Pros / Cons of leasing a vehicle these days?...

Wife's lease just ended in November. Originally we loved it, no negative equity at end, lower payment than if financed (by only $20 but still), no need for warranty concerns/purchase extended (under 3/36 for lease), and money factor was lower than lower rate than purchase apr would have been. But now that we have ended lease, have 3 yrs of payments with nothing to show for it (rent it pretty much), the residual was so high that made no sense to purchase (could have bought certified pre owned with more features for a lil less), and then had to make a vehicle purchase versus just having vehicle almost paid off. I would not advice it unless you just dont keep vehicles long regardless/drive low miles. Now last few years the leasing residuals have gone done thus driving payments up thus making it less attractive in my opinion. GL

If you are one who changes vehicles every three years or less then leasing makes sense

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Cons. No equity

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I made $2000 off my Accord when I turned it back in. I kept it in pristine condition and out of the 36,000 miles allowed, I only drove it 13,000 over 3 years.

So no equity isn't entirely true.

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No you did not. You just didn't loose the amount you could have if you had high mileage. You paid fro all of that 2k plus interest during the life of the lease. Leasing for individuals is for people too lazy or ignorant to do the math.

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Have you done the math?

If he had financed the vehicle, what would he have been paying for? He would have been paying a higher monthly note and would have traded it in at the same value. Now, his “equity” may have been higher at the end, but his monthly cash flow would have been lower throughout the term.

Again, the negatives of leasing are simply the term length (and forced decisions at the term) and the likelihood of a perpetual note (but a new vehicle every 2-3 years).