Can someone go over leasing again! I can't find anything on a search. I know we've talked about it.

What's the money factor? What kind of fees do you pay up front and at the termination of the lease?

TIA

 

I'm currently leasing. I could have afforded to buy it but I decided I would rather save the money now (about $200/mnth difference) then later.

As for what you have to pay up front it's usually the security deposit (1 months payment), the first months payment, and the tax, title, and registration fees.

At the end of the lease the only thing you would have to pay would be if you had extensive damage (beyond normal wear & tear) and/or had gone over your miles/year ($0.11/mile....ouch), thats basically it.

 

Check out Edmunds...
http://www.edmunds.com/advice/leasin...3/article.html

 

Don't do it, the car won't feel like it's yours. I bought my CLS after turning in my 98 GSR Lease. Of course, you also build NO equity whatsoever....dumbest move I ever made. I owned my 93 Integra RS, and my 95 GSR...leasing the 98 was a big mistake, despite the savings in monthly payment.

 

LEASING IS JUST Another way for a dealer to fuck you out of your money.
if you cannot write off a lease, DON'T BOTHER

 

Depends on what you stance is. If you use you car for work like in real-estate you can save big by righting off your lese notes and stuff. I did that for a while and it helped big time! Or if you don't want to spend an arm and a leg a monthly on notes you can lese and then you have the option to re finance the rest after the lese if you want to but the car. But you don't have any thing to show for after the lese you just turn it in and have $0 to triad in in a new car. It has its good points and bad just like everything. You will always have a new car with a warranty but you will always be paying. Hope this helps

 

Now wait a damn second.

A lease is just a loan on only the estimated depreciated value of the vehicle within set constraints. Yes - you pay a "lease fee" every month (just like a simple interest loan, really) but all you pay for is the depreciation! And as long as your residual is decent, you should be great!

Now - if you get a lease for longer then you want the car for, or for less miles than you drive, then you're just dumb. I got a 3-year 15k/year lease and it will suit me just fine!

As a matter of fact, I might just buy my car (I know it's a bad deal monetarily, but I love this car) becasue I like it so much.

 

Well, leasing is good for people who don't want a car for more than 24-36 months.......leasing is actually great, you pay for what you use (mileage wise)- little money out of pocket (I can keep the rest in the bank for what I would have put down on a finance).

Leasing, I could care less what happens to the car....I have $1500 worth of damage on my car currently (the entire right side of the car has to be painted), no matter how good the paint job is- you "will" be able to tell the car has been painted.

If someone destroys the entire front of your car- causing lets say $9k-$10k in damage....that is going to effect your resale (unless your buyer is clueless).

The one thing I hate about leasing though, is that the interest is always built in- so its tough to get out of leases without losing money (where on a finance you aren't penalized for the interest getting out/selling early).

Actually, if the car isn't on a factory program (like a $299 Blazer with a high buy back)....lets say a Corvette or M3, the buy backs are more reasonable (residual)- so if you want to buy the car at the end do so,it will compare favorably to a Finance.

If you really understand leasing and its benefits (many people don't and are ignorant)....it really isn't a bad thing.

And not feeling like you own the car is nuts....I have always leased and have never thought "oh, I'm really only renting."

"Just a way for a dealer to fuck you out of your money".....if you finance, there is an interest rate (at the dealer or the bank/credit union)- so, you are getting fucked out of money in this respect also.

[ 08-07-2001: Message edited by: Beltfed ]

 

Agreed... Plus, say you've got a problematic car. At the end of the lease, you give it back, PERIOD. It's their problem. I had a Cherokee like this.

The residual or depreciation is set up front. The way this car has NOT been holding it's value, I'll bet I come pretty close to the same mone spent as those who bought and sell after 3 years.

I don't have to try to sell it in the end. No hassles with ads, phone messages, viewings, bartering etc.....

I started leasing 10 years ago because I swore I would never own another car out of warranty again. Of course all during that period I drove nothing but a domestic. So we will see if the CL changes my attitude. So far it does not look like it will.

My wife's lease is up next summer, and I am seriously considering a new attack. I think I might look for a "pre-owned" luxury. Let someone else take the depreciation hit.

 

Thanks guys, keep the comments 'em coming!!

I've ALWAYS financed and because I've had a large down payment in every car I've bought I've always payed a monthly payment that's equal to or less than a lease. And because I buy cars with at least average, if not great resale value, I've ended up spending less.... until now!! The reason I'm thinking of leasing is that I DO want a new car every couple years. So it makes sense for me to lease. The only problem is that I drive A LOT but mainly because I can. I put 18-20k/year on my cars but there's no reason for it. If maybe I can save a little by leasing then I'll do it. I just need to know HOW TO NEGOTIATE a lease.

Let's do it this way.... say you have a car with a $20,000 purchase price. What would some lease payments and residuals be for the following leases? Make up the down pymt whether it be anything from $0 to $5000.

24 mo - 12,000 mi/year
24 mo - 15,000 mi/year
36 mo - 12,000 mi/year
36 mo - 15,000 mi/year

I know the lease payments largely depend upon resale so it's hard to estimate but give me some guesses.

