Part 3/7:
When you lease a vehicle, the notion might arise that you are somehow shielded from depreciation; this is misleading. Leasing does not eliminate depreciation; it simply acknowledges it in the monthly payment structure. As pointed out by an audience member, leasing might primarily offer convenience rather than significant financial advantage over purchasing a vehicle, particularly when considering Internal Combustion Engine (ICE) cars.
Despite these complexities, an unusual circumstance has emerged in the current landscape that makes leasing particularly enticing at this moment. This has largely been influenced by the availability of a federal $7,500 tax credit under the Inflation Reduction Act, which plays a crucial role in pricing EVs competitively.