i just leased my TL about 3 weeks ago at 15000/yr....i liked the idea of driving a new car every 3 years so i decided to lease it plus the lower monthly payments...but i seem to be driving a lot more than i am supposed to and this restriction on mileage is really getting to me to the point that i called the dealer and asked them if i could finance it instead of leasing it...but the dealer guy told me that the paper work is already in the bank and i cant do anything about it now........i was hoping that maybe they have a like 30 day period where you could change your contract or something but guess not......has anyone have or know problem like this??? is there no way for me to buy the car at this point???? any help would be appreciated....thanx guys....oh and i dont wanna buy it at the end of the lease term(36months) because then i would end up paying a lot more on the car than financing it.....

 

Why not try buying out the lease now? That might be your best bet rather than paying a mileage penalty at the end.

 

Yeah, see if you can buy out the lease. You might be able to get away with not paying the finance charges on the lease (i.e. lumpsum payment of overall lease payments is usually a lot less). If you want to keep the lease, see if you can buy extra miles up front, which is normally 2/3 cheaper than paying it at the end of the lease term.

If they don't give you any options or won't work with you, look into getting a cheap short term lease transfer near the end of the lease term to keep the mileage off your TL.

 

Could be that the dealer has already assigned the lease over to a bank or finance co. If so, bank or finance co likely owns the car and holds the lease. Dealer is likely out of deal, so if you want to convert, you have to deal directly with bank or fi co. Typically, they do not have to let you out of the lease, and many leases have an early termination fee.

 

dude - how much more are u going to drive the car than its 15K per year limit? Because even if its an extra 5K miles over that - it will still be cheaper than if you financed it.

Driving a few extra thousand miles is only a couple of grand, if that. Something to think about tiger.

10,000 x .18/mile = 1800.00

 

The fact that you just got a new toy might have something to do with the initial high miles. As you get accoustomed to driving it your average miles might go down to your normal.

 

I've found that the "new toy" factor causes you to drive more initially than you will after the excitement of the car wears off. Give it a few months and see if you are still driving the same amount. I'd be willing to bet your driving will taper off as the newness wears off. Initally, when I got my car, I was driving it just to "drive it"...that wore off pretty quick...especially now that gas is $2.50/gal. Now...I just sit in the garage and look at my new toy!!!

 

FYI - Most leases are now .25/mile over the limit so you've already underestimated by $700. 10K = $2,500 IF (here's the tricky part) you actually "turn in" the vehicle at the end of the lease instead of simply executing the buy out option at the end. For the original poster... All leases have residual value. That's is what "seems" to make a lease payments appear less expensive than buying it in the first place (as you only pay interest on the amount ABOVE the residual level). In most cases the residual is around 56% for a four year lease. Dig around in your paperwork to find your actual residual value. Then take a look at your buy out option at the end of the lease. In most cases, it's the actual residual. This means that you will essentially be "RENTING" your car for the first four years (or whatever the term of your lease is) and then you can "buy it" from them for the residual amount. Luckily, the TL's are holding their value pretty well so this could actually work out better for you. Don't pay the over-usage fee, ratrher simply get a "used car" loan from your bank for the residual amount and then keep on driving the car. Your finding out the hard way that leases are NOT AN INTELLIGENT choice for 98% of the population. The ONLY way a leased vehicle makes ANY sense is when you (1) Own your own company and (2) Use the vehicle FOR COMPANY business more than 50%. All these idiots in leases simply because it "reduces their payments" as simply the modern-day version of PT Barnum's "Sucker". This post is most likely going to "ruffle the feathers" of some current leasees who will attempt to make all kinds of claims as to why a lease was better for them. But if you read their responses closely, you will observe that none of them are valid. If you can't afford to buy a certain priced car, then you CERTAINLY cannot afford to lease one either. A lease is simply a way to rent things. If renting were a sound financial decision, we would not own our own homes, .......would we?

 

yea...i guess i was dumb to lease....i just liked the idea of getting a new car every 3 years....regrets regrets regrets......im gonna try to contact my dealer and find out the bank and try very very hard to let me buy the car instead of leasing it....

 

oh one more question......does installing a-spec body kit require for me to drill any holes in the car? because since i leased it, i cant change anything to the car but i still want the body kit.......and at the end of my lease, i could buy out the car at 18500.....which would make my total cost of car at 41000 at the end.....

