Have you ever leased a vehicle? Which one(s)?
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I leased a 1991 Volvo 740 Turbo on an open-end lease; I ended up buying it for below the NADA trade-in value. My only other lease is the wife's i3, a deal I couldn't pass up- $400 down and $105/month for a 24 month 10k mile/year lease. My only regret is that I have to return it.
Originally Posted By: bubbatime
Originally Posted By: Huie83
I'm actually looking at leasing a F-150 in the next year. I think I want a truck for house duty, haul around the dirt bikes etc, but I've never owned one. A lease is a good example of a way to try one out for a few years.
Bad investment.
Buy a used southern truck from California, Texas, Florida, that is rust free. Drive it home. It INSTANTLY goes up in value the second you register it in Minnesota, due to it being rust free and in good mechanical shape (compared to your local used trucks)
You can get a decent truck in Florida for $3500-$5000 that is good for "house duties" and parking it on the side of the house.
Sorry, should have noted cabin, fishing/hunting boat duties etc too. The cabin is 3 hours each way and same with fishing/hunting. I kind of want a nicer truck that I don't have to worry about on long trips.
Originally Posted By: Huie83
I'm actually looking at leasing a F-150 in the next year. I think I want a truck for house duty, haul around the dirt bikes etc, but I've never owned one. A lease is a good example of a way to try one out for a few years.
Bad investment.
Buy a used southern truck from California, Texas, Florida, that is rust free. Drive it home. It INSTANTLY goes up in value the second you register it in Minnesota, due to it being rust free and in good mechanical shape (compared to your local used trucks)
You can get a decent truck in Florida for $3500-$5000 that is good for "house duties" and parking it on the side of the house.
Sorry, should have noted cabin, fishing/hunting boat duties etc too. The cabin is 3 hours each way and same with fishing/hunting. I kind of want a nicer truck that I don't have to worry about on long trips.
Yes in 2003 for the Navara, and last year for the Colorado.
Our leases are "novated" leases, where half the cost comes out of my pre-tax pay, part out of post tax, for the entire running cost. Knocks about $10k off my taxable income.
Fuel card part of the deal, and all costs/maintenance get reimbursed.
Then residual payment at the end.
Our leases are "novated" leases, where half the cost comes out of my pre-tax pay, part out of post tax, for the entire running cost. Knocks about $10k off my taxable income.
Fuel card part of the deal, and all costs/maintenance get reimbursed.
Then residual payment at the end.
2016 Corolla S
$1000 @ signing
$99 per month X 24 months
$300 @ end of lease
Best deal ever. If it had been available when my lease was up, I totally would have done it again, forever. 24 month lease means no tires to replace and free maintenance for the entire lease period.
$1000 @ signing
$99 per month X 24 months
$300 @ end of lease
Best deal ever. If it had been available when my lease was up, I totally would have done it again, forever. 24 month lease means no tires to replace and free maintenance for the entire lease period.
Originally Posted By: pandus13
Originally Posted By: bubbatime
I pay cash for cars now. And keep them 10 years. Leasing doesn't work for us.... too many miles, and Id rather not have car payments.
Bubbatime, have you been able to drive any discounts for cash paying?
also did you bought brand new or slightly used?
In my case the discounts where always because the vehicle was not selling for one reason or another.
Also I did not want the additional expenses of insurance and fees and interest.
Thank you
Not sure I follow you. You still have to buy insurance when you lease a car. Same with fees and interest. Interest is expressed in a lease as the money factor. Check out leasehackr.com for the latest deals. There's usually all kinds of fees for the lease, one for the start of the lease and another lease disposition fee when you turn the car in.
Originally Posted By: IndyIan
You have to run the numbers for sure, a decade ago I was looking at Civics and they kept the lease payment slightly higher than the Cobalt/Focus, but since the Civic didn't depreciate much, the buyout was much less than you could buy one used for. So, you could buy out the car at the end and make a couple grand selling it.
That wasn't a good lease deal. That means you paid more for the lease. A good lease deal is where the residual is higher than market value. That means the manufacturer miscalculated and they eat the loss. Happens all the time with Mercedes, it's cheaper for people to turn in the car at lease end and buy it back from the dealer than to pay the residual value. Mercedes ends up taking the hit on the higher residual vs market value.
As for the F-150 lease, due to a recent fire, Ford stop making the F-150 for a little while so inventory might tighten up. That means they probably won't be running many incentives so you probably won't get a good F-150 lease.
Originally Posted By: bubbatime
I pay cash for cars now. And keep them 10 years. Leasing doesn't work for us.... too many miles, and Id rather not have car payments.
Bubbatime, have you been able to drive any discounts for cash paying?
also did you bought brand new or slightly used?
In my case the discounts where always because the vehicle was not selling for one reason or another.
Also I did not want the additional expenses of insurance and fees and interest.
