How do lease specials on cars work?

Question:
I don't understand how lease specials work for cars, since leases are always based on the depreciation of the car and that's not changed.

What kind of car should i buy with $2000?

For example, say a Honda Accord costs 20k new, and is worth 14k after 30 months. The lease payment then is based on the 6k difference divided by 30 months, which is 200 dollars per month plus tax and interest.

Why do people put the wrong badges on cars?

If this is true, how can they offer, say, a $150 per month lease special on a honda accord? How do they calculate the end of lease purchase price? How do they deal with the $1500 difference between the depreciation and the lease payments over the 30 months?

Answers:

Should I buy this?

Not sure how they do that besides having you usually pay some sort of down payment...but I would highly recommend not leasing.their is a reason that is the thing car dealers are always advertising...that is how they make the most money...buy a slighly used (1-2 years old) reliable car and you will not take any hit for depreciation.

Does anyone know where i can find a good running used car for sale?

Yamaha Warrior? ATV?

Here is an excerpt from Daveramsey.com
Leasing stinks. Here’s why. Take a 2001 Honda Civic? Sells for $18,000. If that car in four years loses 60% of value it would be worth $11,000. You've lost $7,000 in value. If you lease this Civic and bring it back to the dealer in four years and you have not paid them $7,000, then they have lost money. You have to pay them the depreciation value or they lose money. They aren’t in the business of losing money. They make the depreciation up and a profit, mostly in interest on the loan. You can’t even get close to a cash transaction. If you could lease a car for less than it goes down in value then it would make sense. You’re letting someone else take the hit. That’s when renting makes sense. “Someone has got to lose money, and it ain’t them.” Food for thought: Smart Money Magazine says the number one most profitable thing on the car lot is the financing contract. Number two is the repair shop. Number three is the extended warranty. Number four is the sale of vehicles. What kind of business are they in?! Buy a slightly used vehicle and you can get it for 25% off sticker. You’ll always in this way.

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