Originally Posted by morecowbell
I like to get new cars every 3 years, so I haven't EVER bought a car. I'm considering it here, but I know that in 2-3 years i'm going to get ansolutely crushed when I go to trade it in...thats what stops me
I'm the same way and leases have traditionally met my needs and provided a lower payment (since I was gaining no equity). But this time the lease deals are not favorable from a payment stand point, so it makes more sense to buy and get the equity.
The payoff value on the lease I had on my 07 Overland was 20k - the market value was +/-26k due to its condition and low miles (~32k).
All things being equal, I should be in a positive equity situation after my typical 3 year hold.
And remember, you can afford to take a bit of an equity loss on a trade-in since it will be offset with the taxable basis reduction afforded by trading-in.