Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
By the way, leasing is the one time you negotiate based on the payment. Leasing is all about the payment, so you can do all the calculations regarding money factors, etc., but I don't really care how a dealership gets to the payment I want. All I care about is (i) the payment, (ii) the allowed miles, (iii) miscellaneous fees, and (iv) no money down except possibly the first payment and fees. How they get there is irrelevant to me.
For everyone saying "do not put any money down", can you clarify? Most of the deals I see say $249 per month with $1999 due at signing or similar. I was referring to the due at signing as the money I'd put up front.
I see very few sign and drive deals ($0 due at signing) for vehicles I'd want to drive. The only few I saw around me are for a huge truck and an SUV.
It means just what it says. The "$1999" down is a gimmick to buy down the payment to that $249. Tell the dealer you want the advertised lease payment with the mileage you need and nothing down.
I've always bought my cars but now I'm in a position where I'm considering a lease for the lower monthly payments than I currently pay for my car that I financed. I have a short commute and take very good care of my things. I've done my research and think that leasing is my best option at this point in my life.
What do I need to know before leasing my first car?
Anything hidden I should look out for?
What happens if you need to move out of state?
Leasers, share you stories/advice etc....
I urge you to internet search this subject thoroughly before leasing. Everything I've read seems to indicate it's not a smart financial move for individuals who can qualify for a loan, like it is for businesses. It costs you more in the long run. At the end of the lease, you don't have anything of value, like you do when you own a car.
Just like when you buy a car, the monthly payment doesn't matter as much as how much the total is.
Maybe things have changed in recent years, but research that before you do it.
(I do know a wealthy person who leases & never buys. He leases a car for a few years, then turns it in for a new one, then turns that one in. He doesn't care about always having a car note. He's rich!)
I urge you to internet search this subject thoroughly before leasing. Everything I've read seems to indicate it's not a smart financial move for individuals who can qualify for a loan, like it is for businesses. It costs you more in the long run. At the end of the lease, you don't have anything of value, like you do when you own a car.
Just like when you buy a car, the monthly payment doesn't matter as much as how much the total is.
Maybe things have changed in recent years, but research that before you do it.
(I do know a wealthy person who leases & never buys. He leases a car for a few years, then turns it in for a new one, then turns that one in. He doesn't care about always having a car note. He's rich!)
Those are vague generalities. The reality is that particular makes and models have lease incentives that make the terms better than buying under some circumstances. Leases give the manufacturer ore control over how many units they move and how many come back in to certified pre-owned inventory. In some cases, that desire by the manufacturer to control inventory equals a better deal for the customer.
For everyone saying "do not put any money down", can you clarify? Most of the deals I see say $249 per month with $1999 due at signing or similar. I was referring to the due at signing as the money I'd put up front.
I see very few sign and drive deals ($0 due at signing) for vehicles I'd want to drive. The only few I saw around me are for a huge truck and an SUV.
I guess I just have to keep looking around.
The way they would approach it is by telling you that you can pay $1999 up front, and $249 a month for 36 months, or pay zero up front and pay $305 a month for 36 months. In both situations you pay the same total amount. So you want to try and get the payments as low as possible with the same zero down by getting them to reduce the price of the car. Shoot for the $249 at zero down. Might not get that low, but maybe close.
Bad thing would be to wreck the car soon after paying the $1999 down, as your $1999 is gone down the drain with the totaled car.
Some of these lease deals are nuts, in terms of down payment. I would love that Jag for 399/mo, but not willing to plunk down $5400 up front.
Like others have posted, you will be renting the vehicle. Just watch the mileage. All of the fees (including termination) will be spelled out in the contract. I like LegalEagle's summary...x down right now, y per month, and if you want to buy it out after 3 years, you can see the amount and decide at the time if you want to turn in the keys, buy it out and keep it long term, or buy it out and flip it.
Most finance companies include the gap insurance these days, but I'd ask anyway (and get in writing).
Some will opine that it makes more sense to buy the car and drive it for 20 years. And that is sound financial advice. But if you are a car nut, it is fun to flip over to something different on a whim, if the budget allows. An expensive hobby.
I had no clue that the "due at signing" was simply a down payment to lower the payments. I thought it was a charge to get the lease of some sort. I'm glad I made this thread!
So if I'm seeing a car at $149/month with $1999 due at signing on a 36 month lease, then the monthly without the 2k due would be around $200/month? ($2000 / 36 months = $55 more per month)
Are dealers going to give me any grief about them not being able to do zero down or will they simply say, sure it's all yours at $200/month? And is it as easy to negotiate lease prices as buying outright? Or will they say I'm nuts if I say, yes I'll pay $149/month but want to sign and drive with $0 upfront, then we can meet somewhere between $149 and $200?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
