Any of you guys lease a vehicle? Thoughts?

Discussion in 'The Pub' started by billyg121, Feb 14, 2015.

  1. billyg121

    billyg121 Supporting Member

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    Went car shopping today with my wife. The salesman , who seemed like a cool, no pressure guy, was explaining to me about leasing a car and how it is structured so much better now than it used to be. He said banks have to preset the value the car will be when the lease expires, etc. anyway, just thought I would see if any of you lease, and your thoughts in it? Thanks a bunch guys!
     
  2. AaeCee

    AaeCee Member

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    I always lease these days. It's a minimal money down, care free, maintenance covered, value guaranteed way of owning a car for a few years, and you get to turn it in for another new one as soon as the lease expires.

    The best part is that more expensive cars can actually cost you less due to their high residual values. I've been leasing E class Mercedes for the last ten years, and my lease payments are lower than other cars costing $10,000 less because of its high residual.

    Another benefit is that if you're in an accident and have it repaired to spec, you never have to worry about selling it at a depreciated value due to the damage record. The residual does not change.

    The only caveat is that if you put on a lot of miles, it may not be the best choice. I do < 12,000/year, so it works out very well for me.

    And BTW, the best deals come when there are special 'factory sponsored lease' rates available. If you wait a bit, they always show up for most fairly popular cars.
     
  3. billyg121

    billyg121 Supporting Member

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    Cool. The lease I looked at only had 10000 miles per year. Although we prob don't drive much over that.
     
  4. AaeCee

    AaeCee Member

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    But even if you go slightly over, you can write in a clause so the cost is minimal.
     
  5. bgmacaw

    bgmacaw Member

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    I used to lease back during the dotcom era. It was nice having two new $35K vehicles in the garage. Making car lease payments that equaled my mortgage payment, that wasn't nice at all, especially when the bottom dropped out of the economy.

    Outside of a few business uses leases don't make good financial sense. But, then again, neither does getting a 7 to 8 year loan on a new car. My recommendation is to buy a good used car, preferably for cash, and make a car payment every month to yourself that goes into your savings. Of course, this means you won't get a shiny new car.
     
  6. billyg121

    billyg121 Supporting Member

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    That's kind of how i explained it to my wife also. If we are going with the all in budget Dave Ramsey frame of mind, we should not lease. We should buy 2 used cars. If we ever want the pleasure of affording a newer vehicle. the Thought of really no maintenance cost , about the same payment as buying a used vehicle half the price, and the general reliability of having a new car...that all sounds great. Now just to research and weigh my options. And hear what you guys have to say, of course.
     
  7. jcmark611

    jcmark611 Member

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    I think their is a simple way of looking at it.

    If you can afford it, then it is a good deal. The big issue is what you do in 3 years when you have nothing. If you can overcome that, then there's no reason not to do it.
     
  8. billyg121

    billyg121 Supporting Member

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    Whoops sorry AZ...I should have bumped one if those. Thanks for gathering those links.
     

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