Am I a sucker for leasing all of our family cars?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Never leased, but wondering what happens if you get in an accident in a leased car?

Your insurance company fixes it the way they do with any other insured car...if it's totaled they cut a check to the leasing bank.

And what happens if the insurance company gives the bank less money than the bank thinks it should get? What about the deductible?

The car's value is spelled out in contract, you insure it for that much. Car gets totaled, insurer pays out. There's no room for "I think it's worth this much".

As an aside, If you wrote off a brand new car you must have been in a pretty bad accident. No one in this position would regret not having an old war without safety features.

Unless auto insurance for leases is drastically different, I don’t think you understand how they work. You have a deductible and the insurance company pays what it believes the value is, not what the bank says. The bank is incentivized to say its value is high so if you buy it out, you pay even more.

I don't think you and I are on the same page. Why is a bank involved in this? Lease is between you and the dealership. No banks involved. You insure your car for a certian amount. You decide that amount, not the insurance company.

Auto insurance isn’t like home owners insurance. When the “total” a car, make it a total loss, you get the blue book value, not some amount you think you insured it for.

And yes, leases are with banks. The bank owns the car.

At no time have I not been asked what amount I would like to insure it for. Leases are with car dealerships. They own the car.

Unless someone is party to a contract, they can't acquire rights or obligations from it. There might be some convoluted agreement between the dealer and a finance company, but that's of no consequence to the customer.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Never leased, but wondering what happens if you get in an accident in a leased car?

Your insurance company fixes it the way they do with any other insured car...if it's totaled they cut a check to the leasing bank.

And what happens if the insurance company gives the bank less money than the bank thinks it should get? What about the deductible?

The car's value is spelled out in contract, you insure it for that much. Car gets totaled, insurer pays out. There's no room for "I think it's worth this much".

As an aside, If you wrote off a brand new car you must have been in a pretty bad accident. No one in this position would regret not having an old war without safety features.

Unless auto insurance for leases is drastically different, I don’t think you understand how they work. You have a deductible and the insurance company pays what it believes the value is, not what the bank says. The bank is incentivized to say its value is high so if you buy it out, you pay even more.

I don't think you and I are on the same page. Why is a bank involved in this? Lease is between you and the dealership. No banks involved. You insure your car for a certian amount. You decide that amount, not the insurance company.

Auto insurance isn’t like home owners insurance. When the “total” a car, make it a total loss, you get the blue book value, not some amount you think you insured it for.

And yes, leases are with banks. The bank owns the car.

At no time have I not been asked what amount I would like to insure it for. Leases are with car dealerships. They own the car.

Unless someone is party to a contract, they can't acquire rights or obligations from it. There might be some convoluted agreement between the dealer and a finance company, but that's of no consequence to the customer.

OMG auto insurance will NEVER pay out more than your car’s value. You’ve obviously never had a car totaled. Have you ever heard of gap insurance? That wouldn’t even be a thing if insurance worked like you think it does.

https://www.kbb.com/car-advice/articles/how-much-and-what-kind-of-car-insurance-you-need/
Bottom Line: If you have health insurance for you and your family, personal injury coverage is usually unnecessary, unless your state tells you otherwise.

The dealership does NOT own the car, the finance company does. It’s probably a bank or the auto manufacturer’s own finance company. Either way, they own the car, not the dealership (and certainly not you). If you are representative of typical leasees it’s no wonder so many here believe it’s a good deal.

http://www.realcartips.com/leasing/0050-auto-lease-terms.shtml
When you lease a car, the dealer sells the vehicle to the leasing company at the price you negotiate (read our negotiating guide). The leasing company then turns around and leases the car to you based on that purchase price.


Leasing costs a lot more than buying. All you need to know to prove this is what a purchased car costs. If you buy a $30,000 car and keep it for 12 years and if at the end of twelve years it’s worth nothing (it won’t be) then you lost 30k in depreciation. Now if you lease that same car, your lease payment is $500 for 144 months or $72,000 in depreciation over 12 years. Even with maintanence added in, owning is nothing close to that and newer cars need far less maintanence than cars used to. They also make maintanence idiot proof by putting a reminder right on the dash.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Never leased, but wondering what happens if you get in an accident in a leased car?

Your insurance company fixes it the way they do with any other insured car...if it's totaled they cut a check to the leasing bank.

And what happens if the insurance company gives the bank less money than the bank thinks it should get? What about the deductible?

The car's value is spelled out in contract, you insure it for that much. Car gets totaled, insurer pays out. There's no room for "I think it's worth this much".

As an aside, If you wrote off a brand new car you must have been in a pretty bad accident. No one in this position would regret not having an old war without safety features.

