How I Saved $5,700 Leasing Instead of Buying A Car
Leasehackr editor @michael shares a personal anecdote in which leasing proved to be the right choice for him.
One of the best things about leasing a car is that it shields you from depreciation. Take, for example, my Chevrolet Bolt EV.
I leased a Bolt EV back in 2021, in the midst of the global car shortage, for $204 per month with the typical upfront taxes and fees rolled into the payments. The total cost of this three-year lease, after adding up all the payments, was $7,578.
Had I bought the car instead, with the same discounts, it would have cost me $25,134 out-the-door in cash — and that’s not including any interest charges if I were to finance the car.
Today, the highest offer I got for selling this Bolt is $11,800.
This means that if I had purchased this Bolt, I would have lost $13,334 in depreciation — way more than the $7,578 I paid to lease my Bolt over the equivalent period. By leasing rather than purchasing, I saved over $5,700.
Now, this is just one anecdote that’s not representative for every scenario. In my particular case, I negotiated a very good lease deal at a time when both new and used vehicles were expensive to purchase due to the pandemic-related semiconductor shortage crisis. Since then, car prices have fallen significantly, especially for electric vehicles.
In any case, I’m glad I leased because GM Financial took on the risk and volatility of depreciation. After three years, the small Bolt hatchback no longer fit my needs, and I able to simply return the vehicle at lease-end without penalty, even though its real-world value was well below the lease payoff amount.
In some cases, leasing is better. In other cases, buying is better. It all depends on the deal you negotiate, the vehicle you choose, and how long you plan on keeping it. The key is being informed and making the best decision for your particular circumstances.
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