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Hey guys,
I am wondering weather leasing a car would be better than financing it. I think most people would say finance but I have a friend of mine who worked in car sales for about 25 years and he said it would be the same thing with leasing slightly better choice. I just want to open up the topic for discussion what would you think? and why?
any input would be greatly appreciated. Thanks
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The first thing when considering leasing is to ABSOLUTELY know how many miles the vehicle will be driven during the lease term, for this you need to sit down with everyone that will ever be behind the wheel and realistically come up with a number of miles for the term. Don’t go another inch before toward a lease until this number is solid. Penalty sat lease end term are between 20 and 35 cents a mile over…adds up quick. When coming up with your number consider factors like moving or job changes that will hurt your number in the future.
Once you know your mileage you have to buy accordingly and you should be fine, keep in mind when a new car leaves the lot it is paid for, either by cash, a finance company or a leasing company. A good way to look at leasing is you have paid for part of a cars life cycle and the leasing company has paid for the rest and agreed to let you keep it for a certain amount of time and miles then give it to them so they can sell it. The lease company also expects only average wear so, if after a year your cars generally look like they were lived in and parked by Braille you might not want to lease.
Lastly, get a blank contract to read over a day before you make your final deal, look for hidden fees like acquisition fees and dispossession fees, these can add up and might just tip the balance toward a traditional finance.[quote=”Walt jr” post=118498]The first thing when considering leasing is to ABSOLUTELY know how many miles the vehicle will be driven during the lease term, for this you need to sit down with everyone that will ever be behind the wheel and realistically come up with a number of miles for the term. Don’t go another inch before toward a lease until this number is solid. Penalty sat lease end term are between 20 and 35 cents a mile over…adds up quick. When coming up with your number consider factors like moving or job changes that will hurt your number in the future.[/quote]
Sounds like a lot of headache. Rationing miles? Kind of like when people fuss over cell phone minutes (before “unlimited” became the norm) Plus, a plan always looks good on paper until the real world uses that paper to wipe it’s butt with.
Maybe just finance a car and not have to worry about rationing miles. At least then when it is paid off, you have something to show and sell (even if for very little like if something f***s up real bad). Or maybe something for the kids to wreck while they are updating their instagram and driving.
For that “average” wear, what if the car decides to defecate the transmission and you KNOW the lease company isn’t gonna take that hit. Plus with newer cars (that they lease out) you cannot really investigate the problems much cause they are still too new to tell.
Leasing might be bad news unless you are very well off. Just REALLY do your homework and don’t go by the advice of just one forum.
Leasing generally involves the term under the umbrella of the factory warranty, if your mileage is going to go beyond that I would consider packing a warranty in the lease payment to limit catastrophic costs. I own all my cars outright except for one which we lease, it is replaced every two to three years and I shop frequently online to keep myself educated on the best deals and promotions, it also helps to have experience in the industry and friends in the business.
Leasing is like filling a bucket with holes in the bottom, the car companies run water for a while and when it starts to fill they shut it off, suddenly they realize the level is very low and they panic and turn it up full blast…that is the time to get in. There have been times when they are willing to make up to six of your remaining payments just to sign you up, you have to be vigilant and ready to commit when the deal is right. People think the car market is a trap but it can be profitable if you know outside influences, for example, right now if you happened to have ordered a 2015 full size land rover you could get over sticker for it from a reseller…of course you would have had to ordered it eight months ago and “who knew”
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