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 guess as long as this thread is open, misinformation will flow. I give up.
Looks like the OP has, too, as he has never returned.
I fully agree with your original response (post #6). "you must negotiate up-front, just like a purchase"
My point is that most/many have no clue what you are stating. Most that lease don't have a clue that one negotiates the cost/price of a vehicle.
All they are concerned with is the monthly "payment". Can't comprehend the sometimes $3,000 down payment.
Most/many just see a monthly payment number and go for it. Those are the ones being taken for a financial ride and leasing is a poor financial choice. They have no clue what the vehicle costs nor do they understand nor care.
They just don't get it. Those are the ones where leasing is a bad financial choice.
Several posters have mentioned selling your current vehicle yourself. Depending on what state you live in, this may or may not be a good idea. In my state, you pay sales tax on the difference between the new car's price and the trade in. The tax savings could negate any extra money you may get by selling your old car yourself. For example, I was buying a new car a couple of years ago. I determined that if I really put a lot of effort into trying to sell my old myself, I could probably get $30K for it. Plus, I'd be responsible for the required state safety inspection. The dealer offered me $28K initially, but we eventually settled on $29K. Sales tax on $29K is $1,740. In order to break even, I would have had to sell the car privately for $30,740. Not only did I come out $740 ahead, I avoided the approximately $80 inspection fee, didn't have to worry about any required repairs as a result of said inspection, and saved myself a ton of hassle.
Even without the tax break, selling a care yourself instead of trading it in doesn't always work out. Back in 1989, I was buying a new car. Back then, I was a firm believer in never trading a car in. The dealer insisted on giving me a number for my trade-in, but I politely declined. The saleman then did something very unsual. He offered to give me 1 month to try and sell the car myself and if I couldn't, they'd honor the trade-in amount they gave me. I tried everything to sell that car (1987 Honda Accord LX-i sedan), but the best offer I received only matched what the dealer had offered.
All of that being said, trading a car in is usually not the best tactic - especially if its an inexpensive car. But, like all things related to buying/selling a car, there is rarely one right or wrong answer.
To me its like a corporation that leases new cars as part of their business model. The relatively small portion of the monthly fixed cash flow goes to an important priority for the business. Things like new car warranty and no repair cost is just what we want , We have places to go and grandchildren to transport and it really is nice. We are trying to pick out our next car now. It will be brand new of course and stylish as my wife deserves.....Its money well spent for us.
In my state, you pay sales tax on the difference between the new car's price and the trade in. The tax savings could negate any extra money you may get by selling your old car yourself. For example, I was buying a new car a couple of years ago. I determined that if I really put a lot of effort into trying to sell my old myself, I could probably get $30K for it. Plus, I'd be responsible for the required state safety inspection. The dealer offered me $28K initially, but we eventually settled on $29K. Sales tax on $29K is $1,740. In order to break even, I would have had to sell the car privately for $30,740. Not only did I come out $740 ahead, I avoided the approximately $80 inspection fee, didn't have to worry about any required repairs as a result of said inspection, and saved myself a ton of hassle.
This...doesn't make any sense.
Do you pay sales tax when you trade in a car? Or sell it privately?
You get a credit on the sales tax of the new purchase based on the value of your trade in.
Buy a $30k car but have a $20k trade-in, you just owe tax on $10k.
Buy a $30k car but sell your old car privately, you owe tax on $30k.
So for selling privately to make sense you must get more than trade in value + tax credit on that value.
Thanks - that's cleared it right up.
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.
.
