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New car leasing...no brainer?

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  1. UcouldBbettor UcouldBbettor is offline

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    Oct 24th, 2010 (10/24/2010 5:05am)

    For those who work at dealerships or have leased, do it make sense? I have no experience leasing a car, but it seems almost too good to be true. Get the lower payment over a 3 year period than buying. At the end of the lease term, finance to buy the car for the remaining balance, resulting in a new lower payment.
  2. OldGrowth OldGrowth is offline

    Woodinville, WA
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    Oct 24th, 2010 (10/24/2010 6:59am) in reply to UcouldBbettor

    depends...that is all
  3. JasonBDizzle JasonBDizzle is offline account restricted by moderator -- must reply in this thread before posting anywhere else on the boards

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    Oct 24th, 2010 (10/24/2010 7:11am) in reply to OldGrowth

    PM Tsxxx
  4. nyy486 nyy486 is offline

    Uniondale, NY
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    Oct 24th, 2010 (10/24/2010 7:12am) in reply to JasonBDizzle

    ^^what he said

    and effects different people and situations differently, but having to pay full coverage insurance can cost alot of extra money in some cases. very situation dependent tho obv
     
  5. JPitt09 JPitt09 is offline Royals Fan, lol

    Marshall, MO
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    Oct 24th, 2010 (10/24/2010 7:23am) in reply to nyy486

    How could this possibly be a no-brainer? It's actually the opposite of a no-brainer, a brainer, if you will.


    It depends on so many things, whether you want to switch cars every few years, if you're okay with never NOT having car payments, insurance, etc.
  6. NodakDozer NodakDozer is offline

    Bismarck, ND
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    Oct 24th, 2010 (10/24/2010 7:41am) in reply to JPitt09

    Do not lease, if your intention is to buy it anyways just buy it.Leasing is no good, take it from personal experience.I was gunna do the whole lease it now and buy it at the end also..If it sounds to good to be true, it usually is.
  7. THEE Catfish THEE Catfish is offline

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    Oct 24th, 2010 (10/24/2010 1:28pm) in reply to NodakDozer

    Another thing that could suck is the mileage limits. It's usually 10-12k per year which is very easy to go over and if you go over be prepared to pay a nice lump sum for every mile you go over.
  8. FortuneMeyers FortuneMeyers is offline

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    Oct 24th, 2010 (10/24/2010 1:40pm) in reply to THEE Catfish

    I have been in the car business for over 10 years. Some of the advice that is being given to you is good some not so good. I have leased both my wife's car and mine for a very long time because we like to change cars every 2-3 years for personal reasons.

    Buying a lease at the end of the term is very rarely a good idea. Just depends on the residual buy out and the make / model of the car and the current market. The used car market is a lot like the stock market it goes up and down.

    If you have any specific questions feel free to ask.
  9. aad aad is offline

    Detroit, MI
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    Oct 24th, 2010 (10/24/2010 1:59pm) in reply to FortuneMeyers

    When I came to the US I leased my first car (Jeep Grand Cherokee Limited) at 0% interest (I had no trade in of course). It was good for me because that way I started building a good credit score from day 1. Because I had it serviced regularly and drive safely and carefully, after 4 years I knew I had a great well maintained car and the settlement price was less then I would have to pay a dealer for the same car with similar mileage, so I bought it. But if you are going to pay 9% interest I don't think it's a very good idea.
  10. Danezone Danezone is offline

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    Oct 25th, 2010 (10/25/2010 12:01am) in reply to aad

    Had a car break down recently and instead of getting a new transmission decided to lease a 2010 car. I think it is a good idea IF you are someone that is not going to be putting a ton of miles on it. Most leasing deals require money down and a higher fee for more miles. Also, be prepared for an increase in your car insurance as any leased car has to have a premium car insurance on it. Last but not least, get "Gap coverage" if you don't have this you could owe a lot of money if the car gets totaled.
     
  11. astaggs astaggs is offline

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    Oct 25th, 2010 (10/25/2010 12:14am) in reply to Danezone

    I once had a business teacher tell our class Leasing a car is about the dumbest thing you can do...
  12. PurpLeRaZe PurpLeRaZe is offline

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    Oct 25th, 2010 (10/25/2010 12:54am) in reply to astaggs

    I sell cars and leasing is retarded...that is all. So many reasons why it's better to just pay cash or finance a car to own it.
  13. time4badbeat time4badbeat is offline

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    Oct 25th, 2010 (10/25/2010 2:25am) in reply to PurpLeRaZe

     
    Originally Posted by PurpLeRaZe View Post

    I sell cars and leasing is retarded...that is all. So many reasons why it's better to just pay cash or finance a car to own it.

