|
|
Post by freecharlie on Jan 17, 2017 0:33:52 GMT
We've always bought cars, never leased. I know there are probably good ways and bad ways to go about it.
We've had two be hitless need over $5,000 in repairs. We are fixing the family car, but dh's car has something like 325,000 miles on it. There is no point in pumping $7000 into that car.
Dh said something about leasing, I've never done it as my dad was anti leasing, so I know nothing of the proecess.
Help a girl out, please?
|
|
|
|
Post by Eddie-n-Harley on Jan 17, 2017 1:09:13 GMT
Dh said something about leasing, I've never done it as my dad was anti leasing, so I know nothing of the proecess. I'm guessing that's because of any of the following: 1. You never get to own anything at the end, despite making monthly payments. 2. The possibility of getting charged for every chip/scratch/dent/ding. 3. Mileage limitations and charges for going over. (I've never leased either, but those are the possible pitfalls that I see frequently discussed in these threads.) You don't say how old your husband's car is, but even if that's ten years of mileage, I'd be a little concerned that he drives so much that you'd hit your mileage cap. I do believe that lease payments are typically lower than car loan payments, though. |
|
|
|
Post by jamielynn on Jan 17, 2017 1:12:25 GMT
Dh said something about leasing, I've never done it as my dad was anti leasing, so I know nothing of the proecess. I'm guessing that's because of any of the following: 1. You never get to own anything at the end, despite making monthly payments. 2. The possibility of getting charged for every chip/scratch/dent/ding. 3. Mileage limitations and charges for going over. (I've never leased either, but those are the possible pitfalls that I see frequently discussed in these threads.) You don't say how old your husband's car is, but even if that's ten years of mileage, I'd be a little concerned that he drives so much that you'd hit your mileage cap. I do believe that lease payments are typically lower than car loan payments, though. All this plus we consider if we or a parent had a medical condition that required better medical care that's a few hours away we wouldn't want to have to watch the miles or pay overage charges on a lease. Had you looked at what you could get at 0% and if you don't love it trade in down the road? We do this typically yearly and have never come out owing a difference of more than a few hundred dollars. That said we wait for excellent deals when buying and trading in. ETA, we don't mind always having payments and that's what doing this method is too. |
|
|
|
Post by lisacharlotte on Jan 17, 2017 1:13:37 GMT
Leasing is for people that can afford a never ending car payment in return for a new car every couple of years. You never own anything and unless you continue to lease getting out will cost you.
|
|
|
|
Post by freecharlie on Jan 17, 2017 1:20:07 GMT
Dh said something about leasing, I've never done it as my dad was anti leasing, so I know nothing of the proecess. I'm guessing that's because of any of the following: 1. You never get to own anything at the end, despite making monthly payments. 2. The possibility of getting charged for every chip/scratch/dent/ding. 3. Mileage limitations and charges for going over. (I've never leased either, but those are the possible pitfalls that I see frequently discussed in these threads.) You don't say how old your husband's car is, but even if that's ten years of mileage, I'd be a little concerned that he drives so much that you'd hit your mileage cap. I do believe that lease payments are typically lower than car loan payments, though. we bought the car in 2010 and it had over 150,000 miles on it then. It was the family car for a while and did a bunch of road trips. Dh would need about 15,000 miles per year |
|
|
|
Post by jamielynn on Jan 17, 2017 1:37:18 GMT
I'm guessing that's because of any of the following: 1. You never get to own anything at the end, despite making monthly payments. 2. The possibility of getting charged for every chip/scratch/dent/ding. 3. Mileage limitations and charges for going over. (I've never leased either, but those are the possible pitfalls that I see frequently discussed in these threads.) You don't say how old your husband's car is, but even if that's ten years of mileage, I'd be a little concerned that he drives so much that you'd hit your mileage cap. I do believe that lease payments are typically lower than car loan payments, though. we bought the car in 2010 and it had over 150,000 miles on it then. It was the family car for a while and did a bunch of road trips. Dh would need about 15,000 miles per year I think most leases are 10-12k a year for mileage. Every time I go to trade in the tell me how I really need to consider one with such low mileage on mine. I think a typical lease is 4 years, and maybe 40-60k max? That said I'd imagine you could find variances too. |
|
|
|
Post by paperaddictedpea on Jan 17, 2017 1:58:36 GMT
I've leased my last few vehicles; all Toyotas. Their standard lease is 36 months with a mileage limit of 12,000/year. I live only a few miles from work, and most of my family also lives nearby, so I never come close to the maximum mileage even with a couple of out-of-state trips each year. I was able to save a little $ each month on the current lease by dropping the max mileage to 10,000/year.
