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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!
Leasing is simply a different way of financing a car. In the short term, its often cheaper, in the long term, its more expensive.
1. Yes
2. Yes, but almost all leases run 24-48 months, most commonly 36 months or so. You will know what the lease buyout is when you sign the papers.
3. As above, you know what the buyout is ahead of time. If its a good deal, buy it, and if not, flip the keys back to the store and let them/the bank figure it out.
4. I've never seen a lease that short.
5. Generally only new vehicles are leased, and the lease is well within the warranty terms. So, the manufacturer fixes it.
6. Two names can be on the lease paperwork, same as a loan.
7. It really isn't different, just for a much longer term. Like a rental, you're paying for the depreciation, mileage, and a premium so the bank can make money.
8. Yes, they lease every new car out there. They may not lease them competitively.
9. No, after you sign the paperwork you are responsible for the duration of the lease.
Leasing is simply a different way of financing a car. In the short term, its often cheaper, in the long term, its more expensive.
How is it cheaper in the short term? Even if you grossly approximate the numbers, how do you end up spending less on a leased car? You don't own a leased vehicle, it's a long term rental.
Leasing is simply a different way of financing a car. In the short term, its often cheaper, in the long term, its more expensive.
First part I agree with. Second part I disagree with. It's not really that more expensive than buying... assuming we're talking apples to apples. Buying new and trading it in to the dealer often works out to be more expensive than leasing if you're turning over cars in the same time span. Big advantage in a high tax state like California is that you're paying sales tax only on the lease payments. For E350 with a cap cost of $56,000 has lease payments of around $20k (27 mo lease). Given sales tax is mostly 9% here (coastal CA), that's a $120/mo tax advantage.
Turning over new luxury cars every two years is just always going to be an expensive proposition.
After talking to people in the car industry leasing is a horrible way to spend your money.
See the comment below:
Quote:
Originally Posted by JasonF
Blanket statements are rarely true.
People need to look at their own situation and what it is that they're trying to achieve, do the math, and make a decision based on actual facts.
yes, this comment. VERY right statement.
Quote:
Originally Posted by Teckeeee
I have never leased. Are you responsible for maintenance or is that covered. Brakes, oil changes, 30k service?
It depends on your deal. You are responsible for taking the vehicle for the service, naturally. It may be covered, depending on the lease terms
Quote:
Originally Posted by Malloric
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.
Toyota gives first 3-6 visits for free as well.
Quote:
Originally Posted by HappyRider
Please suggest a way for a recent graduate with a job to drive a new car. And no, putting aside $600 a month so five years later he may be able to pay cash for the car is not an option. Neither is the so called low mileage used cars that cost nearly as much as new and no incentives. He is young and he wants to enjoy life NOW.
Uh.. finance a more affordable car?
Quote:
Originally Posted by Opin_Yunated
Never lease.
another clueless statement. I'm contemplating adding you to my ignore list; you're yet to share anything useful in this forum.
Quote:
Originally Posted by MadManofBethesda
Isn't it interesting that those with the strongest views on a subject are invariably the ones with the least amount of understanding of that subject.
That's how that kind of people typically operate. They have no idea of the actual facts, but still will claim that what they've "heard" is the the only right thing
Quote:
Originally Posted by HappyRider
Back up your claims with numbers. A search on Autotrader for a 4 year old 2010 RAV4 at 45000 miles or else brought up ZERO for sale around us. You have to go up 60,000 miles and pay $20,000. You call this a deal. I call it NUTS.
This.
More so, some cars retain value better than others.
good luck finding - as an example - an FJ cruiser that is about 3 years old with low mileage for a price well below the sticker of a NEW one. oh. wait. you can't.
OP,
Lease can be a great thing, but also can be a nightmare.
One thing to consider is the amount of driving you'll be looking at - there is, typically, a limit on mileage you can put on your leased vehicle.
Also, make sure that the dealership you're going with is a reputable place. The fishy places always rip the vehicle returning from lease apart. You may end up having to stand your ground upon the checkup.
Now, once your lease is up (usually, it is suggested to take action 1-2 months before the end of your term), you can either trade it in or buy it out. If buyout is your option, you'll be able to get a used vehicle pricing.
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).
You are right. Dealers want to lease some cars and some cars they don't.
For example, Toyota wants to lease Highlanders but not really 4Runners from what I was told by the dealer.
another clueless statement. I'm contemplating adding you to my ignore list; you're yet to share anything useful in this forum
Wait a minute ..., are you threatening to ignore some random person on an Internet forum?
Wow, that's pretty badass, I am impressed.
Meanwhile, do go ahead and provide a single case which you back up with actual numbers where leasing is a good idea for a private party (non-business use). Since you are complaining about people not contributing anything useful to the forum, here's your chance to show the world how awesome of a deal leasing is.
09-24-2014, 07:35 AM
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n/a posts
Quote:
Originally Posted by RarelyRelocating
Meanwhile, do go ahead and provide a single case which you back up with actual numbers where leasing is a good idea for a private party (non-business use).
It's pretty much always a question of how long you're going to keep the car and whether or not you can stick to the lease agreement.
Yes, we can all sit down and do the math out to 10 years vs leasing every 2 years and see that buying is cheaper, but that's rather irrelevant if what you're actually going to do is get a new car every two years either way. People should base their decisions on what they're actually going to do.
Wait a minute ..., are you threatening to ignore some random person on an Internet forum?
Wow, that's pretty badass, I am impressed.
Meanwhile, do go ahead and provide a single case which you back up with actual numbers where leasing is a good idea for a private party (non-business use). Since you are complaining about people not contributing anything useful to the forum, here's your chance to show the world how awesome of a deal leasing is.
wow! you just called out a random internet person for expressing his thoughts!! You're so brave!
I work with dealerships, and see these situations all the time.
VERY often, people who cannot afford to finance the car can afford to lease it. Matter of fact, my second half is leasing it as her payments went from 300+ to 220.
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