Jump to content

Vehicle Leasing


Bad324

Recommended Posts

I have never leased a car or really thought about it because I always thought it was wasted money, I drive way too many miles and the fact I used to like modding and working on cars.

My want of getting a car again remains strong and my stepdad brought up leasing might be an option so who wants to give me some good and bad points. I'm not sure yet about this as it would be for a 2nd car since my new truck for work just came in this week

Link to comment
Share on other sites

good:

you buy new cars often, and trade in the old one every couple/few years

you drive fewer than average miles per year

you don't modify your car too much

you are statistically a good driver (not having lots of minor dings scratches, etc)

bad:

you like to mod your cars

you drive a lot of miles

you keep cars a long time

you normally buy used

do your own maintenance

personally I don't see it being a good fit for you, you're going to get hosed as soon as you pull of the lot regardless, i think you should stick to finding smoking deals on used ones, you're good at it.

Link to comment
Share on other sites

my dad used to lease cars for a while. if you keep the miles down, its not a terrible deal i don't think. new car every 2 years is pretty cool...

personally, im more of a buy it outright kind of guy, and i put a lot of miles on cars too, so it probably wouldnt be a good deal for me, but for him it wasn't bad at all.

Link to comment
Share on other sites

good:

you buy new cars often, and trade in the old one every couple/few years

you drive fewer than average miles per year

you don't modify your car too much

you are statistically a good driver (not having lots of minor dings scratches, etc)

bad:

you like to mod your cars

you drive a lot of miles

you keep cars a long time

you normally buy used

do your own maintenance

personally I don't see it being a good fit for you, you're going to get hosed as soon as you pull of the lot regardless, i think you should stick to finding smoking deals on used ones, you're good at it.

+1

Its a good deal if you want to be driving a new car every 3 years. Especially if you buy "nice" cars. Buying new every 3 will cost you alot. There are some good deals on leases.

However I prefer to drive a car for 10+ years. My total cost is going to be less even if I buy new.

If you dont mind or prefer buying used then that is usually the best option.

Craig

Link to comment
Share on other sites

+1

Its a good deal if you want to be driving a new car every 3 years. Especially if you buy "nice" cars. Buying new every 3 will cost you alot. There are some good deals on leases.

However I prefer to drive a car for 10+ years. My total cost is going to be less even if I buy new.

If you dont mind or prefer buying used then that is usually the best option.

Craig

+2

I like to swtich cars a lot and with 3 total cars and a bike at home, I don't put a lot of miles on any one of them (two cars are purchased, one is leased). For me, it's more cost effective than buying and trading in because of the initial depreciation when you drive it off the lot.

Link to comment
Share on other sites

you're going to get hosed as soon as you pull of the lot regardless

This doesn't apply to leases, provided you don't turn around and buy out the lease at the end of the term. You're just essentially renting the car, depreciation is the bank's problem when they get it back in 2/3 years.

Link to comment
Share on other sites

My aunt and uncle lease all they're cars and switch em out every 3 years. Like people said if you have expensive tastes and want new shiny things, lease is the way to go. They currently have a infinite gs35 (I think that's the model) and a Benz SUV, I remember them having BMWs and other such fancy vehicles.

Link to comment
Share on other sites

Yea the older I get the more I prefer luxury sport vehicles and not having to deal with a car that constantly needs work. I might have to do some looking but it's well known I'm highly biased towards BMW

Link to comment
Share on other sites

Agreed with the luxury, had my accord for 6 years then sold it to Madcat and bought me a Cadillac :D plan on keeping it till the wheels fall off. Also first car I ever bought the accord was given to me.

Link to comment
Share on other sites

I've always bought cars for around a few grand or less. Fixed them and ran them for a while. My S10 killed that for me. I rebuilt the tranny and did all kinds of repairs. Needless to say last year I bought a Mazda 3 for 0% apr. Now I'm spoiled after driving something I dont have to cross my fingers every time I hit the key. As far as leasing goes I almost did it but held off due to I wasnt sure where I was gonna buy a house. In a year give or take I'll probably just lease. All the Pro's and Cons have been listed, and basically I take great care of shit and dont drive a ton.

Link to comment
Share on other sites

I have a lease and so far I like it. I am paying $120 less a month than if I were to buy it for 0% interest. The fact that I have a brand new car at 22 is what drove me to do it because I just needed something that is reliable and fun, when I need to trade it in 2 years from now I will most likely have a better job to where I can afford to buy but for right now it is basically like a very cheap rental with a warrantee and everything. I still do things to it like I put in a sub, trailer hitch, HIDs, and I tinted the windows but everything I did can be removed and sold, apart from the tint. I also got the high milage lease, 15k instead of 12k for an extra $7 a month, definitely worth it.