Every vehicle I've turned in has had some minor dents and scratches (just normal wear and tear) and I've never been assessed a fee for damage. That may be because I've always leased another vehicle when I turned the old one in.
I know the cons to leasing but the pros outweigh those for me. I'm single and travel quite a bit, often on my own, so I like the security of having a newer vehicle; and also like that pretty much any issue that comes up during the lease period will be covered under the maintenance agreement or warranty.
|
|
|
|
Post by myboysnme on Jan 17, 2017 2:27:57 GMT
We've always bought cars, never leased. I know there are probably good ways and bad ways to go about it. We've had two be hitless need over $5,000 in repairs. We are fixing the family car, but dh's car has something like 325,000 miles on it. There is no point in pumping $7000 into that car. Dh said something about leasing, I've never done it as my dad was anti leasing, so I know nothing of the proecess. Help a girl out, please? Edited to say that I am glad to learn some people are able to lease without incurring the cost of maintenance, so I would say make sure that their coverage of those costs is included in your lease. ***
I have leased twice and will never do so again. You must pay out of pocket for all recommended maintenance on schedule. Whatever is in the service manual, you must get it done on time at your cost. Add that in to your monthly payment. You find out you want to end the lease for any reason, like you inherit a car or have an opportunity to purchase a car at a great price- but you can't. You can end it early but you have to pay off the terms of the lease. You have to give them about $2000 just to get the leased vehicle. Put that down on a vehicle you buy!
Do you live someplace where your car might get dinged or scratched, hit by a rock or have a door open in to your car? You pay for any scratch or mark that exceeds the extent of a credit card. Neighbor kid learning to ride a bike rode up my driveway and scraped the handle bars on the side of my car. If I owned it I could ignore the mark but nope, now I have to pay for it.
I have purchased 4 cars in the past 3 years. I have taken 3 year loans and my average payment is $350 a month. The first of the cars is paid off next month, another one in May. Then they are mine. I would take the $7000 repair cost and put it down on a vehicle that is mine. |
|
|
|
Post by paperaddictedpea on Jan 17, 2017 2:45:39 GMT
We've always bought cars, never leased. I know there are probably good ways and bad ways to go about it. We've had two be hitless need over $5,000 in repairs. We are fixing the family car, but dh's car has something like 325,000 miles on it. There is no point in pumping $7000 into that car. Dh said something about leasing, I've never done it as my dad was anti leasing, so I know nothing of the proecess. Help a girl out, please? You MUST pay out of pocket for all recommended maintenance on schedule. Whatever is in the service manual, you must get it done on time at your cost. I think that this must vary by manufacturer. All routine maintenance on my vehicle is covered under the lease for 2 years or 25,000 miles; whichever comes first. The only maintenance I've ever had to pay for on a leased vehicle is a single oil change during the final year of the lease. |
|
|
|
Post by lancermom on Jan 17, 2017 3:16:37 GMT
I am on my third lease. I love it. I have a Toyota for three years at 15000. I used to drive an Expedition. The gas and payment on my Toyota are the same as just gas on my truck. I like the idea of always having one vehicle that I don't need to pay repairs. When I turned my last car in,it had a couple(few) dents. Door dings and a screw imprint from a car backed into. I was also under 15k. I was also able to turn it in three months early.
I learned from my first lease to get the gap insurance. It was totaled in less than six months. I lost money on the deal.
Otherwise, best decision for our family.
|
|
|
|
Post by Clair on Jan 17, 2017 5:40:52 GMT
We've leased before.
My recommendation- do your homework and learn about leases before you go to the dealer. Sometimes they are good deals - sometimes not.
Years ago, we went to buy a high end car cash. They were having lease promotions at the time. It was actually cheaper to lease the car for three years and buy it out at the end of the lease (which we did). Even with the lease fees. So, we just held on to the cash and paid cash at the end of three years
The only problem we had is that the dealer was trying hard to persuade us to get a different car instead of buying the car we leased. Our car was in excellent condition and they would have been able to sell it for more than the predetermined price.
Have you thought about buying a certified pre owned cars. You can get good deals and they usually have warranties.
|
|
|
|
Post by peasful1 on Jan 17, 2017 6:02:02 GMT
I love leasing. I'm on my 3rd lease and about to get a new one in May/June. A new car every 3-4 years is what suits me.