 

Isn't putting the A-spec kit on a leased car a little like remodeling the kitchen in a rented apartment? You're going to get nothing out of it (except the enjoyment of it while you live there or rent it) and the owner might not approve of what you did.

Even if there's no drilling or similar changed, the kit may contact other painted parts and make rub marks over time. It might be obvious it was there after it is removed. Not sure if that's the case with this kit.

 

Yes, it does.

 

if you simply added up your payments and the residual value to get your $41000 value after your lease agreement, you might be underestimating the cost.

you'll need to convert your payments and the residual value to time x dollars (whatever x may be: 1, 2, 3 years from now, etc.).

 

Well you aren't as bad off as you think. Because of the accolades the TL has received the demand is high and will more than likely continue to be. You can always sell the car privately if needed at any time. just be sure to get what your pay off is.

I think you are getting excited right now because of the newness factor. wait till it sits in for a month or so, and then see where your miles are at.

Also as for the aspec kit, it does add to the value of the car if you seell it privately. Even if you trade it in. it's OEM which is like an additional option to dealerships. it added to my value on my trade in as well as others I have talked to. I also blacked out my tail lights added 19" wheels and that also added. Why? because when you trade it in, or sell it, if you do that, you are adding to the value or package of the car. It makes the vehicle stand out more on the show room floor or on the lot, and will attract buyers for a quicker sell.
But again, this all depends on the car. Each model sells differently.
Now a days dealers are selling aftermaket equipment on cars. Evewn leasing them that way. if they are selling it, you sure as hell can add on. Just be smart about it.
Go OEM if you can for the most part. You will be safer that way.

 

i know i leased the car but i still want to put a body kit on it if i could...i know i cant use it after i return my car but i could enjoy it while driving it and that's all that matters... i learned my lesson the hard way and i could surely say that i will never lease a car again.....i guess i really want to buy the car because i want to make all these changes in my car like body kit, tint and stuff which i thought i wasnt gonna do when i first got the car...but things change when you buy a new car

 

you can still do that. as long as the kit is OEM your fine. Window tint is fine too. i think you are being overly parranoid about it. You can add wheels too. not a big deal. Think about it this way and if your sales person is hones thtey will tell you the same thing. If you lease the car with all the add ons ie. aspec kit, window tint etc. Do you you know how much thats going to cost you? it's going to raise your monthly but in reality you are paying interest on a kit that would cost you $1200. It will end up costing you a lot more. My dealer told me, pay for it outright you will save more in the end.
I added mine on after the fact on my lease and was not penalized for it.

You know your driving habits. They don't check each year to see if you went over the 15k marker. its a total of 45,000 miles for three years. If you have done that in other cars, with the same occupation you currently have now and lifestyle your fine. if you daily driving exceeds that from past experiences, then no, leasing is not good for you. You have 45,000 miles to play with over three years. Chances are you will get out of your lease before then anyways. most people do. the average percentage of people that lease, sell or trade in their car before their term is up.

Leasing is a good alternative for many of us that like to move in and out of cars quite frequently. The whole "owning" ideal is great for some but with the amount of technology that is in cars nowadays, owning something after 5 or 6 years that is a deppreciating asset, and will cost more to fix after the warranty is done, I just don't see the value in that. I know others will dissagree with me, but I owned and still own a X5 which is past the BMW warranty period, and now on the extended warranty and I can say, that it's hell to get it repaired. the cars are so technical you can't take it to pep boys. you are stuck in having to deal with the dealership. just to take it in costs 100.00 dollars, and thats the extended warranty charge. Also they have the right to not pay for problems that the car has. Case in point. my engine overheated. needed a new one. They refused to pay for it. The car never notified me of the overheating. it took lawyers and months of litigation to get BMW to replace the engine.
When you own a car, you own all the problems that comes with it. period.
If you want to own a car, get a classic or a car with no eletrical components that require computers to fix them. Then it's better to own. Or, if you have the finances to take care of the issues that come about.

 

ck37 - ditto!!!

Leasing is great because:

- You pay less than you would if you were financing.
- You get to own (rent) a brand new car every 3-5 years.
- Smart individuals don't lease for a term that goes outside of the car's warranty so little to no costs for repairs.
- Did I mention the fact that you get to drive around a BRAND NEW car every 3-5 years?

I guess it all comes down to personal preference and ck37 made the best points of all for pro-leasing.

