Thinking of leasing

[spasm3]

I generally don't care for leasing. But i can see a couple of situations where it might be an advantage. 1. perhaps a parent of a college student or post grad student, where you need a reliable car if they are away from you, and you want to maintain cashflow.

2. You have a side business and you can deduct the leasing costs.

Other than that, i'm not a huge fan. But each to his own.

 

[gofast182]

Originally Posted By: SatinSilver
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



I wouldn't necessarily call that a great deal. ($44 x 24mo)5.75%tax= $60.72 in tax on the lease amount. That means that more than $3,400 of that is you paying for other things, including cap cost reduction. That isn't advisable with a lease. Assume for a moment that, God forbid, there is a total loss. The lease will include GAP insurance so you won't be liable for the lease balance; however, GAP insurance will not get you that initial outlay back and for someone looking at this for affordability may not have another $3,400 they can just plunk down. The smarter play with this vehicle is to negotiate a ~$168/mo payment and only put ~$500 down to cover tax, tags, and dealer fee. Meter your $3,000 out a little at a time instead of giving it away with risk of not getting it back, then it's a good deal.

 

[Mr Nice]

A lease can be tricky and many consumers don't know you can negotiate a lease payment amount.

 

[JTK]

Originally Posted By: Mr Nice
A lease can be tricky and many consumers don't know you can negotiate a lease payment amount.





Agreed. Like said above in this thread, it's all negotiable. Problem is, negotiability for an F150? Not so much.

 

[SatinSilver]

Originally Posted By: Mr Nice
A lease can be tricky and many consumers don't know you can negotiate a lease payment amount.


Better off to negotiate the Gross Capitalized Cost.

https://www.cars.com/articles/glossary-of-car-leasing-terms-1420681115413/

 

[nickaluch]

Leasing works for me. I leased a new 2018 traverse LT1 with convenience and confidence pkg for $325 a month$200 down and I write it off under my business. GM points and hard negotiating gets a good deal. Leasehackr forum really educated me on making the deal.

 

[Joe_H]

It depends entirely on the deal. I have no regrets so far on my first lease.

I leased my 2017 Jetta SE after seeing the ad pictured above at the VW Dealer last November. I fully expected hidden fees, extra fine print, ect, but the deal was legit. That $189 price included tax and they even made my first payment. It was an end of year deal where they were clearing out the 2017 stock for incoming 2018 models and VW is dishing out all kinds of rebates and incentives to try to gain back sales from their Diesel gate fiasco.

However, most dealers love it when you walk in and ask about a lease. There are a lot of variables in a lease deal they can manipulate to their advantage. Make sure you are well educated on how a lease works or you could really get screwed.

 

[Cujet]

I've leased, and I've owned. In the end, the lease was a 10 cents per mile more expensive.

From Edmunds, capital costs over 6 years:

Buying Used, Buying New, Leasing
$18,996, $23,882, $27,836

(does not include gas, repairs, service etc AND the more expensive insurance on leased cars, )


Always remember that a purchased vehicle has value to you at the end of what would be your lease term.

Mama used to work for "leasemart" and they royally screwed over their customers. Charged for all sorts of repairs. Even charged if the car did not have 4 near new OEM type, matched tires on it.

 

[CKN]

Originally Posted By: Cujet
I've leased, and I've owned. In the end, the lease was a 10 cents per mile more expensive.

From Edmunds, capital costs over 6 years:

Buying Used, Buying New, Leasing
$18,996, $23,882, $27,836

(does not include gas, repairs, service etc AND the more expensive insurance on leased cars, )


Always remember that a purchased vehicle has value to you at the end of what would be your lease term.

Mama used to work for "leasemart" and they royally screwed over their customers. Charged for all sorts of repairs. Even charged if the car did not have 4 near new OEM type, matched tires on it.


On a trade you will get dinged for the same thing. If the tires are bald or don't match.

 

[Cujet]

Originally Posted By: CKN


On a trade you will get dinged for the same thing. If the tires are bald or don't match.


Very true. However, the lease company did so maliciously. Charging far more than fair market value and not allowing for remaining tire life.

 

[Mr Nice]

Originally Posted By: Cujet
Originally Posted By: CKN


On a trade you will get dinged for the same thing. If the tires are bald or don't match.


Very true. However, the lease company did so maliciously. Charging far more than fair market value and not allowing for remaining tire life.


What happens if consumer refuses to pay at end of lease ?

 

[CKN]

Originally Posted By: Mr Nice
Originally Posted By: Cujet
Originally Posted By: CKN


On a trade you will get dinged for the same thing. If the tires are bald or don't match.


Very true. However, the lease company did so maliciously. Charging far more than fair market value and not allowing for remaining tire life.


What happens if consumer refuses to pay at end of lease ?




