Anonymous
09/18/2018 22:24
Subject: Am I a sucker for leasing all of our family cars?
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.
Anonymous
09/18/2018 22:21
Subject: Am I a sucker for leasing all of our family cars?
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.
Anonymous
09/18/2018 22:08
Subject: Am I a sucker for leasing all of our family cars?
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.
Anonymous
09/18/2018 20:28
Subject: Am I a sucker for leasing all of our family cars?
Anonymous wrote:I own a company. We lease cars because then it is an expense, not an asset that needs to get depreciated. You write 100% of it off. That’s a huge advantage. I haven’t paid for an oil change, brakes, tires, etc. in 10 years. If it gets hit and has a bad Carfax, not my problem.
Not for much longer. Leases will have to be shown as an asset soon
Anonymous
09/18/2018 20:24
Subject: Am I a sucker for leasing all of our family cars?
I own a company. We lease cars because then it is an expense, not an asset that needs to get depreciated. You write 100% of it off. That’s a huge advantage. I haven’t paid for an oil change, brakes, tires, etc. in 10 years. If it gets hit and has a bad Carfax, not my problem.
Anonymous
09/18/2018 19:15
Subject: Am I a sucker for leasing all of our family cars?
Anonymous wrote:Anonymous wrote:Anonymous wrote:Anonymous wrote:someone who leases can always buy a used car.
If you plan to keep your car nine years after it's paid off then you are certainly better financially buying it than leasing it. However, there are good lease deals and bad lease deals and sometimes a good lease deal can make financial sense for someone who does not plan to drive the same car for 10-15 years.
I plan to drive cars for around 7-8 years and it’s still a better deal to buy. It almost is.
Leasing is for people who want to drive a more expensive car than they can afford to buy.
It isn't, not for 7 years
- worked at a dealership
Based on the lease payments and loan payments for the same car, yes it very much was a better deal to buy. Higher payment for 3 years but then NO payments for four years. Followed by adding back the value of the car to the amount.
Here’s the thing. The value of the car at the end of paying it off is almost much greater than the different between a loan payment and lease payment. You also have to take into account the years you don’t have any payment if you buy.
Really? Sedans have gone down in value. Plus, if it is that popular a car, the residual is high and the lease payment is lower.
Anonymous
09/18/2018 18:53
Subject: Am I a sucker for leasing all of our family cars?
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.
Anonymous
09/18/2018 14:15
Subject: Am I a sucker for leasing all of our family cars?
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?
Anonymous
09/18/2018 11:48
Subject: Re:Am I a sucker for leasing all of our family cars?
OK, so I am totally ignorant about leasing and have always been on the "own" team, but anymore you see these cars you can lease for $199 month, no money down, no security deposit etc.. I realize there plain jane, economy cars, with low mileage limits. Which would work for me. But is it a good idea then?? Why? Please educate me.
Anonymous
09/18/2018 09:41
Subject: Am I a sucker for leasing all of our family cars?
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.
Anonymous
09/18/2018 07:59
Subject: Am I a sucker for leasing all of our family cars?
Never leased, but wondering what happens if you get in an accident in a leased car?
Anonymous
09/18/2018 07:47
Subject: Re:Am I a sucker for leasing all of our family cars?
Rich people lease cars, they don’t buy them. Companies lease cars, they don’t buy them.
Poor people buy cars. They are ignorant.
If leasing was such a bad deal, companies and rich people wouldn’t do it. They are rich because they are smarter.
Poor people buy cars. They are ignorant.
If leasing was such a bad deal, companies and rich people wouldn’t do it. They are rich because they are smarter.
Anonymous
09/17/2018 23:50
Subject: Re:Am I a sucker for leasing all of our family cars?
Anonymous wrote:Another reason not to lease:
If you lease, you have to go car shopping again every three years. Possibly more often if you lease more than one vehicle.
+1
Most people hate buying cars. You know you’re going to walk out getting ripped off so who wants to do that more tunes than they absolutely have to? If you think you’re getting a good deal, lease or buy, then you really got fooled by the salesman.
Anonymous
09/17/2018 23:04
Subject: Re:Am I a sucker for leasing all of our family cars?
Anonymous wrote:Another reason not to lease:
If you lease, you have to go car shopping again every three years. Possibly more often if you lease more than one vehicle.
That's not a negative by a long shot
Anonymous
09/17/2018 21:40
Subject: Am I a sucker for leasing all of our family cars?
Anonymous wrote:
It isn't, not for 7 years
- worked at a dealership
What was Edmund's missing in their analysis?