This is exactly what we do too. Then you just deal with the point when repairing the car doesn't make sense and donate it.

Jack

 

I only drive about 5,000 miles a year, so unfortunately leasing isn't a smart option for me. If I were to lease, after 3 years, I would leave about 20,000 miles that I paid for, unused.

 

Leasing is a bad deal for almost everybody simply becasue...

you end up making monthly payments for the REST OF YOUR LIFE.

Why do you think they push leasing so much?

 

Leasing can provide another advantage some don't consider- asset protection. "They" can usually go after the $4k paid off vehicle sitting in the garage, but the $60k leased vehicle typically not, so long as payments are made when due. This along with the advantage potential of business deduction. If purchasing and not paying cash up front, the mileage depreciation and home equity line (if practicing good habits) are valid thoughts. Section 179 or eco credit worthy vehicles also come to mind.

Nonetheless, general concepts often do not translate to actual results. An example with BMW- "the ultimate leasing machine"- one can roll additional miles at same pre-purchase cost into the term anytime up to 4 months prior to expiration. Certain vehicles have phenomenal mfr. lease subsidies and loyalty programs (i.e. certain BMW and Mercedes), and those, if exercised, often fare much better than buying outright IMO. Nonetheless, I agree that it does not make sense to lease cars at a certain price point or mileage useage. For a relatively high priced luxury vehicle, I don't see how it's financially sensible to pay for it all up front, deal with the hassle of selling at a later point, or sticking to the guns that I'll hold on to it for as long as the wheels don't fall off. Alas, this can go apples to oranges pretty quick, with rational vs. emotional sentiments of new vs. used blurring.

I'm not a planner or expert, so do consult someone else, and take this info with a grain of salt.