Link to comment
Share on other sites

I leased. Went close to 20k miles over my agreement (55k miles in 3 years). Right when the car market was declining my lease was ending. I had to buy it out or pay the 4k to take it back. I love my car so it is not an issue just paying way to long on it. What I paid OTD wasnt too bad considering I had been the only owner and knew it was in great shape. I would do it again but only if I had a second vehicle in case my mileage crept up.

Link to comment
Share on other sites

What does this even mean?

Seriously? You're paying for more car than you can afford and that is stupid.

The only one benefiting from a lease is the dealership and not you - bottom line is it is a rip-off. In the end, you have nothing when you return the car.

If you insist on financing and having a payment vs. paying cash, buy what you can afford and need, not what you want.

Link to comment
Share on other sites

what about a 0 down payment lease? then really as long as you dont go over your miles you can get a new car every 3 years or so and most people get a new car shortly after its paid off anyway. just throwing out a different POV.

Link to comment
Share on other sites

Leases are great for high end luxury cars ie BMW, Audi. Once those cars start getting close to big ticket maintenance items you will be glad it's time for a new one. Plus they are giving away free maintenance including oil changes on them now. Even Lexus I think.

If your talking leasing a ford fiesta.....not worth it IMHO.

Link to comment
Share on other sites

I leased. Went close to 20k miles over my agreement (55k miles in 3 years). Right when the car market was declining my lease was ending. I had to buy it out or pay the 4k to take it back. I love my car so it is not an issue just paying way to long on it. What I paid OTD wasnt too bad considering I had been the only owner and knew it was in great shape. I would do it again but only if I had a second vehicle in case my mileage crept up.
Sometimes dealers will write off the mileage penalty to put you in a new car too.
Link to comment
Share on other sites

Leasing can be good too if you get a car that holds its value fairly well and lease it right - like anything else, make sure to negotiate and read the fine print. Look very hard at the end of lease details. Example - my wife and I leased our Rogue at a great time and got a great deal. Our residual (buy out) is only $13k at the end of 39 months, 3 year old used Rogues are selling for $16-18k. It's possible for us to buy and sell the car on paper at 39 months and make money when we turn it in.

Mileage is the huge thing though - The only other car I leased, I got very close to the mileage on it. I ended up buying a junker and only drove the leased car one day a week to keep the mileage off. Kind of a waste.

Modding is not necessarily against the lease. Check with the dealer and read the fine print - I lowered my Toyota and put aftermarket wheels on it and was not penalized when I turned it in. I'm not saying an engine swap would be ok, but you get what I'm saying.

Bottom line, if you get a good deal and can keep the mileage off, leasing is a great option because your monthly payment will be a LOT less and after 3 years, new car time. (by the way, it was said earlier, but if you're 1-2k over on the miles, a lot of dealerships will forgive the mileage if you lease another one with them... not set in stone or written anywhere, but kind of a rule of thumb. If you go 20k over and go to turn your car in at the height of the recession, yeah, you may end up buying or paying out the nose - such is life).

Link to comment
Share on other sites

Within the context of a good deal, buy things that appreciate and lease that which depreciates. It all depends on the deal. In 2007, I leased a brand new F150 4 door 4x4 for $179/month and $1800 down for 24 months. That deal was a no-brainer. I could not have purchased and sold in 24 months with less loss. Residual was like $24k, so buying it out was stupid. Flip side was my 2007 Sienna. Leased for $300/month for 24 months, but residual was $7k less than blue book, so I bought it out and could sell it today at a great price. I can't lease for me any more since I drive 500-1000 miles per week, but I'd lease again in a heartbeat for my wife. If you bought it and sold in 3 years, would you spend more than if you lease?

Link to comment
Share on other sites

Seriously? You're paying for more car than you can afford and that is stupid.

The only one benefiting from a lease is the dealership and not you - bottom line is it is a rip-off. In the end, you have nothing when you return the car.

If you insist on financing and having a payment vs. paying cash, buy what you can afford and need, not what you want.

No, not stupid at all. I can completely afford the car I have and would have been able to afford to buy as well, but I know for a fact I will want a new car in 2 years because I always do. When that happens my car will have a residual value of $13,000 and the way mazdas hold their value, I would be willing to bet it is still worth $15k when I trade it. Hell, even the old body style 3 year old version of my car is currently valued at $14,000, and that's the old body style which depreciates immediately when a new generation comes out.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

×
×
  • Create New...