It looks like I'm about to get a new TL. I've never leased before, only bought. I'm trading in a paid for car I'm getting 15k for.

So, I have basically 15k in equity, and I can't decide whether to lease the whole thing for the roughly $467/mo for 42 months, or

put 15k down on my lease, paying $60/mo for 42 months, or

putting the 15k down on a finance deal, paying $372/mo for 5 years, but since we're doing numbers out to 42 months, I will have spent 15k (trade) + 15.5k in financing + 6,500 still owed, - 20k in value in the TL. That comes out to about 17k in costs.

Leasing outright will cost around 19,600 for 42 months, but I get to keep my 15k (assuming the dealer will even go for giving me cash to walk away with) So I figure that 15k is worth at least $2,500 to me over the next 42 months, so the 19.5 drops to about 17k.

Putting the 15k on a lease will cost that 15k + (60x42) = 17,500 roughly.

As you can see all options end up costing between 17 and 17.5 over 42 months. So, I'm in a quandry. I know that leasing has benefits and drawbacks, 15k miles should be enough, but you never know. I doubt I'll do any customizing, and I always have the option to buy the car at the end.

It is also nice knowing that at the end of a lease, I don't have a "used" car I have to negotiate with the dealer to sell, especially considering these new models we might not know exact residual values. Leasing tends to protect us from that.

Any thoughts based on personal experience from you guys out there?

Thanks.

Ryan

 

Just read the fine print about returning the car at the end of the lease and what you are responsible for. A friend had to pay to get the car repainted as there were a few dings that didn't fit into the "normal wear and tear" category. I believe you are responsible for any kind of nicks and dents.

 

Never put that kind of money into a lease you are just losing it at the end of the lease. Conventional wisdom says never put money down on a lease since you will never build equity in it. I would say take the 15k and invest it and lease or buy with 15k down but don't put the down money into the lease.

 

I just got a lease and the terms are as follows: 0 down meaning no money out of your pocket $548.00 monthly 15k miles a year for 39 months

 

The abovr post tell us nothing without the options leased with the car. Navi or not. 18" rims or not. Dealer added options or not

 

I was quoted 467 a month for just a base tl with 1500 down 42 month lease and 15k a year. I can get it for 410 a month with 2699 down.

If I were you I would pocket the 15k . The less you put down the better off you are .

 

The car has the under body kit the lip kit and navi

 

The main lease question to ask yourself is:

How long do you want to keep the car?

I don't want any car longer than its warranty, so leasing is perfect for me. If you are like my parents and keep your cars a while, then leasing is not for you. Do not go into a lease expecting to buy the car at the end. You have to pay sales tax again. If you plan on keeping the car, then buy it outright, do not lease.

 

Putting that much money down on a lease is actually detrimental to you. Lets say you put all of that money down on a lease and drive off the lot. Sometime later, you total the car. Guess who gets all the insurance money? Thats right, the person who owns the car which is not you. So you just lost $15K. Any dealer that says that is a sound decision is not working in your best interests at all and only cares about the sale.

Leasing only makes sense for some the following reasons:

1. You own a business and its deductible.
2. You dont drive much.
3. You want to drive a car more expensive than you can afford.
4. You don't keep your car for more than three-four years.
5. You want a low initial down payment due to cash constraints.

Now there are a variety of other reasons but those are the biggies. If you put down that money, you are not getting any of it back like you did for the car you traded in. If you must lease, put down as much as you can afford to lower the payment to reasonable amounts and put the rest toward a more profitable venture.

Also if you lease for more than three years such as four or five, you really could have bought, and owned outright, a less expensive car that you can keep trading up on. Sure it takes longer to get into that more expensive model, but it will make better financial sense.

 

my dealer quote me 440/month for 42m 2k down, 15k miles. Add $40 for Navi

 

pstaples: while AHFS or some other financial organization still owns the car, the lessee is only obligated to them for whatever the payoff is for the lease at the time of the accident - so if the insurance company issues a check for wholesale value, and rybocf put lots of $$ down, they will refund the difference (after a lengthy wait, no doubt)

I suggest you cash out that equity (or buy instead) - put as little money down as possible on a lease. Make sure you get gap insurance (normally included with AHFS leases) to cover the difference between the payoff and the wholesale amount should you wreck the car.

 

I agree, but it would be rare for the insurance company to pay you more than what you would owe on a lease which is why most people have gap coverage.

This is less of an issue after a year or two, but before that the leasee has not paid enough off to cover his butt.

It makes more sense to buy with that much money in equity. Payments on the resulting $18k should be around $300 or so depending upon length of contract and interest rate.