fact or fiction: lease question
#16
09-13-2006, 02:24 PM
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When you lease a car, you have to negotiate the selling price exactly like you were buying it! There is no difference in that aspect. Leasing can be simply defined as you are paying for the depreciation of the car for 2 or 3 years depending on your term, PLUS interest on the depreciation. Once you understand this, the rest comes easy to understand.
I have never leased before, I am very much leaning toward leasing my next car. The reason I see is that, in these days, the residual value in leasing is better than your trade-in(resale) value, regardless of the make of the car. My only hesitation is the mileage, I average 15 to 17K a year.
I have never leased before, I am very much leaning toward leasing my next car. The reason I see is that, in these days, the residual value in leasing is better than your trade-in(resale) value, regardless of the make of the car. My only hesitation is the mileage, I average 15 to 17K a year.
#17
09-13-2006, 02:55 PM
If you trade the car in for another, the miles only matter in your trade value. There is no additional fee unless you decide to find another way home after dropping off the keys. I also sold and leased many cars and have been on the purchasing and selling end of leases. Your insurance will be slightly higher on a lease but your monthly payment lower. Hope this helps.
#18
09-13-2006, 03:36 PM
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#19
09-13-2006, 11:19 PM
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Originally Posted by gramdacious
I leased my car and then purchased it and the overall cost was basically dead even. I sat down and crunched the numbers, and then had my Finance manager do the same. Assuming you get a good sale price, the costs after all's said and done are very similar.
Leasing is a great option and works for many but not all folks - I have leased half a dozen cars and all transactions came out OK. When I was over miles, I traded my leased car and negotiated with the dealer so that they would take care of turning the leased car in and help to pay any penalty. Lessees need to go in with their eyes wide open and fully understand the terms - and negotiate the price of the car just like they are buying it (as said previously).
Uninformed folks slam leases just like they slam adjustable rate mortgages, because they don't understand them or how to best use them.
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