First of all, very few (if any) leases require a down payment, they only suggest a down payment so that the advertised price looks lower than you actually pay. The security deposit and first months payment is worth about $1,000 so in summary, so what?

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Ouch. Leasing rears its ugly head again. Great for the dealer (moves cars), great for the manufacturer (moves cars) but 9 times out of 10, not great for the consumer.

Unless one is okay with the fact that they will have car payments for the remainder of their natural life, leasing is not a smart way to go for the average bear, particularly if they drive average or above average miles. IMHO. At the end of the lease period, you own nothing unless you want to re-finance your used car.

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Leasing isn't all that bad for the consumer. It ensures a nice supply of used cars that are on the lot only because the lease ran out, not some problem that caused the original driver to get rid of it.

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Steve...
For many car buyers leasing doesn't make ultimate sense. However, I think there are MANY car buyers who replace their cars every 3 years or so anyway. Doing that with cash - well, you can imagine the bath you'd take.
For our family, we lease my wife's cars - we're on our 3rd consecutive lease, each one better than the previous. My car we own because we assumed I would drive more than a lease would allow. Turns out we were wrong, and now I'm stuck with a car I'd like to replace, but I cringe thinking about the bath I'm going to take on it. Had we leased it, we would have had lower payments, I would have put less money into it in total, and I would have replaced it by now. Not because I have to, but because I want to. I won't buy another car unless it's a used hot-rod or some other dream car I intend to keep forever.

Howard Hughes once said "If it appreciates, buy it. If it depreciates, lease it." I think he knew a thing or two about financial management.

Just my $.03 (yes, 3 cents... an extra penny for the advice from Howard.)

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I think that most people who despise leasing are older and haven't compared the cost of ownership to the cost of leasing in awhile. It's not all bad. for vehicles with a high estimated residual you can have low payments and always drive a new model with a warranty. It can actually benefit the customer more than the dealer because you are eseentially hedging the risk of high depreciation.

That being said, I won't be leasing anytime soon since I drive ~17,000 miles/yr and the price of leasing goes up quickly if you drive more than 12,000.

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In some states leasing is a great alternative for people who like to get in a new car every few years. In Rhode Island sales tax and property tax are included in the payment with Ford.
The property tax is calculated on a statewide average so if you live in a high tax town/city (Providence) the property tax can drop by about $25 per thousand and it's all in one bill.
It gets even better for older people due to the "Peace of Mind Clause" which garuantees that if the Lessee passes away the spouse can terminate the vehicle immediately at no further cost to them.
Not to mention the interest on a lease is calculated at a very low rate.

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#1...So what? So you save $1000.

#2...Leasing is designed for someone who enjoys a new vehicle. If you prefer to pay off your vehicle and drive it forever, that is up to you, but you will also incur costs that the leased vehicle won't see during that short term.

#4...Using a 2006 Mercury Mariner 4WD as an example, we will look at a 36 month lease. Considering the current Sign & Drive plan you can drive away for 36 months @ $304 per month with 12000 miles allowed per year. If you choose the 18000 miles per year option your payment will increase $32 per month. Thats not alot for 6000 miles. Keep in mind these examples were including NYS taxes and your state may have different tax rules.

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