Because all vehicles depreciate. Thatís right, all vehicles
depreciate up to 50% or more over a 36 month period. In todayís
environment with the price of vehicles as high as they are
financing a new car has extended to 8 years to keep the payments
reasonably priced. So if you plan on your next purchase to be
your last, leasing is not for you.
Reasonably speaking, most people donít keep their vehicles for
more than 4 years. The most cost effective way to reduce your
liability is to lease not buy. When you lease you remove the
risk of ownership, you maintain gap insurance to protect your
loan against risk of loss due to total theft or total loss. Just
write a check for your deductible (provided your account is
current) and drive off in a new vehicle. Canít get that type of
protection on a retail purchase. No more risk of loss due to
body damage repairs or model changes.