I would imagine it's at least a "ding" on your credit report. I have seen many classifieds locally that read something as follows-"looking for used tires (insert tire size here) so I can return leased car with acceptable tires.

Other Bodyshop ads I have seen say they "specialize" in fixing leased cars about to be returned.

So-I'm going to echo what somebody previously said-if you don't know how to play the WHOLE LEASE GAME-one shouldn't get involved in the first place.

 

[gofast182]

Here's an example of playing the lease game. I just put a new set of tires on my BMW. I could not stand the harsh run-flats. The OE tires are in my garage with 9k miles on them ready to go back on at the end. The risk of consuming that set is gone and I get to drive the next 22 months on a set of tires I like. The car will be turned in with the proper type of tire and with ample tread left. Yes it cost me something but it improved my experience and potentially saved me a lot more.

 

[MCompact]

Originally Posted By: gofast182
Here's an example of playing the lease game. I just put a new set of tires on my BMW. I could not stand the harsh run-flats. The OE tires are in my garage with 9k miles on them ready to go back on at the end. The risk of consuming that set is gone and I get to drive the next 22 months on a set of tires I like. The car will be turned in with the proper type of tire and with ample tread left. Yes it cost me something but it improved my experience and potentially saved me a lot more.


When I worked at BMW I used to handle lease turn-ins. More than a few cars showed up with new Chinese Ditchfinder Specials at all four corners. The Lessee had usually gone to Billy Bob's Laundromat, Tanning Salon, and Xpert Tire Service and been told, "BMW ain't gonna care what kinda tars you put on that sled."

Wrong. Pay the man $1,200

 

[JTK]

Originally Posted By: gofast182
Here's an example of playing the lease game. I just put a new set of tires on my BMW. I could not stand the harsh run-flats. The OE tires are in my garage with 9k miles on them ready to go back on at the end. The risk of consuming that set is gone and I get to drive the next 22 months on a set of tires I like. The car will be turned in with the proper type of tire and with ample tread left. Yes it cost me something but it improved my experience and potentially saved me a lot more.


Plus your replacement tires should be worth something on CL or the likes with only ~22K miles on them, so you'll recoup some of the cost. A lot better option than running the OEMs until shot and having to buy a new set at the end.

 

[93cruiser]

I would never lease. You pay tax on a vehicle every two years, no trade in value, always have a payment. Also have to worry about mileage, scratches, wear and tear, no thanks.

My 11 year old Tundra is the same Tundra they sell today. No payments in 8 years. Still worth 14.5K on trade. Why lease? Maybe if I won the lottery, but it's a waste of money to me until then.

 

[Mr Nice]

If I was wealthy.... I’d lease a few fancy cars at the same time.

 

[CKN]

Originally Posted By: 93cruiser
I would never lease. You pay tax on a vehicle every two years, no trade in value, always have a payment. Also have to worry about mileage, scratches, wear and tear, no thanks.

My 11 year old Tundra is the same Tundra they sell today. No payments in 8 years. Still worth 14.5K on trade. Why lease? Maybe if I won the lottery, but it's a waste of money to me until then.



That's because your only paying for the use/depreciation of the vehicle. Your payments don't reflect any equity. In addition-in most leases your tax is causally figured in to your monthly payment. In very unusual cases-you could actually sell the vehicle at the end of the lease and make money. Then-you would have equity you "didn't pay for".

If you wish to drive a new car every two or three years-then it's worth it.

The issue with your Tundra-and why they are well behind it sales (although they have been trending up) is that it is indeed the same vehicle they have been selling for the last several years.

It get the worse gas mileage for any half-ton truck on the market.

 

[gofast182]

Originally Posted By: 93cruiser
I would never lease. You pay tax on a vehicle every two years, no trade in value, always have a payment. Also have to worry about mileage, scratches, wear and tear, no thanks.

My 11 year old Tundra is the same Tundra they sell today. No payments in 8 years. Still worth 14.5K on trade. Why lease? Maybe if I won the lottery, but it's a waste of money to me until then.


For you it sounds like you're doing the smartest thing and you're certainly getting ahead by keeping your vehicle that long. It's all about priorities, for me it's driving a new car.

Just to parse what you said above, the majority of leases are 3 years and you only pay tax on the lease amount (total of lease payments you negotiate, NOT the price of the car). In other words you only pay for what you use.
There's no trade in value but there wouldn't be any expectation of one with a lease, you're paying less for the use of the car with little obligation as you can walk away *without the risk of negative equity*.
Personally, I worry about scratches and wear and tear on the vehicles I own the same as the ones I lease. Most leases actually give you a $500-$600 damage allowance at turn-in and mileage overages are typically overlooked if you lease another vehicle from the same brand.

Again, leasing is flat out wrong for some people, but for others it can be a smarter way to get a vehicle.

 

[CKN]

This is the issue with leases-if you don't lease/considered leasing a vehicle-many don't understand how they work.