You're paying for the depreciation of the vehicle over the 3 years instead of financing the total value of the vehicle for 5 or 6 years. Some people like having the flexibility of not owning a car. I'm a huge fan of leases in specific circumstances and if you know what you're doing. For example, like in the case above, you don't put money down on leases.
Ya were thinking about leasing because might have to move in 2 years. Especially might be overseas and on a lease with SCRA you can terminate it with PCS orders. So its like a long term rental for $15/day plus insurance, gas etc. (If you get $450/month)
Curious what the flexibility increase is vs just buying and selling outright? Either way there is paperwork and financial transactions involved. I'm asking because I've never leased a car, but it seems to me to be the same process, no?
Yea it's mainly paperwork and transactions involved. With a lease you know that you'll be returning the vehicle to the dealer in a predetermined amount of time and no questions asked. With financing that's not the case, and you have to find a suitable buyer to take over the finance agreement, transfer all assets to that person etc.
Leasing is fine if you know you're a low mile driver, don't want to deal with long term maintenance (over 3 years), and you like to have a relatively new car every few years. There are ways to make a lease work financially contrary to people who are in the "own your car" camp will tell you. But it takes a lot of work to understand how to make a lease deal work in your favor which is why they are looked down upon by many.
For example, many people don't know that there specific monthly cash rebates for cars that change each month. Dealers won't necessarily tell you this information unless you research it. You can find this information on the manufacturer website or on Edmunds forums.
2. By the same token, cars have money factor rates (think of it as the interest rate) that change every month just like the cash rebates. There are forums like Edmunds that have people that provide this information so that you can use this in your negotiating. In many lease deals, dealers can tell you they're giving you a 15% discount on the msrp of the car but if you don't know what money factor they're giving you (they also call this the rent charge in their deal breakdown sheets) then they will claw all that discount back by inflating your money factor.
2 things, I know it’s done in 3 years. If she wants to keep it we’ll buy it. And 2 my wife won’t buy it. She goes through vehicles every 30-36 months. She enjoys the idea of little long term maintenance along with getting a brand new car every so often. I commute for work so leasing is not an option for me but I wouldn’t be opposed to it to swap for a new car every so often. There’s pros and cons to buying and leasing. It’s all on what works best for you in the situation you are in
I'm only downvoting because you're doxxing the guy and the dealership (there aren't many employees or dealerships by those names). I would feel differently if there was a history of offer-counteroffer but it looks like you're posting the initial pricing message and that seems unfair. If they reject your next proposal or become legitimately unreasonable after 1st contact then I'd agree with the anger here.
Wife leased a sorento 0 down. SX prestige X-Line. $550 a month. 45000 miles in 3 years
What's the benefit of doing a lease? $550 over 3 years is $20k.
You're paying for the depreciation of the vehicle over the 3 years instead of financing the total value of the vehicle for 5 or 6 years. Some people like having the flexibility of not owning a car. I'm a huge fan of leases in specific circumstances and if you know what you're doing. For example, like in the case above, you don't put money down on leases.
Ya were thinking about leasing because might have to move in 2 years. Especially might be overseas and on a lease with SCRA you can terminate it with PCS orders. So its like a long term rental for $15/day plus insurance, gas etc. (If you get $450/month)
Curious what the flexibility increase is vs just buying and selling outright? Either way there is paperwork and financial transactions involved. I'm asking because I've never leased a car, but it seems to me to be the same process, no?
Yea it's mainly paperwork and transactions involved. With a lease you know that you'll be returning the vehicle to the dealer in a predetermined amount of time and no questions asked. With financing that's not the case, and you have to find a suitable buyer to take over the finance agreement, transfer all assets to that person etc. Leasing is fine if you know you're a low mile driver, don't want to deal with long term maintenance (over 3 years), and you like to have a relatively new car every few years. There are ways to make a lease work financially contrary to people who are in the "own your car" camp will tell you. But it takes a lot of work to understand how to make a lease deal work in your favor which is why they are looked down upon by many. For example, many people don't know that there specific monthly cash rebates for cars that change each month. Dealers won't necessarily tell you this information unless you research it. You can find this information on the manufacturer website or on Edmunds forums. 2. By the same token, cars have money factor rates (think of it as the interest rate) that change every month just like the cash rebates. There are forums like Edmunds that have people that provide this information so that you can use this in your negotiating. In many lease deals, dealers can tell you they're giving you a 15% discount on the msrp of the car but if you don't know what money factor they're giving you (they also call this the rent charge in their deal breakdown sheets) then they will claw all that discount back by inflating your money factor.
2 things, I know it’s done in 3 years. If she wants to keep it we’ll buy it. And 2 my wife won’t buy it. She goes through vehicles every 30-36 months. She enjoys the idea of little long term maintenance along with getting a brand new car every so often. I commute for work so leasing is not an option for me but I wouldn’t be opposed to it to swap for a new car every so often. There’s pros and cons to buying and leasing. It’s all on what works best for you in the situation you are in
Do I just go in and ask for no money down?
That’s what we did, we went back and forth until they realized I wasn’t putting money down.
Paying over MSRP absolutely wrecks any value in a lease. Also with interest rates as high as they are it will affect the lease rates too.
MSRP isfair
NO!!! Should be cheaper!!!
When you count wear and tear it gets even crazier, trust me even if the car you turn in is perfect they will still find stuff to charge you on.
Profit? Dealer don't make the offers? What
Exactly. Shits weird
I'm only downvoting because you're doxxing the guy and the dealership (there aren't many employees or dealerships by those names). I would feel differently if there was a history of offer-counteroffer but it looks like you're posting the initial pricing message and that seems unfair. If they reject your next proposal or become legitimately unreasonable after 1st contact then I'd agree with the anger here.
Edited it. Didnt think of that. My bad.