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.
I considered it recently, as my 18 year old Acura finally kicked the bucket for good (with 315,000 miles, so no complaints!) at the worst possible time for me as I am not working and scheduled for back surgery in a couple of weeks. I considered it because parting with savings for a down payment when I don't know when I'll be back at work sounded scary to me. I ended up not leasing however because in the end, the parking lot for my apartment is awful, people are always over the line, and I get dings and dangs a lot. With a lease, I can't even imagine what they'd charge me for all those dings and dangs when I turned the car in. Also my family lives about 50 miles from me, and I didn't want the mileage restrictions.
I ended up getting a 2009 Hyundai Azera with 32,000 miles from one of those stores that sells only cars that come off lease (and all have 6,000 mile warranties, but I bought a 60,000 mile one). So the other person ate the depreciation and I got a car that I am absolutely in love with that is all mine. Since I drive my cars into the ground, I hope to have several years of use after the payments (got 8 more years after my Acura was paid off)
My niece and her husband both started leasing really more out of necessity than choice, as their cars died and they can't afford much down payment or monthly payment at the moment (my monthly payment for my used car is still higher than their lease monthly payment for a brand new car)
QUOTE]
I didn't know there were dealers who exclusively sold vehicles coming off-lease, but I see there are. Do they have proof that the vehicle is coming off a lease? A car coming off lease is usually two or three years old, not seven. And a seven year old car with only 32K miles sounds a little shady as well -- under 5K per year. If someone drives that few miles, they most likely wouldn't be leasing as it wouldn't make economic sense unless they buy the car at the end. Just wondering how that all works. I know if a car is in good shape when it comes off-lease, many times the dealer will just put it on their "pre-owned" lot.
I get mine at Auto Lenders. They are a clearing house for banks for cars coming off lease, but are only in NJ I believe. https://www.autolenders.com/ it's an established chain of stores, I don't have reason to doubt them, especially since every car they sell comes with a 6,000 mile warranty and lifetime engine guarantee. They don't have any other cars but these cars, they don't even sell the cars they get on trade in but send them to auction.
My last car (the Acura) I bought there as well, in 2003. It was a '98, so was 5 years old, with 33,000 miles. It got to 315,000 so I have no complaints and am loyal to Auto Lenders, lol. Maybe the person re-leased it, IDK, but they are all certified one-owner cars. They didn't drive much, that's for sure. Auto Lenders is no haggle, which is the main reason I go there. Plus they sent the car over from another location 60 miles away for me to drive, and even came and picked me up (about 20 minutes drive).
In any case, everyone who sees my car thinks it's brand new, and it looks like it was garage kept, not a single stain on the seats or carpets, no scratches and no faded paint. In my experience, it is normally people with leased cars that keep them so nice, because they have to pay for all those issues in the end.
From the Auto Lenders website: "We’re called Auto Lenders for a good reason. Our long-standing, direct relationship with regional banks means we can cherry-pick the very best off-lease vehicles and offer financing for all budgets and credit types."
Lease a 2016 Toyota 4Runner Today! TAX, TITLE, LICENSE, DEALER FEES AND INSURANCE ARE EXTRA. DUE AT SIGNING INCLUDES $2600 DOWN , FIRST $399 PAYMENT, AND NO SECURITY DEPOSIT.
So there is a down payment.
For that particular deal as advertised. Nothing says you have to pay it, or that you can't do better than that.
Over the years my financial advisor has always told me the only reason for me to lease a vehicle is so I could drive more vehicle than I could afford otherwise.
My 14 year old truck was a third vehicle. It was paid for and there is always a need for a truck when you live in Alaska. My primary vehicle was much newer. Right now the oldest vehicle I own is a 2015. And it's loaded with all the technology you mentioned and then some.
OK, so that negates your whole "12 years of no car payments" argument.
I had thought about leasing as well. I tend to get tired of cars quick, so for someone like me, it would be a better choice I think.
