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So, we're having a dilemma here: one of our cars is causing a lot of problems, and we need a new one; we need something bigger, and we're looking into Suburban's (because we need a bit more cargo space) ...Tahoe's, Youkon's because our garage won't fit the longer ones. We haven't had car payments in a long time, so, we're not used to them, and IF we're going to do this, we need to know a bit more about this than what a dealer will try to "sell us on"!
We're basically afraid to go to a dealership knowing their reputation...
We know the insurance will be higher, but is it manageable? or it goes up by many thousands?
So, here are my questions:
1. IF we lease a vehicle with low mileage, are the payments usually higher than when buying? or lower?
2. IF we lease a vehicle for more than 6 months, can we buy it if we like it? and if so...
3. Will we get a better overall price on it? or they'll charge us the same as if we walked into the dealership for the first time? Or will they appraise it at the current mileage/features?
4. Can we lease a vehicle for less than a year?
5. When leasing a vehicle, if it breaks down, will they fix it and give us something to use until it's fixed? Or we're on our own if say the engine blows! (exaggerating).
6. Do they lease vehicles to families? or just singles?
7. How is "leasing" different than "renting" a car? (We've never rented a car before).
8. Do they lease Suburban's? or they just do sedans?
9. IF we don't like it, can we change the lease for another car? or are these locked in?
Thank you much!
09-21-2014, 10:05 AM
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n/a posts
Quote:
Originally Posted by PhotoProIP
Hi all,
So, we're having a dilemma here: one of our cars is causing a lot of problems, and we need a new one; we need something bigger, and we're looking into Suburban's (because we need a bit more cargo space) ...Tahoe's, Youkon's because our garage won't fit the longer ones. We haven't had car payments in a long time, so, we're not used to them, and IF we're going to do this, we need to know a bit more about this than what a dealer will try to "sell us on"!
We're basically afraid to go to a dealership knowing their reputation...
We know the insurance will be higher, but is it manageable? or it goes up by many thousands?
So, here are my questions:
1. IF we lease a vehicle with low mileage, are the payments usually higher than when buying? or lower?
2. IF we lease a vehicle for more than 6 months, can we buy it if we like it? and if so...
3. Will we get a better overall price on it? or they'll charge us the same as if we walked into the dealership for the first time? Or will they appraise it at the current mileage/features?
4. Can we lease a vehicle for less than a year?
5. When leasing a vehicle, if it breaks down, will they fix it and give us something to use until it's fixed? Or we're on our own if say the engine blows! (exaggerating).
6. Do they lease vehicles to families? or just singles?
7. How is "leasing" different than "renting" a car? (We've never rented a car before).
8. Do they lease Suburban's? or they just do sedans?
9. IF we don't like it, can we change the lease for another car? or are these locked in?
Thank you much!
Re: insurance, the difference between financing and leasing a car one model year newer was about $6/month. The lease was actually cheaper, but it's also a somewhat (~7k) cheaper car. Give your insurance company a call and ask what the difference will be. I would expect not more than a few bucks over buying.
1. Much, much lower.
2. Yes. Your lease will typically be 2-3 years with the option to buy at the end. What you want to pay attention to is the residual value. If you want to buy, that's what you'll have to pay at the end of the lease. It also determines how much your payment will be during the lease (higher residual value = lower lease payment).
3. See 2.
4. I've never seen this. Seems like more hassle for them (and you) than it's worth.
5. Ask your dealer. Mine will give a loaner but there's no real reason that they would have to.
6. ?
7. Renting doesn't give you the option to buy. With a lease you're paying for depreciation during the lease term.
8. Of course. They'll lease pretty much anything.
9. Difficult and expensive. You may well be better off buying it, then trading it privately.
Insurance won't really be any higher. Leases require certain levels of insurance. Buying a car (payments) you obviously need comprehensive, but leases often require higher coverage levels and sometimes gap insurance. Get quotes, no one can really answer that for you.
1) Lower
2) You can buy it after the lease is up. I suppose you could also buy it before, but usually that's not to your advantage. The buyout price is determined at the time you lease the vehicle.
3) Depends.
4) Yes, but it's expensive.
5) It will be under warranty. Loaner cars under warranty is usually specified in the warranty and dealers sometimes offer loaners on their own.
6) Same as buying a car. Both can be on the lease or one.
7) Leasing is long-term, renting is short-term. Basically the same in that you're paying to use a car for a time. Lease rates are determined on residual value, money factor (interest rate), and capital cost. Renting is determined on what they can rent a car for.
8) Yes.
9). Yes, at your expense. You can buyout your lease and lease another one. Some states have buyer's remorse periods.
You are responsible, and you better make sure you have records of it, too.
Lots of new cars do include routine scheduled maintenance for the first couple of years, but otherwise it's your responsibility.
Depends. My car the first 25k in maintenance is included... given that's not much. It's three oil changes. On BMWs they're covered for 4/50k? or something like that. It's pretty standard on luxury cars I think. Of course you're still responsible for bringing the car in.
After talking to people in the car industry leasing is a horrible way to spend your money.
You talked to the wrong people. Lease incentives are a popular way to subsidize lease terms, and are sometimes better than the cash and financing incentives because the lease company can manipulate the residual - something they can't do on purchase.
OP, in general GM is not known for having great lease deals. If you can get the lease finance costs in line with a purchase loan, it could be an OK deal that allows you to 'get out' of the vehicle at the end of the term at a known price. Reasons you might want to do this are 1) the car turned out to be less reliable than anticipated, 2) your needs changed or 3) the car was damaged during the lease term. All reasons you may not want to buy out the lease at the end.
Lastly - 2 reasons the lease might not be a good idea: 1) if the terms available are worse than financing and 2) it requires a large down payment. The latter is to be avoided because in the event the vehicle is totaled, you won't usually get this money back since it all went towards initial depreciation (capital cost reduction).
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