Last Updated on September 30, 2010 by Dave Farquhar
OK, something is horribly wrong here. I was watching TV (that’s not what’s horribly wrong) and there was a commercial (that’s not what’s horribly wrong either) and it reminded me that I’m paying $383 or something a month to lease a Dodge Neon. Got that? Well, this was a car commercial, about leasing another car. For $369 a month.
The car was a Jaguar.
Something’s messed up here.
David Farquhar is a computer security professional, entrepreneur, and author. He started his career as a part-time computer technician in 1994, worked his way up to system administrator by 1997, and has specialized in vulnerability management since 2013. He invests in real estate on the side and his hobbies include O gauge trains, baseball cards, and retro computers and video games. A University of Missouri graduate, he holds CISSP and Security+ certifications. He lives in St. Louis with his family.
What sort of Jag? Of course the reason why they are cheap to lease is that because they’re a presitge brand, they depreciate less, so the retailed can lease you them more cheaply. A quickly depreciating car will cost lots to lease.
It is pretty strange that you were watching tv. Are you feeling ok??? I think it might be time for a new car, Dave! 🙂
The low lease payment on the Jag is also because of much lower interest rates. Both from the economy and sales incentives. And I would bet the lease of the Jag only includes 12,000 miles a year. And I am guessing that the lease on your Neon includes more miles than that.
Personally, I think leases are rip-offs anyway. But I also try to keep a car until the bitter end.
Not to mention the possibilty that the lease terms included
a hefty capital cost reduction charge in the thousands,
not unheard of for the luxo-boats to make the lease
payment look tolerable. I wouldn’t touch a Jag on lease
unless every scheduled thing for the whole lease term
was covered free of charge in any event. But as Steve
said, leases have too many ways to reach up and bite
you in the butt, mileage just being one of them. Better to save up and buy down the payment, then hold the car until it dies.