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I am not aware of any car manufacturer (its financing arm) that requires any money down. In fact, as long as your credit is good enough, you can even roll in pretty much anything, e.g, sales tax, acquisition fee, DMV fees, negative equity from a trade, etc. Downpayment is required to get a certain monthly payment.
A lot of manufacturers advertise $0 down and/or $0 drive off deals ("sign and drive" lease), when they have sales. You've seen that. VW has been doing a lot of that.
A free advice - if you are leasing, don't put down any significant amount. Why? Because if your car is stolen and never recovered, or if your car is totaled in an accident, the insurance company will pay the owner of the car which is . . . . not you. The lessor always retains the title and it gets paid by the insurance company. You normally get nothing (hopefully you have GAP coverage). Even if you had put down $4,000 . . . . so you lose that. Isn't that ridiculous?
Some brands, like BMW, offer multiple security deposits (MSD). That accomplishes what downpayment does without the same risk, namely reduce monthly payments. The more MSD you put down, the lower the money factor (because it reduce the lessor's risk). If car is totaled, then you get back 100% of the MSD because it is merely a security deposit.
My very experienced Tax Man / Accountant told me many years ago . . . "Leasing Is A Scam" that allows the "Financially Challenged" to drive more vehicle than they are able to afford.
Since that wise statement I have never leased a vehicle.
Whose your tax man, is he infallible ? You realize it's just his opinion. If he actually said that I detect some angry class prejudice with that finachially challenged remark. Leasing is merely an option. The best financial choice is to buy a good used car. That choice is better dollar and cent wise, even more then buying a new car. But some folks don't want to risk buying a lemon. My first car buying experience was buying a pre owned certified that was anything but... Since then I have financed a new car, and leased two. The car I financed I disliked after two years. Leasing is more expensive but it's like dating and I didn't want to marry a car. People having options is great. Want to know what a scam is ? Going to someone who over charges you to do your taxes and accounting when you can do it yourself. Your tax guy is using software you can use yourself and libraries are free. Plus his use of the scam language indicates he see the world as takers and the taken. Guess your the taken for taking your money when he knows you could do it all by yourself.
And if you turn your lease in at the end of three years with 20,000 miles on it, will they reimburse you for the 16,000 miles you didn't use? I think I already know the answer to that one.
Actually if you have that many fewer miles on the car, it's worth more at the end of the lease than they assumed, and you can get equity in the next car. That's what I did on my last lease when I rolled it over to the next similar car from the same manufacturer. Or you can buy it outright for the residual and sell it and pocket that difference.
Quote:
Originally Posted by AlaskaErik
The last vehicle I sold was a 14 year old truck. It pretty much had the same safety technology as the new ones do. I paid it off in two years, so I had 12 years without a payment. Over the years, I had to replace the lower tie rods, the fuel pump and the starter. All that cost me about $750. Less than two payments.
A 14 year old TRUCK is different than a 14 year old FAMILY SEDAN. By a large amount (the safety features and crash ratings change pretty rapidly in the passenger car segments). If you don't care that your family is in an old car, then yeah, buy used or keep your car forever. I'm not marrying my cars and I don't want the same one for 14 years. And I don't want my wife to be daily driving something with old safety equipment. I'll do it myself (my personal car is 15 years old, and I bought it last year) and take the risk, but I want her to both enjoy driving and be safe in her choice, so it's a new car on a lease, so she can turn it over for a newer car in three years.
As I've said before, I've bought car s with cash, gotten loans on cars, and leased cars. in fact, of my three vehicles, one had a loan on it, one was bought outright, and one is leased. It all depends on what's the right choice at the time, and each has it's plusses and minuses.
And if you turn your lease in at the end of three years with 20,000 miles on it, will they reimburse you for the 16,000 miles you didn't use? I think I already know the answer to that one.
I just leased a brand new 2016 Chevy Malibu limited last month.... zero down... 1st payment wasn't required until the 15th of this month. $331 per month and all maintenance and repairs on vehicle are included with the lease.
I've never leased a car. It always seems to impractical in a state like Maine, where everything is far apart. A lot of the advertised lease rates are for mileage around 10,000 per year. I usually average about double (and some years triple) that! I guess if you had money to burn and just wanted a weekend cruiser, it would be feasible.
Amazing how quickly we can burn through 10K, isn't it? I don't live in Maine, but in a rural area. I also travel many weekends during the year. Lots to see and do! Gotta get to it while I can.
A lease would never work for me. The milage alone would cost me a fortune. And the damage....yikes! They would have a cow over the dog hair and wood chips and the scratches from the lumber and furniture I move around.
wanna buy instead? click that tab, they are offering 1.9% apr for 60 months
$23,840 x 60mos @ 1.9% = $416.82 a month!!!
you would have to get the new 2016 Accord for $14,300 in order to have a payment of $250.00 with $0 down (1.9% apr for 60 months)
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You're missing something huge.....at the end of the payments which you can pay off early and save money, you OWN the vehicle. It's yours! At the end of a lease, you own the paperwork that says you had a lease. You don't own a vehicle. You don't have a car. You have paperwork....Wahooo!!!
I have 18,000 miles a year for my lease. It was very easy.
In a good year, I drive 18K. On a busy year, I drive 26-30. A lease would cost me a fortune! The dealership did the math when I bought my Durango and the lease was significantly higher than my payments. And I will also own my Durango in a couple years. If I leased it, I would owe them even more money and not have a vehicle. No thanks.
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