Quote:
Originally Posted by UPSROD
If it is a lease, you are NOT buying it you are renting it!
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Doesn't matter. You're still driving it and effectively paying the depreciation in both leases and purchases.
Selling Price - Depreciation = Residual Value no matter what. In the simplest of terms, you buy a car, it depreciates, you sell it for it's residual value. The net cost is still depreciation. The same thing goes for a lease, you lease it, your payment is largely dependent on the depreciation.
If the lease depreciation outperforms real world depreciation, then the lease is the smarter option if you want to get a new car every 3 years.