I have no desire to own a car and own its maintenance issues. My car is always under warranty. I don't even have to pay for the scheduled maintenance most of the time as it is usually covered.
Mileage limitations are real, but not real. Yeah, they put limits and will penalize you if you turn the vehicle back in to them. But why turn it back in to them when you can flip it into a new lease and have that dealer eat it for you? I was 60,000+ over on my last lease. Life took a funny turn and I ended up driving A LOT for several years. That mileage overage wasn't even a blip on the radar as far as negotiating our new lease.
We've never been charged for a ding, scratch or anything, not even when we turned the car back in to the original lessor.
We lease higher end vehicles. A car that suited us 10 years ago would not suit us now, just as a car that suits us now will not suit us in another 10 years. I honestly see no reason to own my vehicle.
|
|
|
|
Post by gar on Jan 17, 2017 9:44:58 GMT
We lease but the details may vary between countries so I won't go into specifics but overall it works for us.
I have no wish to own the car since they devalue so much and so quickly.
I like having a new vehicle every couple of years.
Servicing etc is all covered and I also get roadside assistance included.
You obviously have to match the deal with your lifestyle - I have never been close to my mileage limitation and if I was likely to I would make sure that those excesses are reasonable before signing the deal.
A limited amount of 'fair wear and tear' is expected and I've never had to pay for the odd small ding or scratch.
|
|
|
|
Post by ahiller on Jan 17, 2017 12:46:48 GMT
We've always bought cars, never leased. I know there are probably good ways and bad ways to go about it. We've had two be hitless need over $5,000 in repairs. We are fixing the family car, but dh's car has something like 325,000 miles on it. There is no point in pumping $7000 into that car. Dh said something about leasing, I've never done it as my dad was anti leasing, so I know nothing of the proecess. Help a girl out, please? I have leased twice and will never do so again.  You MUST pay out of pocket for all recommended maintenance on schedule.  Whatever is in the service manual, you must get it done on time at your cost . We've leased many times and have never been forced to do anything beyond getting an oil change. At the time of signing the lease, they usually offer a deal to get oil changes added into our payment and we always take them up on it because it usually adds around $1/month. Mileage will depend on what company you buy from, it varies between 10-12k/year. You can pay extra for more miles. The only time we've paid out of pocket for scratches/dents at the end of a lease was for a major scrape on the bumper that was totally my fault. The dealership will often have a guy on the side who will do the repair work for much cheaper than the lease company will charge you. If you need work done, make sure to ask them before you turn the car in. My dad was in the auto dealership business for many years before he passed away. His old employees cut us the best deal possible so we've continued to lease. At some point I wouldn't be against buying my van at the end of a lease and keeping it for a while because I drive so few miles. DH drives a lot for work so we prefer for him to be in a newer car. |
|
moodyblue
Drama Llama
Posts: 6,381 
Location: Western Illinois
Site Supporter
Jun 26, 2014 21:07:23 GMT
|
Post by moodyblue on Jan 17, 2017 13:09:01 GMT
Like anything else, this is a personal decision and the answer won't be the same for everyone.
Yes, the "cheapest" way to own a car is to buy a good used one and drive it until it dies.
Some people only want to pay cash and find making payments to be a huge negative.
Some people put on tons of miles each year.
Some people want to have a new car every few years and don't mind payments.
Some people don't want to deal with the repair issues or getting new tires or having the brakes done after years of driving a car.
I owned one car for ten years. I don't want to ever do that again.
I've never had to pay anything at the end of a lease for any damages.
I've never gone over mileage (was close to the limit only once).
Most times I've only ever had to pay for oil changes during the lease since anything else is usually under warranty.
When I leased from the manufacturer they usually wanted my car back early because they knew it would be in good shape.
You have to decide how you drive, what you want from a car and what works for your circumstances.
|
|
|
|
Post by Fairlyoddparent on Jan 17, 2017 13:09:55 GMT
I have never leased a vehicle because I put a lot of miles on my car. If that ever changes I would definitely look into leasing. There is nothing I like more than driving a new car. It's my weakness. I think it's because I drove junk cars until I was well into my 40's. Now driving a good car is a priority to me and I just assume that I will always have a car payment.
