<prompt> Human: Ive been a lurker for years, but I had to make an account to ask this question. What does PF have against car leases? I switched to leasing as it made more financial sense. Hear me out.Previous car had it for 5 years: 2001 VW golf - 5000 initial cost - 1000 Head gaskettiming beltserpentine belt - 1200 breaksrouters - 500 new tires - approx. 500 in extra maintenanceoil changes over new car - resale- 1000 it needed work 72005 years Fuel efficiency: 8L100K 24,000kmsyr 1920Lyr or 9600L5yr. Based on 1.10L 10,560Total Investment 17,760New Car: 2014 Mazda 3 Biweekly payments of 89.12 after taxes - 2317.12 x 5 years 11,585.60 Came with a warranty, so Ill just need routine maintenance which I had with the golf, although it will be cheaper because its a newer vechile price adjusted aboveFuel Efficiency: 5.2L100K 24,000kmsyr 1248Lyr or 62405yr of fuel based on 1.10L 6864Total Investment: 18,449.6Now, my lease is actually only for 3 years, but Im assuming I could get a similar deal in 2 years when it is up, or even extend this one for a similar price probably lower. Also, PF assumes that people have 5K in savings for a used car, but if they dont, then a loan is needed which has interest, which I havent included. I also havent included inflation, 5000 initial investment 6 years ago was worth more then it is now. Also, 1.10L for fuel is a really low estimate for fuel where I live Vancouver. As the price goes up, I save more money. So all things consider, I come to this conclusion.I get to drive a new vehicle every 3 yearsIf it breaks down, I get a loaner car and I wont miss work, or be on the hook for costly repairs.Its more fuel efficient so I can tap myself on the back for being environmentally friendly.All this for the low cost of 689.60 over 5 years.Am I missing something?edit: formattingAssistant: Well lets compare apples to apples: buying the Mazda vs leasing. So we can ignore fuel, maintenance, and repairs.If you lease, youre paying 11,500 for 5 years of ownership. At the end, you are left with no car. In contrast, say you purchased the Mazda 3. I dont which one you got, but I got a mid-range one in 2013 i Grand Touring, plenty of options for 25,000 out the door. Lets say I financed it for 5 years at 2 the rate I got, total interest is 1,300 even. Using Edmunds for depreciation we will sell the car at the end keep apples to apples comparison - which is worth 15,694. Net is then -25,000 - 1,300 15,694 10,606.So: Lease: 11,500 Own: 10,600 So, 900 in savings for the exact same thing. And of course if you do have a down payment, you dont need to finance as much, but Im 100 okay with ignoring that, because if you have money with a lease, you can just invest it and probably get more than 2.Human: I really like this analysis. One thing tho, I just dont see my car being worth 15,694 in 5 years. Ive looked up 2010 mazda 3s, and they are listed for 13,000-10,000. Say I get 14,794, high end. So even -even.I dont have to worry about selling the car, and the time it takes to post an ad, lend it out for test drives. I just give it back, and my costs are fixed, no surprises.  <response>: Yeah, I was a little surprised at that number too although a 2013, Ive had my car for a little over 2 years and I think its worth abut that now. But remember that also assumed a 25k base price. And if you own the car, you can always keep it longer at no cost. With the lease, the lender basically sets the depreciation at whatever they feel like subtract their buy it now price from the original price.Leasing is easier, which is worth something, and honestly a big part of why some people lease in the first place. I always figure that leasing is always bad - it just depends on what certain things are worth to you. Its like if you really value having the latest model, a lease might be worth it. But most people that come to rpf want to save money, and if thats the highest priority, owning will win out unless you do happen to switch cars every few years. The high-level way to think of it is that with one lease, youre paying for convenience. If you keep leasing car after car, youre also always paying huge depreciation costs. If you plan on keeping the car for 10 years, just pay that up-front depreciation once and be done with it. 