The ignorance is making me laugh
How do you think brand new cars even make it onto the market? Nobody buys a brand new car first-hand, it's a bad investment because it depreciates by a huge chunk as soon as you drive it. Someone leases the car, their contract is up, they hand it back in devalued and then someone buys it a few years old, for a significantly reduced price compared to when it was new.
If you buy a car, you're not just paying the cost of the car. You're also paying repairs and maintenance when things inevitably go wrong with it, and it all adds up. If you buy it brand new, while there is a reduced risk of faults, you've paid full whack and lost out.
If you get a good lease contract, with all insurance, maintenance, servicing and repairs included, you potentially save money all the while driving around in a brand new car, compared to buying used. For example, a while ago, I bought a 2000 reg Peugeot 206. I paid 700 for it. Another 1000 for insurance. Then if I had it in and out of the garage fixing the faults rather than driving it until it was no longer drivable... that would have been a few thousand pounds in total for the year that I owned it. If you're buying a newer car, you have to also think about depreciation i.e. not getting back what you paid for it.
Now I'm leasing a brand new Fiesta Titanium. I pay 200 a month, which includes EVERYTHING - insurance, servicing, repairs, breakdown, the lot - apart from petrol. Just over 2 grand a year, it's brand new so worry free, I'm not invested in the car if it gets written off and overall it likely works out cheaper than running an old grunter and certainly works out cheaper than buying a newer used car cause you're gonna lose a few grand in depreciation by the time you've owned it a few years and that's not even including the repairs and maintenance costs.I also get to hand it back in after my 3 year contract and get yet another brand new car.
So, really, it's not a poor financial option at all. There's a reason it's becoming more and more popular. It's pretty much a flat rate every month - if you don't make much money, the last thing you want is something to go wrong with it and you have to fork out a huge lump sum that you haven't got. If you've got a lease with maintenance package, you're safe in the knowledge that you won't have to come up with that lump sum - everything's covered in the monthly price. So you're saving yourself a lot of stress as well.
So yeah, as I said, ignorance. Not only cost effective as
@IWMTom said, but also reliability and peace of mind which makes it even more worth the money. I consider myself pretty clued up on financial matters and I make a good chunk of my money from knowing how finances and markets work, and I'm never going to actually buy a car again if I can help it. Leasing is the future and it not only isn't going to leave people broke, but it's good for the economy because more money is going straight to the dealership and is taxed.