Car Leases Almost Exclusively Boost Auto Sales

[AuH20]

The next question that begs asking. Can you live in your car?

http://www.zerohedge.com/news/2014-08-06/mystery-behind-strong-auto-sales-soaring-car-leases

I think this poster summed it up well in our ZIRP rich environment:

It always provide a good laugh when you drive around town and see a $50,000 car parked out in front of a $30,000 house. What a fucked up country we live in.

 

[Jordan]

Automakers have priced in ridiculous residual values. You can lease new cars very, very inexpensively.

 

[Peter4Paul2016]

I'm in the market for a new car and keep going back and forth on whether or not leasing is a good or terrible option, lol...

I bought my toyota brand new in 1999... and it's still running well, but think it may finally be time to retire it...

 

[Zippyjuan]

Do you intend to get another new car at the end of the lease period? Or would you likely keep the car a few years after you make the last payment on it?

 

[TheCount]

Automakers have priced in ridiculous residual values. You can lease new cars very, very inexpensively.

I would never lease or buy a new car. These days, cars are so reliable that buying a one or two year old used car with 7,500 or 10,000 miles on it from its first owner means no loss of reliability, and you can get a 'certified used' warranty, plus you're saving $10K or more vs buying new.

 

[willwash]

I would never lease or buy a new car. These days, cars are so reliable that buying a one or two year old used car with 7,500 or 10,000 miles on it from its first owner means no loss of reliability, and you can get a 'certified used' warranty, plus you're saving $10K or more vs buying new.

But a new car just smells so good!

 

[TheCount]

But a new car just smells so good!

That's the smell of toxins outgassing from plastics. It's horrible for you.

 

[willwash]

That's the smell of toxins outgassing from plastics. It's horrible for you.

So is a good bacon cheeseburger.

 

[Peter4Paul2016]

Since I still have my '99, I guess it's safe to say I'm the type of person that doesn't mind holding on to a car long term... Leasing is cheaper if you look at the cost over the span of 3-5 years (low payments, maintenance is usually covered, low/no down payment, etc), but if you 're the type to buy and keep a car for ten years or more, the cost of ownership is cheaper...

 

[Zippyjuan]

I would never lease or buy a new car. These days, cars are so reliable that buying a one or two year old used car with 7,500 or 10,000 miles on it from its first owner means no loss of reliability, and you can get a 'certified used' warranty, plus you're saving $10K or more vs buying new.

I save even more by not owning a car- no gas or insurance or licensing or taxes. But I do have a special situation not everybody is in. I am just a couple blocks from work and the grocery store so no need to drive to either of those. That leaves few times to even need one. Plus living in a moderate climate where weather is rarely an issue on getting anywhere. I save thousands a year. Mostly I walk or bicycle. And yes, I am well over 21 so I am not a student living at home with parents to drive me everywhere I need to go.

 

[HOLLYWOOD]

Government has at all levels has been on a buying/leasing binge of vehicles for the big three... gotta keep Fascism successful at the taxpayer's expense.

 

[2young2vote]

I'm waiting for reviews of the Elio to see what my next purchase will be. $6800, 84mpg, all the basic stuff in a car is included, and made in 'Merica.

IMO, a vehicle is going to be my very last purchase. I can buy a house cheaper than i can a low-end car. Insurance, gas, repairs, maintenance, the base price of the vehicle is more expensive than many of the houses I can purchase in my city, including the monthly costs of owning one. I have estimated that some of the houses in my city (in good, safe neighborhoods) would cost me less than $300 per month, and that includes basic utilities, insurance, and the mortgage. A vehicle can cost more than that just in GAS.