Some truths on leasing....Please disregard length and read it anyway......
The benefits of leasing are lower insurance, larger write off, lower payments, less liability, lower intrest rate, paying less overall for the vehicle. Let me go in to detail.
-Leasing payments are typically 10% - 15% LESS than finance payments when the lease is written from 24-48 months with a mileage allowance of 12K-15K.
-Because the manufacture's financial group is the true owner of the vehicle, they must insure it as well. This typicaly means that your personal auto insurance will be 5%-10% less than a owned/financed car.
-You can write-off a larger percentage of your payment on a lease rather than a buy. This is because a lease is seen as a "rental" or business expense. The only other way to write off a larger amount is if you pay for the vehicle with 100% cash, and its over 6K GVW.
-Because the manufacture makes money when they sell or lease the vehicle to you and they make a return when you are done with the lease, they offer lower intrest rates. A great rate on a purchase is 4.9, a bad rate on a lease is 3.9 (as examples).
- If you were to add up your payments (with intrest incured) and add your residual (the amount the car is valued when your lease is finished....if you were to buy the car), the total would be less than if you had orignally purchased the car. This is only true unless you had a terrible lease rate (say 3.9+), rolled some negative equity, or bought a car with a very low resale/residual value (typically cars that don't sell as well as expected when they are released).
There are other benefits as well and some drawbacks too. However, if your the type of person who gets a new car every 2, 3, 4 years, and doesn't drive like 20K miles per year.....leasing almost always be a smarter way to go.
BTW, I'm a sales manager at a Porsche, Audi, BMW, VW dealership and I finance deals all the time, so this information is fairly first hand.
-2004 Audi A4 1.8TQ Ultrasport....jet black
-2005 BMW X5 4.4i Sport Package....jet black
-2004 Crownline 202LPX....amethyst red - for sale