Yea BMW loaners are definitely better to lease. Toyota doesn’t offer nothing close to that.
I’ve gotten to the point that if something doesn’t lease well I don’t even consider it. Fortunately I don’t require a giant third row suv, I’m okay with not having the hottest thing on the market, rather have the “deal”. I definitely like the bmw but would be fine with a jetta, they’re just cars to shuffle us muggles around.
Ok, agreed:) Forgot that side of the forum.
Let me drop everything and google that for you.
Let’s just for the argument sake say I will keep my opinion and you keep your whichever that may be since I haven’t seen your source either to disprove my point or prove your however different it is from mine.
Buying is cheaper than leasing IF you are going to keep the car for a decade or more…even cheaper would be to find a slightly used car, two or three years old, at a 40-50% discount!
I don’t think anyone who leases thinks they are saving money vs buying and holding for a decade plus…I do it for the following reasons:
- Like having a new car smell!
- Like having latest technology…both safety and electronics.
- Get bored with cars easily.
- Never have to deal with maintainance or repairs.
- My costs are fixed…I pretty much know exactly what my costs will be. No surprises.
- Possibility of upside if value increases/low residual.
- Tax write off due to my business.
I could go on. One thing that the OP isn’t mentioning is what if oil prices skyrocket,
and gas goes to 6-7 dollars a gallon. Not only will this car cost a fortune to run, but the residual will drop like a stone.
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I’m not asserting things, friend. You’re making very specific claims. That’s all.
The Highlander shows 21 mpg city, 27 mpg highway. The hybrid does better and in 10 years would probably pay back the increase in MSRP. Most sedans and not that much better.
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Assuming all that tech doesn’t crap out
I’ve stated my opinion which is I believable that an average Joe or Jane can’t invest for crap even if his/her life depend on it.
But since this isn’t a scientific journal publishing results of a research, I don’t think I’m going to spend time fining all the proof to support my thinking on this particular idea/theory.
That’s fine.
not sure what you’re trying to achieve here…pretty much everyone on this board knows that leasing is almost always more expensive than holding a car for 10+ years. i don’t think i’ve ever seen otherwise.
but, if it costs me $1000/year more to drive a brand new car every three years, than it’s probably worth it to me and virtually anyone else on this board.
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Let’s compare Apples to Apples here as best we can. Edmunds offers their Total Cost to Own tool on their site, which will give you a dollar figure that takes into account depreciation, fuel, insurance, maintenance, repairs, etc over 5 years, 15k per year. Owning a Highlander XLE (I’m using 2wd) costs 46,723, or about 778 a month. Assuming that you are able to get the same vehicle (most likely multiple vehicles) leased over that same 5 year period, if you add the same fuel costs and insurance costs in, you’re looking at about 700 a month. The Highlander isn’t a great example either, since they aren’t really known for great lease programs. I’ll use my Volt as an example. Adding in projected Fuel costs and insurance costs to my lease payment and I’m at 451 monthly over that same 5 year period, versus 603 monthly if I financed it.
Come back when you have the numbers for 10 years.
Insurance cost go down as the car gets older. License fees which are very high in Ca also go down as the car ages. @manku, “what am I trying to achieve”? Its plain to see, a discussion. Yes this is a leasing site, and will be biased, but certain facts will hold no matter where they are told.
As stated, some cars will be better to lease than others. Other cars will be better to purchase. Highlander commands a premium price due to demand and reliability. A two year old Highlander is stupidly expensive, due to low depreciation and to me doesn’t make sense to buy.
That’s perfectly fine. I just like knowing as much truth as I can. I can state opinions till the cows come home. Seems to me you’re shortchanging the folks who hold some $27 trillion dollars in retirement accounts.
Source: https://www.ici.org/policy/retirement/plan/401k/faqs_401k
It is an interesting article but it doesn’t provide info on folks getting better returns than paying off a 5% new car loan. Even the first chart shows that total assets haven’t changed much since 2017. How would you read that rate of return?
Also defined pension isn’t really investing by an individual vs defined contribution as far as I understand. Just something your company agreed to pay you upon retirement.
Btw, I haven’t heard an your opinion on the first data source about car loans you asked for.
One thing I don’t understand is tax advantage of leasing. When I file, my expenses are based on biz miles driven. Where is the lease payment deducted?
And even if it’s deductible, wouldn’t you be able to deduct depreciation on a car that was purchased, not leased, anyway?
The one that demonstrated you were pulling numbers from the sky?
There’s a good reason why Edmunds, KBB, etc don’t offer this, it’s because it applies to very few people. I suppose it’s easy enough to figure out. The depreciation will flatten out those last five years, hopefully the car is paid off years 5-10 so there’s no finance charges, insurance costs will most likely go down, and repair costs should increase, maintenance is probably around the same. But there’s no way to project that far out accurately. What if there’s a major repair out of warranty? People act like Toyotas are immune to that kind of stuff. What if the car gets into an accident and you have to pay for repairs out of pocket because you cheaped out on insurance for the older, paid off car, or its a total loss in the same situation? There’s too many variables over a 10 year period.
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I dont even know why I’m replying but I hate these made up facts. You cannot buy a 2 or 3 yr old vehicle for 50% of msrp on most of the vehicles being discussed here. Toyota’s and Honda’s go for 25%off at most for a certified used car. People always throw this statement out but it’s just not true.
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