    O rly, it's better to just pay cash? here is $30k
     
  14. coolhandkev coolhandkev is offline

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    Oct 25th, 2010 (10/25/2010 3:22am) in reply to time4badbeat

    Anything other than "it depends" is the wrong answer. Because it really does just depend on an individuals situation and needs. I know financial planners who refuse to do anything other than lease cars moving forward and I know ones who pay cash for their car and also ones who buy with a loan. They all are very educated about financial matters, but their situations all dictate different decisions on how to get into their car.
  15. AnonymousX AnonymousX is offline

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    Oct 25th, 2010 (10/25/2010 3:32am) in reply to coolhandkev

    If you plan on getting a new car every 3-4 years and can afford to have car payments forever, then yes butttttt totally depends on the car-if the residual value is very high, you will be able to get a very good lease rate, if it's a car destined to be worthless in 5 years, would be cheaper to buy with high interest then to lease.

    It's mathematically correct to lease if you are going to finance a car for a highish % interest and then sell it in 3-4 years and repeat because it will cost you less long term and you will never get stuck selling a car for less then the projected value.

    If there is a chance you will be driving over the allotted mileage it is also not smart to lease-you will end up paying a ridiculous amount per mile making it not cost effective.

    Definitely, not a no brainer whatsoever.
  16. YOMAXX YOMAXX is offline

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    Oct 25th, 2010 (10/25/2010 4:11am) in reply to AnonymousX

    I leased a brand new 2009 Honda Accord last October for $189 a month with only $1500 down, my monthly car payment is less than my cable bill for 3 years so I'm cool with that... Plus Honda's hold there value a great deal so if I decide to buy it I know it's reliable and will not lose more value than other car company's. Just my $0.02
  17. UcouldBbettor UcouldBbettor is offline

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    Oct 25th, 2010 (10/25/2010 4:40am) in reply to YOMAXX

    The mileage aspect has no bearing if you buy the car at the end of the lease, correct? At least that is how a saleman eplained a lease option.
    Thread Starter
  18. AnonymousX AnonymousX is offline

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    Oct 25th, 2010 (10/25/2010 4:49am) in reply to UcouldBbettor

    you lease a car with X amount per year.

    Generally you choose between 10k, 12k, and 15k. How much you pay per month goes up the more miles you choose. Any amount of miles you go over whichever amount you're "alllowed" you are charged something like $.10 a mile. It adds up really quickly.

    I'm guessing you don't understand what leasing a car is.

    They figure out what the car should be worth after 3 years, 4 years, whatever you choose. They figure this out by how many miles the car will have, they are assuming the car will be in perfect condition and then whatever the experts project the car to be worth with those factors. They then charge you interest (usually around 13% afaik) and if you turn the car around in perfect conditions with the allotted miles on the car, you don't owe any extra money when you turn the car in.
    Edited By: AnonymousX Oct 25th, 2010 at 04:52 AM
  19. UcouldBbettor UcouldBbettor is offline

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    Oct 25th, 2010 (10/25/2010 4:55am) in reply to AnonymousX

    I get the mileage allowance part, but that's not how he portrayed it. He said that if the car is bought at the end of the lease term, no overage miles have to be paid. Is he full of shit?

    This has nothing to do with turning the car around and everything to do with buying at the end of the lease.
    Edited By: UcouldBbettor Oct 25th, 2010 at 05:00 AM
    Thread Starter
  20. AnonymousX AnonymousX is offline

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    Oct 25th, 2010 (10/25/2010 4:59am) in reply to UcouldBbettor

    He's hoping that you're a total n00b and that he won't be there when you turn your car in. Why else would someone ever choose 15k miles instead of 10k when the price of the car is probably at least $100 more a month?!

    Just LOL though, this guy should be fired if he really told you this. I'm guessing you misunderstood him though.
  21. YOMAXX YOMAXX is offline

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    Oct 25th, 2010 (10/25/2010 5:13am) in reply to AnonymousX

    OP just lease, don't let a lease intimidate you, people have been happy leasing cars for years.
  22. AnonymousX AnonymousX is offline

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    Oct 25th, 2010 (10/25/2010 5:18am) in reply to YOMAXX

    LOL I"m not against leasing whatsoever but he was severely misinformed.
  23. kauffman_j kauffman_j is offline

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    Oct 25th, 2010 (10/25/2010 5:21am) in reply to YOMAXX

    You should also think about what you'd like to do in the near future. My roommate and I were thinking of buying a house together so we both went to the same bank to see what we'd get preapproved for. We make the same amount from work and pretty much have the same amount of savings and pretty similar expenses. Both have similar credit histories and all that. The one big difference is that he leases and I own my car (through a loan). The monthly payments aren't too different either. I was preapproved for about 130 000 more than he was. I'm sure that the car won't account for ALL of that difference, but it's the only thing that could have a significant affect on things.
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