As far as money down, that is a good question. I see a lot of dealer / car ads on tv with car leases. Many say no money down, but then you will see something like $1,999 due at lease signing, or $2,999 due at lease signing, etc. The price of the car seems to vary this amount. The higher the car, the higher that amount due at least signing is.
I am not sure what the difference is, but unless you get that back somehow at the end of the lease that seems like a down payment to me.
For example, right now Honda is running an ad TV saying you can lease a new 2016 Honda Civic LX sedan for $179.00 per month, zero down, $1,999 due at lease signing. What is that $1,999 for? What does that mean? lol.
It's certainly not true that leasing is for people who can't afford the car. I've leased my last three vehicles - all from luxury makes. I could have purchased each of them in cash if I wanted to. So why didn't I? Because why would I tie up $40+k in a depreciating asset when I can take that capital and invest it to make money with it instead? You see, so-called "successful" people all know one simple truth of smart investing: Buy appreciating assets and rent depreciating ones. It's really that simple. Thus leasing real estate makes a lot of less fiscal sense than leasing a car.
You also have to understand the perspective that high earners usually want to always have a newer car (though not necessarily a luxury model). When I was younger I always drove around in 10 year old beaters with all the troubles that come with them - I'm not ever doing that again. I want a car that is always under warranty. "Successful" people don't care that there's always have a monthly payment, because it's a rather insignificant amount in the grand scheme of things. When your monthly nut is already several thousand dollars, a few extra hundred doesn't really make much more impact on the bottom line. My kid costs me far more per month than my leased car.
Buying absolutely makes more sense if you tend to keep your cars a long time. But if you prefer a new car every 3 to 4 years, leasing makes more sense. If you really prefer to buy a car, new ones are the worst possible investment. As soon as you title it and drive off the dealer lot, you've immediately thrown thousands of your hard earned dollars out of the window in depreciation. A low mileage pre-owned car is the better investment - someone else already took that initial depreciation hit. If you look at cars as nothing more than the commodities they are, this all makes sense. The next car I ever buy instead of lease will probably be my last one when I'm old. They can bury me in it to save on the expense of a casket.
I had thought about leasing as well. I tend to get tired of cars quick, so for someone like me, it would be a better choice I think.
As far as money down, that is a good question. I see a lot of dealer / car ads on tv with car leases. Many say no money down, but then you will see something like $1,999 due at lease signing, or $2,999 due at lease signing, etc. The price of the car seems to vary this amount. The higher the car, the higher that amount due at least signing is.
I am not sure what the difference is, but unless you get that back somehow at the end of the lease that seems like a down payment to me.
For example, right now Honda is running an ad TV saying you can lease a new 2016 Honda Civic LX sedan for $179.00 per month, zero down, $1,999 due at lease signing. What is that $1,999 for? What does that mean? lol.
There are a lot of up front fees in leasing and your first month's payment is included in that figure. In some states you pay the sales tax upfront too.
- I live in NYC and put less than 12k miles a year on my vehicles. Not to mention, with the conditions of these streets here, by the time its time to turn it in, it'll usually need some sort of suspension work done. Let the dealership or next person deal with that.
- Its always a no money down lease with payments in the low $200's. I can easily afford it with no out pocket money to get into it. I get to keep my liquid cash rather dumping a large lump sum of it into a depreciating asset.
- I use my leased vehicles for my side business and write off my monthly payments as a business expense.
- The peace of mind knowing that its always under warranty and I know I wont have to endure any surprise high ticket maintenance costs.
- I have the latest tech and safety features every 36 months.
- It's easy and hassle free. 3 months prior to my turn in date I start researching my new vehicle. I do my homework and know exactly what I'm going to be paying. Drop off my old lease and get into my new lease.
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.
Since I drive my cars into the ground, I hope to have several years of use after the payments (got 8 more years after my Acura was paid off)
