Lease or purchase?

Discussion in 'ID.4' started by pescatore, Nov 13, 2021.

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  1. pescatore

    pescatore New Member

    This is always a question, and I have never leased a vehicle over the 5 car purchases I've made in my life (I drove 3 of them into the ground). I have always financed. There are a few compelling articles online regarding the positive aspects of leasing EV's and the advantage of leasing given the improvements expected over time. But I can't imagine not being able to sell a 3 year old ev with 45K miles for more than 15K (which would be a rough approximation of what would be left of a 60 month loan after 36 months - and using 36 mo. to compare to lease).
     
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  3. Jim Matthews

    Jim Matthews Active Member

    I'm leasing, for the second time.

    My out of pocket, for both is less than $3000 USD per year.

    Given the rapid advancement in EV technologies and the likely arrival of inexpensive Chinese EVs I don't anticipate high residual value in most affordable EVs.

    If those presumptions are incorrect, most leases include a buy out purchase option during the term.

    Two proviso - the current pricing of any car is inflated and will result in catastrophic depreciation. Never put money down on a lease; if the vehicle is totaled, that money *vanishes*.

    https://www.realcartips.com/leasing/0314-dont-put-down-payment-on-car-lease.shtml
     
  4. pescatore

    pescatore New Member

    Good points, all.
    <3k out of pocket per year on a 43K vehicle is not possible. If I am wrong, please post a link to your bank.
     
  5. Jim Matthews

    Jim Matthews Active Member

    Purchase price was $39,000.
    KIA lease cash was $13,600.
    Residual value is $20,000.

    This was in August of 2020 on a 2019.

    The current sales market is distorted by supply constraints and there are no incentives on offer. I had to call around the country to find a dealership that needed the volume to trigger a manufacturer's bonus to get the deal.
     

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