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[quote=Anonymous]Sometimes, the economics (dealer incentives, oversupply of a particular model, etc.) favor leasing over buying.  It isn't always a loss.

Ultimately, this is a math problem.  Figure out how long you want to keep the car, the purchase price, the expected sales price when you sell it or trade it in, and figure the monthly cost to own it.  Then, consider maintenance (which is nontrivial on an older car).

In most cases, for most cars, buying is cheaper, but that assumes that the buyer will keep it longer than a standard three-year lease.  For people who want new cars and want to replace them every few years, leasing could very well be cheaper.  Also, for business use, the lease makes the paperwork easier for tax purposes, etc.

The big problem with leasing is that salesmen use it as a way to obfuscate the true cost of the car, often confusing buyers into thinking that it is a better deal than it is.  Also, there are often fees when returning a car from a lease (damage, excess mileage, etc.) that need to be considered.

This isn't a one-size-fits-all thing.  That is why plenty of non-stupid people buy cars and many others lease them.

Personally, I'm in the "buy-a-three-year-old-car-and-keep-it-forever" camp, but I don't care much about cars, don't really use them for business, and am generally cheap.[/quote]

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