OT: Leasing a car

[tom1944]

My wife and I are considering leasing our next car. We will be 67 and 68 and figured we would get a 4-year lease. We do not know what we want yet but I figured I would ask for some feedback on how the process works and what to consider.

We do have a small business so we could tie the car use to that if we wanted. We plan to keep the 2 older cars we have.

Is the basic concept you negotiate the value of the vehicle say $40,000 and also the value 4 years later say $20,000 and the monthly lease is $20,000/48 plus whatever additional costs like interest is calculated?

 

[rutgersal]

My wife and I are considering leasing our next car. We will be 67 and 68 and figured we would get a 4-year lease. We do not know what we want yet but I figured I would ask for some feedback on how the process works and what to consider.

We do have a small business so we could tie the car use to that if we wanted. We plan to keep the 2 older cars we have.

Is the basic concept you negotiate the value of the vehicle say $40,000 and also the value 4 years later say $20,000 and the monthly lease is $20,000/48 plus whatever additional costs like interest is calculated?

Leasing is terrible these days. Wouldn’t recommend it. But yes. You negotiate the capitalized cost of the vehicle. The value of the car four years later is the residual, which is fixed.
Leases are 36 months so your payment would be the 20000/36 + interest cost (rent)

Money factors , which are the interest rate, have been very high. Might be better off just buying outright, but it’s worth checking both options.

 

[ClassOf02]

If you’re definitely going the leasing route, negotiate the price of the car as if you were buying it outright or financing it. Then when you’ve agreed on a number, tell the salesperson you wish to lease. This can possibly reduce the difference between sale price and residual value (if you get a good deal….big if). The dealer will not like this approach at all, but it’s doable.

 

[yesrutgers01]

Correct to always look at negotiating the vehicle price as if purchasing. Just makes the entire process easier. I do not know if leases are good or not at the moment but many times- it just comes down to what works for you. And if you have 2 other cars- go for the lowest mileage plan

 

[Tango Two]

My wife and I are considering leasing our next car. We will be 67 and 68 and figured we would get a 4-year lease. We do not know what we want yet but I figured I would ask for some feedback on how the process works and what to consider.

We do have a small business so we could tie the car use to that if we wanted. We plan to keep the 2 older cars we have.

Is the basic concept you negotiate the value of the vehicle say $40,000 and also the value 4 years later say $20,000 and the monthly lease is $20,000/48 plus whatever additional costs like interest is calculated?

OT: Car Leasing Thread

any assistance will be appreciated

rutgers.forums.rivals.com

OT: Buying/Leasing a new car

I I know this is a good spot to ask . I was looking for the old thread on this , but didn’t see it with my search feature. Going to be in the market soon for a new ride . Usually buy a new car, treat it well and keep it at least 10 years. But not opposed to buying used or leasing this time...

rutgers.forums.rivals.com

OT: Auto Lease

Getting ready to lease a new car, how does one know if it's a good price? I absolutely hate the back and back song and dance of leasing/buying, but I also don't want to get taken to the cleaners with my monthly payments. I've heard about the 1% rule (monthly payment should be as close to 1% as...

rutgers.forums.rivals.com

 

[rubaseball78]

Leasing is terrible these days. Wouldn’t recommend it. But yes. You negotiate the capitalized cost of the vehicle. The value of the car four years later is the residual, which is fixed.
Leases are 36 months so your payment would be the 20000/36 + interest cost (rent)

Money factors , which are the interest rate, have been very high. Might be better off just buying outright, but it’s worth checking both options.

Leases can be 24 months, 36 months or 48 months. Most common is 36 months but I have had a couple occasions where the monthly payment was lower for 24 months. Have them run numbers for you at 24, 36 and 48.

 

[oldtimer67]

Thing to know:
-to the dealer there is no difference between a purchase and a lease. They are either selling the car to you or to the leasing/finance company. Dealers do not lease cars. The differences in price may come from differences in finance rate or commission from the leasing company. For you, you should get a lower payment with a lease, but you lose this in residual value as you generally have no value when you return your car. Best reasons to lease: 1- your company is paying the lease so residual value is not an issue, 2- you want a new car every 2 or 3 years and you can usually get a more expensive car for the same amount as the purchase payment. In either case, you can switch back to purchase any time you want. I just did this. After leasing for over 20 years, I realized I was getting close to my last new car. I purchased a nice car that I know will last at least ten years (even if I don't). So far I have not mentioned one of the biggest factors. Miles driven. Leases pretty much work well for only low to average range drivers. Penalties for exceeding the mileage limits in the lease are large, this is a good reason to purchase instead of lease if you drive more than about 12,000 miles per year.

