Leasing a vehicle rarely makes financial sense.
“A recent report by personal finance site WalletHub discovered that automakers’ finance arms charged 1.45% on average for 36-month car loans from July through September versus a 4.58% annual percentage rate for leases. If you have your eye on a Mini, for example, the 0% finance rate for loans turns into a 7.8% APR if you decide to lease. Want a Dodge? A 2.9% finance rate jumps to an industry-high 10% APR for leases.”
You need excellent credit to be able to get a lease. Basically you are always in debt if you lease vehicles. You’ll never be out from under a monthly payment and will pay far more over the decades than if you buy a reliable car and keep it for more than five years (definitely keep it longer than the payments).
One of my favorite quotes from bankruptcy researchers Sullivan, Warren, & Westbrook: “Cars depreciate faster than they roll downhill.”
Read more at: https://www.thestreet.com/story/13748972/4/leasing-a-car-beats-buying-in-only-one-instance.html
Source: Financial Planning for Women