I actually considered leasing for my business for the slightly larger tax deduction vs depreciation annually. However, if I didn't plan on keeping my cars long term (hopefully at least 10 years) then leasing can make some sense. All depends on what you want to accomplish.
Thinking of leasing
- Thread starter redhat
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The dealer makes a ton on a lease...unless to do it right.
Here is a real example when I worked at Nissan. If I sold a Xterra at full sticker the most I could make was 300 as the profit was capped by the MSRP being 1500 over invoice. 20% of 1500 = $300
On a lease we could make $4500 profit on the same vehicle... I could make 700-900...and I did! All through money factors, capitalized cost reduction, residuals and acquisition fees. You need to negotiate each one...or the easy way in the following post
My son just got a great lease on a MB. We used their published special and went from there.
Here is a real example when I worked at Nissan. If I sold a Xterra at full sticker the most I could make was 300 as the profit was capped by the MSRP being 1500 over invoice. 20% of 1500 = $300
On a lease we could make $4500 profit on the same vehicle... I could make 700-900...and I did! All through money factors, capitalized cost reduction, residuals and acquisition fees. You need to negotiate each one...or the easy way in the following post
My son just got a great lease on a MB. We used their published special and went from there.
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2017 CLA250 Coupe
$32,400* MSRP
LEASE
$299/mo for 36 months$3,593 due at signing
https://www.mbusa.com/mercedes/special_o...7kaAtDFEALw_wcB
My son got a loaded model about 39,500 MSRP, no money down for $450 or so. (they really boosted the residual value of the car) No money down adds $75 to the 299 payment(20 per thousand) on the base making it 374. This allows you to compare apples to apples...and why put down cash
$32,400* MSRP
LEASE
$299/mo for 36 months$3,593 due at signing
https://www.mbusa.com/mercedes/special_o...7kaAtDFEALw_wcB
My son got a loaded model about 39,500 MSRP, no money down for $450 or so. (they really boosted the residual value of the car) No money down adds $75 to the 299 payment(20 per thousand) on the base making it 374. This allows you to compare apples to apples...and why put down cash
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I have leased before and it does not make sense to me personally.
If you don't ever want to concern about maintenance and can afford the monthly payment or rather can justify the monthly payment, then yes leasing is a good choice. New car every 3-4 years, you don't ever need to think about any maintenance other than fueling the car
If you have a business that can write off the expense and time is worth more to you than seeing the mechanic once in a while, leasing is also the way to go.
If you don't ever want to concern about maintenance and can afford the monthly payment or rather can justify the monthly payment, then yes leasing is a good choice. New car every 3-4 years, you don't ever need to think about any maintenance other than fueling the car
If you have a business that can write off the expense and time is worth more to you than seeing the mechanic once in a while, leasing is also the way to go.
I know I drive too many miles to fit into any lease I've ever heard of.
I believe the dealers can jack up the cost of returning the car at will.
Every person I knew who leased didn't do it a second time.
I'd love to know what "taxes up front" means.
You also must cary a full insurance policy.....NEVER mentioned.
I believe the dealers can jack up the cost of returning the car at will.
Every person I knew who leased didn't do it a second time.
I'd love to know what "taxes up front" means.
You also must cary a full insurance policy.....NEVER mentioned.
Originally Posted By: newbe46
I have leased before and it does not make sense to me personally.
If you have a business that can write off the expense and time is worth more to you than seeing the mechanic once in a while, leasing is also the way to go.
Some used to pay a huge payment (on the business) and get a low personal buyback price on a car like a Porsche 911 turbo that doesn't go down.
I have leased before and it does not make sense to me personally.
If you have a business that can write off the expense and time is worth more to you than seeing the mechanic once in a while, leasing is also the way to go.
Some used to pay a huge payment (on the business) and get a low personal buyback price on a car like a Porsche 911 turbo that doesn't go down.
Originally Posted By: CKN
Too many of these threads about leasing basically turn in to just bashing by jealous people who can't afford to buy or lease a new car.
I've never seen any bashing by BITOG members towards a person wanting to lease a vehicle.
Too many of these threads about leasing basically turn in to just bashing by jealous people who can't afford to buy or lease a new car.
I've never seen any bashing by BITOG members towards a person wanting to lease a vehicle.
I do nothing but lease vehicles.
Currently
2016 c300
2017 mini clubman s all4
2017 BMW x3
I used to drive older cars but with time and money
That's not worth it any more.
There are plenty of deals out there to get.
My friend just leased a 2017 gmc truck with a 5.3l v8 4 door and 4x4 with a 47k msrp for 352 a month with only 500 down.
