Leasing

Folks,

Can anyone tell me the pros and cons of leasing a car? Who should and should not and why?

Glowpun said:

Folks,

Can anyone tell me the pros and cons of leasing a car? Who should and should not and why?

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I would never lease. You have to put down a down payment on something that you don't own. You're just handing money over to the dealership. You have to watch your miles and will be oenilized heavily if you go over. And finally, you really need to be careful about any wear and tear and/or damage you do to the car, they'll gauge you for that too. You're also usually financially responsibility for the routine maintanence on the car, oil changes, new brakes, new tires, etc.

That being said, if you don't want a long term commitment, like getting a new car every few years, don't travel much and can afford the few thousand down payment every few years, then leasing may be for you.

No easy answer. This is not a complete guide. You have to do a comparison......Presuming 3 year time frame. 36,000 to 50,000 miles.

Compare the plans to come up with the total cost. Most people gauge the deal based on their monthly payments. Don't be fooled by the sales pitch.

Lease: Down payment, all fees, acquisition and disposition, and taxes, replacement of brakes and tires, damages to car? for a 3 year cost to use the car.

Buy: Down Payment, financing taxes, the cost of mnt, tires & brakes if needed less the trade in value of the car.

Either way, read the contract carefully, watch out for the add ons.


I like buying a car with a good trade in value (Subaru and others). Subaru actually has a guaranteed trade in value, but you can do much better at trade in time.

Glowpun said:

Folks,

Can anyone tell me the pros and cons of leasing a car? Who should and should not and why?

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Its easier to tell you when not to lease a car.

If you do alot of driving, If your not the type to keep a car long term, more than 5 yrs and lastly if you know how to negotiate for a lease. Never lease a vehicle longer than 3 years no matter how appealing it looks. If you reallly want to know why that is I can explain it.

Leases used to be the most inexpensive way to buy a vehicle and exhchange it for a new every 2 or 3 yrs. Some vehicles lease very well and some very badly. Usually vehicles with high trade in values lease the best. Like Hondas

Just dont shop a payment, thats a sure way to get yourself screwed. Shop for a lease like you would any other vehicle, ask the price and what they want etc, dont pay for side stickers theres a whole host of things to look for same as a purchase.

For noobs and individuals that have no knowledge, I would recommend getting lease information on the vehicle of your choice from a credit union and compare it to what was offered at the dealer, thats for those that have no basic understanding. You may want to pay for a consumer reports print out, it may not be the best deal but you can learn and understand from it.

Manufacturers love to lease and many offer great lease deals some of which never get to the consumer because the dealer never presents them in hopes of making more gross or profit from the lease. Manu love leases because they are short term 2-3 yrs and they get a shot at selling you another one.

The only advantages to leasing are lower monthly payments, lower down payment and if you are someone that trades theirs in every 3 years then it might be the route to take.
Now if you drive lots of miles, want to keep your car for more than 3 years, want to own the car one day or have equity in the car then leasing is a bad idea.
I prefer to own my vehicles, I buy what I really want then pay it off and I am able to drive many, many years without car payments.

Casper said:

The only advantages to leasing are lower monthly payments, lower down payment and if you are someone that trades theirs in every 3 years then it might be the route to take.
Now if you drive lots of miles, want to keep your car for more than 3 years, want to own the car one day or have equity in the car then leasing is a bad idea.
I prefer to own my vehicles, I buy what I really want then pay it off and I am able to drive many, many years without car payments.

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But you have maintenance and repairs. Some do not want to maintain or make repairs or worry about breakdowns.
Some buy out their lease in one payment, like a two year lease at 350 monthly pay the 8,000 and turn it in.

Depends on your means, your lifestyle etc. Ive leased in the past now Im retired and drive less and keep vehicles longer so I purchase.

lpast said:

But you have maintenance and repairs. Some do not want to maintain or make repairs or worry about breakdowns.
Some buy out their lease in one payment, like a two year lease at 350 monthly pay the 8,000 and turn it in.

Depends on your means, your lifestyle etc. Ive leased in the past now Im retired and drive less and keep vehicles longer so I purchase.

