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I'm not one for blaming victims, especially those who may not be as sharp as they once were to no fault of their own. Sadly there are industries that prey upon the ignorant, negligent, naive, and those with misplaced trust or misunderstanding. To conduct a fair transaction, there must be a meeting of the minds with truth and transparency. Unfortunately many people make a lot of money based off of opacity, misleading information/misgivings, and expediency. Clearly if your anecdotal neighbors/relatives do not understand the full terms they could not have a meeting of the minds.
When I got quotes from 4 different solar contractors, I was given some crazy expensive quotes (upwards of $5/watt). When I started citing a quote from a previous contractor, the salesperson immediately undercut the quote down to $4.25/watt. In other words, they were starting a ridiculously high bid and it made me wonder how many folks were taken for a ride. I ended up paying $3.25/watt and saved $8,400 compared to the highest quote. I did a lot of internet research beforehand and I've learned to never show a salesperson all your cards upfront.
As far as leasing goes, it seems like it works out best for folks who:
1) use them for business deductions.
2) will never DIY maintenance.
3) can afford to pay a premium for a newer vehicle.
I don't qualify for any of the above three, so I buy old used cars >3 years old and do as much maintenance/repair myself. I'd much rather keep a vehicle that I've been acquainted with and invest or spend my money elsewhere.
Leasing is a terrible financial decision for most people, because most people can't depreciate it as a business expense.
But if the low monthly payments and getting a new car every 3 years or so are important to you, than that's a personal preference and lifestyle choice.
I do enjoy cars and technology, and paying for maintenance on old cars is annoying. Still, I love not having car payments. I try to buy cars new, pay them off within five years, then keep them free and clear (with significant occasional maintenance and repair expenses) for another decade.
The lower monthly payment is attractive of course, and would also make it easier to get a mortgage.
But if you're able to obtain a lease with no down payment (though I haven't seen those on dealer web sites),
wouldn't the monthly lease payment then become comparable to a monthly purchase payment?
The lower monthly payment is attractive of course, and would also make it easier to get a mortgage.
But if you're able to obtain a lease with no down payment (though I haven't seen those on dealer web sites),
wouldn't the monthly lease payment then become comparable to a monthly purchase payment?
The answer is, it’s depends. Depending on what the residual value and money factors are vs the purchasing options will tell the story
I agree. Not all leases are bad financial decisions. I leased Infiniti Q45s when they first came out. They couldn't compete with Lexus head to head so they made their leases sweet deals to lower the payment for a car like this. Interest rate was under 1% for four if my leases. The capital cost or price was in line with well negotiated prices to buy them. Infiniti pumped up the residual value to compete so the deal was better than purchase due to money costs alone. If I wanted the car at end of lease could but it at a lower market price for a number of years before they closed this loop hole.
I lease if it makes financial sense it does not always do so. The rest of the decision is what you want not what makes financial sense.
If i were to finance the payment would be close to $600 for 6 years with what i put down. Many people don’t have $3,000 to put down on a vehicle. I don’t care because I’m 64 and i enjoy a new vehicle every 3 years with a low lease payment. I don’t want a 6 year vehicle payment, i know many people who get sick of their vehicles in 3 years and are upside down when they trade their vehicle in on a new one and the payment goes through the roof. I’ll take leasing anytime I’ve done the financing thing. If you like to keep your vehicles for a long time more power to you , but i get tired of vehicles fast.
Are you me? That's my reasoning too! I don't want to put a big wad o' cash down on a car and still have a big payment for 6 or 7 years. And I get tired of vehicles too....got burned when I traded in my first BMW, which was a four-year lease so I could afford the payments at the time, before the lease was up.
Adults of all ages get ripped off by car salesmen. I suppose the elderly are easier targets for the typical car lease/purchase scams, but that isn't limited to just the auto industry. Older people are targets for rip off scams in all sorts of things.
Specifically regarding the Honda: the driver's insurance should have made her whole on the value of the car. But of course she is still responsible for making the lease payments.
We leased cars for years and eventually decided that we were better off buying. So that's what we do now (and we either pay cash or pay off the loan early). When we retire we might do things differently.
Her car wasn't totaled. And for the person who told me to mind my own business, I was dragged into her business because she asked a friend to help her with the situation, and he knew jack about leasing so he asked me. They let her out of the lease by putting her in a different Honda model and of course it was not cheap for her.
I can't afford to buy the cars I lease. That's why I lease them. By the time the lease is up, I'm already antsy for something different. I'm OK with the whole thing....I would have car payments anyway because I don't keep cars very long.
I lease and i rent my home because i don’t want maintenance anymore and if anything breaks like any major appliance its on the Landloard to fix. I’ve had my houses when raising my family. So when you get older it’s easier to lease a vehicle and rent a place to live. I love getting a new vehicle every 3 years i could care less what it’s worth at the end of the lease. I don’t drive to work anymore and i don’t drive on a vacation i fly and rent a vehicle. I can afford it now that I’m 64 unlike when i was in my 40’s and still had kids at home. My kids are all on their own so this is my time now. Why people have a hang up about a lease is beyond me, i don’t like having a car payment for 6 years been there done that. And then when you trade it in you don’t get what it’s really worth and I’m not going to try and sell it on my own hoping someone will buy it, i don’t like waiting because life is getting shorter for me.
I lease and i rent my home because i don’t want maintenance anymore and if anything breaks like any major appliance its on the Landloard to fix. I’ve had my houses when raising my family. So when you get older it’s easier to lease a vehicle and rent a place to live. I love getting a new vehicle every 3 years i could care less what it’s worth at the end of the lease. I don’t drive to work anymore and i don’t drive on a vacation i fly and rent a vehicle. I can afford it now that I’m 64 unlike when i was in my 40’s and still had kids at home. My kids are all on their own so this is my time now. Why people have a hang up about a lease is beyond me, i don’t like having a car payment for 6 years been there done that. And then when you trade it in you don’t get what it’s really worth and I’m not going to try and sell it on my own hoping someone will buy it, i don’t like waiting because life is getting shorter for me.
For the same reason you have a love for leases. We all have different ideas of what is the best financial decision for ourselves.
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That's my reasoning too! I don't want to put a big wad o' cash down on a car and still have a big payment for 6 or 7 years. And I get tired of vehicles too....got burned when I traded in my first BMW, which was a four-year lease so I could afford the payments at the time, before the lease was up.
