Anonymous wrote:I don’t know what to do! My husband is self employed we took a loan on a new dodge caravan for 30000.00 and he puts 65000 km a year working across the province! Our loan will be paid off in 7 years but by then we will have no van! He needs a reliable van while he works! What is smarter leasing?

This is the US. We live in states and drive miles, not kilometers. And leasing is dumb.

[quote=Anonymous][quote=Anonymous]For 2 years -- I am just looking for ballpark figures any model. TIA[/quote][/quote]

You're lazy.

Just google 'lease kia sedona'

I don’t know what to do! My husband is self employed we took a loan on a new dodge caravan for 30000.00 and he puts 65000 km a year working across the province! Our loan will be paid off in 7 years but by then we will have no van! He needs a reliable van while he works! What is smarter leasing?

It costs $500 a month to lease a van.

When you lease, you are basically paying for the depreciation.

The leasee estimates, for example, the car will be worth 66.6 % of MSRP in two years, and it is a 30000 car, you will be payining 10K + the interest on 30K (minus what you paid in payments) (the latter is called the money factor; for simplicity sake, lets assume the MF is 0; if your credit is good, it will not changed things that much).

So, we are at 10K over 24 months; that is just under 400/month. With the money factor, probably be about 420/month.

This is assuming you paid tax taxes and fees up front.

Now, the way you can reduce the payment is to pay some up front. If you put $5000 capital cost reduction, you will be financing 5000/ and the cost will be about 220/month.

On the other hand, if you buy the car and borrow against it, and sell in two years, you will be paying nearly the same amount.

How much money does it cost to lease a minivan?... I could've sworn that was the topic of this forum...

I don't see the reason for leasing a mini-van; it is going to get a lot of wear and tear hauling kids around, and will not stay as pristine as the car of an adult who leases a nice car. Don't you have to pay for all the damages when you turn in the car?

We've never leased a car; we aren't into having the nicest, newest car, and it seems like a waste of money.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:don't lease!! it's a waste of money. buy. cars depreciate over time - you may as well own the car when you've paid for it! bankrate.com has some calculators.

nonsense. you LEASE things that depreciate in value and BUY things that appreciate.

$350/mo *12 * 2 = 8,400. no way you buy 1/3 of a new van with that money.

with that said, don't lease (or buy) new cars. just buy (or lease if you can find a deal) used.

This is not realistic. First of all, a 24 month lease would be more per month than that. Second of all, you are ignoring all of the money due at signing, usually $3-5K.

We don't lease, but we also don't care about driving new cars every 3 years (the length that most leases are.) I have several friends who lease and they SWEAR its a better deal, but I think in reality its the only way they can afford to drive $60K cars, new every 3 years. The monthly payment on that would be double. I don't really know anyone who leases "non-luxury" cars, unless its work related.

If you lease from a Federal Credit Union you are not resps for those 3-5k cost because they are tax exempt so all you have to bring is the first payment and maybe $500 processing fee

Please explain this further.

Anonymous wrote:

Anonymous wrote:don't lease!! it's a waste of money. buy. cars depreciate over time - you may as well own the car when you've paid for it! bankrate.com has some calculators.

nonsense. you LEASE things that depreciate in value and BUY things that appreciate.

$350/mo *12 * 2 = 8,400. no way you buy 1/3 of a new van with that money.

with that said, don't lease (or buy) new cars. just buy (or lease if you can find a deal) used.

What's the capital cost reduction to get that payment? (I.e., the down payment)?

What's the mileage allowance?

What would it cost to buy at the end?

What's the interest rate?

What will they charge you to recondition the car when you turn it in?

These are all very important questions that matter as much, if not more, than the monthly payment. Failing to know the answers makes you a sucker.