You've gotten some good advice here.
|
|
Loydene
Pearl Clutcher
Posts: 2,639
Location: Albuquerque, New Mexico
|
Post by Loydene on Jan 17, 2017 15:11:48 GMT
A long time ago a friend described leasing a vehicle via her corporation as "having a depreciating asset sitting in the driveway v. writing off those costs" (that is a paraphrase - the point being, her business was writing off the car payments. So -- potential tax implications should also be considered.
|
|
|
|
Post by **GypsyGirl** on Jan 17, 2017 15:47:10 GMT
We have leased several cars, as well as owned them. DH is not a candidate for leasing because he is a high mileage driver. I on the other hand am a great candidate because I average 7,000 miles/year. My current car is a lease and I've been very happy with the process. When the lease is up in December, I may well do another lease. After driving my last car for 12 years, I really enjoy having something new and reliable. Another big plus for leasing is that you stay on top of all the latest safety features. I didn't really realize how much car safety had improved until I traded in my 12 year old Expedition. You must pay out of pocket for all recommended maintenance on schedule. Whatever is in the service manual, you must get it done on time at your cost. This really depends on the car. When we leased a Mercedes we did have to pay the routine maintenance. Now that we lease a Lexus, all the maintenance is included. I am a worrier by nature and find that not having to worry about paying for car maintenance is a good thing for me. You pay for any scratch or mark that exceeds the extent of a credit card. Again, it really depends on the car manufacturer (as well as who is doing the inspection). Some places will offer an add on to the lease that allows you to have all those little scratches and dings repaired a month before you turn in the car. We had this with an Audi once. |
|
|
|
Post by myboysnme on Jan 17, 2017 16:29:00 GMT
We have leased several cars, as well as owned them. DH is not a candidate for leasing because he is a high mileage driver. I on the other hand am a great candidate because I average 7,000 miles/year. My current car is a lease and I've been very happy with the process. When the lease is up in December, I may well do another lease. After driving my last car for 12 years, I really enjoy having something new and reliable. Another big plus for leasing is that you stay on top of all the latest safety features. I didn't really realize how much car safety had improved until I traded in my 12 year old Expedition. You must pay out of pocket for all recommended maintenance on schedule. Whatever is in the service manual, you must get it done on time at your cost. This really depends on the car. When we leased a Mercedes we did have to pay the routine maintenance. Now that we lease a Lexus, all the maintenance is included. I am a worrier by nature and find that not having to worry about paying for car maintenance is a good thing for me. You pay for any scratch or mark that exceeds the extent of a credit card. Again, it really depends on the car manufacturer (as well as who is doing the inspection). Some places will offer an add on to the lease that allows you to have all those little scratches and dings repaired a month before you turn in the car. We had this with an Audi once. Yes, I edited my original post to reflect that it is possible apparently to get better leases than I did! |
|
|
|
Post by auntkelly on Jan 17, 2017 16:32:40 GMT
My husband has leased many vehicles and we have had no problems. If it was clear my husband was going to go over the mileage allotment, he called the company and negotiated buying more miles before the expiration of the lease. We've always found the price of the additional miles to be reasonable. We've never had to pay for any dents or scratches at the end of the lease.
I think leasing was a good decision for my husband because he liked to drive a newer car. I have never cared about driving a newer car, so I always drove cars which we owned. When my husband retired last year, we decided we would purchase all our cars in the future instead of leasing. It seemed like a better choice for us now that we are retired.
If you decide leasing is for you, it's important to actually read and understand the lease agreement. Don't let a salesperson pressure you to sign a lease agreement you have not sat down and carefully read! (Can you tell I used to teach Business Law? 😀)
|
|
smartypants71
Drama Llama
Posts: 5,992
Location: Houston, TX
|
Post by smartypants71 on Jan 17, 2017 17:51:28 GMT
My current car is leased. I am the perfect candidate in that I was buying a car every 2-3 years anyway and I drive very little. I leased my car in May and I have 4000k on my car right now.
|
|
|
|
Post by tuva42 on Jan 17, 2017 18:31:01 GMT
There is not a financial advisor out there who will tell you that leasing is a good idea financially. Buy a new car, pay it off in 4 years, then keep it for another 4-6 years. You are unlikely to have significant maintenance costs in the first 4 years, and for the next 4-6 years you will have no car payments, and your maintenance costs will be no where near the cost of a lease payment. During the 4-6 years you have no car payment, put that money into a savings account. Use it for maintenance, and to buy a car when yours gets too costly to maintain.If you lease a car, you will have a lease payment every single month until you quit leasing.