If you are unsure how it works go and get one from swapalease.com that's always a good placeas well
Currently
2016 c300
2017 mini clubman s all4
2017 BMW x3
I used to drive older cars but with time and money
That's not worth it any more.
There are plenty of deals out there to get.
My friend just leased a 2017 gmc truck with a 5.3l v8 4 door and 4x4 with a 47k msrp for 352 a month with only 500 down.
If you are unsure how it works go and get one from swapalease.com that's always a good placeas well
Originally Posted By: Kira
I know I drive too many miles to fit into any lease I've ever heard of.
I believe the dealers can jack up the cost of returning the car at will.
Every person I knew who leased didn't do it a second time.
I'd love to know what "taxes up front" means.
You also must cary a full insurance policy.....NEVER mentioned.
What's too many miles
Dealers don't own the car that is leased
I hav3 leased maybe 30 cars
Don't have to put Anything down on a lease
Unless you Are driving a bucket Who does not carry full Insurance?
Just shows you how Uninformed people are.
I know I drive too many miles to fit into any lease I've ever heard of.
I believe the dealers can jack up the cost of returning the car at will.
Every person I knew who leased didn't do it a second time.
I'd love to know what "taxes up front" means.
You also must cary a full insurance policy.....NEVER mentioned.
What's too many miles
Dealers don't own the car that is leased
I hav3 leased maybe 30 cars
Don't have to put Anything down on a lease
Unless you Are driving a bucket Who does not carry full Insurance?
Just shows you how Uninformed people are.
I think somewhere else on the internet there will be people talking whether to lease or buy that jet or yacht, moving to Monaco or the Caribbean.
I usually buy a 1-3 year ols CPO car and keep it 8-10 years; that said, I leased a Volvo 740 Turbo; it was an open-end lease and I ended up buying the car and flipping it a couple of months later.
I probably wouldn't have ever leased again were it not for the crazy deal I got on the i3. I'd lease all day long if I could land more deals like that...
I probably wouldn't have ever leased again were it not for the crazy deal I got on the i3. I'd lease all day long if I could land more deals like that...
Originally Posted By: Mr Nice
Originally Posted By: CKN
Too many of these threads about leasing basically turn in to just bashing by jealous people who can't afford to buy or lease a new car.
I've never seen any bashing by BITOG members towards a person wanting to lease a vehicle.
Mr Nice. I respectfully disagree. One that was a lease basher was kicked off this forum. But there are others.
Originally Posted By: CKN
Too many of these threads about leasing basically turn in to just bashing by jealous people who can't afford to buy or lease a new car.
I've never seen any bashing by BITOG members towards a person wanting to lease a vehicle.
Mr Nice. I respectfully disagree. One that was a lease basher was kicked off this forum. But there are others.
Originally Posted By: MCompact
I usually buy a 1-3 year ols CPO car and keep it 8-10 years; that said, I leased a Volvo 740 Turbo; it was an open-end lease and I ended up buying the car and flipping it a couple of months later.
I probably wouldn't have ever leased again were it not for the crazy deal I got on the i3. I'd lease all day long if I could land more deals like that...
I think you did it wrong. Normally the best lease is where the residual is too high and it's cheaper to turn it in than to buy it. That means the automaker subsided your lease. If you have to buy it, it means you paid too much for the lease or didn't get enough use out of it.
There's typically some bashing going on, I think I'm one of the few that defend it. It all depends on the deal, some here got great deals. You can custom order a lease just like a purchase, but some lease deals like purchases limit it to whatever is on the lot. Leasehackr has some pretty good deals sometimes. The basics of a great lease is to know what the money factor is and to get as big of a discount of MSRP and apply any rebates or additional discounts as much as possible to a short a term as possible with as high a residual as possible. Some car makers also allow you to put down multiple security deposits to lower the money factor even more. Then if you run the numbers, sometimes leasing is cheaper than buying, especially if it's an expensive model and you can dump the 30-50k in the market instead and average 10-20% that the market has been doing over the last few years. At least that strategy would have worked in the last few years. Maybe not so much in 2008. It's all part of the gamble, a purchase is also a bet against leasing.
I usually buy a 1-3 year ols CPO car and keep it 8-10 years; that said, I leased a Volvo 740 Turbo; it was an open-end lease and I ended up buying the car and flipping it a couple of months later.
I probably wouldn't have ever leased again were it not for the crazy deal I got on the i3. I'd lease all day long if I could land more deals like that...
