“The affordability of a monthly payment makes leasing much better than owning,” said Varatharajah, a business manager at a logistics company. “It’s a great way to build credit up with a brand and move into a nicer car.”
Plus, millennials like Varatharajah are used to upgrading their smartphones every couple of years and expect the same for their cars. It makes no sense to them to buy a car and hang on to it -- even if doing so is cheaper in the long run.
“Leasing lends itself to staying up to date with the latest technology,” said Kevin Tynan, a Bloomberg Intelligence analyst.
Gen Yers see another downside to long-term ownership: the hassle and cost of repairs and maintenance.
“With leasing, you’re not responsible for taking care of and fixing up the car,” Varatharajah said. “That’s even more important when it comes to luxury brands with more expensive costs.”