June 3, 201412 yr Leasing is growing because young people want what their parents have, but do not want to work for it. They cannot afford a $30000 car, but they WANT it so they lease it because they cannot afford to buy it. I personally thank the suckers that lease because I then get a great deal on a 3 year old vehicle with around 36000 miles on it. To each their own... I've purchased a few cars that were turned in from a lease. I too thank those people. Every situation is different but it's almost this simple... If you want a new car every 3-4 years you should probably be leasing. If you typically keeps cars longer I would buy used (A few year old) and ride it till it dies.
June 3, 201412 yr I never said it was. The majority of people who buy new cars keep them longer than 3 years though. Not true with people who lease. Plus, when you lease, the car back goes back to that dealership. Again not true if you purchase a new car and than trade it in. Not necessarily true on going back to that dealership. You can trade a lease in at any where or sell it to a private party. Your math is still not making sense on how a lease is more profitable.
June 3, 201412 yr Leasing is growing because young people want what their parents have, but do not want to work for it. They cannot afford a $30000 car, but they WANT it so they lease it because they cannot afford to buy it. I personally thank the suckers that lease because I then get a great deal on a 3 year old vehicle with around 36000 miles on it. To each their own... How is someone a sucker if they lease?
June 3, 201412 yr Leasing is growing because young people want what their parents have, but do not want to work for it. They cannot afford a $30000 car, but they WANT it so they lease it because they cannot afford to buy it. I personally thank the suckers that lease because I then get a great deal on a 3 year old vehicle with around 36000 miles on it. To each their own... Not necessarily true. I'm 25. I own a 30k+ car. I did not lease. I bought it and make payments on it each month. I can more than afford this and I do work hard for it. If I made substantially less, I'd still buy a vehicle within my price range and make the payments. I think this generation is a bit more sensible than you think. The prime people I see leasing (and I work with indirect lending in the finance industry) are the mass affluent who want an elite vehicle and want a new model of that vehicle every couple of years. Leasing is NOT more profitable for dealers than a new or used loan. It can be, but not always. It depends on spread in all cases. Leasing can be a great deal for people who put low miles on their car (second vehicle) and want to be able to get a new car every couple of years OR buy the vehicle their leasing for a lower payment at the end of the lease. I'm more of a gently used purchaser myself, because I know that with new vehicles you are almost always losing value the second you drive off the lot, whereas with a gently used, it may be worth 27k and I walked out the door at 25 so I have some wiggle room. But for my mother, who drives maybe 10k a year and has earned the right to have the finer things in life after raising my brothers and I, a lease on a luxury vehicle is just fine.
June 3, 201412 yr Leasing is growing because young people want what their parents have, but do not want to work for it. They cannot afford a $30000 car, but they WANT it so they lease it because they cannot afford to buy it. I personally thank the suckers that lease because I then get a great deal on a 3 year old vehicle with around 36000 miles on it. To each their own... Not necessarily true. I'm 25. I own a 30k+ car. I did not lease. I bought it and make payments on it each month. I can more than afford this and I do work hard for it. If I made substantially less, I'd still buy a vehicle within my price range and make the payments. I think this generation is a bit more sensible than you think. The prime people I see leasing (and I work with indirect lending in the finance industry) are the mass affluent who want an elite vehicle and want a new model of that vehicle every couple of years. Leasing is NOT more profitable for dealers than a new or used loan. It can be, but not always. It depends on spread in all cases. Leasing can be a great deal for people who put low miles on their car (second vehicle) and want to be able to get a new car every couple of years OR buy the vehicle they're leasing for a lower payment at the end of the lease. I'm more of a gently used purchaser myself, because I know that with new vehicles you are almost always losing value the second you drive off the lot, whereas with a gently used, it may be worth 27k and I walked out the door at 25 so I have some wiggle room. But for my mother, who drives maybe 10k a year and has earned the right to have the finer things in life after raising my brothers and I, a lease on a luxury vehicle is just fine.