Unless auto insurance for leases is drastically different, I don’t think you understand how they work. You have a deductible and the insurance company pays what it believes the value is, not what the bank says. The bank is incentivized to say its value is high so if you buy it out, you pay even more.

I don't think you and I are on the same page. Why is a bank involved in this? Lease is between you and the dealership. No banks involved. You insure your car for a certian amount. You decide that amount, not the insurance company.

Auto insurance isn’t like home owners insurance. When the “total” a car, make it a total loss, you get the blue book value, not some amount you think you insured it for.

And yes, leases are with banks. The bank owns the car.

At no time have I not been asked what amount I would like to insure it for. Leases are with car dealerships. They own the car.

Unless someone is party to a contract, they can't acquire rights or obligations from it. There might be some convoluted agreement between the dealer and a finance company, but that's of no consequence to the customer.

OMG auto insurance will NEVER pay out more than your car’s value. You’ve obviously never had a car totaled. Have you ever heard of gap insurance? That wouldn’t even be a thing if insurance worked like you think it does.

https://www.kbb.com/car-advice/articles/how-much-and-what-kind-of-car-insurance-you-need/
Bottom Line: If you have health insurance for you and your family, personal injury coverage is usually unnecessary, unless your state tells you otherwise.

The dealership does NOT own the car, the finance company does. It’s probably a bank or the auto manufacturer’s own finance company. Either way, they own the car, not the dealership (and certainly not you). If you are representative of typical leasees it’s no wonder so many here believe it’s a good deal.

http://www.realcartips.com/leasing/0050-auto-lease-terms.shtml
When you lease a car, the dealer sells the vehicle to the leasing company at the price you negotiate (read our negotiating guide). The leasing company then turns around and leases the car to you based on that purchase price.


Leasing costs a lot more than buying. All you need to know to prove this is what a purchased car costs. If you buy a $30,000 car and keep it for 12 years and if at the end of twelve years it’s worth nothing (it won’t be) then you lost 30k in depreciation. Now if you lease that same car, your lease payment is $500 for 144 months or $72,000 in depreciation over 12 years. Even with maintanence added in, owning is nothing close to that and newer cars need far less maintanence than cars used to. They also make maintanence idiot proof by putting a reminder right on the dash.

This is the best explanation I’ve heard.

[Anonymous]

I quoted the wrong bottom line above.

Bottom Line: If your older car is worth $4,000, for example, and your comprehensive and collision coverage costs are more than $400 a year, you probably don't need them.

This is because the insurance will never pay out more than your car’s value. In fact, the numbers you pick are usually property damage if you cause the accident and damage to people.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Never leased, but wondering what happens if you get in an accident in a leased car?

Your insurance company fixes it the way they do with any other insured car...if it's totaled they cut a check to the leasing bank.

And what happens if the insurance company gives the bank less money than the bank thinks it should get? What about the deductible?

The car's value is spelled out in contract, you insure it for that much. Car gets totaled, insurer pays out. There's no room for "I think it's worth this much".

As an aside, If you wrote off a brand new car you must have been in a pretty bad accident. No one in this position would regret not having an old war without safety features.

Unless auto insurance for leases is drastically different, I don’t think you understand how they work. You have a deductible and the insurance company pays what it believes the value is, not what the bank says. The bank is incentivized to say its value is high so if you buy it out, you pay even more.

I don't think you and I are on the same page. Why is a bank involved in this? Lease is between you and the dealership. No banks involved. You insure your car for a certian amount. You decide that amount, not the insurance company.

Auto insurance isn’t like home owners insurance. When the “total” a car, make it a total loss, you get the blue book value, not some amount you think you insured it for.

And yes, leases are with banks. The bank owns the car.

At no time have I not been asked what amount I would like to insure it for. Leases are with car dealerships. They own the car.

Unless someone is party to a contract, they can't acquire rights or obligations from it. There might be some convoluted agreement between the dealer and a finance company, but that's of no consequence to the customer.

OMG auto insurance will NEVER pay out more than your car’s value. You’ve obviously never had a car totaled. Have you ever heard of gap insurance? That wouldn’t even be a thing if insurance worked like you think it does.

https://www.kbb.com/car-advice/articles/how-much-and-what-kind-of-car-insurance-you-need/
Bottom Line: If you have health insurance for you and your family, personal injury coverage is usually unnecessary, unless your state tells you otherwise.

