Corpsmaide
Cleared for Takeoff
Thoughts. Good bad. Never ever payed attention to what this actually is. Experiences please.
After working the line, never bought new, never done a lease.
So, used the year before?
I've been buying 2-3 year old lightly used cars for years. Last year, my 1989 Saturn was showing signs of becoming unreliable even though it had only 50k miles on it. Died on me twice on the freeway, mech couldn't figure out the problem...intermittent electrical probs.
Looked for a 2-3 year old car, geez, they are almost as much as a new car! Ended up with a really good deal on a new one that will probably be my last car.
Under current tax law, I have never leased a car and probably never would.
This.Leased once, never again. If you always buy new, and never drive it more than two years before trying to sell/trade up to new again... then leasing might be for you. Otherwise, no. And the best plan is to check the bank account and buy whatever you can with what's sitting there. That's worked best for me.
And this.Renting, I mean leasing, a car is THE most expensive way to use a car. Do the math yourself. If it was such a great deal leasing companies would be out of business.
A car with 20k or less on the clock is the same as a new car.
John, with today's electronic speedometers and odometers, is there a way for the new car dealerships to tell that the lease customer (or trade-in customer) has "clocked" the vehicle with a replacement instrument cluster?
I will get phone calls from customers requesting instrument clusters for vehicles within 4 years of current model with the requirement of "it must be 'x' miles or less". While I will make the deal/sale if I have the item, I've always been suspicious of their need.
Thoughts. Good bad. Never ever payed attention to what this actually is. Experiences please.
As stated, if you rarely drive it, and you absolutely, must, have a new car every 2 years, then I suppose it makes sense.
Me? I buy new, and then drive them to the ground. I keep them at least ten years, and put at least 200,000 miles on them.
John, with today's electronic speedometers and odometers, is there a way for the new car dealerships to tell that the lease customer (or trade-in customer) has "clocked" the vehicle with a replacement instrument cluster?
I will get phone calls from customers requesting instrument clusters for vehicles within 4 years of current model with the requirement of "it must be 'x' miles or less". While I will make the deal/sale if I have the item, I've always been suspicious of their need.
So, used the year before?
Honda was advertising $39 a month think it was 2,000 grand down and 12k miles a year. You would also be on the hook for full insurance. Never leased myself, obviously they make money doing it though seems it might work well for some. Have noticed lease deals seem to vary greatly by locale.
Used is just a legal term, after you sign the paper in the F&I guys office it's used.
Brass tacks, you buy "new" drive off the lot in a used car.
But a certified pre owned, get a killer warranty, plus the factory one, pay less and get the same car.
A car with 20k or less on the clock is the same as a new car.
2-3 years old is typically the best buy, but sometimes year old deals can be found that are good. Most people are upside down in their cars for the first 3 years though, 4.5 with the 7 year financing now available.
Really, when dealing with personal cars, the differences are pretty irrelevant. You drive what you want and buy the year you can afford.
Yep. Let someone else take the depreciation hit, then swoop in and get a deal. Leasing privately doesn't really make sense, and neither does buying new, unless it's an exotic or something.
Depends on the car and how smart the buyer is
I've seen plenty of people be OK and not upside down at all buying pre owned toyota, Honda, lexus, Acura, Vette, wranglers, etc.
When I sold cars if someone came in with a somewhat new ford car or Mitsubishi and wanted to trade it in, it was near impossible to dig someone out of a focus or lancer.
Yep, your car depreciates 30% the minute you drive it off the lot.
Good information.As our resident new car dealer, I will make my comments on leasing:
1. We only lease 2-4% of our new sales, so it is not big in my market or my dealership.
2. Long term leases, 48+ months are almost never a good idea, maybe for a business, but still not a good idea in most cases.
3. Shorter term 24-36 month leases can be a good deal, IF you like new vehicles fairly often, you seldom ever pay a vehicle off, your driving habits are consistent with the mileage offered by the lease.
4. Manufacturers captive leasing companies usually offer the best lease payments as they are incentivized by the manufacturer, similar to 0% interest.
5. Manufacturers push leasing as a way to get you to buy new every 2-3 years, and for folks who normally do that anyway it CAN be a good way to go. But, it needs to be done with open eyes as to the lease end valuation and your options at lease end.
6. From a personal perspective, I am only a fan of leasing when it works out to a much cheaper payment vs buying. Ford has some great lease offers on the 2015 F-150 and it makes them a good bit more affordable versus a 60 month buy.
7. Be aware of the tax laws in your states, Georgia is very lease un-friendly, the sales tax of 7% is charged on the price of the vehicle vs the monthly payment and it really jacks up the lease payments.
I am sure some will pick this apart and that's all fine and dandy, just thought I'd throw out my perspective.
Leasing is rarely a good deal. It preys on those who want to drive new cars for short terms and don't have the money for a down payment. In fact, you can almost always do better structuring a loan with the backend balloon and do the same thing at a better price in today's marketplace.
About the only time it makes any sense is in certain business situations where it becomes preferable to purchasing capital outright.
Depends on the car and how smart the buyer is
I've seen plenty of people be OK and not upside down at all buying pre owned toyota, Honda, lexus, Acura, Vette, wranglers, etc.
When I sold cars if someone came in with a somewhat new ford car or Mitsubishi and wanted to trade it in, it was near impossible to dig someone out of a focus or lancer.
It's an event that still baffles me to no end.
We Americans spend lots and lots of time looking for an opportunity to spend some money and generate a positive return.
But then we so readily sign an purchase contract for a vehicle that loses a massive amount the second we put our name on the dotted line.
Leasing is rarely a good deal. It preys on those who want to drive new cars for short terms and don't have the money for a down payment. In fact, you can almost always do better structuring a loan with the backend balloon and do the same thing at a better price in today's marketplace.
About the only time it makes any sense is in certain business situations where it becomes preferable to purchasing capital outright.
To get a decent lease you need excellent credit. You also need to, in many instances , come up with a substantial down payment if it's a luxury car. We like new cars, we are always under warranty and don't drive high miles. It would not work if I were on the road racking up high miles. We also have good driving records. It all adds up.
To get a decent lease you need excellent credit. You also need to, in many instances , come up with a substantial down payment if it's a luxury car. We like new cars, we are always under warranty and don't drive high miles. It would not work if I were on the road racking up high miles. We also have good driving records. It all adds up.
Typically to get the advertised lease payment you need a certain amount down, I think 10% is the highest you can advertise in Georgia. The difference in payments is almost dollar for dollar the amount of the down payment divided by the number of months. I don't encourage big down payments, it's really fooling yourself. You are paying up front vs paying it monthly.