June 3, 201412 yr How is someone a sucker if they lease? Sorry. Poor use of words. I personally believe a never ending car payment is not way to go. The person leasing also pays for all of the depreciation costs. But as stated by Hammertime, if you want a new vehicle every 3 or 4 years, leasing is the way to go. I personally would rather buy a used vehicle, pay it off, and spend the $300 at my leisure until the car dies. Edited June 3, 201412 yr by Builder1214
June 3, 201412 yr As some of you know, my mom just had her car totaled a little over a month ago. Last week she bought a 2011 Hyundai Sonata with only 11,000 miles on it. Fully loaded. It was a lease before. Paid $16k for it I believe.
June 3, 201412 yr As some of you know, my mom just had her car totaled a little over a month ago. Last week she bought a 2011 Hyundai Sonata with only 11,000 miles on it. Fully loaded. It was a lease before. Paid $16k for it I believe. That's what I have, got a similar deal on it. Should be able to keep it well past the time it's paid off which won't be too much longer.
June 3, 201412 yr Not necessarily true. I'm 25. I own a 30k+ car. I did not lease. I bought it and make payments on it each month. I can more than afford this and I do work hard for it. If I made substantially less, I'd still buy a vehicle within my price range and make the payments. I think this generation is a bit more sensible than you think. The prime people I see leasing (and I work with indirect lending in the finance industry) are the mass affluent who want an elite vehicle and want a new model of that vehicle every couple of years. Leasing is NOT more profitable for dealers than a new or used loan. It can be, but not always. It depends on spread in all cases. Leasing can be a great deal for people who put low miles on their car (second vehicle) and want to be able to get a new car every couple of years OR buy the vehicle they're leasing for a lower payment at the end of the lease. I'm more of a gently used purchaser myself, because I know that with new vehicles you are almost always losing value the second you drive off the lot, whereas with a gently used, it may be worth 27k and I walked out the door at 25 so I have some wiggle room. But for my mother, who drives maybe 10k a year and has earned the right to have the finer things in life after raising my brothers and I, a lease on a luxury vehicle is just fine. I would be willing to bet that you are the exception, not the rule. I am also a gently used purchaser.
June 3, 201412 yr I wish I could lease, truly I do. But my travel to work and my weekend habits rack way too many miles to lease. I have leased 1 vehicle in my life. Made the rookie mistake of trading a vehicle in the process. Dumb. Just for kicks, what is the penalty per mile you go over your lease mileage these days?
June 3, 201412 yr I would be willing to bet that you are the exception, not the rule. I am also a gently used purchaser. Maybe so, but I just don't see that many twenty-somethings leasing a luxury vehicle. I see more affluent types, business men, etc. who do so. I can just see the benefit of both leasing and purchasing. I don't think either are bad deals so long as it fits the person's need.
June 3, 201412 yr Maybe so, but I just don't see that many twenty-somethings leasing a luxury vehicle. I see more affluent types, business men, etc. who do so. I can just see the benefit of both leasing and purchasing. I don't think either are bad deals so long as it fits the person's need. I agree. you are probably right about 25 year olds, but I would say many young families are leasing. It is about the person's situation. Some people don't mind payments. I personally hate them and pay off my cars as fast as possible to free up that money. To each their own.
June 3, 201412 yr I wish I could lease, truly I do. But my travel to work and my weekend habits rack way too many miles to lease. I have leased 1 vehicle in my life. Made the rookie mistake of trading a vehicle in the process. Dumb. Just for kicks, what is the penalty per mile you go over your lease mileage these days? We lease my wife's Highlander and I believe it is .10/mile. I will have to check the agreement to be sure but believe that is correct.
June 3, 201412 yr Author Maybe so' date=' but I just don't see that many twenty-somethings leasing a luxury vehicle. I see more affluent types, business men, etc. who do so. I can just see the benefit of both leasing and purchasing. I don't think either are bad deals so long as it fits the person's need.[/quote'] 38% of new VWs were leased last year. Not just luxury cars.
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