Originally Posted by
Dweezel
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.
I'm aware of all those points, and mentioned them briefly. But regardless you still have an asset and that's the bottom line. When you lease, you have nothing.
If you're worried about expensive costs later down the road, then trade in or sell the car.
With leases you also have to worry about the cars condition, mileage, and you can't do anything to it (not that you neccessarily would).
I don't know, your call. Huge waste of money in my book