Finance $48k for 6 years + $6k in interest is a total of $56k - $15k equity is $41k for 6 years.
How is this better than $42k for a lease that doesn’t have a risk of an accident on file losing extra value + newer car + no maintenance?
Your problem with people spending a lot of money on a lease is not solved in most cases by them financing the same car.
Its just a fact that buying a $50k car is going to cost a lot of money, and sometimes (a lot of times) leasing ends up being the cheaper and better option.
There seem to be some misconceptions around what leasing is and who benefits from leasing.
The people who benefited most from leasing were those who were going to drive BMWs, Mercedes, etc anyway and found leasing as a way to lower their TCO (total cost of ownership). Repeated lease cycles were cheaper than cycles of 6-year ownership due to favorable MF, RV and rebates, and favorable taxes in 44 states.
They could do so because they had the cash to put down MSD, had loyalty from prior ownership, or had corp/fleet from working at a select list of companies, knew about OL codes and had bought CCA membership, etc etc.
Leasing also benefited people who wanted … let’s call them toys for lack of a better word and again had the financial security to easily afford the overlapping monthly payments and insurance coverage on those extra cars. People who could pick up a Camaro V8 on a whim, an extra Mini to toss around, maybe even a Jaguar F-type. Again, the RV, MF and rebates were highly favorable and it allowed people to have their cake and eat it too: cycle through cars faster and cheaper than ownership.
There are a few specific use-cases where it makes sense to lease.
We didnt add any options/products at finance office, but the finance manager looked at me as if I was crazy for saying no to GAP coverage. Is that something I need to add on to a Hyundai Lease?
Once I said no to the products the finance manager completely stopped talking to us and ignored us for the rest of the transaction. That was the most awkward experience with the dealership.
Now as to whether or not blindly following said rule is a good idea, it certainly is not. But in the context on my comment above, I said the lease does not even pass the 1% rule threshold test.
The Pallisade and Telluride are going to be tough nuts to crack. As far as I know they are still in high demand and Kia/Hyundai dealers are notoriously shady.
I’m sure many dealers still have ADM on these. Shouldn’t deter anyone who’s seriously interested. It’s a fantastic value when purchased at sticker which is a very realistic option.
And again that provides no insight. It doesn’t pass the .99% rule either. Or the .93% rule. Or the .88% rule.
Just because you found discussion on the internet doesn’t mean it has any validity. I’m sure a google search would provide many links to “prove” that the earth is indeed flat, for example.
