View Single Post
Old 09-20-2016, 09:06 AM   #1
JBinSD
 
Drives: '23 LT Vert M6'16 Hyper 2SS Vert MT
Join Date: Sep 2016
Location: Carlsbad, San Diego, CA
Posts: 604
Why is Leasing such a bad option?

I've come from 20 yrs of BMW leasing, where the "mother ship" inflates the residual (RV) of their cars to make leasing more attractive, and supplements the money factor (MF) to also sweeten the deal. The result is usual perpetual, happy leasees and a strong secondary used market.

For Chevy, the almost 50% hit on RVs after 3 years makes a lease a tough option, since you're paying for the depreciation one way or another, but without "mother ship" intervention, the market leaves the buyer holding the bag with the significant depreciation.

When I see a substantially lower sticker price on a nicely equipped Camaro, I thought "yay!", but when I actually figure out the numbers, although they start cheaper, they end (3yrs later) much cheaper, leaving me with the big hit. Frustrating, but I guess its a reality. It seems to encourage buying cheaper, avoiding options, and holding longer if you can, which I guess is generally sound advice in acquiring a depreciating asset, but it sure sucks some fun out of it. . .. .

Just an observation from a newbie. . .
JBinSD is offline   Reply With Quote