Posted on 12/14/2018 11:44:59 AM PST by rintintin
Knowing how to lease a car is important - that knowledge will get you the best deal at the best price. But just as important is knowing when the time is right to lease a car, truck or SUV.
That's right - timing can be everything in a vehicle leasing deal. If you can get both the knowledge and the timing down pat, chances are you'll walk away with a great auto lease deal.
The fact is that most consumers have little idea how leasing really works, what some of the hidden costs are, or how to land the best deal. Additionally, many people who lease their cars are overpaying because they didn't fully understand the concept of leasing, so they're not equipped to make a better deal (or to recognize a bad deal).
The good news is that auto leasing does make sense in many situations (especially if you're looking for low upfront and monthly payments costs.)
(Excerpt) Read more at thestreet.com ...
What most people may not know is that a car dealer doesn't really lease you a vehicle at all. They work out a deal to sell the car to a third-party leasing agent who then leases the vehicle to you.
Leasing makes sense if you are a business owner who writes off the cost of the vehicle and replaces it every 3-5 years. It makes absolutely no sense if you intend to keep it for a long time.
Never a good idea unless you are the leasing company.
Also, there was a quote from the article I found funny: When you lease a vehicle instead of buying one, you build no equity in the deal.
There is no such thing as "building equity in an auto. Its a depreciating asset from day one. Its overall value is dropping constantly.
Leasing is great if you plan never to drive the car. They nickel dime you on every nick, scrap and bug tar. And don’t even think of putting any mileage on it.
FLEASING (intentional misspelling) at our house.
I was shopping for a car last year, and when I worked the numbers, leasing then buying the car was considerably cheaper than buying and financing. But it was a “manufacturer’s special” online deal that the dealer was obviously not particularly interested in promoting (when I demanded to see the car from the online ad versus what they wanted to show me on the lot, they brought it out with bird crap on it!).
I disagree. We have leased at least one new car every three years starting about 1996. My leases are covered under full warranty for the duration of the lease, I pay less per month than a purchase auto loan, even at my low-cost credit union rates. Not to mention that I get a new car every three years. Leasing is not for everybody, true, but if you purchase a new car (even for cash), the moment you drive it off the lot you’ve already lost money on the deal.
The only way to get a good deal on a car is to buy one that is just off-lease, if it’s a certified pre-owned used car (CPO). An off-lease car is usually relatively low mileage, often well taken care of, and the new car depreciation has been absorbed. Many CPOs, like BMW, MB, Audi, etc., and others offer a good CPO warranty for anywhere from 3-4 years after purchase.
Just my $.02.
The fact is that most writers for TheStreet.com have little idea how leasing really works, too.
May be true in some cases, but if you find a make and dealer that you like, that’s not a problem. My experience is that if you have leased more than one car over the years you typically get a free mileage margin of up to 7000 miles (Acura for instance). I’ve never been charged a dime for tires or door dings, or minor scrapes.
Some cars, like the Bugatti Veyron, actually increase in value 2-3 years after they were sold as new.
All I have to do now is to convince the local Bugatti dealer to lease me a Chiron, and not only will I get to drive the car for three years, the lease should pay me!
Never a good idea unless you are the leasing company. <
Every last time I’ve gone into a car dealership, the salesman has tried to push me into a lease. That’s strong evidence that you are right.
Re: Leasing is better for businesses than individuals unless the individual wants a new vehicle every 3 years, yada, yada, yada
Says who?
Dumb statement. Owning assets that decline in value sucks regardless of it’s a business (or personal). This is the key reason for leasing. Let the leasing company eat the loss.
Leasing isn’t just for cars. Until taxes are cut way more than current levels (or losses become more deductible), leasing will make a lot of sense if you anticipate that your equipment or autos/trucks will fall in value.
I did not invent this. It’s business 101
Or drive a lot of miles.
If you think that leasing companies operate at a loss, then I’ve got a bridge in Death Valley to sell you, LOL.
I read through the first paragraphs you posted and learned nothing. That’s not your fault. So many articles take forever to say what their headline promises us.
This might have been a better way to word that statement:
When you lease a vehicle instead of buying one, you retain no equity in the deal.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.