Thank you
Not sure I follow you. You still have to buy insurance when you lease a car. Same with fees and interest. Interest is expressed in a lease as the money factor. Check out leasehackr.com for the latest deals. There's usually all kinds of fees for the lease, one for the start of the lease and another lease disposition fee when you turn the car in.
Originally Posted By: IndyIan
You have to run the numbers for sure, a decade ago I was looking at Civics and they kept the lease payment slightly higher than the Cobalt/Focus, but since the Civic didn't depreciate much, the buyout was much less than you could buy one used for. So, you could buy out the car at the end and make a couple grand selling it.
That wasn't a good lease deal. That means you paid more for the lease. A good lease deal is where the residual is higher than market value. That means the manufacturer miscalculated and they eat the loss. Happens all the time with Mercedes, it's cheaper for people to turn in the car at lease end and buy it back from the dealer than to pay the residual value. Mercedes ends up taking the hit on the higher residual vs market value.
As for the F-150 lease, due to a recent fire, Ford stop making the F-150 for a little while so inventory might tighten up. That means they probably won't be running many incentives so you probably won't get a good F-150 lease.
Originally Posted By: pandus13
Bubbatime, have you been able to drive any discounts for cash paying?
Most dealers do not give discounts for cash. They actually want you to finance, as they get money from the finance deals.
Bubbatime, have you been able to drive any discounts for cash paying?
Most dealers do not give discounts for cash. They actually want you to finance, as they get money from the finance deals.
How do I get an i3 that cheap?!?
Originally Posted By: antonmnster
How do I get an i3 that cheap?!?
I think Mcompact had a bit of insider luck/knowledge too for that deal...
He posted the story a couple times...
I my memory serves me right, he took over the lease from a tech in a money/needs crunch....
How do I get an i3 that cheap?!?
I think Mcompact had a bit of insider luck/knowledge too for that deal...
He posted the story a couple times...
I my memory serves me right, he took over the lease from a tech in a money/needs crunch....
Originally Posted By: pandus13
Originally Posted By: antonmnster
How do I get an i3 that cheap?!?
I think Mcompact had a bit of insider luck/knowledge too for that deal...
He posted the story a couple times...
I my memory serves me right, he took over the lease from a tech in a money/needs crunch....
I think there's a few sites out there like swapalease.com that lists leases that people want to get out of. The real good deals go right away, others sit for a while until the owner sweetens the incentives.
Originally Posted By: antonmnster
How do I get an i3 that cheap?!?
I think Mcompact had a bit of insider luck/knowledge too for that deal...
He posted the story a couple times...
I my memory serves me right, he took over the lease from a tech in a money/needs crunch....
I think there's a few sites out there like swapalease.com that lists leases that people want to get out of. The real good deals go right away, others sit for a while until the owner sweetens the incentives.
Originally Posted By: pandus13
Originally Posted By: antonmnster
How do I get an i3 that cheap?!?
I think Mcompact had a bit of insider luck/knowledge too for that deal...
He posted the story a couple times...
I my memory serves me right, he took over the lease from a tech in a money/needs crunch....
It was a BMW Center Employee lease, I had not worked there long enough to qualify, but the Service Manager ended up needing a larger car so I assumed the lease.
Originally Posted By: antonmnster
How do I get an i3 that cheap?!?
I think Mcompact had a bit of insider luck/knowledge too for that deal...
He posted the story a couple times...
I my memory serves me right, he took over the lease from a tech in a money/needs crunch....
It was a BMW Center Employee lease, I had not worked there long enough to qualify, but the Service Manager ended up needing a larger car so I assumed the lease.
In 1999 the tech company I worked for allowed a car.
So I was able to lease a 99 BMW 323i with 5 speed manual. Enjoyable car for 3 years 40k miles.
So I was able to lease a 99 BMW 323i with 5 speed manual. Enjoyable car for 3 years 40k miles.
While we've never leased a vehicle, I can see how a lease could work well for someone who doesn't do a lot of miles and has no real interest in maintaining a car as it ages.
You do see some really sharp lease deals here and there.
Want a Tiguan, for example?
$189.00/mo lease available ATM.
You do see some really sharp lease deals here and there.
Want a Tiguan, for example?
$189.00/mo lease available ATM.
I do financial planning and understand leases thoroughly. A lease can work for anyone regardless of the miles put on per year, whether you buy the miles up front or pay for them at the end. A lease provides all the benefits and options cash or finance does plus more without the downside of the other buying options. If you say it isn't fit you, you don't have the knowledge and understanding of money and investing you should have and are making other mistakes in your financial life.
Agree with JLawrence; leases are not what they used to be and all leases are not equal.
But you do need to understand the lease you are getting.
I have learned a lot but do not pretend to be an expert.
In my case, I leased a 2018 Lexus RX 450h after running the numbers because:
Hybrid technology is evolving and will be different in 3 years
The buyout cost was about $2K higher than if I paid cash now.
