At that point, it has lost maybe 40-50% of its value (cars depreciate the most in the first couple of years). So you can basically get a very decent car for 60% of the sticker price. If you have the original warranty, it's great.
If you lease, after your lease is up you actually own nothing. It's exactly the same as renting an apartment: you have no equity after making all of those payments. That money was essentially thrown down the toilet. Like I said, if you must have a new car every two years, leasing makes more sense: instead of constantly buying new cars and selling them two years later (taking the 40-50% hit in price due to depreciation), leasing can be better. But if you want to get the most out of a car, leasing is not the way to go.
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Well you can have any number of year leases 3,4,or 5. But after the lease is up you can buy the car at the reamining depreciated value. So then you are buying the car for a lot less then if it was new. Then you are essentially buying a used car where you were the only owner and the whole time you where leasing you are paying a lot less.
The one down side I have found to leasing can be insurance rates tend to be slightly more.
But hey leasing isn't for every one. There are always options. I just do it because it is cheaper. And I like having a new car that is reliable and under warranty. In my younger days I would spend years paying off a car only to have an old car to show for it that had lots of miles on it and no warranty and I would be stuck fixing any thing that broke. It is now just a peice of mind for me that I don't have to worry about.