Why do people lease cars? - Chevelle Tech
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post #1 of 54 (permalink) Old Jan 31st, 06, 8:21 AM Thread Starter
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Why do people lease cars?

To most of you I know that this may sound like a silly question, but why do people do this? Some people I know will pay this huge note each month, for a car that they only have to give back when the lease is up. To me thats crazy. For the money these people are paying for a leased vehicle, they'd be better off just buying one.

I can understand why large companies or major industries do this, but why do everyday people do it

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post #2 of 54 (permalink) Old Jan 31st, 06, 8:39 AM
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Re: Why do people lease cars?

Garfield,
If you look at the lease deals you can lease a vehicle for lets say $199 per month. Take that same car (say an inexpensive one for $20,000 total) and when you do the math the payment ends up being over $400 on a 5 year note. It allows them to drive a car that they could not afford otherwise. Trust me, I do not lease. But I have a friend who leases a new BMW every 3 years. She does not like to work on cars. She just likes to drive them. Since she leases a BMW she gets free oil changes, tire rotations, etc, etc. my $.02 worth.
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post #3 of 54 (permalink) Old Jan 31st, 06, 8:39 AM
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Re: Why do people lease cars?

well I've been leasing for the last 8 to 10 years. Actually the monthly note is cheaper than buying. But the big stickler is the miles. I'm able to keep within the 12K limit so there's no hit for extra mileage when the lease is up. Another plus is your driving a brand new car every two years, warrenty covers everything.
When you buy a new car you take a huge hit as soon as you drive off the lot as far as the value of the car. And it's almost impossible to not have a payment of some kind for a car. So every couple years I step into a brand new vehicle. In fact I just picked up a 06 Dodge Ram 1500 quad cab with a hemi for just over $300 a month,with nothing down. This thing stickers at 35K, so leasing works for me.

John B
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post #4 of 54 (permalink) Old Jan 31st, 06, 8:45 AM
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Re: Why do people lease cars?

Several reasons. With the rapid depreciation of some models, as well as huge incentives that always come out AFTER you buy, the lease is a great way to avoid having a car that is worth thousands less than you owe on it. Many cars and trucks are worth half of the purchase price in a very short time. Why would you want to own anything that is plunging in value.? Especially with the car companies supporting the leases, I can see no other way to go with the products we sell. (Chevrolet, Buick ) Everyone in our dealership leases their car. Check on lease payments and you'll find they are not nearly as high as a buy payment, and not for nearly as long. Now keep in mind, leasing is not for everyone, or for every vehicle, but there are many advantages. I have always leased my new cars. Never though twice about it. I've spent 22 years in a GM store, so I'd like to think it's a smart choice for me. One should always examine the lease before you sign on the line.

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post #5 of 54 (permalink) Old Jan 31st, 06, 8:52 AM
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Re: Why do people lease cars?

Another factor is miles. Usually excessive miles on a lease will cost you .10 to .15 per mile. Check the trade in book and do the math on high miles if you own it !!!

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post #6 of 54 (permalink) Old Jan 31st, 06, 8:59 AM
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Re: Why do people lease cars?

I equate leasing a car to renting a house....neither are the best option. JMO
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post #7 of 54 (permalink) Old Jan 31st, 06, 9:00 AM
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Re: Why do people lease cars?

If you are able to live with an "end of year" car instead of the first one off the line, a new car can be purchased for a whole lot less. After the time a lease would be over, you still own the vehicle and can sell it and buy another "end of model year" deal. If you think lease companys are in business for your best interest, keep on leasing.

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post #8 of 54 (permalink) Old Jan 31st, 06, 9:05 AM
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Re: Why do people lease cars?

We just leased our very first car a week ago...an '06 300C Gonna give it a try.
Always buy a new car every two years...did the numbers both ways-leasing or purchase outright.
Leasing made sense for us for the reasons Tom listed above. Main reason, IMO, was the $38K '04 with 12k miles we were trading in was now booked at less than $22.5K due to generous factory incentives and market sales volume. Heck of a hit in 2 years.

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post #9 of 54 (permalink) Old Jan 31st, 06, 9:18 AM Thread Starter
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Re: Why do people lease cars?

Quote:
Originally Posted by dyno jonn
If you are able to live with an "end of year" car instead of the first one off the line, a new car can be purchased for a whole lot less. After the time a lease would be over, you still own the vehicle and can sell it and buy another "end of model year" deal. If you think lease companys are in business for your best interest, keep on leasing.
This is exactly how I figure.

To each his own I guess

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post #10 of 54 (permalink) Old Jan 31st, 06, 10:32 AM
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Re: Why do people lease cars?

Quote:
Originally Posted by Importtech
I equate leasing a car to renting a house....neither are the best option. JMO


Except that houses dont generally depreciate and cars almost always depreciate.

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post #11 of 54 (permalink) Old Jan 31st, 06, 10:36 AM
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Re: Why do people lease cars?

I was lead to believe that it depends upon how long you plan to keep the car. If you like getting new vehicles every few years, it pays to lease as your lease payments tend to be less than the depreciation on the vehicle. If you plan to keep it longer, you're ahead by purchasing it

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post #12 of 54 (permalink) Old Jan 31st, 06, 10:42 AM
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Re: Why do people lease cars?

Quote:
Originally Posted by Importtech
I equate leasing a car to renting a house....neither are the best option. JMO
The only factor to think on here is, the house goes up in value while you are renting it. The car does not. So at the end of the lease, you turn in a car that is worth a fraction of it's purchase price. When you move out of your rented house, the owner still has a property worth more than when you moved in. That's the difference.

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post #13 of 54 (permalink) Old Jan 31st, 06, 11:02 AM
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Re: Why do people lease cars?

This why I prefer to drive older daily drivers.
I bought my 87 Cutlass 2.5 years ago for $1800
I've spent about $250 for at home oil changes,brake pads,a battery and alternator.
So,figure $71 a month for the last 29 months
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post #14 of 54 (permalink) Old Jan 31st, 06, 11:05 AM
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Re: Why do people lease cars?

Quote:
Originally Posted by mr 4 speed
This why I prefer to drive older daily drivers.
I bought my 87 Cutlass 2.5 years ago for $1800
I've spent about $250 for at home oil changes,brake pads,a battery and alternator.
So,figure $71 a month for the last 29 months
In the big picture, you are probably the wisest of us all !!!

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post #15 of 54 (permalink) Old Jan 31st, 06, 11:34 AM
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Re: Why do people lease cars?

Quote:
Originally Posted by mr 4 speed
This why I prefer to drive older daily drivers.
I bought my 87 Cutlass 2.5 years ago for $1800
I've spent about $250 for at home oil changes,brake pads,a battery and alternator.
So,figure $71 a month for the last 29 months
Same here:
91 bonneville w/228,000 miles on it for $250
~ $50 in oil, filters, and a pair of used tires
Had it for about 10 months, now has 242,000 miles
average cost = $30/month
($0.02 per mile! before gas & insurance ) -compare that to BillsCamino's $1.29 per mile loss on a new car!
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