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RE: Leasing
Steve Young wrote:
> Hence, it is actually a disadvantage to lease a car that you don't
> intend to purchase, if that car is subject to high depreciation.
I don't think it matters at all if you purchase the car or lease it. Either
way, _you_ foot the cost of the depreciation.
The only exception to this is when (as Phil Marx pointed out) some other
party (like the manufacturer) is willing to take the loss on the depreciation,
and does so by subsidizing the lease payments so you have a payment similar to
a low-depreciation case.
Either way, _someone_ will wind up paying the cost, either you or one of the
parties in the sellers' chain (BMW AG, BMWNA, the dealer). The key to getting
a good deal is to recognize when someone else besides you is willing to take
some of the loss, regardless of whether you're leasing or buying.
Remember, there's no magic about leasing. It's just a way of financing that is
designed to help sell new cars every 3 years or so. If you think that leasing
is _really_ all that advantageous to a buyer, ask yourself why so many sellers
would rather lease you the car than finance it for you.
Regards,
Jerry
Arlington, TX (13-Sep-96, 20:28)
'95 540i-6 spd