 

Owning a home is different than owning a car. Cars depreciate, home on average do not. Own when something is a good investment. leasing a car is similar to financing the car. The bank still owns it until you pay off the loan (typical 5 to 6 year term) amount. same with the lease, except leases don't tend to be as long as loans, if your smart about them. difference is, you aren't restricted to miles.
The big mistake people get into when leasing is putting down this huge up front cap cost reduction that they will never see again unless they choose to buy out the car, which most people don't do. Certain leases are better than others. 5 grand down is a waste in my opinion. 1000.00 usually takes off between 20-30.00 of the monthly payment. Your better off paying the higher monthly and investing the 5 grand and making more money than use it to lower the monthly on a lease.

 

thats right! 0 down on leases baby!!

 

There is nothing better than paying CASH. I won't say which one is better for you, but I tell you this:

Dealers make twice as much when they lease a car than when the sell a car, that is the reason dealers always try to lease you a car.

With finance rates so low this days, I don't see leasing a car a good deal for anyone.

this is an example:

Finance:

Buy car for $30k at 6% for 5 years. Monthly payment of $580
3 years later you decided to sell your car for $19k and 60k miles (20k miles a year)
By the 3 year mark you have paid $20,880 (580x36) for your $30k car.

the car is sold so you get 19K back, but you still own the bank $13,920.

Now $19,000 - $13,920 = $5,080 goes to your wallet.

since you paid $20,880 for 3 years and you get $5,080 back when you sold the car, you actually paid $15,800 to drive your car for 3 years and put 60k miles on it (20k miles a year)

Now if your leased a 30k dollar car for a 3 year lease and paid $490 lease payments an $2k down where you can only put 15k miles a year. Let's see.

$490 x 36 montths = $17,640 + the $2k down you put in = $19,640.

Compare

Leased cost $19,640 you got to drive the car for 3 years and you put 45k miles on it.

Buy cost $15,800 you got to drive the car for 3 years and you put 60k miles on it.

Lease WILL NEVER BE better than buying, not only that the dealer makes twice as much money.

there are varibles, but I try to be as fair as possible. Never lease unless like someone said "The ONLY way a leased vehicle makes ANY sense is when you (1) Own your own company and (2) Use the vehicle FOR COMPANY business more than 50%. "

The only advantage I see on a lease is the ease of transsaction.

 

Here is why I think buying a car outright straight cash is bad.
My opinion only.

First off you are forking out tens of thousands on an item that deppreciates. Why would you in your right mind put out 30, 40 50K on something and know you will never see a return on that "investment".
Doesn't make sense.
Second, you will only be able for tax reasons to deduct a certain percentage annually. all based off what the car is used for. Usually less after the fisrt year than a lease or finance.
The whole business write off line, I don't necessarily agree with either, because financing and leasing, in terms or write offs come out almost the same.

Also something else to think about, When you pay for a car cash outright, the dealership, bank etc has no legal responsibilty to uphold to you besides the manufacturers warranty.
If the car is a lemon, if things turn bad, they can very easliy turn their nose to you much more than if you have a financial tie to them.
I am speaking from my experience, since I paid for my X5 cash. Worst mistake I ever made.
Yes dealerships will make more money off of a lease or finance. Ok. but that's when you need to negotiate and know rates and know what the hell you are doing. Don't just look a the monthly but the entire package. Type of car, term of lease/finance, demand for the car markets, credit score, financial institutions etc.

Leasing allows people to get into a car they couldn't neccessarily pay for outright. Fine. However I don't want to pay for something that as soon as I drive off the lot, thousands that just came out of my bank account I will never see again.
At least with a lease, its a lot less.

In the end of the day, you leased your car. you didn't mess up in any way. just know the rules and ask your dealer about the extras you want to add on etc.

 

One more thing,
Bitium, your numbers are based off ideal circumtances when selling the car after three years. What's not said, and I am sure you know this, but for others reading these posts, is that all of these buy, sell numbers can change based off the market value of the car when you want to sell it. If there is no or little demand for the car, you can loose more. If the miles are to high, you can lose more. There are many factors that can sneak up and bite you in the ass so to speak when selling a car when you "own" it or long term financed it.

At least with a lease, as long as you stay within the guidlines set, you know what the value will be after three or four years. then if it's not an attractive buy for the people that want to own the car for many years, you can walk away from it. Rather than be tied to a car that is worth less that what you estimated.