The dealership does NOT own the car, the finance company does. It’s probably a bank or the auto manufacturer’s own finance company. Either way, they own the car, not the dealership (and certainly not you). If you are representative of typical leasees it’s no wonder so many here believe it’s a good deal.

http://www.realcartips.com/leasing/0050-auto-lease-terms.shtml
When you lease a car, the dealer sells the vehicle to the leasing company at the price you negotiate (read our negotiating guide). The leasing company then turns around and leases the car to you based on that purchase price.


Leasing costs a lot more than buying. All you need to know to prove this is what a purchased car costs. If you buy a $30,000 car and keep it for 12 years and if at the end of twelve years it’s worth nothing (it won’t be) then you lost 30k in depreciation. Now if you lease that same car, your lease payment is $500 for 144 months or $72,000 in depreciation over 12 years. Even with maintanence added in, owning is nothing close to that and newer cars need far less maintanence than cars used to. They also make maintanence idiot proof by putting a reminder right on the dash.

This is the stupidest thing I've heard all week. I have no idea why you're so excited that a bank owns a car (you seem to not understand how contracts work) or where you got your $500 figure from. I suspect you're the Honda oddsey troll from earlier.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Never leased, but wondering what happens if you get in an accident in a leased car?

Your insurance company fixes it the way they do with any other insured car...if it's totaled they cut a check to the leasing bank.

And what happens if the insurance company gives the bank less money than the bank thinks it should get? What about the deductible?

The car's value is spelled out in contract, you insure it for that much. Car gets totaled, insurer pays out. There's no room for "I think it's worth this much".

As an aside, If you wrote off a brand new car you must have been in a pretty bad accident. No one in this position would regret not having an old war without safety features.

Unless auto insurance for leases is drastically different, I don’t think you understand how they work. You have a deductible and the insurance company pays what it believes the value is, not what the bank says. The bank is incentivized to say its value is high so if you buy it out, you pay even more.

I don't think you and I are on the same page. Why is a bank involved in this? Lease is between you and the dealership. No banks involved. You insure your car for a certian amount. You decide that amount, not the insurance company.

Auto insurance isn’t like home owners insurance. When the “total” a car, make it a total loss, you get the blue book value, not some amount you think you insured it for.

And yes, leases are with banks. The bank owns the car.

At no time have I not been asked what amount I would like to insure it for. Leases are with car dealerships. They own the car.

Unless someone is party to a contract, they can't acquire rights or obligations from it. There might be some convoluted agreement between the dealer and a finance company, but that's of no consequence to the customer.

OMG auto insurance will NEVER pay out more than your car’s value. You’ve obviously never had a car totaled. Have you ever heard of gap insurance? That wouldn’t even be a thing if insurance worked like you think it does.

https://www.kbb.com/car-advice/articles/how-much-and-what-kind-of-car-insurance-you-need/
Bottom Line: If you have health insurance for you and your family, personal injury coverage is usually unnecessary, unless your state tells you otherwise.

The dealership does NOT own the car, the finance company does. It’s probably a bank or the auto manufacturer’s own finance company. Either way, they own the car, not the dealership (and certainly not you). If you are representative of typical leasees it’s no wonder so many here believe it’s a good deal.

http://www.realcartips.com/leasing/0050-auto-lease-terms.shtml
When you lease a car, the dealer sells the vehicle to the leasing company at the price you negotiate (read our negotiating guide). The leasing company then turns around and leases the car to you based on that purchase price.


Leasing costs a lot more than buying. All you need to know to prove this is what a purchased car costs. If you buy a $30,000 car and keep it for 12 years and if at the end of twelve years it’s worth nothing (it won’t be) then you lost 30k in depreciation. Now if you lease that same car, your lease payment is $500 for 144 months or $72,000 in depreciation over 12 years. Even with maintanence added in, owning is nothing close to that and newer cars need far less maintanence than cars used to. They also make maintanence idiot proof by putting a reminder right on the dash.

This is the stupidest thing I've heard all week. I have no idea why you're so excited that a bank owns a car (you seem to not understand how contracts work) or where you got your $500 figure from. I suspect you're the Honda oddsey troll from earlier.

It’s dumb that buying is a better financial decision?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Never leased, but wondering what happens if you get in an accident in a leased car?

Your insurance company fixes it the way they do with any other insured car...if it's totaled they cut a check to the leasing bank.

And what happens if the insurance company gives the bank less money than the bank thinks it should get? What about the deductible?

The car's value is spelled out in contract, you insure it for that much. Car gets totaled, insurer pays out. There's no room for "I think it's worth this much".

As an aside, If you wrote off a brand new car you must have been in a pretty bad accident. No one in this position would regret not having an old war without safety features.