|
|
|
|
Post by librarylady on Jan 18, 2017 1:55:06 GMT
There is not a financial advisor out there who will tell you that leasing is a good idea financially. Buy a new car, pay it off in 4 years, then keep it for another 4-6 years. You are unlikely to have significant maintenance costs in the first 4 years, and for the next 4-6 years you will have no car payments, and your maintenance costs will be no where near the cost of a lease payment. During the 4-6 years you have no car payment, put that money into a savings account. Use it for maintenance, and to buy a car when yours gets too costly to maintain.If you lease a car, you will have a lease payment every single month until you quit leasing.  |
|
moodyblue
Drama Llama
Posts: 6,381
Location: Western Illinois
Site Supporter
Jun 26, 2014 21:07:23 GMT
|
Post by moodyblue on Jan 18, 2017 2:43:27 GMT
There is not a financial advisor out there who will tell you that leasing is a good idea financially. Buy a new car, pay it off in 4 years, then keep it for another 4-6 years. You are unlikely to have significant maintenance costs in the first 4 years, and for the next 4-6 years you will have no car payments, and your maintenance costs will be no where near the cost of a lease payment. During the 4-6 years you have no car payment, put that money into a savings account. Use it for maintenance, and to buy a car when yours gets too costly to maintain.If you lease a car, you will have a lease payment every single month until you quit leasing. I agree that this can be a great plan - but there isn't much difference between continuing to set aside the equivalent of your car payment and making an actual payment each month. Either way you still "have a payment." |
|
|
|
Post by bostonmama on Jan 18, 2017 4:28:54 GMT
We lease one car and own one. We always negotiate a mileage increase to $15k/yr as well as ALL maintenance included. I don't sweat the mileage, though, as we always call early about moving into another lease of a newer model. They are always very happy to have the car back to sell and have moved us straight into another car without ANY costs aside from just continuing our monthly payment as usual. So, yes, we've been paying $400ish a month for 8+ years for my vehicle, but we've not paid a cent beyond that for the car. The peace of mind alone is worth that (for us). Rough math puts our spending on lease payments around $40k, which is about what we would had paid outright for the car had we purchased it. I'm on my 4th new model, though. And I haven't paid any maintenance -- not a single oil change. For us, leasing is a definite win.
|
|
NoWomanNoCry
Drama Llama
Posts: 5,856
|
Post by NoWomanNoCry on Jan 18, 2017 4:48:22 GMT
This is all good info on both sides. We're thinking of leasing in the near future so this thread was helpful. Thanks OP for starting it.
|
|
|
|
Post by kajo1982 on Jan 18, 2017 6:20:40 GMT
I am currently leasing a car and I'm due to return it in September. For those that have leased before, when you go back to the same dealership do they usually give you the same offer you had before? They were offering zero down when we leased ours (we had to pay $900 for tax and licensing) and were wondering what the chances would be of us getting that same deal as I don't remember seeing it since we leased ours.
|
|
|
|
Post by gar on Jan 18, 2017 8:06:33 GMT
There is not a financial advisor out there who will tell you that leasing is a good idea financially. Buy a new car, pay it off in 4 years, then keep it for another 4-6 years. You are unlikely to have significant maintenance costs in the first 4 years, and for the next 4-6 years you will have no car payments, and your maintenance costs will be no where near the cost of a lease payment. During the 4-6 years you have no car payment, put that money into a savings account. Use it for maintenance, and to buy a car when yours gets too costly to maintain.If you lease a car, you will have a lease payment every single month until you quit leasing. If finance is your only criteria, that may make sense for you. |
|
|
|
Post by heltr on Jan 18, 2017 12:34:38 GMT
There are a couple of rules if you lease a car
1. Never, ever put any money down. If there is an accident and the car is totaled the money you put down is gone, you don't get it back. This includes any fees, charges etc. Roll them into the lease payment. This protects you from loss.
2. Understand how leasing works. You are financing the difference between the cost of the car and the residual (what it is worth at the end of the lease). The cost of the car is negotiable, the residual is not. Some cars hold their value better than others, so the cost to lease them will be less. Look for vehicles with high residuals.
3. Different manufactures offer different incentives (e.g. Lower interest rates or rebates). Shop for the incentives, or if the car you want doesn't have good incentives wait a month to see what the new offers are.
4. Be careful with the mileage allowance. Overage charges are typically about 20-25c/mile which can add up very fast.
5. Some brands include all scheduled maintenance. Factor that into your cost calculations
|
|
used2scrap
Drama Llama
Posts: 6,147
|
Post by used2scrap on Jan 18, 2017 12:41:59 GMT
All the people I've known who leased a vehicle have stated they would never lease again.
|
|
