i think people have the feeling they are paying for something they can't keep. if you think of it at such a simple level then of course it makes sense to say leasing is stupid.
but leasing can be beneficial if you look at the value of the car over time; depending on lease terms and usage of the car.
in this case, we have a VW. VW's in recent history have notoriously poor resale value. If the OP were to keep the car for 3 years; and drive approximately 36k miles, the depreciation would probably be around 10k; similar to the cost of the lease. Other incidental fees would be the same as owning it anyways; like the aforementioned property taxes, maintenance, and insurance. Oddly enough, depreciation on VW's accelerates over time particularly towards the end of the warranty period.
Essentially; if the rate of depreciation on the car is likely to be greater than the cost of the lease then you should lease.
Depreciation should be measured by Purchase price - sale price. If the OP were to trade in the car; then depreciation would be greater. If the OP were to sell the car to a private party; then he has to deal with the hassle of selling the car (something I don't particularly enjoy doing).
Cliffs:
1. Lease cost < Depreciation = Get the lease
2. Selling a car is a pain in the butt
but leasing can be beneficial if you look at the value of the car over time; depending on lease terms and usage of the car.
in this case, we have a VW. VW's in recent history have notoriously poor resale value. If the OP were to keep the car for 3 years; and drive approximately 36k miles, the depreciation would probably be around 10k; similar to the cost of the lease. Other incidental fees would be the same as owning it anyways; like the aforementioned property taxes, maintenance, and insurance. Oddly enough, depreciation on VW's accelerates over time particularly towards the end of the warranty period.
Essentially; if the rate of depreciation on the car is likely to be greater than the cost of the lease then you should lease.
Depreciation should be measured by Purchase price - sale price. If the OP were to trade in the car; then depreciation would be greater. If the OP were to sell the car to a private party; then he has to deal with the hassle of selling the car (something I don't particularly enjoy doing).
Cliffs:
1. Lease cost < Depreciation = Get the lease
2. Selling a car is a pain in the butt