Unless auto insurance for leases is drastically different, I don’t think you understand how they work. You have a deductible and the insurance company pays what it believes the value is, not what the bank says. The bank is incentivized to say its value is high so if you buy it out, you pay even more.

I don't think you and I are on the same page. Why is a bank involved in this? Lease is between you and the dealership. No banks involved. You insure your car for a certian amount. You decide that amount, not the insurance company.

Auto insurance isn’t like home owners insurance. When the “total” a car, make it a total loss, you get the blue book value, not some amount you think you insured it for.

And yes, leases are with banks. The bank owns the car.

At no time have I not been asked what amount I would like to insure it for. Leases are with car dealerships. They own the car.

Unless someone is party to a contract, they can't acquire rights or obligations from it. There might be some convoluted agreement between the dealer and a finance company, but that's of no consequence to the customer.

OMG auto insurance will NEVER pay out more than your car’s value. You’ve obviously never had a car totaled. Have you ever heard of gap insurance? That wouldn’t even be a thing if insurance worked like you think it does.

https://www.kbb.com/car-advice/articles/how-much-and-what-kind-of-car-insurance-you-need/
Bottom Line: If you have health insurance for you and your family, personal injury coverage is usually unnecessary, unless your state tells you otherwise.

The dealership does NOT own the car, the finance company does. It’s probably a bank or the auto manufacturer’s own finance company. Either way, they own the car, not the dealership (and certainly not you). If you are representative of typical leasees it’s no wonder so many here believe it’s a good deal.

http://www.realcartips.com/leasing/0050-auto-lease-terms.shtml
When you lease a car, the dealer sells the vehicle to the leasing company at the price you negotiate (read our negotiating guide). The leasing company then turns around and leases the car to you based on that purchase price.


Leasing costs a lot more than buying. All you need to know to prove this is what a purchased car costs. If you buy a $30,000 car and keep it for 12 years and if at the end of twelve years it’s worth nothing (it won’t be) then you lost 30k in depreciation. Now if you lease that same car, your lease payment is $500 for 144 months or $72,000 in depreciation over 12 years. Even with maintanence added in, owning is nothing close to that and newer cars need far less maintanence than cars used to. They also make maintanence idiot proof by putting a reminder right on the dash.

This is the stupidest thing I've heard all week. I have no idea why you're so excited that a bank owns a car (you seem to not understand how contracts work) or where you got your $500 figure from. I suspect you're the Honda oddsey troll from earlier.

First, I’m not that Honda person. Second, I’m not “excited”, it just seems you did not understand who owns the leases vehicles. Third, you needed education on auto insurance and why GAP insurance is a thing. Forth, and most importantly, when you own a car depreciation is capped by the car’s price. When you lease there is no cap on the amount of depreciation you pay. You pay an unlimited amount. You pay depreciation every month for life. That will always be bigger than the total cost of a car.

I got the $500 number from an online calculator but if you prefer we can use a smaller number, say 350. 350 times 144 is $50,400 in depreciation over 12 years. If you do this for two cars at a time (two car family) you pay 100k depreciation over 12 years. Multiply this over the time five (how many 12 year car owning periods you’ll have in your life) and you leasees pay 500k depreciation over a lifetime if you have two cars at a time. A buyer buys ten cars for 300k during that time (again having two cars in the family at a time).

Buyers cap depreciation at the price of the car. Leasees have a black hole of unlimited depreciation payments for life.

[Anonymous]

Yes, unless your business subsidizes the lease for you.

The simple fact is that at the end of the day, you have a car when you own. On a practical level because if the car gets you from A to B safely, the car has value to you aside from things like depreciation.

Then again, humans are not rational creatures and value things like cars. If so, you should think of leasing as paying for a hobby and compare it to how much one might spend on leisure activities. You are almost certainly in a losing proposition if this is a purely financial transition about cars' functionality.

[Anonymous]

8:31 PP claiming the dealership “owns” the lease has no idea what they’re talking about. In a lease, the dealership (Koons Toyota) sells the car to Toyota Financial Services and you pay TFS every month for 36 months with the option to buy it out for the residual value at the end of the lease. You sign a buyer’s order with the dealership to buy the car from them and then the lease contract with the carmaker’s bank. The dealership gets a sale whether you buy it or lease it.

[Anonymous]

To add onto my post above, almost every manufacturer’s financial services arm that leases will automatically add gap coverage onto your lease so if you get into an accident and insurance cuts a check for less than the car is worth the gap coverage kicks in.

