Dodge Cummins Diesel Forum - View Single Post - Pros and Cons of Leasing a Car
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post #7 of (permalink) Old 08-09-2019, 11:06 AM
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Originally Posted by Jhenderson View Post
Whatís the sense in leasing then? You may as well have bought it outright to begin with. Probably at a more favorable interest rate.
Just spreads out the expenditure over 9 years vs 6 if you take the longest terms on everything. Example: We have now bought 2 new Grand Cherokees. Both roughly $44k. Bought one on a 72 mo loan and its paid now. Newer one is leased. The lease results in $220 lower payment for the lease term and about $300 lower for the loan term or alot more car for the same payment and very little additional total cost. For those of us who have fairly static income but plan to work 40 more years it works great. hahaha Maybe you know but a $640 car payment hurts alot more than $420.

Effective lease interest rate comes in below .5%. And you get to guarantee yourself you don't have a lemon because many leases include service rentals. Small price to pay to have a 3 year test drive on a car with absolutely zero risk of additional expenses. If you use Chrysler Capital for the lease buyout there are also other incentives available that would not be through normal banks such as continued 0% interest.

Another side benefit, you get to implement and pay for the extended warranty at the lease buyout. So you've had a chance to really research and decide if you actually need the extended warranty or not.

Finally, Leasing has a much smaller impact on temporary credit. So if you are looking to refi or buy a home, you are much better off to be mid lease than be upside down on a hefty loan. This is a main reason we choose the lease on the 2nd car.

And the most powerful piece of anecdotal evidence, many large, very successful companies lease for these reasons. If it were not cost effective they wouldn't do it.

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Last edited by Broaner; 08-09-2019 at 02:55 PM.
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