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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Leasing, IMHO, is simply stupid. End of the day, you have nothing to show. [/quote]
I have always maintained that it is a vehicle to drive a car that you can't afford or one that is too impractical to own long term (both of which are poor decisions).  I am honestly interested in what PP posted above.  Do the numbers work in some circumstances or not?  Every time I have looked at it you end up spending tens of thousands over the course of 10-15 years if you lease several cars back to back rather than buying one and driving it into the ground.
[/quote]

OK, let's try the following hypothetical:

Ted is about to graduate from graduate school and has obtained a decent first job in his field. Pay is ok for a new hire, but not that high objectively, with room to increase substantially over the next few years. Ted has substantial student loans, no money in the bank, and $4,000 in credit card debt. His grandmother has offered him $2,000 to use to lease or buy a car.

Ted has never owned a car before, but needs one for his job. He may have to drive clients or his boss around, and so had a strong desire for a new car. He would really love to own a BMW 3 series some day, but recognizes now is not the time. He decides on a Honda Civic. He goes to the dealer who tells him he can either lease the Civic for $129/mo with $2,000 due at signing, or buy the Civic for $279/mo with $2,000 down.

This is how we are approaching getting a new car soon. We have been a single car family and it has caused significant hardship to the point that we need a second car. I'm concerned about getting a high car payment or fixing a junker so we will be leasing. It will be for 2-3 years. I don't consider it a good idea for 10+ years but in the short term it works

Ted asks you whether he should lease or buy. What do you tell him?

I would tell him to lease the civic, pay of his credit card debt, and, if he is in strong financial shape at the end of the Civic lease term, purchase a BMW.[/quote][/quote]

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