Anonymous
04/09/2021 19:49
Subject: Leasing - where do I start? what do I need to know?
I bought my car at the end of the three year lease. Overall, I paid less than the value of buying it new even when accounting for the purchase price and price to buy at the end of the lease. I could turn around and sell it today for a profit. The dealer really wanted me to turn it in so they could resale for the profit.
It is possible to get a good lease, walk out ahead and not have any money out of pocket for 3 yrs for maintenance, etc.
It is possible to get a good lease, walk out ahead and not have any money out of pocket for 3 yrs for maintenance, etc.
Anonymous
04/09/2021 19:19
Subject: Re:Leasing - where do I start? what do I need to know?
Anonymous wrote:My sister, who is terrible with money and has been through one bankruptcy, likes having a new car every couple of years and always leases.
I, on the other hand, drive my cars for at least ten years and always pay cash, or take out a short loan.
I’ve come to accept the fact that we’re just different that way.
A rather useless anecdote, but thanks for stopping by.
Anonymous
04/09/2021 19:00
Subject: Re:Leasing - where do I start? what do I need to know?
My sister, who is terrible with money and has been through one bankruptcy, likes having a new car every couple of years and always leases.
I, on the other hand, drive my cars for at least ten years and always pay cash, or take out a short loan.
I’ve come to accept the fact that we’re just different that way.
I, on the other hand, drive my cars for at least ten years and always pay cash, or take out a short loan.
I’ve come to accept the fact that we’re just different that way.
Anonymous
04/09/2021 18:58
Subject: Re:Leasing - where do I start? what do I need to know?
^ That's your value judgement on the topic, and that's perfectly fine, as there's no right or wrong, only what works for you. Some prefer buying used or an off-lease CPO and keeping it for the long haul to drive down cost-per-mile as much as possible. Others see added value to leasing. In any event, life's too short to drive a Toyota/Honda.
Anonymous
04/09/2021 18:18
Subject: Leasing - where do I start? what do I need to know?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:There are no good reasons to lease a car. Terrible investment.
The purchase of a car is never an investment. It is the acquisition of a depreciating asset.
No wonder you have such categorically stupid answers.
Leasing cars is for people who don't handle money well and want others to think they're rich.
This is a commonly fallacy, propagated often by people who don't understand when leasing can be advantageous. As I've said here before, leasing always works in your favor if you use it when you should and know how to negotiate a lease which does require mastery of basic algebra. If your goal is to change cars every three years or so leasing is the way to go.
When you lease, you always have a car under warranty, and thus have little/no risk for cost of maintenance; you often get free or sharply discounted service visits, so you have no or cheap costs to service vehicle; you're guarded against risk in the used car market; you don't pay for, or finance, the portion of the vehicle's projected useful life you do not intend to consume; all the cars I lease come with road side assistance as part of the included factory warranty; there's a greatly decreased likelihood the car will break down during use as it is new; as you turn over your cars on a regular basis you are constantly getting all the most recent safety upgrades and features; negotiations for your next vehicle are simple and the dealer lacks the ability to arbitrage you in the value of your trade-in; BMWs and other luxury autos almost always have factory subsidized residuals or money factors; complimentary service loaners; etc., etc.
With leasing, you're guarded against risk in the used car market if you were sell/trade-in; the residual value of the car is established upfront, and often manipulated by the manufacturer in a way that makes leasing a more cost effective option than buying. Furthermore, I don't need to worry about extended warranties, maintenance costs as the car ages, I get free loaners at the dealership when I visit for service appointments,
It’s a complete waste to change cars every 3 years. Buy a good quality Toyota/Honda and there are rarely maintenance issues, hybrid models at good prices etc. It’s simply a bad investment/use of $ to lease when you could buy a good reliable car outright.
Anonymous
04/09/2021 18:16
Subject: Leasing - where do I start? what do I need to know?
Anonymous wrote:There are no good reasons to lease a car. Terrible investment.
This.
Anonymous
04/09/2021 17:59
Subject: Leasing - where do I start? what do I need to know?
Anonymous wrote:Anonymous wrote:Anonymous wrote:There are no good reasons to lease a car. Terrible investment.
The purchase of a car is never an investment. It is the acquisition of a depreciating asset.
No wonder you have such categorically stupid answers.
Leasing cars is for people who don't handle money well and want others to think they're rich.
This is a commonly fallacy, propagated often by people who don't understand when leasing can be advantageous. As I've said here before, leasing always works in your favor if you use it when you should and know how to negotiate a lease which does require mastery of basic algebra. If your goal is to change cars every three years or so leasing is the way to go.
