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I’m thinking of leasing a more comfortable car. I want to trade in my present car.
I want a lower payment and no money down.
I want to be quick, in and out without a lot of fooling around. If the numbers don’t add up, I want to know in 15 minutes, not 2 hours. I don’t even know what I don’t know.
Aside from how much they are willing to give me for my car, what are the variables?
How much is the car?
How long is the lease?
What is the residual value?
What else?
There are some good sites that explain leasing, I would recommend reading a bit.
Your payment will be calculated from:
-Selling Price - Cap Cost
-Down Payment / Cap Cost Reduction (none for your goals)
-Length
-Residual
-Money Factor (another way to look at interest rate)
You'll have a mileage allowance which will indirectly impact the residual (less miles = worth more at the end)
Understand how much it costs per mile if you go over, so you can determine how stressed you'll be taking long trips in it.
Look at other terms and fees. Some may have an "acquisition fee" to start the lease, and some may have a "Termination fee" a payment you make when you turn in the lease. There may be a separate early turn in termination fee as well.
With no down payment, you'll be upside down pretty quickly, so you probably want to consider gap insurance, and some places will included that in the lease payment.
They may also include prepaid maintenance and various things if you want them - which sometimes is a money loser and occasionally works well because it ups the residual.
Then dealer fees as well....figure out every fee so you are not surprised.
Leasing is not a cheap way to get a new car. It's an alternate process that has been hyped as such but is almost wholly loaded in favor of the dealer/lessor.
You might want to talk to a financial adviser with good grounding in vehicle options, rather than assume a lease is the answer and that you just need to know a few details.
Leasing is not a cheap way to get a new car. It's an alternate process that has been hyped as such but is almost wholly loaded in favor of the dealer/lessor.
You might want to talk to a financial adviser with good grounding in vehicle options, rather than assume a lease is the answer and that you just need to know a few details.
That’s why I posted. What the hell does a financial advisor have to do with vehicles? I have a financial advisor. I’m asking people who lease cars for advise.
There are some good sites that explain leasing, I would recommend reading a bit.
Your payment will be calculated from:
-Selling Price - Cap Cost
-Down Payment / Cap Cost Reduction (none for your goals)
-Length
-Residual
-Money Factor (another way to look at interest rate)
You'll have a mileage allowance which will indirectly impact the residual (less miles = worth more at the end)
Understand how much it costs per mile if you go over, so you can determine how stressed you'll be taking long trips in it.
Look at other terms and fees. Some may have an "acquisition fee" to start the lease, and some may have a "Termination fee" a payment you make when you turn in the lease. There may be a separate early turn in termination fee as well.
With no down payment, you'll be upside down pretty quickly, so you probably want to consider gap insurance, and some places will included that in the lease payment.
They may also include prepaid maintenance and various things if you want them - which sometimes is a money loser and occasionally works well because it ups the residual.
Then dealer fees as well....figure out every fee so you are not surprised.
I will have a down payment with my trade in. I mean that I dont plan any additional money.
That’s why I posted. What the hell does a financial advisor have to do with vehicles? I have a financial advisor. I’m asking people who lease cars for advise.
Because most people, including serial leasers, really don't understand what a poor choice leasing is. I suggest you review your financial situation with an adviser who can look at you, your finances, your needs and steer you to a best-case solution. Which is almost never a lease.
Quote:
Originally Posted by gentlearts
I will have a down payment with my trade in. I mean that I dont plan any additional money.
You have down payment money and a trade-in; you are in excellent position to leverage a good to great purchase option, especially through a bank or credit union. You do not need the crutch/burden of what a lease brings.
Miles?
penalty for over mileage?
Interest rate(money factor)?
Gap included?
These are important points. Leases have strict mileage limits and going over them carries heavy penalties. Leasing is doubly not a good idea if you're going to come anywhere near their mileage limits.
They want the car back at the end of X years with as few miles as possible and zero cosmetic damage, so they can sell them as very lightly used and clean vehicles. It's an extremely profitable way of getting cars off of lots.
I will have a down payment with my trade in. I mean that I dont plan any additional money.
You have to start with the price of the new car that you are seeking. That part is the same as buying a new car. IT IS NOT PAYMENTS.
Make sure that with your trade you reach an out the door price for the new car. That includes all of the real or fake fees that are added to any new car. Excluding state and local sales taxes and DMV vehicle registration. Once you agree upon a specific car and a specific price - THEN you ask about leasing.
If you can't get this concept or the dealer will not provide a price then you have to walk. OR bring in someone such as a relative, friend, co-worker, etc. who knows how to buy a new car.
So once the selling price is agreed to then ask about leasing. Then READ the lease agreement. If there are numbers that you don't understand then ask. I have personally viewed a lease agreement where the sales tax was added twice to the lease agreement by the new car dealer.
Yes, with any lease you do pay a sales tax. Proportional to the time you lease the vehicle. If you live in a sales tax state.
Ok, so you are saying, go to a dealer and negotiate a price to buy, then ask about leasing.
I’m already thinking if. F it. Why do I need to play games? I’ll just keep my Jetta.
I have money. I could pay cash for a car. I just don’t want to get ripped off. I’ll use them, they won’t use me.
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