[Anonymous]

Anonymous wrote:8:31 PP claiming the dealership “owns” the lease has no idea what they’re talking about. In a lease, the dealership (Koons Toyota) sells the car to Toyota Financial Services and you pay TFS every month for 36 months with the option to buy it out for the residual value at the end of the lease. You sign a buyer’s order with the dealership to buy the car from them and then the lease contract with the carmaker’s bank. The dealership gets a sale whether you buy it or lease it.

And this is relevant because????

You people are strangely obsessed with ownership and don't seem to get that some of us make enough money to afford to lease a new car every three years and who have no desire to drive around in a 12 year old Honda. No matter how cheap the insurance is.

[Anonymous]

Anonymous wrote:

Anonymous wrote:8:31 PP claiming the dealership “owns” the lease has no idea what they’re talking about. In a lease, the dealership (Koons Toyota) sells the car to Toyota Financial Services and you pay TFS every month for 36 months with the option to buy it out for the residual value at the end of the lease. You sign a buyer’s order with the dealership to buy the car from them and then the lease contract with the carmaker’s bank. The dealership gets a sale whether you buy it or lease it.

And this is relevant because????

You people are strangely obsessed with ownership and don't seem to get that some of us make enough money to afford to lease a new car every three years and who have no desire to drive around in a 12 year old Honda. No matter how cheap the insurance is.

It’s sad when people sign contracts and don’t understand them.

Since you think leasing cars is best I guess that means you lease real estate.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:8:31 PP claiming the dealership “owns” the lease has no idea what they’re talking about. In a lease, the dealership (Koons Toyota) sells the car to Toyota Financial Services and you pay TFS every month for 36 months with the option to buy it out for the residual value at the end of the lease. You sign a buyer’s order with the dealership to buy the car from them and then the lease contract with the carmaker’s bank. The dealership gets a sale whether you buy it or lease it.

And this is relevant because????

You people are strangely obsessed with ownership and don't seem to get that some of us make enough money to afford to lease a new car every three years and who have no desire to drive around in a 12 year old Honda. No matter how cheap the insurance is.

It’s sad when people sign contracts and don’t understand them.

Since you think leasing cars is best I guess that means you lease real estate.

Money is important to us. We don't worship money above all else. There is an area between burning money and scrooge style cheapness. Why you flat out refuse to understand this is beyond me.

- a lawyer who owns multiple properties and leases 3 cars (they cost $40,000 a year, put THAT in your black hole of depreciation, that is, if you haven't fainted yet )

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:8:31 PP claiming the dealership “owns” the lease has no idea what they’re talking about. In a lease, the dealership (Koons Toyota) sells the car to Toyota Financial Services and you pay TFS every month for 36 months with the option to buy it out for the residual value at the end of the lease. You sign a buyer’s order with the dealership to buy the car from them and then the lease contract with the carmaker’s bank. The dealership gets a sale whether you buy it or lease it.

And this is relevant because????

You people are strangely obsessed with ownership and don't seem to get that some of us make enough money to afford to lease a new car every three years and who have no desire to drive around in a 12 year old Honda. No matter how cheap the insurance is.

It’s sad when people sign contracts and don’t understand them.

Since you think leasing cars is best I guess that means you lease real estate.

Money is important to us. We don't worship money above all else. There is an area between burning money and scrooge style cheapness. Why you flat out refuse to understand this is beyond me.

- a lawyer who owns multiple properties and leases 3 cars (they cost $40,000 a year, put THAT in your black hole of depreciation, that is, if you haven't fainted yet )

Well, thank you for keeping the auto manufacturers profitable I guess...

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:8:31 PP claiming the dealership “owns” the lease has no idea what they’re talking about. In a lease, the dealership (Koons Toyota) sells the car to Toyota Financial Services and you pay TFS every month for 36 months with the option to buy it out for the residual value at the end of the lease. You sign a buyer’s order with the dealership to buy the car from them and then the lease contract with the carmaker’s bank. The dealership gets a sale whether you buy it or lease it.

And this is relevant because????

You people are strangely obsessed with ownership and don't seem to get that some of us make enough money to afford to lease a new car every three years and who have no desire to drive around in a 12 year old Honda. No matter how cheap the insurance is.

It’s sad when people sign contracts and don’t understand them.

Since you think leasing cars is best I guess that means you lease real estate.

Money is important to us. We don't worship money above all else. There is an area between burning money and scrooge style cheapness. Why you flat out refuse to understand this is beyond me.

- a lawyer who owns multiple properties and leases 3 cars (they cost $40,000 a year, put THAT in your black hole of depreciation, that is, if you haven't fainted yet )

Well, thank you for keeping the auto manufacturers profitable I guess...

You're quite welcome, If everyone stopped spending society would collapse.


- another high income earner who leases