When you lease, you always have a car under warranty, and thus have little/no risk for cost of maintenance; you often get free or sharply discounted service visits, so you have no or cheap costs to service vehicle; you're guarded against risk in the used car market; you don't pay for, or finance, the portion of the vehicle's projected useful life you do not intend to consume; all the cars I lease come with road side assistance as part of the included factory warranty; there's a greatly decreased likelihood the car will break down during use as it is new; as you turn over your cars on a regular basis you are constantly getting all the most recent safety upgrades and features; negotiations for your next vehicle are simple and the dealer lacks the ability to arbitrage you in the value of your trade-in; BMWs and other luxury autos almost always have factory subsidized residuals or money factors; complimentary service loaners; etc., etc.
With leasing, you're guarded against risk in the used car market if you were sell/trade-in; the residual value of the car is established upfront, and often manipulated by the manufacturer in a way that makes leasing a more cost effective option than buying. Furthermore, I don't need to worry about extended warranties, maintenance costs as the car ages, I get free loaners at the dealership when I visit for service appointments,
Anonymous
04/09/2021 16:56
Subject: Leasing - where do I start? what do I need to know?
Anonymous wrote:Anonymous wrote:There are no good reasons to lease a car. Terrible investment.
The purchase of a car is never an investment. It is the acquisition of a depreciating asset.
No wonder you have such categorically stupid answers.
Leasing cars is for people who don't handle money well and want others to think they're rich.
Anonymous
04/09/2021 16:20
Subject: Re:Leasing - where do I start? what do I need to know?
^ Oh, and check out the leasehackr forums, which are a great resource: https://forum.leasehackr.com" target="_new" rel="nofollow"> https://forum.leasehackr.com
Anonymous
04/09/2021 16:18
Subject: Re:Leasing - where do I start? what do I need to know?
Run a few searches here -- the question has been asked and answered before -- a couples times in the past month.
For starters:
-- https://www.dcurbanmom.com/jforum/posts/list/960019.page
-- https://www.dcurbanmom.com/jforum/posts/list/962021.page
The key will be to structure the lease deal using the base money factor (i.e., the interest rate where MF x 2400 = APR), without mark-up, and to negotiate % off MSRP before applying any incentives that might be available to you. Generally, those are the two key elements for negotiation (MF and pre-incentive selling price). Best to check the Edmunds forums for up-to-date information on the money factor and residual for the make/model you have in mind, so you're aware if & when a dealership tries to mark-up the money factor (they will). Also be aware of dealer tactics to shift money around among the various moving pieces of the lease, and fees. The residual value of the car and the MF will vary by make & model, and month-to-month, as will incentives.
For starters:
-- https://www.dcurbanmom.com/jforum/posts/list/960019.page
-- https://www.dcurbanmom.com/jforum/posts/list/962021.page
The key will be to structure the lease deal using the base money factor (i.e., the interest rate where MF x 2400 = APR), without mark-up, and to negotiate % off MSRP before applying any incentives that might be available to you. Generally, those are the two key elements for negotiation (MF and pre-incentive selling price). Best to check the Edmunds forums for up-to-date information on the money factor and residual for the make/model you have in mind, so you're aware if & when a dealership tries to mark-up the money factor (they will). Also be aware of dealer tactics to shift money around among the various moving pieces of the lease, and fees. The residual value of the car and the MF will vary by make & model, and month-to-month, as will incentives.
Anonymous
04/09/2021 15:25
Subject: Leasing - where do I start? what do I need to know?
Anonymous wrote:There are no good reasons to lease a car. Terrible investment.
I just don’t get this black and white thinking. Just leased a vehicle and my total payment over the lease PLUS the price to buy in 3 years is 6K less than if I bought it new today. Where is the big loss?
Anonymous
04/09/2021 10:33
Subject: Leasing - where do I start? what do I need to know?
Anonymous wrote:There are no good reasons to lease a car. Terrible investment.
The purchase of a car is never an investment. It is the acquisition of a depreciating asset.
No wonder you have such categorically stupid answers.
Anonymous
04/09/2021 10:32
Subject: Leasing - where do I start? what do I need to know?
Go to the leasing forums on Edmunds.com and learn how leasing works.
If the numbers work for you and accommodate your goals, leasing is fine. Ignore PP.
If the numbers work for you and accommodate your goals, leasing is fine. Ignore PP.
Anonymous
04/09/2021 09:43
Subject: Leasing - where do I start? what do I need to know?
There are no good reasons to lease a car. Terrible investment.
Anonymous
04/09/2021 09:39
Subject: Leasing - where do I start? what do I need to know?
We have decided we need a second car and leasing is probably the better option for a number of reasons: we would like a hybrid but are unsure about where technology is headed, already have an 11yo car with 130,000 miles and it is unclear how long it will last and what we would replace it with, my DS will be 16yo in a little over 2yrs and able to drive, etc.
I know nothing about leasing and am unsure where to start and how to proceed. I would love suggestions of how to go about this and anything I need to be aware of.
TIA!
I know nothing about leasing and am unsure where to start and how to proceed. I would love suggestions of how to go about this and anything I need to be aware of.
TIA!