 

comeon now, buy it at the end of the lease, when u buy the at end of the lease the dealer does not bother about mileage scratches etc since its your car now, so buying at the end of lease is a option, now people say u spend more, wel if you finance for another 4 yrs u spend may be in the 7-8 yr period a extra 2-3k, but u have had low payments througout and u should'nt mind that, in case u pay cash at the end of the lease u only pay nothing extra.
now if u still turn in the car the charge is 15cents per nmile which if u drive 5k more would be $1k extra max so whats the problem, if have enough options, enjoy your car.
I use to sell cars so its official.

 

So I guess we should all least our televisions, appliances, furniture and clothes also, as they depreciate even MORE than cars, and who in their right mind would put cash into a depreciating asset?

A lease, done right, isn't THAT much more than a purchase for a car, but, in general, it is definitely more expensive just for the reason that you're always paying interest on the complete residual value. On these forums, we read story after story of people who want out of their leases for various reasons. If they had just obtained a regular car loan, they could just trade the car in and be done with it. Things like the "you can get a new car every 3 years!" argument don't hold water. You can do that without a lease, if you want. Plus you have the option of getting out of the car early if you need to, due to it being a near-lemon or whatever. Same with the warranty argument. If you want to sell at the end of the warranty, you can do so. It doesn't take a lease to do that. (Extended warranties also exist....). How many financial advice magazines advocate leasing cars for the general public?

 

legal issues... What legal issues... In some cases you have 48 hours to back out of a deal (like a mortgage)... But after 2 weeks, if you have a change of heart about some things...well it is too late... Like any other big purchase or decision you make.. Getting in is easier than getting out. Take your lumps and live with it... The dealer already made the deal and is on to the next one. If you want to back out they have a clause for that. If you were to consult with a lawyer they would tell you the very same thing.

 

Dude I have done this before, at the end of your lease you have the option to buy the car, if you do that, you have nothing at all to worry about. You dont have to wait till the end of the lease either, I bought my lease out after 2 years, if you really wanted to, you could call Honda Finance and buy it out now.

 

Well of course examples are base on ideals.

you can also think, what if I get 0% financing. I was just trying to make it as simple as possible. Yes there many varibles and all cases are different. One fact is the dealer will make a lot more money in a lease so of course they are going to be bias.

I mean think about it. Dealer makes money on the lease, then they get the car back in almost perfect condition and very low milage ready to be sold for a very good price. It is comon sense.

 

Not finance, they don't make any money the bank does.

Now if car companies didn't offer any warranty, then a lease would look a lot more attractive.

 

The dealerships don't make the money, finance does?
Do you think the banks are different from a lease or a buy? you don't think the banks give spiffs to use them on a lease? or even a buy?

Also, what about the waaranty again?

I think your post here might be a typo,or you wrote it without giving details, so if it is I apologize. However I will tell you first hand, because in my industry of work we offer financial and leasing terms that, banks make money either way, and in fact their are spiffs lets say for example from Honda financial. there are better residuals given right now on the RL at 48 months due to a push in the residual factor. Realsitic residual is around 45%. Honda is giving a 50% residual.

 

Again I think we have another post not written out clearly.

You do not pay on the total amount of the residul on a lease. Your payments are bare based on the portion of the car's value you are using between now and lets say three or four years. That's why cars with higher residuals (how much the car is worth AFTER the term) tend to lease better becasue the value amount is less.

A car loan is where you are paying on the FULL amount of the car with interest. That's why your payment is usually substantially higher.
And yes, the three years does hold validity for this reason alone. Lets say you leased a car for three years. You and the bank have agreed on how much that car is worth at the end of the term. Now it's your choice as a consumer to keep the car or walk away.
On a buy, if you try to sell it in three years, now you have factors like market value, what interest rate you have etc. If the market value for your car is poor, well then my friend you are going to be hurting. Why? because what you thought your car is worth is not the case.
Meaning you will lose more if you sell.

You also have the same options of getting out of a lease if it's a lemon. a lemon is a lemon. Just know that each state has different guidlines on what they consider lemons and how long you have to make a claim.

Also you don't tyically want to lease after the inital warranty period. Why? Because extended warranties are usually a couple of thousand extra, and they don't guarantee all problems will be covered. Second, extended warranties usually have a deductable to bring the car in. More money out of pocket. For me, I'd rather know that when my lease is up I can walk away and get into a new car rather than deal with trying to sell someone a fouur year old car, with hardly any warranty.

