Originally posted by glbisthewaytobe
Leasing is the worst option actually. You can at least use the car as some form of collateral or equity if you own it. And pay less in insurance.
If a person is in the position to need a car's equity or use it as collateral, then yeah, leasing is probably not for them. I leased cars when I was younger because I wanted a new car every three years and knew I would stay within the mileage allotment. At that time, it was the best decision for me because it kept my payments low, risk low, and in something nice, new, and reliable. They were not amazing cars, but they were nice (Malibu, Bravada)
Later, I decided to buy a car because I intended to keep it for awhile. I bought the car new, got exactly what I wanted, paid it off in under three years, and have had it 11 years. Having a Cadillac for 8 years with no payment has been very nice. Last year, I bought a new truck for my business because it was 0% financing over 7 years. Diesels tend to hold their value, so it made no sense to buy one that was 2 years old.
Anytime someone is giving out blanket financial advice, you should run. There is a reason different scenarios exist, and it is not because everyone else is stupid. Leasing is simply making a predetermination about what you are going to pay for using a portion of a new car. It is a tool that some can leverage and some should avoid. Reminds me of the people who tell others they should never get an adjustable rate mortgage, which is usually the first sign you are going to hear the person babbling on about something they have no clue about.
