With the advent of CARFAX and other similar vehicle history websites, used cars can be checked before purchase for adverse information like salvage titles, accidents, etc which may lower the resale price of an owned vehicle.  With reported accidents or salvage titles, some banks won’t even finance a vehicle.

Thus, if you purchase a vehicle and later have an accident with an insurance claim, police report, or reported body shop collision repair, your value may be much lower than the normal book value, thereby increasing, even after repairs, the total cost of ownership during your period of use.

By contrast, if you lease the same vehicle and have the same accident and again do the same repairs, you can still return the vehicle to the lessor without extra charges.  The vehicle is still worth less, but the lower value only affects the owner/lessor (the bank, leasing company, or manufacturer).

Thus “potential” diminished value is another good reason to lease instead of buy.

PS – If you need a Carfax report either to see what your current vehicle looks like prior to sale or what your potential next used car looks like, to buy or to lease, call me.  If I do it, it’s free – If you do it, it’s $35.