To finally address your inital sentence Why we shouldn't lease everything else. here is my statement towards that, since I think it's a valid point you made for others reading who have questions.

When financing a car, usually people don't walk into a dealership and finance the total value of the car. They usually come in with that lease 5-10,000 down, sometimes higher to lower the price of the car. Now maybe that is not a lot of money to some here. OK. but to others I know it hurts. So putting out that type of money initally, you need to understand that you aren't buying a house. Something that has significant value. You are buying something that once you drive off that lot, chances are the car just dropped 5 grand or more in value. value you will never get back. money wasted. I ould rather, and this is for me personally, invest that 5 or ten thoudand in some type of fund, stocks etc. and try to make money off of that or you can even just keep it in the bank account and use that money for payments towards the car, rather than giving it all away at once. Never know when the rainy day will hit.

Clothes appliances, etc. typically aren't the prices of car, and besides, how do most americans pay for things? Credit cards. hmm. swipe that card, no money out of pocket. pay installments with interest later.
I believe in paying for certain items stright out, especially if you have the funds. Clothes are an expendable item. I also advocate people knowing their monthly budgets and not jumping in over their head on leases, etc just becasue they can afford it now. You need to be smart as a buyer. That is why financial advice mags don't advocate leasing as much, because the general public does not research or learn good leases and bad leases. they don't understand many aspects of a lease. They just think of the lowest monthly payement. whch is not good. The over all picture is what is important.

 

"You do not pay on the total amount of the residul on a lease. "
Not really correct. Do you actually think the finance company is letting you "borrow" the residual value of the car for FREE in a lease? Not likely. At the beginning of the lease, you are paying interest on the COMPLETE value of the car (minus anything you put down). At the end of the lease, you are paying interest on the amount of the residual. The reason leases are cheaper per month than financing the whole car, is because in a lease you are only financing the depreciation. But you ARE paying interest (money factor) on the total amount owed at the time.

"On a buy, if you try to sell it in three years, now you have factors like market value, what interest rate you have etc. If the market value for your car is poor, well then my friend you are going to be hurting. Why? because what you thought your car is worth is not the case."
Well, sure. But in a lease, the residual value is an ESTIMATE of what the car will be worth at the end of the term. If it's worth more than that, and you don't buy the car, you paid too much in monthly payments for the lease. If it's worth less, you return the car and you got a good deal. Companies that lease aren't in business to lose money, in general, so they do try to protect themselves with a conservative residual value. (But there are also manufacturers that subsidizes leases, making them a better deal).

If you agree with the argument that if you purchase, you might find a poor resale value when you sell (and you should therefore lease to protect yourself), I guess you shouldn't buy a house either. Contrary to what people think these days, there is no certainty that real estate values are somehow protected and they can't lose money. After all, a house is even a bigger purchase than a car, so you REALLY need the financial protection of a lease, even more than with a car, right?

"Also you don't tyically want to lease after the inital warranty period. Why? Because extended warranties are usually a couple of thousand extra, and they don't guarantee all problems will be covered. Second, extended warranties usually have a deductable to bring the car in. More money out of pocket."
What's the difference in out of pocket cost whether you lease after warranty or already own the car? Nothing. A $500 repair costs you the same either way. I've researched aftermarket warranties for the TL, and the real-deal Honda warranties are in the $1000 range, not "a couple of thousand", and that includes ZERO deductable warranties. These warranties can be easily found for a discount, even on the Internet. Good ones are essentially bumper-to-bumper. Acura even covers the Navi system, which aftermarket ones don't. HOWEVER, these warranties aren't a bargain, and I'm not recommending them, as they exist for the seller to make money on. A buyer just has to decide if he needs/wants insurance on the possibility of major repair costs. (Frequently, it can make sense).

"I ould rather, and this is for me personally, invest that 5 or ten thoudand in some type of fund, stocks etc. and try to make money off of that or you can even just keep it in the bank account and use that money for payments towards the car, rather than giving it all away at once. Never know when the rainy day will hit."
If a person is that strapped for rainy day cash, it appears that he may be buying or leasing a car he can't afford, without an adequate reserve fund. If a few thousand dollar down payment can't be scraped up somehow, a lease isn't the answer to that problem. (Similar things are going on in the housing market, with 100% loans and "interest only" loans - all a short-sighted attempt to get people in who can't afford the house - then hope nothing goes wrong).

