Quote:
Originally Posted by ndabunka
Companies subsidize sales in any manner of ways so that aspect isn't really a reason to lease but I do agree with you... It depends on an individuals wants/needs and desires.
To lease or not to lease is on par with politics, religion and which is the better oil threads so rather than turning this into another one of THOSE threads, I will simply say that leasing IS a financial instrument (fact) and it was introduced as a way for the selling parties (and lease companies) to make money. If it was actually "cheaper to lease", leasing companies would not make money and would have gone out of business a LONG time ago.
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Actually a lot of leasing companies have gone out of business (Chrysler for one) . Because it is a gamble - what will that car be worth in 24/36/48 months? BMW got crushed by this during the last recession. Case in point, the 24 month residual on the M5 when I leased was 72% and the cars were going for almost $10K off sticker! - remember residual is on the MSRP! - so you were getting the car for 10% off and then only had to pay the remaining 18% of the value over 2 years (plus the interest on the residual). Purchasing at even .9% interest was silly, just silly.
Alas, the cost of money (today it is a lot lower than it was 5 years ago), the cost of the car, how long you will keep it, and what it will be worth in 2,3, or 4 years, etc. all add up to the big question - should you lease or not. And it is different per car, per person, and dependent on a host of factors (economy, type of car, etc).. Either way, my belief, at least on high residual vehicles like BMWs, is that it still makes a lot of sense.