Tell me about leasing a car?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s kind of like renting an apartment. You pay money and have nothing to show for it at the end. That said, I leased my last six cars. I like getting a new car every three years. New car smell, zero problems and an updated model. I just drive the crap out of it and return it. I wouldn’t want it after I’ve driven it. I don’t really care about the financial part.

Same here. I think the silliest thing is to think of your car as an asset. they are not. So I just don't pretend it is.

Hey dumb dumb, of course it's an asset. It's a depreciating asset but still an asset. I can convert it to cash.

https://www.investopedia.com/car-asset-5207357

Most people have to finance cars. So it's not an asset. If you buy it with cash, you're losing money as soon as you drive it off the lot.

[Anonymous]

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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.

This! Paying on a deprecating asset, paying all the taxes and having nothing to show for it when its all over except another possibility large invoice for mileage when turning it back in. Its a fools game.

Why would you want to own the depreciating asset? By your own logic buying a car is even more foolish than leasing.

you can't be serious. If you buy the car you own it if you lease it you have nothing.

Please, for the love of baby Jesus stop being so dumb.

Either way you have nothing. Cars are not assets.

Hey fool an asset is an asset depreciating or not. Smh.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s kind of like renting an apartment. You pay money and have nothing to show for it at the end. That said, I leased my last six cars. I like getting a new car every three years. New car smell, zero problems and an updated model. I just drive the crap out of it and return it. I wouldn’t want it after I’ve driven it. I don’t really care about the financial part.

Same here. I think the silliest thing is to think of your car as an asset. they are not. So I just don't pretend it is.

Hey dumb dumb, of course it's an asset. It's a depreciating asset but still an asset. I can convert it to cash.

https://www.investopedia.com/car-asset-5207357

Well, you can keep your depreciating asset that you can convert to cash and I can keep my cash that I didn't plop into the depreciating asset to begin with.

[Anonymous]

Anonymous wrote:

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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.

DP. You did give quite a bit of misinformation like “it will cost you thousands in miles charges unless you never drive the car”. You should apologize to the PP.

It’s not a secret the number of miles you are allowed. Yes, don’t lease if you drive a lot and will go over that mileage. I lease and drive less than 10,000 miles a year.

DP Different leasing deals have different amounts though. My lease was for 15K miles/year. I think I drive a lot but didn’t go over 11k on average.

You can negotiate it down so you pay less.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s kind of like renting an apartment. You pay money and have nothing to show for it at the end. That said, I leased my last six cars. I like getting a new car every three years. New car smell, zero problems and an updated model. I just drive the crap out of it and return it. I wouldn’t want it after I’ve driven it. I don’t really care about the financial part.

Same here. I think the silliest thing is to think of your car as an asset. they are not. So I just don't pretend it is.

This. I could buy a new $85000 mercedes and finance it for $1400 a month for 5 years plus interest and be left with a car worth $30k at the end or I could lease and pay $1000 a month (including interest) and give it back and get a new one after 4 years. Basically the same thing and I don’t have the hassle of selling it at the end and whatever problems it has I get fixed for free as it’s always under warranty.

[Anonymous]

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

In Virginia, you pay annual tax on the assessed market value of the car. Whether it is owned, financed or leased is irrelevant.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s kind of like renting an apartment. You pay money and have nothing to show for it at the end. That said, I leased my last six cars. I like getting a new car every three years. New car smell, zero problems and an updated model. I just drive the crap out of it and return it. I wouldn’t want it after I’ve driven it. I don’t really care about the financial part.

Same here. I think the silliest thing is to think of your car as an asset. they are not. So I just don't pretend it is.

Hey dumb dumb, of course it's an asset. It's a depreciating asset but still an asset. I can convert it to cash.

https://www.investopedia.com/car-asset-5207357

Most people have to finance cars. So it's not an asset. If you buy it with cash, you're losing money as soon as you drive it off the lot.

Actually, many were appreciating or holding value during the pandemic.

[Anonymous]

In DC, I think it makes sense to lease a car. There is no car/personal tax every year.

You pay taxes on the leased portion of the car, not the full value of the car.

If you buy a car and are a DC resident, you pay a sales tax on the full value of the car. When you sell/trade it in, you don't get the residual portion credited to you. So you've lost the tax money you paid. This makes sense if you are going to buy a car and use it for 10 years. But does not make sense if you're going to get a car every few years.

I also like leasing cars because the car is never old enough to have maintenance issues. I never pay for maintenance other than a simple oil change.

This is my perspective as a DC resident. Probably doesn't make sense in Virginia where you pay a tax on the car each year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s kind of like renting an apartment. You pay money and have nothing to show for it at the end. That said, I leased my last six cars. I like getting a new car every three years. New car smell, zero problems and an updated model. I just drive the crap out of it and return it. I wouldn’t want it after I’ve driven it. I don’t really care about the financial part.

Same here. I think the silliest thing is to think of your car as an asset. they are not. So I just don't pretend it is.

Hey dumb dumb, of course it's an asset. It's a depreciating asset but still an asset. I can convert it to cash.

https://www.investopedia.com/car-asset-5207357

Well, you can keep your depreciating asset that you can convert to cash and I can keep my cash that I didn't plop into the depreciating asset to begin with.

I mean, sure, it's less expensive not to have a car of any sort. But a lot of people need one.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It’s kind of like renting an apartment. You pay money and have nothing to show for it at the end. That said, I leased my last six cars. I like getting a new car every three years. New car smell, zero problems and an updated model. I just drive the crap out of it and return it. I wouldn’t want it after I’ve driven it. I don’t really care about the financial part.

Same here. I think the silliest thing is to think of your car as an asset. they are not. So I just don't pretend it is.

Hey dumb dumb, of course it's an asset. It's a depreciating asset but still an asset. I can convert it to cash.

https://www.investopedia.com/car-asset-5207357

Most people have to finance cars. So it's not an asset. If you buy it with cash, you're losing money as soon as you drive it off the lot.

The fact that you're financing it doesn't make it not an asset. I financed my house, too, but it's still an asset. A car is an asset that you're very unlikely to end up net positive on, obviously, but it's not in and of itself a liability -- only the loan against it is.

[Anonymous]

After you negotiate for the price of the car, can you also negotiate the residual value?

[Anonymous]

You should probably just go on leasehackr.com and read about it. There’s tons of explanatory material and a pretty lively forum to ask questions.

[Anonymous]

Anonymous wrote:After you negotiate for the price of the car, can you also negotiate the residual value?

What leverage do you have???

[Anonymous]

Anonymous wrote:

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.

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

You have to pay the car tax whether you buy or lease. It’s the same amount.

Technically, in Virginia, the dealer is responsible for paying the personal property tax on a leased vehicle since the driver in possession is essentially only borrowing property that is owned by someone else.

Most people fail to realize this buried in the fine print and unwittingly sign away this basic right. DH and I have been leasing for years and have never had to pay PP taxes in Virginia as a result.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

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.

This! Paying on a deprecating asset, paying all the taxes and having nothing to show for it when its all over except another possibility large invoice for mileage when turning it back in. Its a fools game.

Not unless you drive your cars excessively hard. We lease for three years, but basically put six years of wear and tear on the vehicle. Works out well for us and quite poorly for the dealer. It’s pretty much a three-year car rental.

I would never buy a Lexus that requires premium fuel and fill it with regular gas, but with a leased vehicle…why not? Yes, it will ruin the engine, but not immediately and that’s the dealer’s problem.