Couldn't get that for a Ford. Residual value big part of equation and Toyota and Honda are high in residual which allows them to offer low attractive leases. Leasing has saved the car industry.

 

Explorers hold their value very well...not sure about Edges.

My wife leased for three years in January 2013 for 3 years and 12000 per year with the option to buy at the end. We are 16 months in and she has 8000 miles on it. We probably will convert the lease payments to purchase at the end of the lease.

My last 5 cars have been late model used (only 1-2 years old with no more than 15,000 miles on them).

I've leased one vehicle, and that was over 15 years ago. It was our first minivan, and we did it right before having our second child, and leasing was the only way we could make the payments work. We ended up purchasing the van at the end of the lease at a great price, and ended up owning the vehicle for almost 10 years. Personally, I can't lease now because I drive about 20k miles a year, but I could see us leasing the next car for my wife. My parents have been leasing vehicles for about 15 years now, and get a new car every 3 years like clockwork. They haven't had to buy tires, or any other major maintenance during that time. Considering the money you save on that part alone, as long as you can make the miles work, leasing is a better deal than buying used.

And that's the thing how many of us always have a car payment?

 

You may be surprised.

I buy em about 2 years old with low miles, pay cash, and keep them for 8 - 10 years. For the last 12 years I have had a 'toy' car around as an extra vehicle. Drive the fun car enough to keep down the miles on the other. Even when I have sold my old cars at over 10 yrs old, w/ relative low miles they have held value and sold very quickly. The last time I made a monthly car payment was 1992.

 

I love leases. They keep the market flooded w/ low mileage gently used cars that are simply the best value car purchase around.

2014 Toyota Tacoma

MSRP $29,085

48 month lease $399

48 month loan $735

 

So at the end of your lease when you're turning in and walking away for "nothing" you walk away with about $16k in your pocket. Or you can then buy the truck outright for about $16k or $17k.

 

Save $399 for two years and you can pay cash for a very nice used car that some else took a butt kickin' on the depreciation.....no payments and you own it out-right.

 

Haven't had a car payment in over 20 years, I pay cash for reliable used cars and drive them till the wheels fall off.

 

$735 a month......YIKES!! That's more than my house payment.

Always go loan, no money down, 60 or 72 months. Always have the car well beyond the end of payments. Wife has Explorer just paid off 86k miles after 5 years. Will continue to run until dead.

 

The argument for buying at the end of the lease assumes most have 16k liquid cash. Dumping that large amount of money would bother me.

I lease. I know I want a new care every 3 years so it makes sense.

Save $399 for two years and you can pay cash for a very nice used car that some else took a butt kickin' on the depreciation.....no payments and you own it out-right.

 

Haven't had a car payment in over 20 years, I pay cash for reliable used cars and drive them till the wheels fall off.

 

$735 a month......YIKES!! That's more than my house payment.

 

Great idea. You'd be surprised at how many people cannot do that.

 

I prefer a "gently used" pre-owned for my travels.

I lease. I know I want a new care every 3 years so it makes sense.

 

Exactly. Most people DO want a new car every three years but they are in 60, 66, 72 , and sometimes now 84 month loans. So in three years when you hand over your keys they are having to pay extra for their new car they are getting because they owe more on their previous loan than the car is worth. So their 25K car now has a $30k loan for another 66 months. Perfect lease candidates.

Always go loan, no money down, 60 or 72 months. Always have the car well beyond the end of payments. Wife has Explorer just paid off 86k miles after 5 years. Will continue to run until dead.

 

The argument for buying at the end of the lease assumes most have 16k liquid cash. Dumping that large amount of money would bother me.

 

 

In a perfect world your way works great. However, the average person wants to trade out in about 36 to 39 months. They never see the end of their loan.

In a perfect world your way works great. However' date=' the average person wants to trade out in about 36 to 39 months. They never see the end of their loan.[/quote']

 

That is my wife. She/we will always have a car payment for her but everyone we know does. I however, rather not give 300 a month to a bank forever for a car. So I told her she's stuck with her current carb that has 5k miles on it.

Don't like buying used cars, just something about did the other person take care of it. However I keep them till they die. Current vehicles are 18 years old with 190,000 miles and 10 years old with 235,000 miles.

Don't like buying used cars' date=' just something about did the other person take care of it. However I keep them till they die. Current vehicles are 18 years old with 190,000 miles and 10 years old with 235,000 miles.[/quote']

 

I bought my first brand new car in December and will put close to 40K miles on it by year end. Leasing isn't an option for me. My loan is 5 years at 0%, so I think I made the best choice I can. I am hoping with great care I can get 300K miles. I'll still have to buy another car in maybe 6 or 7 years. But maybe not. My mom's car has close to 300K, if it hasn't already rolled over since the last time I checked. Some minor issues have popped up, but nothing irreparable. Maybe my car can push 400K, since the advancements in the technology have definitely been significant in the intervening years between my mom's purchase and mine. My goal is to be able to have at least 1/2 the purchase price of my next car in cash.