"You also have the same options of getting out of a lease if it's a lemon. a lemon is a lemon."
Note that my original post said "near lemon". I said that for a reason. If you have all sorts of rattles, your leather wrinkles, dash fades, and all that, you won't qualify for lemon law. With a lease, you are kind of stuck.

"Clothes appliances, etc. typically aren't the prices of car, and besides, how do most americans pay for things? Credit cards. hmm. swipe that card, no money out of pocket. pay installments with interest later.
I believe in paying for certain items stright out, especially if you have the funds. Clothes are an expendable item."
Personally, I believe in buying even CARS straight out (buy I understand financing early in ones career, etc.) Others believe in paying interest, and lots of it, to enjoy things they can't afford yet. That's fair, as long as they know what they are doing and how much they are truly paying. I'm also not sure that "most Americans" buy all their stuff with credit cards and pay interest, like the quote says. Lots of Americans have huge credit card debt, for sure, (avg. over $8K per family now) but I have no idea what percent of their purchases end up financed. If they were financing everything on credit cards, their balances would be growing by maybe $10K or $20K per year, and that isn't happening.


Like a poster way toward the beginning of this thread said, leasing is the wrong answer for 98% of people. (The number could be argued, of course). The arguments for leasing all sound like excuses. That doesn't mean it's a huge mistake or anything, as the difference in cost of lease vs. purchase is tyically "only" maybe $1000. It's fine if a person leases, if he knows what he's getting into. Most people don't, it seems like. I leased one car about 12 years ago, and it worked out well because I bought the car for the residual amount at the end of the lease for a bargain price, due to a low estimate on the residual. (However, note that if I hadn't of bought it, I would have effectively taken a bath over the lease term due to payments that were too high - SO, it really wasn't a "bargain" overall).

 

Well If you wnt to purchase the car at the end of the lease, then yes you want your residual lower. However most people don't want to buy out their lease at the end. So they want a higher residual to lower the payments. I would not use leasing as an alternative to buying a car, if that is your ultimate goal. To do that is not advantageous. Know at the beginning what you want out of the deal. then decide.

 

I love leasing my cars. But leasing is not for everyone. I did my homework and I suggest any future leasee do the same.

Leasing is very much like buying a set of Audio Speakers. One must listen and make a decision solely on how the speakers reproduce music to their ear. It doesn't matter what your buddy thinks, you are taking the speakers home, not him.

Many factors must be considered before leasing. Do your homework. There are plenty of good lease resources on the web. Study and learn about the plusses and minuses of leasing. Study hard.

Then and only then will you now if leasing is right for you.

 

"Well, sure. But in a lease, the residual value is an ESTIMATE of what the car will be worth at the end of the term. If it's worth more than that, and you don't buy the car, you paid too much in monthly payments for the lease. If it's worth less, you return the car and you got a good deal. Companies that lease aren't in business to lose money, in general, so they do try to protect themselves with a conservative residual value. (But there are also manufacturers that subsidizes leases, making them a better deal)."

This is why not all cars are a good for leases. However with the proper homework done, you will know what cars are more advantageous to lease rather than buy. GM cars as a whole have terrible resale value. minus the Escalade, and Corvette. That will hopefully change for the better but intil then I don't see the advantage of leasing a car with them unless the manufacturer is subsidizing the lease. Right now there are such deals to be had. However you don't want to really purchase the car after the fact, because the actual market value of the car will be less than what the bank states.

"I guess you shouldn't buy a house either. Contrary to what people think these days, there is no certainty that real estate values are somehow protected and they can't lose money. After all, a house is even a bigger purchase than a car, so you REALLY need the financial protection of a lease, even more than with a car, right?"

i will say this, Houses are not for sure and neither is anything else in this world, but homes as a whole tend to on average appreciate more than a car . So, while their might be trends in the real estate arena, over all, if you keep a home for lets say five years for example. You will see a return on investment much more than a car.
The market has proven that.

"Note that my original post said "near lemon". I said that for a reason. If you have all sorts of rattles, your leather wrinkles, dash fades, and all that, you won't qualify for lemon law. With a lease, you are kind of stuck."

