There are situations where leasing makes sense.
Sometimes the residual value of the lease is
much higher than you may think the actual value
will be at the end of the lease. If you plan to turn
it back at the end of the lease it guarantees a
value.
For example years ago I leased a minivan for 4
years. I put on 40,000 km per year and wanted a
new van at 160,000 km. No intention of keeping
the van. My residual on lease was 2x the actual
value of the van at the end. I did not have to try
and sell my high mileage van, so lease was
excellent.
We may see the same thing today with used
equipment. It is very possible that resale could be
much lower than real price at the end of the lease.
Or if you are buying an oddball or one of you don't
have to worry about resale should the dealer
close or machine turn out to be a turd. If you like
it you could buy the lease out. In the mean time
you have some protection from a recession in
which machine prices would tumble.
So yes there are some very valid reasons to
lease.
Sometimes the residual value of the lease is
much higher than you may think the actual value
will be at the end of the lease. If you plan to turn
it back at the end of the lease it guarantees a
value.
For example years ago I leased a minivan for 4
years. I put on 40,000 km per year and wanted a
new van at 160,000 km. No intention of keeping
the van. My residual on lease was 2x the actual
value of the van at the end. I did not have to try
and sell my high mileage van, so lease was
excellent.
We may see the same thing today with used
equipment. It is very possible that resale could be
much lower than real price at the end of the lease.
Or if you are buying an oddball or one of you don't
have to worry about resale should the dealer
close or machine turn out to be a turd. If you like
it you could buy the lease out. In the mean time
you have some protection from a recession in
which machine prices would tumble.
So yes there are some very valid reasons to
lease.
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