Quote:
Originally Posted by Maitre_Absolut
dude you just made the numbers work in your favor. And now you are comparing used vs new lease? Whats the point?
Lease provides a protection against resale plain and simple (it is a put option). Its cost is in the form of higher interest ($) and more importantly attracts a payment shopper who can't afford the equivalent finance payment.
I buy cars that I feel will have a higher value than implied residual. I lease those that I dont. Plain and simple.
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Exactly. It’s like buying options. You are betting the value will be higher or lower than some pre-determined amount (residual). If you do it right and in right scenario, you come our ahead than financing (or buying cash which makes little sense when interest is 0.9%). You can always buy if the value is higher than the residual payoff (the option). For my X3 at the end of the lease, I will buy it then likely sell right away to capture the equity.