This is more related to the fact that auto loans are front loaded with interest. The first two years you pay double the interest rate as the back end of loan.They assume most dumb american will trade it in around year 4-5. Also once you drive a new vehicle off the lot the kelly blue book value drops 10% combine that with the intrest you pay 20-30% more than the value of the new car. You buy that same car with 15K miles fresh of a lease you will pay 20-30% less along with cheaper sales tax. Plus you lose no value in the factory warranty.