 

[bwrlaw]

My question is how long would you keep it. Lowest payment would be to finance for longest time. If you put on a low amount of miles you should buy. If you want a new car every few years leasing would be cheaper most of the time

 

[yesrutgers01]

Thing to know:
-to the dealer there is no difference between a purchase and a lease. They are either selling the car to you or to the leasing/finance company. Dealers do not lease cars. The differences in price may come from differences in finance rate or commission from the leasing company. For you, you should get a lower payment with a lease, but you lose this in residual value as you generally have no value when you return your car. Best reasons to lease: 1- your company is paying the lease so residual value is not an issue, 2- you want a new car every 2 or 3 years and you can usually get a more expensive car for the same amount as the purchase payment. In either case, you can switch back to purchase any time you want. I just did this. After leasing for over 20 years, I realized I was getting close to my last new car. I purchased a nice car that I know will last at least ten years (even if I don't). So far I have not mentioned one of the biggest factors. Miles driven. Leases pretty much work well for only low to average range drivers. Penalties for exceeding the mileage limits in the lease are large, this is a good reason to purchase instead of lease if you drive more than about 12,000 miles per year.

The big difference is that leasing can be confusing for some consumers and the dealership plays off the monthly payment and it makes it much easier for a shady sales person to over price it.

 

[yesrutgers01]

My question is how long would you keep it. Lowest payment would be to finance for longest time. If you put on a low amount of miles you should buy. If you want a new car every few years leasing would be cheaper most of the time

The other benefit with a lease for some is that you are never out of warrantee.

 

[Armor and Sword]

This may be for the EV thread, but I wonder if you are going to get an EV if its better to lease one through some of the deals announced by the car makers because a number of models are depreciating so quickly.

 

[Scarlet4Shore]

This may be for the EV thread, but I wonder if you are going to get an EV if its better to lease one through some of the deals announced by the car makers because a number of models are depreciating so quickly.

I don't know numbers, but my brother leased a Rivian SUV in May. Said he got a much better deal leasing than buying.

 

[T2Kplus20]

I don't know numbers, but my brother leased a Rivian SUV in May. Said he got a much better deal leasing than buying.

I believe for some reason, if you lease an EV you get a bigger gov'ment rebate/credit. No idea why.

 

[Extra Point]

Would it make more fiscal sense to buy a car and then sell it after a few years? With a couple of old cars there wouldn't be a lack of transportation inbetween the sale and the purchase of a new car.
What happens if you get in an accident with a leased car? After paying to repair it, is there any other financial loss in the lease?

 

[Extra Point]

I believe for some reason, if you lease an EV you get a bigger gov'ment rebate/credit. No idea why.

To me it makes sense to lease an EV. Not sure if anyone would want to buy a used EV and risk getting stuck with swapping out the batteries.

 

[rutgersal]

Would it make more fiscal sense to buy a car and then sell it after a few years? With a couple of old cars there wouldn't be a lack of transportation inbetween the sale and the purchase of a new car.
What happens if you get in an accident with a leased car? After paying to repair it, is there any other financial loss in the lease?

The past few years it might have made more sense to buy and sell after a few years because the market value of the cars held up very well. It might still be better to buy because leasing has become terribly expensive due to the interest rates. What was a 600 lease pre covid has become a 800-900 lease post COVID. If you get into an accident with a leased car you get it repaired just like a regular car. If the car is totaled, very important to have gap insurance, which will pay the difference between the value of the car and the check that insurance cuts. Some people sue for diminished value, if they can, as the car is worth less after being in an accident. But you can’t do that if you have a lease, because the finance company owns the car.

 

[Armor and Sword]

I believe for some reason, if you lease an EV you get a bigger gov'ment rebate/credit. No idea why.

Leases "qualify" for the full $7500 rebate because of a loophole in the law establishing the rebates for EPA eligible vehicle purchases based on the country of battery manufacture and component sourcing. The law was silent on leased vehicles so any leased EV qualifies now. For example, the 2024 Kia or Hyundai e-vehicle don't qualify for $7500 if you buy them, but you get the $7500 if you lease it in form of lower monthly payment or down payment. Also, most of the manufacuters are adding significant lease cash to the EVs in addition to the $7500 to get them off the lots.

 

[toby83]

If you’re definitely going the leasing route, negotiate the price of the car as if you were buying it outright or financing it. Then when you’ve agreed on a number, tell the salesperson you wish to lease. This can possibly reduce the difference between sale price and residual value (if you get a good deal….big if). The dealer will not like this approach at all, but it’s doable.

evidenced by dealer's first sentence at beginning of every lease negotiation "what are you looking to pay per month"

 

[Plum Street]

evidenced by dealer's first sentence at beginning of every lease negotiation "what are you looking to pay per month"

“As little as possible “

 

[letitrip2]

Leases "qualify" for the full $7500 rebate because of a loophole in the law establishing the rebates for EPA eligible vehicle purchases based on the country of battery manufacture and component sourcing. The law was silent on leased vehicles so any leased EV qualifies now. For example, the 2024 Kia or Hyundai e-vehicle don't qualify for $7500 if you buy them, but you get the $7500 if you lease it in form of lower monthly payment or down payment. Also, most of the manufacuters are adding significant lease cash to the EVs in addition to the $7500 to get them off the lots.

And the income limitations do not apply to leased EV's. Just picked up a Model 3 on lease for a total 3 year price that is cheaper then a stripped down Camry or Accord. And since it was delivered in September no sales tax and the NJ EV rebate of $2000 was also applied. Best deal out there right now.