I think you did it wrong. Normally the best lease is where the residual is too high and it's cheaper to turn it in than to buy it. That means the automaker subsided your lease. If you have to buy it, it means you paid too much for the lease or didn't get enough use out of it.
There's typically some bashing going on, I think I'm one of the few that defend it. It all depends on the deal, some here got great deals. You can custom order a lease just like a purchase, but some lease deals like purchases limit it to whatever is on the lot. Leasehackr has some pretty good deals sometimes. The basics of a great lease is to know what the money factor is and to get as big of a discount of MSRP and apply any rebates or additional discounts as much as possible to a short a term as possible with as high a residual as possible. Some car makers also allow you to put down multiple security deposits to lower the money factor even more. Then if you run the numbers, sometimes leasing is cheaper than buying, especially if it's an expensive model and you can dump the 30-50k in the market instead and average 10-20% that the market has been doing over the last few years. At least that strategy would have worked in the last few years. Maybe not so much in 2008. It's all part of the gamble, a purchase is also a bet against leasing.
Leasing vs. buying is always a complex issue. There is a small group of driver's where leasing can be advantageous over buying. None of us knows your situation and I would advise you to keep it that way. Do what you think is best for you and don't worry about what anyone else thinks. Enjoy your F-150!
Originally Posted By: Wolf359
I think you did it wrong. Normally the best lease is where the residual is too high and it's cheaper to turn it in than to buy it. That means the automaker subsided your lease. If you have to buy it, it means you paid too much for the lease or didn't get enough use out of it.
It was an open-end lease; the residual was NADA trade-in at the end of the lease term. I kept tabs on the buyout over the length of the lease and several months before the end of the lease term the buyout was a couple of thousand below NADA trade-in value so I bought it at that poin.
In the case of the i3 the lease is heavily subvented- how else would you be able to lease a $50k car for 24 months at $105/month?
I think you did it wrong. Normally the best lease is where the residual is too high and it's cheaper to turn it in than to buy it. That means the automaker subsided your lease. If you have to buy it, it means you paid too much for the lease or didn't get enough use out of it.
It was an open-end lease; the residual was NADA trade-in at the end of the lease term. I kept tabs on the buyout over the length of the lease and several months before the end of the lease term the buyout was a couple of thousand below NADA trade-in value so I bought it at that poin.
In the case of the i3 the lease is heavily subvented- how else would you be able to lease a $50k car for 24 months at $105/month?
Originally Posted By: MCompact
Originally Posted By: Wolf359
I think you did it wrong. Normally the best lease is where the residual is too high and it's cheaper to turn it in than to buy it. That means the automaker subsided your lease. If you have to buy it, it means you paid too much for the lease or didn't get enough use out of it.
It was an open-end lease; the residual was NADA trade-in at the end of the lease term. I kept tabs on the buyout over the length of the lease and several months before the end of the lease term the buyout was a couple of thousand below NADA trade-in value so I bought it at that poin.
In the case of the i3 the lease is heavily subvented- how else would you be able to lease a $50k car for 24 months at $105/month?
So doesn't that mean in you paid more per month and could have negotiated a lower monthly payment? It's sorta like it's better to owe money at tax time because it means you paid less and in theory could invest that money. A refund means you paid too much and the government got an interest free loan.
As to a low lease price, yes, that's how automakers are moving inventory, by heavily subsidizing the lease instead of offering big rebates. So if you read the lease deal, sometimes the lease is a better option than a purchase. It all depends on the details of the lease. If people don't know what they're doing, they can get fleeced just like on a regular purchase.
In the standard scenario most people envision, the purchase and the lease are the same and there's no incentives. The purchase is typically preferred in that scenario. But if the automaker favors the lease over the purchase by offering stronger incentives on the lease, then the lease is worthy of consideration.
Originally Posted By: Wolf359
I think you did it wrong. Normally the best lease is where the residual is too high and it's cheaper to turn it in than to buy it. That means the automaker subsided your lease. If you have to buy it, it means you paid too much for the lease or didn't get enough use out of it.
It was an open-end lease; the residual was NADA trade-in at the end of the lease term. I kept tabs on the buyout over the length of the lease and several months before the end of the lease term the buyout was a couple of thousand below NADA trade-in value so I bought it at that poin.
In the case of the i3 the lease is heavily subvented- how else would you be able to lease a $50k car for 24 months at $105/month?
So doesn't that mean in you paid more per month and could have negotiated a lower monthly payment? It's sorta like it's better to owe money at tax time because it means you paid less and in theory could invest that money. A refund means you paid too much and the government got an interest free loan.
