Originally Posted by Dweezel
If you purchase at the end of a lease based on the residual value, you have normally paid more than you would have if you would have bought the car outright. Unless you are savvy enough to negotiate your money factor or the car's lease price, the average consumer will get screwed on a lease. I am assuming that since this girl feels that the residual value can be used as a trade in for a new car, she probably was not savvy enough.
residual vlue /= trade in value... but usually trade in value > the residual. Someone must of explained that to her and she didnt understand...
You are also not considering alot of other factors, first payment when you are buying a car it usually higher, also taxes are an issue when you lease a car you can in some case spread the taxes on the term of the lease and lots more. If someone want to get a new car every 48 month leasing is a great opportunity...
http://www.infoplease.com/ipa/A0193143.html