It's the same regardless lease or no lease. Lemon law only comes into play, if the problem can in fact become a liability to you as a driver and your safety is in jeopardy. Wrinkles and cosmetic issues are no different between lease and a buy. If it is different I would be very interested in seeing some documentation that states differently.


"Personally, I believe in buying even CARS straight out (buy I understand financing early in ones career, etc.) Others believe in paying interest, and lots of it, to enjoy things they can't afford yet. That's fair, as long as they know what they are doing and how much they are truly paying. I'm also not sure that "most Americans" buy all their stuff with credit cards and pay interest, like the quote says. Lots of Americans have huge credit card debt, for sure, (avg. over $8K per family now) but I have no idea what percent of their purchases end up financed. If they were financing everything on credit cards, their balances would be growing by maybe $10K or $20K per year, and that isn't happening."

Sure, if you are financially secure enough to fork out 30-40-50 plus thousand without making an impact then hell why not right? But, realistically, most people don't and can't do that. So having said that, should we all be driving Daewoos until we can buy the car we want ouright in cash? I find that statement to be very idealistic, but saldy is not an actual real world scenario.
My opinion is that buying a car outright in cash is the worst investment one can make unless you have the financal means to play in that field with the big boys. Then again, I don't think one would be here on the TL boards looking at a 34,000 car. Just from my experience.

 

Most...not all but most people who are happy with leasing cars over and over again do it because A) They are "well off" and dont mind having that endless monthly payment until they pass away. B) They cant come up with enough $ down to lower that monthly payment so they look at the $0 down lease option and say...dam that sounds good and the monthly payment fits my budget! Life is good! ( similar to interest only home loans where the initial monthly mortgate payment is awesome but then a few years down the line REALITY HITS) or C) They just want to experience what leasing is all about because people can read all they want about leases but one really doesnt know about the process until you are actually in a lease. I fell into catagory "C" and had no regrets about leasing an Accord for 4 years. Now I financed my new TL because ( unlike the Accord I leased ) this is a car I would like to keep for at least 10 years. So after I get the pink slip in 5 years I know this car will still be reliable enough ( with a $0/month car payment ) to handle an additional 5 years.

 

Nice post.

I will say this, once you get hooked on the technology that the TL offers, it will be hard for you to look at car in 5 years or even 10 years and say....hmmm this still works for me.
Trust me, the technology is an addiction. if one does not have it, you don't know what you are missing. Once you get "suckered" in it's all down hill.

Enjoy.

 

couple of questions......
1) if i decide to buy out a lease, would that mean that i would lose a lot of money?
2) i read some people put a body kit on a leased car....is this really okay or should i ask my dealer first?
3)how do you paste the other's remarks to your post? do you just do copy/paste?
THANX FOR DA HELP GUYS!!!

 

No not necessarily, depends on the lease and its specific terms, you have to get all the facts/costs and run the numbers. Whether a lease is a good financial decision boils down to the residual value and interest rate. There was a time when GM had the Suburban's rate at 71%, this made the lease rate so low that buying the vehicle was financially foolish. Most car companies have become more conservative on the residual rates so the leases have become less attractive.

Another thing to consider is if you keep your lease you can negotiate with the bank at the end of the term for a lower buyout. If the true market value for your TL is less than your buyout, most finance companies will negotiate with you on a cheaper price. They realize if they get the car back they will have to sell it to a dealer or go to an auction. They would rather sell to you, they lose/make* less money and you buy for better than the current market- win win. If the situation is reversed and the car is worth more than the residual, then buy the car and sell it for a profit.
*buyout rates do not represent what the bank has "invested" in the vehicle so knowing their bottom buyout number is difficult to estimate.

Your dealer is out of the picture unless they are the finance company, they will just tell you to review the terms of the lease.

Yes, just copy paste.

Peter

 

Instead of copy and paste, click on the "quote" button at the bottom right corner of the post you want to copy. This will take you to the reply window, and will show up in your post as that yellow area you see on other posts done like this.

 

With the one lease I did, buying out was not a problem at all. There were no penalties. It was just a straight remaining balance calculation as if the "money factor" were interest. That was with Lexus Financial Services. I've heard that some leasing companies aren't so nice, however, and they may charge big fees (essentially lost profit to the company, in their eyes) for you to get out. I suspect if you lease through a manufacturer, you will generally be better off in this regard than with a private company. Reading your contract would be a good starting point, along with calling whoever your lease is through.