Originally Posted by
AcuraFanatic
Because then you have an asset. A depreciating asset, but an asset. It's like renting an apartment because you don't want to buy a home.
You're going to incure maintenance costs whether you lease or buy. Leasing is for two situations:
1) company vehicles that are able to be written off for taxes
2) people who want a nicer car they can afford, i.e. morons
I don't see an arguement.
Renting instead of buying a home /= leasing vs buying a car.
First of all, a house is an appreciating asset that you purchase for a long-term gain. As time goes by (unless you are stupid enough to go interest only) you pay down your mortgage while the value of your home increases.
Automobiles lose a significant value as soon as they are driven off of the lot and depreciate heavily for the first two to three years. If you lease, you pay a premium to use the vehicle while it is depreciating, return it when you are done, and repeat. Obviously, the best way to purchase a car is to pay cash for it but I have no desire to keep a car long term and that cash is now tied up in a depreciating asset. If I am just going to trade a car in every few years, I would rather lease and keep that extra money invested so I can earn a return on it. Hell, I could probably earn a better return than my leasing money factor (interest rate).
As far as maintenance costs go, of course you will incur basic maintenance. I am referring to the costs after you have exhausted your warranty and the car starts to nickel and dime.