Leasing Cars: Money Pit?

[Sachin]

Interesting article.

http://biz.yahoo.com/brn/050309/14952_1.html

I never lease, except once for business purposes. Generally, I try to buy cars off car rental companies.

Sachin

[christopher d]

It's a fabulous deal for just about everyone in the automotive value chain. Dealers and manufacturers get to sell luxury to those who can't afford it, while lenders get you coming and going in the fine print.

Consumers meanwhile don't actually own anything, and what they're renting they're responsible for as if they do own it. Imagine your landlord making you pay for your own plumber in case of a leaky faucet.

It's working, though. Notice how the mileage allowances have dropped in the years since auto leases have been available to consumers. I haven't seen one over 12k in awhile. Tells me no one's reading the fine print, or they have their heart set on that 3-series too much for the fine print to matter.

[prk166]

It's working, though. Notice how the mileage allowances have dropped in the years since auto leases have been available to consumers. I haven't seen one over 12k in awhile. Tells me no one's reading the fine print, or they have their heart set on that 3-series too much for the fine print to matter.

Good point. The market may have matured so that those who are going to lease will do so pretty much no matter what.

I'm all for buying. It feels good when you can start putting that monthly check for the car payment into a rainy day account.