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I'm in my first lease. I could have afforded to purchase outright but I just like to get a new car around every 3 years anyway and have the means to do so.
Quote:
Originally Posted by CarnivalGal
The only reason to lease is if you plan on getting rid of the car in a few years.
Oh, by all means lease if you have the money to throw away.
The lease vs buy argument has been hashed over in countless strings here.
OP: The answer to your question is that different lessors have different credit requirements. For example, some may require a fico score over 750 for the best rate, others may settle for less.
Personally, I'd never tolerate having any credit card debt and I buy my cars used, keep them for a very long time and pay cash. That has always worked best for me but I don't expect everybody else to agree.
I’m in the car business at a luxury car dealership. From my experience, those who lease prefer the convenience and peice of mind of always having a car covered under warranty, in addition to being able to upgrade every 2-3yrs and have the latest tech/safety features. They’re not the type of customers sitting home counting pennies and saving to be the richest dead guy once they pass. For the most part, 90% of these customers can buy a car cash but rather keep liquid cash in the bank or in whatever investments they have. A $500 - $700 monthly payment doesn’t effect their bottom line. Most of my customers who lease have 6-figure salaries with credit scores in the high 700 - 800’s.
The unhappy ones are the ones who come in every other month with a 10yr old beater complaining about their shop bill.
I’m not advocating that one is better than the other. Do what suits you and makes you happy. If living frugal your entire life is what pleases you, then go buy a used corolla and drive it till it dies. Rinse and repeat. If you’re the type that is in to cars and enjoys driving new nice cars and don’t mind a monthly payment, go lease or finance a new car every 3-5yrs.
They’re not the type of customers sitting home counting pennies and saving to be the richest dead guy once they pass.
Says the guy whose job is to sell leases.
Quote:
Originally Posted by louie0406
The unhappy ones are the ones who come in every other month with a 10yr old beater complaining about their shop bill.
Of course if you buy a decent car, either new or used, you won't have a big repair bill every other month.
Quote:
Originally Posted by louie0406
I’m not advocating that one is better than the other.
No, you're just heaping scorn on people who are careful with their money.
Quote:
Originally Posted by louie0406
If living frugal your entire life is what pleases you...
If you pay attention to the OP, he's a young guy with a lot of credit card debt. Most sensible people would recommend that someone in that position NEEDS to live frugally. The time to stretch out is when you can afford to do so, not when you are in the hole. Just because you spend a few years when young bearing down and clearing debt and putting together savings, doesn't mean that you spend the rest of your life as a miser.
Honestly, for all the talk by debt-lovers about this, I have never known anyone who spent their early years scrimping and saving to put their finances on a sound footing, and then found themselves unable to enjoy life later on. That may be the stereotype being promoted by people who want to sell you something you can't afford, but it doesn't really happen very often. What is MUCH more common is the guy who scrimped and saved as a young person, then hits middle age with plenty of money and starts spending it on various kinds of amusement.
A lease is a bad deal, but you probably already know that.
My biggest concern with your particular question is that you should only be buying a truck if you're going to use it for work. If you're working with your truck you're going to get all kinds of dings, scratches, and other damage that will cost you a lot when you turn it in.
I lease my car since I’m retired I don’t put on allot of miles I like that I can get a new car every 3 years and I always get a cheaper lease payment. I could buy any GM vehicle since I get the GM employee discount through my father even though he is no longer living, it’s called
GM Family Legacy Program (employee discounts) but i prefer to lease.
I previously made a post before..well things have changed so I decided to make a new post.
I've been to several dealerships looking for a used truck. I actually found out the rates and lease specials are awesome for r a brand new truck, so we have decided to go that route instead.
To make a very long story nice and short, my wife and I have heavy credit card debt but otherwise our credit is in good shape...never missed a payment no negatives etc.
Went to a dealer lastnight, filled out a credit app, ran out scores etc and said we can be approved for a very good rate etc. They even called me back today and said they can get my payment way lower than they first quoted me. Awesome.
Well another dealer I've been talking to (who have been kind of ignoring me after a different deal fell thru bc of price) flat out told me today they couldn't approve me for there lease specials
Because my credit isn't good enough.
What gives?
There are 3 credit bureaus, and the second dealer may not have pulled the same report as the first dealer. Check all 3 of your reports for errors.
Say your ready for something different on three to four years, on a buy
I'll bet you will have negative equity so more cash to off set this. as where a
three to four year lease you basically move into something else.
Most likely your going to have a vehicle payment, why would you want a
obligation and not an option if your needs change ? and if by chance your
vehicle is a dud or a service nightmare in most cases it's covered by a warranty
for the term of the lease as where on a buy after that expires it's up to you.
Here are the two flaws in your analysis, which are common to pretty much everyone who favors leasing:
1. You shouldn't get a new car just because you want one or "you're ready for something different". Especially since the OP already has too much credit card debt, turning cars over is not a good use of money. Buy a car when you need one, not when you want one.
2. Don't assume you will always have a vehicle payment. Even if you aren't paying cash for a vehicle (and I do not subscribe to the position that says you must always pay cash), once you buy a car the ideal spot to be is that time when the car is still reliable and you don't have a payment. Cars work well and are reliable for a very long time now. Even if you have a thousand dollar repair every year that's still a lot cheaper than three or four thousand dollars a year in car payments.
I previously made a post before..well things have changed so I decided to make a new post.
I've been to several dealerships looking for a used truck. I actually found out the rates and lease specials are awesome for r a brand new truck, so we have decided to go that route instead.
To make a very long story nice and short, my wife and I have heavy credit card debt but otherwise our credit is in good shape...never missed a payment no negatives etc.
Went to a dealer lastnight, filled out a credit app, ran out scores etc and said we can be approved for a very good rate etc. They even called me back today and said they can get my payment way lower than they first quoted me. Awesome.
Well another dealer I've been talking to (who have been kind of ignoring me after a different deal fell thru bc of price) flat out told me today they couldn't approve me for there lease specials
Because my credit isn't good enough.
What gives?
I leased my Kia for three years so that the payment would be low, and then after 3 years I bought it, and my payments were even lower.
All dealers use different lenders and some are more strict than others. I had a lot of credit card debt when I co-signed for my daughter's Kia - the main problem they were having wasn't that my credit wasn't good, it was the amount of debt I had at that time. But the account rep at the dealer called his favorite lender, Wells Fargo, and said "pretty please do this loan" - and they did and all is well. Another dealer had previously told us NO WAY would we get a good interest rate and a low monthly payment - but we didn't give up and just went elsewhere.
Unlike other folks, I figure you're an adult and you get NO LECTURES from me about what you choose to buy or how much debt you have. We all live our lives as best as we can. Though I now have no real debt except for a student loan, for a time, I financed my life with credit. I knew it wasn't WISE - but we do what we must to survive.
I leased my Kia for three years so that the payment would be low, and then after 3 years I bought it, and my payments were even lower.
And what was/will be the total cost of acquisition?
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