- First Name
- Darlene
- Joined
- Jul 23, 2020
- Threads
- 6
- Messages
- 732
- Reaction score
- 980
- Location
- Buffalo, ny
- Vehicle(s)
- Subaru crosstrek/ Mazda miata
- Your Bronco Model
- Black Diamond
Years ago, I watched my friend who had a loan on lemon of a car try to trade in for a new car, but could never get the equity on her car and the loan amount to even out enough for it to be a wash. For that reason, I always lease. It makes the most sense to me. There is always the option to buy at the end with the money you put in going towards the principal, so the argument that you are “throwing your money away” is just silly. I’ll decide whether to buy or lease when I see the payment amounts on paper.Leasing is not a waste of anything.
You're paying for the time you use it. Leasing also keeps your loan/debt ratio low. Leasing is only an option if you have good credit, which gets you the best money factor. Leasing takes on far less risk in case you damage the vehicle or end up with a first year run dud. Finally leasing helps those who want to maintain a level of liquidity with finances since it isn't smart to put money down on a lease; maybe $1000K is ok.
Businesses rarely purchase vehicles new because why would you take on a depreciating tool unless the vehicle IS the business? Leasing keeps your payments low up front, then you have options on the back end if you would like to keep your car and finance for an extra 24-36 months.
That said, I'm purchasing the Bronco with a loan with maybe just $2K down because I don't like down payments in case the vehicle gets totaled or flooded. Also, I don't want to think about mileage on the Bronco and I plan to keep it indefinitely as a toy although it will be a daily driver for at least 3 years.
Even if you modify your lease, it's not a big penalty in most cases and if you keep the ride, you've limited a lot of uncertainty.
This isn't advice, just some options to consider from a PhD Economist who works for a large private investment brokerage..... that's all.
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