Reply to Trading up on a lease

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]

Not the PP but don't talk with certainty about stuff you have no idea about. Only an idiot would buy a depreciating German vehicle that costs a fortune to fix outside of warranty. Every auto lease agreement has a payoff amount which is between you and the manufacturer's financing arm. If halfway through the lease you liked the car so much you wanted to own it forever you could write a check to the bank and get the title, the originating dealer no longer has anything to do with it. OP would be taking a bath whether he buys the A4 and sells after 24 months or leases and then 24 months in decides he wants out. The dealer likely blew OP off as the type of person who leases an A4 for $399/month is not going to have $12k lying around to upgrade to a more expensive vehicle. [/quote]

don't disagree that yes it would take an idiot to buy a brand new "insert any vehicle name here"  especial something from Europe.

but it takes just as big of an idiot to rent a vehicle and make payments  and not have anything to show for it at the end of the rental agreement (thats what a lease is is more or less, a fancy long term rental agreement)

once you start leasing,  its really hard to get off the train.  since at the end of the lease term  you either turn the vehicle in and start a another lease, or buy out the lease (at usually higher than value of the vehicle.)  now if you are in a sales type job where  were are required by your job to have a car that is no more than 3 years old and youa re getting stipends,  then by all means,  lease.

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Buying or renting/leasing comes down to the economics of the specific deal. The terms make them good or bad neither is inherently good or bad. I have done both depending on what is being offered.

The way I look at it....I tend to keep my cars for about 5 years give or take (I can keep them till the wheels fall off but I don't like to deal with the hastle).

If I buy a car for $100 ... in five years I usually am able to sell it for $40. Therefore I'm using 60/5= $12 worth of the car every year (i.e. depreciation). There is more maintenance out of pocket in owning but lets ignore for now.

I will consider a lease deal where the all in lease payment (with all fees) implies using paying less than $12 in depreciation every year. You don't always come by them but some times you do and when you do that is a better deal than buying. There are entire blogs dedicated to people trying to find these deals.

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