Leasing questions.

Topic: Leasing questions. (Read 1622 times) previous topic - next topic

Leasing questions.

February 27, 2008, 08:13:39 AM

I have never leased a vehicle before, but I am considering it. I wanted to purchase a new vehicle, but I am not sure what my job situation will be like in a couple of years, as my company is talking about relocating to another state, so I would rather do a lease, save some money each month that I can then put into getting my other vehicles in top running order, and I will need something to drive while working on my usual DD. So back to my original purpose, I would rather lease at this point, for 2 years, 12,000 miles a year. Is there anything that I need to be aware of? With a lease are dealerships generally willing to "negotiate" a price, or it is what it is? I would put the minimum amount of cash down as I don't plan on purchasing at the end of the lease. Does all maintenance generally need to be done at the dealership so as not to "void" the warranty?

Leasing questions.

Reply #1 – February 27, 2008, 04:30:03 PM

They will hit you heavy for over milage.you have to see if theres a charge at the end of the lease for returning and bullshiznit.but pretty much your renting a car for a short term.

Leasing questions.

Reply #2 – February 27, 2008, 06:54:07 PM

You mean a Flease? Yeah, spending money and having absolutely nothing to show for it in the end. Makes as much sense as renting an apartment when you can afford to buy a house.

Leasing questions.

Reply #3 – February 28, 2008, 09:12:24 AM

Quote from: Birdman;206653

You mean a Flease? Yeah, spending money and having absolutely nothing to show for it in the end. Makes as much sense as renting an apartment when you can afford to buy a house.

And your opinion answers my questions how? Considering I am not sure what my job situation will look like in 2 years (refer to original post), I don't want to take the risk of locking into a $548 a month car payment for the next 5 years. I would rather pay the $296 a month for the next 2 years and then see how things are going job wise. Then everything will be under warranty and I won't need to worry about it.

Leasing questions.

Reply #4 – February 28, 2008, 09:20:49 AM

Leasing is not a bad option. Those two rebuttal's are two very common comments from customers about leasing.

Its a fine option, you can save alot of money over the two years with that $296 payment and you can ditch the car and do it all over again in two years without worrying about negative equity.

Leasing questions.

Reply #5 – February 28, 2008, 07:04:07 PM

Look I am sorry if you didnt like my comment. Yes dealerships are willing to negotiate most of the time on terms of the lease. Generally the service has to be done at the dealership, and a lot of things may not be covered. Watch out for that.

My OPINION is this. If you cannot afford to buy a car, leasing is an option. Just not a very smart one. When I pay good hard earned cash for a vehicle, I want to have something to show for it at the end of the day. YES you can save money in the short term, but after all is said and done,.... you don't own the car. If you do not know what your job situation is going to be, or if your job isnt a steady one, My OPINION is that you wait until you find a better job, and then BUY IT. There are too many used cars out there in mint or near mint shape that you can get for a STEAL. I would buy one of those, learn how to fix it, and still have a lower payment than if you bought new. Is it just wanting a reliable vehicle, or just wanting something new? If its reliability, many of these used cars can get you around without problems. I understand that warrentys look good on paper and all, but after seeing my buddy get screwed horribly on a lease from Saturn, I'd never recommend it again. Between getting the thing serviced and then the HUGE headache at turn in, it just was not worth it.

Leasing questions.

Reply #6 – February 28, 2008, 07:16:31 PM

Birdman got some good advice.For you ,and what you say in your post,a lease has some benefits ,as long as you keep it up and not damage it.I used one for my daughter for college,best investmant I made.You need to figure whats for you.

Leasing questions.

Reply #7 – February 28, 2008, 07:25:12 PM

For every bad Lease experience you hear about I bet you have heard 10 times as many bad car buying experiences. I work at a very large dealership in Lancaster Ohio; Chevrolet, Buick, Lincoln, Mercury, Nissan, Honda, Dodge, Chrysler and Jeep. Big freaking place. I see a couple people a week either do a lease turn in and lease another new car or buy a car or buy the car they have been leasing for the past two years. You can get a very good price on a car when you do a lease turn in, you will end up paying much less for that car than the dealership will sell it too someone else. I recently worked some numbers on a customer on a $35k Pathfinder. If they leased they would end up saving $3800 over the course of leasing the car opposed to financing a buy, and they could buy the car at the end of the lease financing the residual (this would be the same as financing the same vehicle used years from now.) So they still can save nearly $4k and own the car the same as the buyer. The warranty is the exact same as a new car purchase, regardless of what was said earlier in this thread.

