Trade-in values

[DarthKarl]

<BLOCKQUOTE class="ip-ubbcode-quote"><div class="ip-ubbcode-quote-title">quote:</div><div class="ip-ubbcode-quote-content">Originally posted by Humden:
It's not bad economics it was what fit my budget. </div></BLOCKQUOTE>

Leases can, and do, work well in some situations. Leases are not necessarily better or worse than an outright new purchase. If you always turn over cars in two or three year cycles, leases might work in your favor in the long run.

But don't fool yourself that somehow you have avoided the depreciation problem that comes with owning a new vehicle. Rather you have squarely jumped right into the middle of the fact that new vehicles depreciate like crazy.

Your $12,400 payment is mostly the cost to the leasing company for the reduced value of the H3 in 2 or 3 years. If you understand what you are getting into, and can live with all the terms of the lease, then a lease can be a fairly good method to always have a new car. But many consumers get screwed big time by leases, car companies love leases since they can make some pretty big profits.