As to a low lease price, yes, that's how automakers are moving inventory, by heavily subsidizing the lease instead of offering big rebates. So if you read the lease deal, sometimes the lease is a better option than a purchase. It all depends on the details of the lease. If people don't know what they're doing, they can get fleeced just like on a regular purchase.
In the standard scenario most people envision, the purchase and the lease are the same and there's no incentives. The purchase is typically preferred in that scenario. But if the automaker favors the lease over the purchase by offering stronger incentives on the lease, then the lease is worthy of consideration.
Originally Posted By: Kira
1. I know I drive too many miles to fit into any lease I've ever heard of.
2. I believe the dealers can jack up the cost of returning the car at will.
3. Every person I knew who leased didn't do it a second time.
4. I'd love to know what "taxes up front" means.
5. You also must cary a full insurance policy.....NEVER mentioned.
1. OK so don't lease
2. Wrong. You are in a contract which both sides must abide by. If you're on miles, under your damage allotment (they usually give you ~$600 worth), and on time dealers have no legal basis for this.
3. OK so they either shouldn't have leased in the first place, their circumstances changed, or they decided they want to own outright.
4. You pay the sales tax on your part of the lease. $200/mo x 36mo=$7,200 x 7% sales tax= $504. You either pay up front or roll it into your payment which includes a 'money factor' or interest rate (similar to a loan). Don't pay interest on tax, pay it up front.
5. It would've been mentioned if you negotiated a lease. And it only makes sense, the leasing company (dealer, manufacturer, or third party) still owns the car and has financial interest in it after you use it. They need to know it will be repaired fully and that it won't become a claim liability for you or them if something happens.
1. I know I drive too many miles to fit into any lease I've ever heard of.
2. I believe the dealers can jack up the cost of returning the car at will.
3. Every person I knew who leased didn't do it a second time.
4. I'd love to know what "taxes up front" means.
5. You also must cary a full insurance policy.....NEVER mentioned.
1. OK so don't lease
2. Wrong. You are in a contract which both sides must abide by. If you're on miles, under your damage allotment (they usually give you ~$600 worth), and on time dealers have no legal basis for this.
3. OK so they either shouldn't have leased in the first place, their circumstances changed, or they decided they want to own outright.
4. You pay the sales tax on your part of the lease. $200/mo x 36mo=$7,200 x 7% sales tax= $504. You either pay up front or roll it into your payment which includes a 'money factor' or interest rate (similar to a loan). Don't pay interest on tax, pay it up front.
5. It would've been mentioned if you negotiated a lease. And it only makes sense, the leasing company (dealer, manufacturer, or third party) still owns the car and has financial interest in it after you use it. They need to know it will be repaired fully and that it won't become a claim liability for you or them if something happens.
Redhat, sorry if I missed it, but have you gotten any specific numbers in regards to an F150 lease?
I've leased twice. First was our 2008 Honda Odyssey, second was my 2012 Subaru Legacy. I purchased/financed the Odyssey in the end and turned in the Legacy early, over miles and with tires that needed to be replaced. I got out of it at zero additional cost because I purchased/financed another new Subaru out of dealer stock at the same time. Both of those leases were around $2000 down all-in and ~$250/mo.
Like said, if you can plan it out properly and be at your mileage limit at the time of one of those incentives where they'll take your lease if you buy/lease something else, that's less frightening to me than relying on a 3rd party do it and wait for a potential bill.
I know at this time in my life I couldn't afford the ~$600-700/mo that an F150 would cost per month for 5yrs with little/noting down. As much as I'd LOVE a truck, there's no way I'm willing to pay what they want for them.
I've leased twice. First was our 2008 Honda Odyssey, second was my 2012 Subaru Legacy. I purchased/financed the Odyssey in the end and turned in the Legacy early, over miles and with tires that needed to be replaced. I got out of it at zero additional cost because I purchased/financed another new Subaru out of dealer stock at the same time. Both of those leases were around $2000 down all-in and ~$250/mo.
Like said, if you can plan it out properly and be at your mileage limit at the time of one of those incentives where they'll take your lease if you buy/lease something else, that's less frightening to me than relying on a 3rd party do it and wait for a potential bill.
I know at this time in my life I couldn't afford the ~$600-700/mo that an F150 would cost per month for 5yrs with little/noting down. As much as I'd LOVE a truck, there's no way I'm willing to pay what they want for them.
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VW has some great leasing deals. $44/mo, $3495 due at signing, 7500 miles per year, 24 months, plus tax, etc... Perfect for the OP with the miles he drives and a super low payment.
https://www.ganleywestside.com/monthly-specials
https://www.ganleywestside.com/monthly-specials
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