ds2k1

Oh, I didn't mean to imply that a high residual wasn't also good for purchasing - I agree it's good for any car transaction. I was just pointing out that if you are interested in leasing, either a high residual value or a very highly subsidized lease rate are important, otherwise you'll be paying a lot in depreciation. And I wouldn't want to lease even if it's highly subsidized because you're really limiting your options at the end of the lease...that is, your purchase option kind of goes out the window because the car will surely be worth much, much less than what you would have to pay for it. True, you could negotiate, but since they're already taking a bath on the lease, they won't be in the best mood and it's definitely a sub-optimal situation.

fast1

Although I was tempted to lease a BMW, I never did so, but I believe that there may be a hidden advantage to leasing. Let's say that your new 997 is involved in an accident, and you for one reason or another can't conclusivly prove that it was the fault of the other driver. For example two cars driving in opposite directions on a country road collide and there are no witnesses. Your Insurance company pays to have your car repaired, but you can't in most cases have them compensate you for diminished vale. So if you are the owner of the car you now have property that may be worth $5K+ less than before the accident, but if you lesase it's the bank that takes the hit. Since I never leased a car, I'm speculating on this point, but I believe it to be true. Maybe those who have read the fine print in their leasing contract can enlighten me as the accuracy of my speculation.

ds2k1

You are correct. Most leases of "fine" automobiles come with "gap coverage". That is, you are covered for any diminution in value due to accidents (of course, the car has to be repaired).