> but what happens at the end of the 3-yr lease term if I want to buy it?
Part of the lease contract will be what the residual value of the vehicle will be at the end of the term. At that point you will be given the option to buy it for that price.
> And why is this ever the right move if I plan on keeping the vehicle until it dies?
It depends on your situation, but in your specific scenario it might not be. I can't speak for certain as I don't know (and don't want to know) your finances and situation.
In general, Leasing is targeted at people who want flexibility or want to drive a nicer car than they can realistically afford. They don't have to buy the car outright, and have the option of getting a new one every 3 years or keeping the one they have if they decide they want too. Also typically Leases include service packages so your car service is paid for the duration of the lease.
If you don't value that, then it probably isn't for you.
Lokiorin t1_jed5m4v wrote
Reply to ELI5 Leasing vs Purchasing by SquishyEmerald
> but what happens at the end of the 3-yr lease term if I want to buy it?
Part of the lease contract will be what the residual value of the vehicle will be at the end of the term. At that point you will be given the option to buy it for that price.
> And why is this ever the right move if I plan on keeping the vehicle until it dies?
It depends on your situation, but in your specific scenario it might not be. I can't speak for certain as I don't know (and don't want to know) your finances and situation.
In general, Leasing is targeted at people who want flexibility or want to drive a nicer car than they can realistically afford. They don't have to buy the car outright, and have the option of getting a new one every 3 years or keeping the one they have if they decide they want too. Also typically Leases include service packages so your car service is paid for the duration of the lease.
If you don't value that, then it probably isn't for you.