In CA.
How does the leasing thing works? gf wants a newer car, but doesn't want to pay forever, so I thought of the leasing thing... but I'm unsure about how it works... or what the monthly payments are.
Let's say she wants something basic to take her from point A to point B... she calls it Subaru Impreza WRX :cookoo:
anyway, that car costs around $25,000 and as I understand, there's either a downpayment involved or a trade-in, and there are fees and stuff and a lease period (is the minimum 24 or 36 months?)
What I want to know is... anyone here leases vehicles and changes cages every few years? are there downsides? can you trade-in a leased vehicle by the end of the lease? (for something newer)
Is it alright to take on somebody elses lease? (I ckecked leasetrader and some deals seem good).
What's the average down/monthly payment for a 20,000+ vehicle? how about a 16,000+ vehicle?
im confused 8)
I thought about leasing too....but I live way out in the middle of no where and put way too many miles on. You gotta watch the mile allowance. My car...when it works...typically gets 400+ miles per week, thats a little over 1600 a month. With the normal allowances I'd be over in no time. :dunno_white:
Quote from: Onlypastrana199 on March 27, 2006, 08:37:06 PM
I thought about leasing too....but I live way out in the middle of no where and put way too many miles on. You gotta watch the mile allowance. My car...when it works...typically gets 400+ miles per week, thats a little over 1600 a month. With the normal allowances I'd be over in no time. :dunno_white:
Ditto- that is the main complaint.....u also have to make sure u keep the car in good shape and not let the crap get beat out of it. As they will charge u out the ying-yang for that too. And bigger down payment = lower monthly cost.
I'm not sure about you guys, but I'm not into leasing... You can't drive much with that teeny mileage allowance, but most of all you can't mod the car.
Why make payments on something like that when you could just make payments and own it? If you want to stop making payments, then sell the car and pay it off.
mmm, we are talking about 180+ miles per month, with the ocassional 300+ miles drive on a weekend (once every 2 months or so), so I think the mile allowence is not a problem.
actually, her daily drive to work and back is about 6 miles :cookoo: but I think she wants something more fancy.. I mean, basic and reliable. :icon_razz:
Leasing works for a lot of people that like to upgrade their vehicles every couple of years. It is basically high-end renting in that you are paying only for the use of the car. You are responsible for carrying insurance (must be full cov) and any and all repairs. You are given a teeny weenie mile allowance which doesnt seem to matter in your (well her) case.
Lease rates are generally directly related to the cost of the vehicle, but if you shop around and keep an open mind you can get a very good deal. There's usually a DP depending on the car but std is around 2k around here. At the end of the lease, you turn in the vehicle or you have to option to buy it (they give you the price when you sign the lease).
Like I said, it works for some people and some people swear it off in principal. I would compare the payments of the lease to the payments if you buy at the average interest rate and go by that. If it's a minimal difference, I would buy the car. :thumb:
Hope this helps, it's off the top of my head but I think it's pretty accurate. :o
lease rates are tied to depreciation of the car. thats what you're paying for. so a car that holds its value like a BMW wont be as much as you'd think. also, everything is negotiable, just like in buying a car, including how much you put down and what the buy back at the end of the lease is (you're negotiating the cost of the car to buy it at the end of the lease). At the end you can simply give it back. its not a trade in, they own it. you can find deals that dont need down payments (or create them), etc.
I was looking at leasing a BMW 3 series a number of years ago and it was going to cost me about $400/month with about $2000 down for a 3 yr lease. or was it 4 year? cant remember.
insurance...the actual coverage required is MUCH higher for a leased car than it is if you financed a purchased car. MUCH higher. look into that.
personally, I dont think it makes sense to lease an inexpensive car. it makes the most sense to me if its more a luxury car, and you expect to not drive it much (I think its 12,000 miles per year), and you like having a new car every few years. its a really good way to get into a car if you're self employed as the lease can be a company expense, where a purchased car gets complicated to itemize unless you have another car you can claim as your personal, non-business car.
lots of leases around hollywood/los angeles/west los angeles as everyone wants to appear to live higher than their actual means.
and here I was thinking that the company doing the leasing would take care of the insurance and stuff (full coverage) :laugh:
well thanks for the heads up, I will be asking a few dealers about this. it's all much clear now. :thumb:
Since I've worked at this Honda(auto) dealership for 27+ years, I think it makes me qualified to comment about leasing. A few guidlines first. A good credit rating is typically needed to qualify for the best lease rates that are available. An example to consider..
Lease a new Honda Civic 2 dr EX w/auto for 36 mo/12K mileage allowance with a TOTAL cash outlay of $!OOO....$314/mo
BUY a new Honda Civic 2dr EX w/auto w/60 month loan with a TOTAL cash outlay of $1000...$380/mo.
BOTH "quotes" include tax, and are based on current Ohio rates. REMEMBER, the lease allows you to drive ONLY a total of 36,000 miles before a .15 cent/mile penalty is assessed. And yes, if you return the leased car with what is considered abnormal wear and tear, you will be held responsible for it. BOTH lease and purchase scenarios require the driver to provide and pay for their auto insurance.
In a nutshell, you can drive "more" car for a specific payment amount with a lease, but of course, you never own it and have limitations/restrictions on its use with regard to physical condition and mileage. Hope this helps.
To me it never made much sense to lease or even to buy a brand new new car. Economically it just doesn't make sense and the loss is too great. Why not buy a 2-3 year old car for much much less??? The only thing i would even consider buying new would be a high end superbike and that only to make sure it hasn't been abused.
buying new makes more sense if you keep it longer, then losing the depreciation isnt a big deal. Both our cars were bought new...8+ years ago. That would be a 97 integra hatchback and 6 months later a 98 integra 4dr.
Would replying to a two week thread count as a necro?
I was also a car salesmen (I have since moved onto IT so don't hate me for it). And I do believe in leasing. It simply comes down to whether you drive a ton of miles and how long you keep your car for.
Remember when you lease and you know you do 15-18k miles a year. Just make that part of the lease. You will end up paying for the miles up front instead of at the back when you turn it in. But its a lot less of a hassle that way. There is also an argument against this that says "If you dont use the miles you just wasted that money". I tend to believe in the first. So my wifes van is leased, where my van (I have 3 kids so I didn't have a choice before the Mazda 5 came out) is a purchase. Because I tend to drive a lot of miles plus I'm hard on my vehicles.
As for the belief you need to return a leased vehicle in showroom condition. This is dependent on the leaseing company. But in most cases the vehicle needs to come back with four of the same brand of tire. And is allowed to have the wear and tear of a three (or however long your lease is) year old vehicle. (check your local leasing companies for details. I am not responsible for anything I say. Disclosure finished)
People usually end up leasing not so much because its the cheaper way to go or because they are always buying new vehicles. But mostly because they are trying to buy up. Instead of buying a $20,000 car for $400 a month I could lease a $25,000 car for the same money., Depending on brand (Toyota and Honda usually have the best trade in values which effects leases) you can save a lot of money by leaseing. But again it comes down to whether you want to go back to the dealership with equity or you would just rather show up and hand over the keys to your old car.
Funny though as I get older (oh yeah early 30's makes me bitter and old) and I'm less interested in showing off. Id rather just buy a lower end car and be able to modify it. Plus not have to worry about its trade in condition three or four years down the line. I wish the Mazda 5 had been out when the third baby was on the way. (sigh) seats 6 and has a 5 speed. Plus theres all those fun mazdaspeed parts for the 2.3 available.