Join Date: Feb 2015
Location: Victoria, BC, Canada
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One reason I've never liked leases is that I find them really opaque and hard to compare / value. The idea of a no-hassle turn-in at the end if the vehicle doesn't live up to its promise or the market rejects it appeals with a brand new model like the HRV, but really I intend to keep my next car for a decade or more (like my current car).
It will always be cheaper to own a car outright and drive it until it dies, except possibly for business or tax considerations. Leasing means you're always paying for the highest depreciation years; whoever buys your lease return vehicle (you or someone else) gets a way better deal... but of course it's a used vehicle. When you compare monthly payments remember the principal portion of a loan... you're building equity. Yes, in a depreciating asset, but at a much lower rate after those early years.
If you plan on a new car every few years regardless, it's much more of a wash. Call me old-fashioned, but if I had to finance I'd much sooner pay more per month for the shortest term I could manage, then be out of debt and have a good car with a known history and many years of useful life left. If you need the prestige of the latest, or put on tons of miles, or just like new, then the equation changes... but of course it's going to cost you.
Last edited by idearat; 05-18-2015 at 03:17 PM.