Tell me about leasing a car?

[Anonymous]

What are the benefits and drawbacks of leasing?

[Anonymous]

The only benefit is if it's a company car and you can expense it.

or

If my car depreciates $2,000 a year which is the same price to lease it.

[Anonymous]

You have to pay personal property taxes on said car. I had no idea until the huge bill came. Also if you want to hand the car back it will costs you thousands in miles charges unless you never drive the car.

I won't lease again.

[Anonymous]

Anonymous wrote:You have to pay personal property taxes on said car. I had no idea until the huge bill came. Also if you want to hand the car back it will costs you thousands in miles charges unless you never drive the car.

I won't lease again.

So much misinformation here.

1) you have to pay taxes on a prorated amount which is the lease amount and NOT the entire value of the brand new car. And of course you should, just like when you buy a car.

2) If you exceed the mileage (usually it's 12,000 per year) you will have to pay per mile for the overage. In my experience, dealerships will work with you if you want to lease another car from them and won't charge you for the overage. Not a guarantee but they'll work with you if they want your business.

I've owned and leased several cars. As a single woman who doesn't know anything about car maintenance and frankly doesn't want to learn, it's worked great for me. I never have to worry about maintenance. Oil changes are usually included and so it basic maintenance like tire rotation. Yes, I know I pay a premium but I would have to pay for those things out of pocket anyway even if I financed the car.

A leased car can appreciate in value. At least my last CRV did. I got $10,000 at the end of the lease because they were is such high demand at the time.

[Anonymous]

Leases are a terrible financial deal for you. Dealers love them - at the end, they have your car and your money!

The pandemic did weird things to used car prices, so PP got lucky. But normally used cars don’t appreciate.

Do NOT lease. It’s not hard to take the car to a garage.

[Anonymous]

Anonymous wrote:Leases are a terrible financial deal for you. Dealers love them - at the end, they have your car and your money!

The pandemic did weird things to used car prices, so PP got lucky. But normally used cars don’t appreciate.

Do NOT lease. It’s not hard to take the car to a garage.

Unless you're buying the car with cash and not financing it, it's really not any worse than financing it for a long time.

[Anonymous]

I’m not a lease fan but if you go that route do know you can negotiate the sale price of the car just like a sale. Also try and put as little cash down as possible and read up on money factors.

[Anonymous]

Anonymous wrote:You have to pay personal property taxes on said car. I had no idea until the huge bill came. Also if you want to hand the car back it will costs you thousands in miles charges unless you never drive the car.

I won't lease again.

+1 Same the yearly personal property tax in Virginia pretty much ruined the experience altogether.

[Anonymous]

Anonymous wrote:

Anonymous wrote:You have to pay personal property taxes on said car. I had no idea until the huge bill came. Also if you want to hand the car back it will costs you thousands in miles charges unless you never drive the car.

I won't lease again.

So much misinformation here.

1) you have to pay taxes on a prorated amount which is the lease amount and NOT the entire value of the brand new car. And of course you should, just like when you buy a car.

2) If you exceed the mileage (usually it's 12,000 per year) you will have to pay per mile for the overage. In my experience, dealerships will work with you if you want to lease another car from them and won't charge you for the overage. Not a guarantee but they'll work with you if they want your business.

I've owned and leased several cars. As a single woman who doesn't know anything about car maintenance and frankly doesn't want to learn, it's worked great for me. I never have to worry about maintenance. Oil changes are usually included and so it basic maintenance like tire rotation. Yes, I know I pay a premium but I would have to pay for those things out of pocket anyway even if I financed the car.

A leased car can appreciate in value. At least my last CRV did. I got $10,000 at the end of the lease because they were is such high demand at the time.

PP here. There was zero "misinformation" in my post, about my personal experience.

You sound like a nut.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Leases are a terrible financial deal for you. Dealers love them - at the end, they have your car and your money!

The pandemic did weird things to used car prices, so PP got lucky. But normally used cars don’t appreciate.

Do NOT lease. It’s not hard to take the car to a garage.

Unless you're buying the car with cash and not financing it, it's really not any worse than financing it for a long time.

It's a lot worse. At the end of the lease, you don't have anything. At the end of the loan, you have a car. Duh.

[Anonymous]

Anonymous wrote:You have to pay personal property taxes on said car. I had no idea until the huge bill came. Also if you want to hand the car back it will costs you thousands in miles charges unless you never drive the car.

I won't lease again.

Really? Did you think leasing would exempt you from the personal property tax? Whatever gave you that stupid idea?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Leases are a terrible financial deal for you. Dealers love them - at the end, they have your car and your money!

The pandemic did weird things to used car prices, so PP got lucky. But normally used cars don’t appreciate.

Do NOT lease. It’s not hard to take the car to a garage.

Unless you're buying the car with cash and not financing it, it's really not any worse than financing it for a long time.

It's a lot worse. At the end of the lease, you don't have anything. At the end of the loan, you have a car. Duh.

+1 They have the car and your money! You threw money at a deprecating asset that wasn't even yours. Leasing a car is dumb.

[Anonymous]

So do you pay tax on the value of the car or the lease amount?

[Anonymous]

I've never heard of paying taxes on a car, but my car has never been of monetary value...

[Anonymous]

Anonymous wrote:I've never heard of paying taxes on a car, but my car has never been of monetary value...

Sales tax and yearly personal property taxes.

What state are you in?