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Originally Posted by Lassaxi
This is the only part I don't agree with. It depends entirely on what the MFs look like vs. what you can get as a financing rate at the time, and what you can get as a market interest rate to invest what you would otherwise spend in the form of a downpayment on a finance deal.
If you're leasing to buy, you can structure the lease to essentially be cheap financing for your car. For instance, mileage allowments mean nothing, since you'll buy the car at the end. So you're free to buy the cheapest lease you can buy, invest what you would have spent on a down payment, and watch it grow. You can also buy down the MF with MSDs or the like, and amplify the leverage even more.
Leasing to buy can be fantastic in a couple of scenarios. For example, if something happens to the car that would cause it's resale value to plummet (anything that would cause significant reparable damage, or a significant mechanical or electrical problem), you can always just turn the car in at the end of the lease and walk away. If not, you can buy it at (or sometimes even below) the residual. Or if you really want to be adventurous, and financing rates fall steeply by the end of the lease, you can finance the balance and play the game all over again.
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Yes, maybe true in some scenarios. FYI US lease deals seem to be much better than what we get but leaving yourself the option to drop it back off at the dealer at the end of the lease term for whatever reason is a good point.