I’ll give a pro-leasing perspective, but for the record I have never heard of or experienced in quotes from insurance companies that leasing means higher insurance as mentioned by a previous poster.
Let’s say you’re a single Mom, have nothing to put down on a vehicle and down the road no extra cash to maintain/fix a vehicle when out of warranty. A new vehicle is attractive and the thought of “having nothing to show for it” at the end is a non-factor. This was my Mom as I grew up. Payments are lower on a lease, if you know you’re going to stay under km’s, it’s an ideal situation.
Hubby and I both lease. I am just about to finish a 4-year Groomsmen lease, he is on his second 5 year Honda lease.
I leased because I first purchased a car from a dealer and it was a lemon, trying to get away from it (selling it) after financing all of it (recent grad with no money and new into a job) leasing gave me an opportunity to drive a new car kept my payments low. The dealership was able to offer me full amount owing on the lemon to pay the loan I had taken out on it, and I got into the lease with them. I got a low km lease (80 000 over 4 years) and have a great little car that does what I need. It’s a Pontiac G5 and to me, not a “lifer” car I would want to own after 4-5 years anyways. I bought it before the economic downturn and the buyout on it after the 4 years is now comparable to what one costs brand new, so in my opinion getting to hand it back and start fresh is a “win” for me.
Hubby moved across the country and had nothing to put down, low lease rates over purchase financing also were attractive to him (the first lease was pre me!). He drove 2 minutes to work every day, so would never have been an issue with going over his allotted km’s. About 6 monthhs prior to lease end, Honda contacted him to move him into a new civic (lease #1 and #2 are both Civics!) Financing or leasing were both options for the 2nd one, but again with little to put down when you’re talking financing or leasing, leasing can/is more attractive because of the new vehicle factor after 3-5 years and if you have nothing to put down why does nothing to show for at the end factor in if we always have vehicles under warranty, free roadside, etc. If we’re always going to have payments why not lease and have the new factor? The return of the first lease taught us one lesson -never replace 2 tires, always 4. Lease returns wnt equality on all four -lucky for us, they excused this cost as we were going to purchase/lease another vehicle from them, but lesson learned.
Our next vehicle will be a purchase and a “lifer” vehicle, it will be an upgrade from our entry level Civic’s and G5’s, be more of family size and the vehicle we drive across country 1-3 times a year to see Hubby’s family, km’s will go onto this vehicle like crazy. We have $10K to put down on this one and that is a huge helper, but for earlier stages in our lives and knowing my Mom’s take on leasing, it is a wonderful option to have that can ease payment cost/financial burden on a monthly car payment.