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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.
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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.

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]

If the premise is he is going to buy a new car in three years then of course it makes sense to lease.  But the point is that if he had substantial student loans, I find it hard to believe it will make sense for him to buy a BMW in 3 years.  I know lawyers who graduated law school with six figure debt and got big firm salaries and the smart ones used those ridiculous salaries to pay down debt, save (for retirement, down payment, etc.) and avoided lifestyle creep/golden handcuffs.
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