 

some of you have given some valid points and some just plain dont know what they're talking about....this is my fourth lease...the only time i got screwed was my first new car a '94 honda accord vtec ex I-4 top of the line...21K.put 4k down 380/mo 66mos.by three years i wanted out now some one said if you want out early of a purchase there's no penalty...that's not true! the penalty is you pay mostly interest each mo. in the begining so your not building any equity to speak of...after 3 years my pay off was 15k...my car was worth 15...i got nothing i squeezed 1000$ out of them in the deal g=for my new pathfinder i had really low miles 15k miles...leased the new path finder 36 mos 400$ nothing out of pocket now this car was 25K and notice my payments are 20$ more and i didnt put down the 4K i did the first time...so it sound like im more than 4 000$ ahead but it gets better end of that lease w / residuel set at 17K they called me up and said if i trade out or sell or buy my self 12.5K instead of 17 went to honda that day and got the current accord v-6 400$ /mo nothing down...leasing is just another way of buying and if yuo wanted out after three years with a typicle 60mo purchase you'll whised you leased

 

I've run the numbers and I can't make them make finincial sense. The only thing I see is since the the monthly payment is smaller you can get into a more expensive car for the same monthly payment. The cost of this is at the end of the lease you don't have any residual value in the car to put down on a new one. If you always plan on having a car payment then you might want to consider leasing. However if you like to pay off your car and then drive it payment free for a few years before buying a new one then leasing doesn't work.

 

I know soooo many people that have said the same thing. Leasing is for those that can't afford to buy or for those that can get a good deal through their company. If you can't afford to buy it, you shouldn't have it in the first place.

 

I leased my 99 3.0 cl for 3 yrs and when the new cl came out I was pissed. Well after about a year and a half I wen to the Acura place and the let me out with no fee! I owed what it was worth. So now I am leasing this one just so the notes would be less. I put 4K down and have 36 mo with 12k miles and my note is 490 thats with a fin added to the leased. I plan on buying it at the end. I think the remainder is around 16-17K cant remember. Dont know if that was a good deal or not but O well I could afford it and I am happy

 

well if you mean cant afford to buy with a three year plan than that could be very true but then you'd be talking double if not more 3yrs/on 25k shit i bet would be near 1000 /mo...and you can get money out of your car at the end if youre like me and put ultra low miles 8k per year and its possible to get your lease company to lower your residuel they dont want the car back if possible they'll make deals

 

Come on yall's, Why not just buy the got damn car. Cause you know when you get it, it'll be way to awsome of a ride to let go. just face it there badass cars your gonna end up buying it anyways. ?Right?

[ 08-07-2001: Message edited by: Jason_CL ]

[ 08-07-2001: Message edited by: Jason_CL ]

 

This is exactly what I'm talking about-total bullshit....do you know how many very wealthy people lease (my oldman' friend is an infertility specialist making approx $500k a year)- he just leased a loaded Suburban for 24 months, does that mean he couldn't afford to buy it?

The whole if you lease means you can't afford the car is nonsense, maybe for some- leasing an $80k S500 is around $1300/month (if this is the ghetto way to pay for a car, thats news to me- because you have to be doing quite well to be paying $1300/month for a car minus insurance).

[ 08-07-2001: Message edited by: Beltfed ]

 

this is very true. but a lot of people simply go from car to car, and will *never* be without a car payment. why buy the whole car (and assume all the risks) when you can accomplish the same thing with a lease? I've never put significant money down on a leased car, and I never will. because of this, I couldn't care less that I have no equity built up. I don't need it, I just need to be able to continuously make the payments.

people rent/lease apartments in perpetuity, and the typical 30 year mortgage is paid off in 7 or so years (by either refinancing the balance or selling the home and moving to another with, you guessed it, new payments) so it isn't like folks are that unaccustomed to having continual monthly payments.

 

I figure I might be able to shed some light on the “other side” of leasing.

Most leases and outright purchases share the same amount of depreciation. If the residual is, say, 65% then odds are you will experience a simmilar amount of amortization on either scenario. However.....

Where a lease differs is in the money factor….fancy terminology for APR. Usually, on average, a 60 month loan is indexed to the 5 year T-Note plus 3% (or 7.625% currently) but an average 69-42 month lease is indexed to the prime rate plus 3% if subsidized (currently 8.75%) or +4% not subsidized. What does this mean? The lease interest rate usually runs a large spread in borrowing charges/APR versus a simmilar duration loan. So, yes, you do get fucked as you pay more on what you are “borrowing”. Another negative is if you drive a vehicle that is prone to accellerated depreciation (a la CL ) you will not recoup this “loss” unless you drive the vehicle for a lot longer than 39 months when the amortization decellerates…..therefore a lease is inherently at a disadvantage to an outright purchase. However…..

Until recently leasing was so attractive, and frequently superior to financing, due to the Finance Arms of auto companies being especially generous with Residual Values. It was all too common for a car to be worth less than the residual at lease-end…..the Finance Arm would just charge-off the loss-to-loan value since the volume of sales/leases, and the resulting profit, on new sales more than made up it. Now, with the current economic environment, this subsidy by way of generous residual values has all but dissapeared and with it the attractive nature of a lease. That was the secret of leasing and the financially savvy were able to pinpoint just what leases gave them this advantage.

There are many other reasons why a lease may prove more attractive, but, the bottom line is that a lease doesn’t work for every person and/or every car. Besides, there is always room for an argument on both sides. I just wanted to give a less-known agenda since many responses were so well written.

[ 08-07-2001: Message edited by: SatinCL ]

 

fuck that, i always traded so i had one payment or another, with leasing, its always under warranty, i get a new car all the time, and i can drive a more expensive vehicle with the payment vs purchasing, i dunno to each his own, more and more people are leasing these days

 

i like the lease i have no money down and i get a new car in 24 months, its good for someone like me, but people have there own opinions about stuff likr that

 

I looked into leasing last winter but I was putting way too many miles on my car driving to work. I'll probably look into it again in a few years because I'm the type that gets bored with my cars after a few years. It would be a little easier for me to lease in that respect. Now if I can afford the car that I really want and can pay it off in just a couple of years, then I won't have to worry about leasing.

 

Don't own nothin'. Lease your shoes, if you can.
-Forrest Gump

Moral of the story: Caars mke lowsy investments if you drive them. Pay for what you use. especially if you change cars every 2-5 yrs.