Your Lease, Your Loss

Could I be wrong about car leasing?

I think it's a bad financial move for the overwhelming majority of people who do it. But every time I rail against leasing, I get a flood of mail from people who say I'm "dead wrong" (I guess being just wrong doesn't convey the message strongly enough).

Here's a snippet of one e-mail: "Have you ever driven a used car until it's pushed off the road? Have you factored in years of getting rides to and from your car to cope with repairs, not to mention the expense of wasted time and the possibility of unsafe breakdowns? If not, you really shouldn't be commenting on leasing. Buying a car is a waste of money."

Well, I have driven a car that needed to be pushed off the road. In fact, when I owned this lemon (a hatchback Datsun that was actually orange) it was a good thing my grandfather was a tow truck driver. I was always calling him to come tow the car.

But I didn't hang on to the car long after it started causing me major problems. At that point it does make sense -- if the car is that unreliable and it breaks down before you can schedule repairs -- to buy another vehicle.

However, I was rather impressed by people who argued passionately for what they said were the following positive aspects of leasing:

• You get to drive a better car for a lower monthly payment than if you took out a loan.

• When your lease ends, you don't have the hassle of negotiating on your trade-in.

• It's a good deal if you don't drive a lot of miles every year.

• You're not investing in a depreciating asset.