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You have maintenance and repairs with a Lease car also and spending a couple of bucks every so often is not the same as a monthly payment. That is why I brought up how often people trade theirs in.

Glowpun said:

Folks,

Can anyone tell me the pros and cons of leasing a car? Who should and should not and why?

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9 times out of 10 I would suggest not leasing a car. The benefits are usually outweighed by the consequences.

The benefits are usually a much lower down-payment (or entry into the contract.) At equal price points to buying a car outright means driving a better and more equipped car at lease rates. And, because it is a lease it is usually under maintenance plans and/or warranty.

The consequences of a lease are numerous. There is no real ownership of the vehicle in a traditional sense, the lease payments are for using the car under restrictions and eventually you turn it in or agree to buy it at some other rate. By contract you are usually limited to a mile cap per year (or, additional costs at settlement... i.e turning in the car at the end of the lease.) Usually the leasing organization has right to inspect the car at turn in and can charge you additional "wear-and-tear" charges entirely at their determination. Now this can be anything from scratches and dings to interior damage to really anything mechanical or electrical. Also, anything done to the car in aftermarket customization is off-limits. You do anything permanent, you get the costs to undo it. Speaking of, exiting the lease before term is usually flooded with fees and consequences unless they make the offer for whatever reason.

So who should lease? Someone single... perhaps married but with no kids, professional with reasonable commute distances, is able to garage park the car both at home and work, has no intention to do anything to the car using aftermarket parts or additions, intends to stick to the scheduled maintenance, does not extended travel using this car... ever, and without the intention to overuse the car year on year in basic car use needs.

Who should not lease? *Everyone else without exception.*

Glowpun said:

Folks,

Can anyone tell me the pros and cons of leasing a car? Who should and should not and why?

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I’m not a big fan of leasing , Cars are not an investment, well, average cars are not but a least they still have value If you take care of them. As mentioned the type of car is important to get some monies out of it before getting another vehicle.

I have a system I have used for years but it takes a bit of work at first and some discipline . At first I did need to secure a loan to start the process off, If I recall it was for $6,000 and I then put in four thousand of savings to purchase a $10,000 vehicle outright. Along with the payment on the $6000 loan I also made a faux car payment ( to a savings account) of $200 per month for 36 months.

So at the end of the 36 months I had $7200 plus the vehicle which I sold for $7500 ( private sale, never trade in) After the sacrifice over the three years my budget was $14,700 and any extra cash I could throw in for the next

I still make the faux payment but over the years the quality of the vehicle has increased and I now drive $25,000 to $30,000 vehicle without a payment other than the faux account. I’m getting on in years now and tend to put on less milage and elect to keep the vehicle longer but the system works for me. There is a certain satisfaction with having that car title in hand , not being a debtor and host for the leach financial system is priceless.

Notes: As I and others pointed out the resale value of the vehicle is all important. Also important with my system is upkeep, maintaining your vehicle and keeping records to pass on to a buyer is gold in your pocket.

Anything that makes it difficult to determine cost or do a cost comparison I avoid, the confusion usually isn't in your favor.

Winchester said:

Anything that makes it difficult to determine cost or do a cost comparison I avoid, the confusion usually isn't in your favor.

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I have to ask, what the hell does that have to do with this post?

woodsman said:

I have to ask, what the hell does that have to do with this post?

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Sure, stay the way from car leases.

woodsman said:

I’m not a big fan of leasing ,

Notes: As I and others pointed out the resale value of the vehicle is all important. Also important with my system is upkeep, maintaining your vehicle and keeping records to pass on to a buyer is gold in your pocket.

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And dont get the thing into a major accident, that tends to hit resale value.

Leasing is for people who want to drive something nicer than they can actually afford to buy.

KevinKohler said:

Leasing is for people who want to drive something nicer than they can actually afford to buy.

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Or for those few who like to change cars every 3 years, it used to be a thing. Maybe also for people who are near a big change, say a move to a much different place or retirement. Sometimes too it makes sense in bankruptcy.