You do have to be in the 700's (beacon) to get good lease rates though.

Kyle you should come buy a car from me :D

Leasing questions.

Reply #8 – February 28, 2008, 08:55:13 PM

Basically when you lease a car you're buying the depreciation. If you want to own a new car every few years it's a good option because you don't have to worry about trade in values - just take in the old and drive away in a new. It's also a very good option if you can deduct the car for income tax purposes - at least here in Canada, where if you use the car for business you can write off 100% of the lease payments, compared to 50% for a purchase.

If you're just looking for new for the sake of new: ANY new car purchase or lease is a disaster from an investment point of view. You're much, much better off buying an "off-lease" vehicle that's only a few years old and likely still has warranty. That way somebody else has already paid for the depreciation and you get a decent low-mileage vehicle that, to you, is new. Payments on a two or three year old car will likely be about the same as a lease on a new one. The worst part of the depreciation will have already been experienced. Best of all, thanks to the recent popularity of leasing, dealerships are so plugged up with off-lease vehicles that you can get some real bargains, often upwards of 50% off the new price.

Don't cheap out though - buy a manufacturer "certified" used vehicle from a same-brand new car dealership instead of one from a generic used car lot that bought their stock at auction because the dealerships didn't want the car. A "certified" used car has most likely been reconditioned (new brakes, tires, filters, fluids, etc) and will almost certainly have some original new car warranty left, plus will usually have some manufacturer-supported extended warranty. Conversely, a generic used car lot will likely vacuum the interior, wax the paint, and armour-all the tires just to make the car pretty, and stick you with an expensive aftermarket warranty (even if they claim the warranty is free, you're paying for it in the price of the car) with insufficient coverage and a battle every time you need something fixed. I know from experience with that demonic Volvo I had that nobody will touch a car with an aftermarket warranty. If you've got a problem you'll have a really fun time trying to get something covered. I usually ended up paying for the repairs (after getting an authorization number from the warranty place) and getting reimbursed later.

Leasing questions.

Reply #9 – February 28, 2008, 11:17:44 PM

Quote from: CougarSE;206841

I work at a very large dealership in Lancaster Ohio; Chevrolet, Buick, Lincoln, Mercury, Nissan, Honda, Dodge, Chrysler and Jeep. Big freaking place.

Ricart?

Leasing questions.

Reply #10 – February 29, 2008, 12:55:05 AM

Go buy a P71,Mark 8 LSC,Supercoupe,1st gen lightning,mark 7 lsc,turbocoupe,a old cougar,someones project mustang and you should have it paid off in 4-12 months and if it breaks go fix it.

When you go somewhere the idea is 2 things to have a car paided off and then to have a car how you like it which most of the time means custom. Don't get mad because most people you know with new cars there still owner by the bank or the dealership.

Leasing questions.

Reply #11 – February 29, 2008, 01:01:32 AM

Carpimp you are stupid.... PROOFREAD!!! If you had gone to school you would know all about it. Now quit shiznitting on this thread.

Nirvana God I work south of Ricart at Taylor Dealerships. Not as big as Ricart, we don't have the volume and we don't sell RV's. But huge none the less.

Leasing questions.

Reply #12 – February 29, 2008, 01:11:50 AM

Sorry you know you can still pass school these days in your sleep sorry man. Its not a bad thing to lease a car i just don't like payments on anything. For the fact it did take me 2 years to pay off a lot of the work done on my car so i had to buy my car twice. Basically i just like having freedom over my of my paychecks now a days.

Leasing questions.

Reply #13 – February 29, 2008, 08:23:39 AM

Reread Thunderchicken's reply, twice. Then reread it again. That's very good advice. He is correct in the deduction part. If you have a business, it is very lucrative to lease. If you don't maybe not so much. His very first line sums it up pretty well, you're buying the depreciation. You make out the best on vehicles that depreciate the most.

Leasing questions.

Reply #14 – March 04, 2008, 12:23:04 PM

Quote from: CougarSE;206841

Kyle you should come buy a car from me :D

If you lived a little closer, I probably would have. As it was, I found what I was looking for at only 2 places, so I played them against each other. Figured out who would give me the best deal, and went for it. Don't :flame: me too bad, but on Saturday I was able to go and pick up my new (leased) vehicle. A 2008 Jeep Wrangler Unlimited Sahara. As soon as the weather breaks a little, I will post pics.