If I did wanna sell the car in 3 years, I am not a car salesman and selling an expensive car is tough.
So it made sense to lease.
And I hate leases...
But you do need to understand the lease you are getting.
I have learned a lot but do not pretend to be an expert.
In my case, I leased a 2018 Lexus RX 450h after running the numbers because:
Hybrid technology is evolving and will be different in 3 years
The buyout cost was about $2K higher than if I paid cash now.
If I did wanna sell the car in 3 years, I am not a car salesman and selling an expensive car is tough.
So it made sense to lease.
And I hate leases...
Originally Posted By: JLawrence08648
I do financial planning and understand leases thoroughly. A lease can work for anyone regardless of the miles put on per year, whether you buy the miles up front or pay for them at the end. A lease provides all the benefits and options cash or finance does plus more without the downside of the other buying options. If you say it isn't fit you, you don't have the knowledge and understanding of money and investing you should have and are making other mistakes in your financial life.
Umm, right.
Your understanding of the economics of owning versus leasing seems quite limited.
I do financial planning and understand leases thoroughly. A lease can work for anyone regardless of the miles put on per year, whether you buy the miles up front or pay for them at the end. A lease provides all the benefits and options cash or finance does plus more without the downside of the other buying options. If you say it isn't fit you, you don't have the knowledge and understanding of money and investing you should have and are making other mistakes in your financial life.
Umm, right.
Your understanding of the economics of owning versus leasing seems quite limited.
Originally Posted By: fdcg27
Originally Posted By: JLawrence08648
I do financial planning and understand leases thoroughly. A lease can work for anyone regardless of the miles put on per year, whether you buy the miles up front or pay for them at the end. A lease provides all the benefits and options cash or finance does plus more without the downside of the other buying options. If you say it isn't fit you, you don't have the knowledge and understanding of money and investing you should have and are making other mistakes in your financial life.
Umm, right.
Your understanding of the economics of owning versus leasing seems quite limited.
Yeah, it's very questionable when a financial planner makes blanket statements like that. Each case is unique and depends on the details of the deal. Leasing may make sense on some new cars, but doesn't really work on used cars. You get eaten by fees and the lender is typically not the manufacturer at that stage and it isn't being subsided. If there's no lease incentives and there's a big rebate, then it may make more sense to buy than to lease, especially if you're buying a car with high depreciation. While there are lower money factors on a lease, I don't think that really takes into account the leasing fees and disposition fees at the end of the lease. But you'd get an APR number with a loan and those typically don't have any fees for the loans or early pay off. Numbers need to be run on every deal, that should be the bottom line of anyone that claims they're good at finance.
Originally Posted By: JLawrence08648
I do financial planning and understand leases thoroughly. A lease can work for anyone regardless of the miles put on per year, whether you buy the miles up front or pay for them at the end. A lease provides all the benefits and options cash or finance does plus more without the downside of the other buying options. If you say it isn't fit you, you don't have the knowledge and understanding of money and investing you should have and are making other mistakes in your financial life.
Umm, right.
Your understanding of the economics of owning versus leasing seems quite limited.
Yeah, it's very questionable when a financial planner makes blanket statements like that. Each case is unique and depends on the details of the deal. Leasing may make sense on some new cars, but doesn't really work on used cars. You get eaten by fees and the lender is typically not the manufacturer at that stage and it isn't being subsided. If there's no lease incentives and there's a big rebate, then it may make more sense to buy than to lease, especially if you're buying a car with high depreciation. While there are lower money factors on a lease, I don't think that really takes into account the leasing fees and disposition fees at the end of the lease. But you'd get an APR number with a loan and those typically don't have any fees for the loans or early pay off. Numbers need to be run on every deal, that should be the bottom line of anyone that claims they're good at finance.
With any vehicle acquisition, whether through a retail lease, a retail installment contract or one's checkbook, all that really matters is how capital cost per mile of use pencils out.
Insurance, maintenance and repair costs are the same over the same period regardless of how one finances the acquisition.
A heavily subsidized lease, usually achieved by imputing an absurdly high residual value, may end up at a lower capital cost per mile than a purchase, but this isn't typical.
Insurance, maintenance and repair costs are the same over the same period regardless of how one finances the acquisition.
A heavily subsidized lease, usually achieved by imputing an absurdly high residual value, may end up at a lower capital cost per mile than a purchase, but this isn't typical.
"A heavily subsidized lease, usually achieved by imputing an absurdly high residual value, may end up at a lower capital cost per mile than a purchase, but this isn't typical."
A high residual value is a key reason leasing our RX 450h made sense. A lease is simply paying depreciation on the vehicle. The depreciation of these cars is lower than most.
Not to mention Lexus wants to see us in 3 years...
A high residual value is a key reason leasing our RX 450h made sense. A lease is simply paying depreciation on the vehicle. The depreciation of these cars is lower than most.
Not to mention Lexus wants to see us in 3 years...
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