Leasing vs. Buying
- Thread starter Flyn
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i just know dealers around here aren't giving out nada trade prices on trade ins.
Oil changes are every 10k miles with synthetic blends according to the Ford Escape manual..... $50 for "The works" at the Ford dealership which is oil change with synthetic blend, tire rotation, etc...
I just do one per year on mine and still never come close to hitting the oil change light, but I average only like 5-6,000 per year.
I never really understood leases though so I'm going to pay attention to this thread for sure. I think with the insanely low miles I put on that I like to own the car because once it's paid off it'll have like 35,000 miles only and I can drive it for a long time, but a new car every three years would be nice as well.
I lease cars for my wife as she doesn't drive a ton. A few tips:
-Search the LeaseHackr forum for deals to get an idea on the process and see what others are paying
-Use the 1% rule which is if the payment is 1% of MSRP. That should be a starting point.
-MF and Selling price is negotiable. Search Edmunds for the MF to make sure the dealer isn't charging extra.
-Find the car you want exactly down to the specs, lease terms, and start calling dealers in your area.
-I never put anything down and include taxes/fees in the lease, so essentially I pay the first month and IL registration when picking up.
For me, leasing is worth it as I am not doing any maintenance and getting modern cars with the most current safety features which is important to me with the kids.
-Search the LeaseHackr forum for deals to get an idea on the process and see what others are paying
-Use the 1% rule which is if the payment is 1% of MSRP. That should be a starting point.
-MF and Selling price is negotiable. Search Edmunds for the MF to make sure the dealer isn't charging extra.
-Find the car you want exactly down to the specs, lease terms, and start calling dealers in your area.
-I never put anything down and include taxes/fees in the lease, so essentially I pay the first month and IL registration when picking up.
For me, leasing is worth it as I am not doing any maintenance and getting modern cars with the most current safety features which is important to me with the kids.
Oh and search for lease incentives which apply. Also, I've seen guys leasing loaners from BMW and getting crackhead deals on low mileage loaners.
https://forum.leasehackr.com/t/bmw-440i-loaner-310-after-ca-tax-0-das/137436
https://forum.leasehackr.com/t/bmw-440i-loaner-310-after-ca-tax-0-das/137436
To me what it comes down to is forfeiting any equity in the vehicle in exchange for a lower monthly payment.
The only place lease makes sense to me is lease vs buy in a massively depreciating vehicle like a luxury car.
Something like a rav4, for a person who uses a car like an appliance, it makes no sense to lease.
The only place lease makes sense to me is lease vs buy in a massively depreciating vehicle like a luxury car.
Something like a rav4, for a person who uses a car like an appliance, it makes no sense to lease.
and on that note, IMO, it makes even more sense to go CPO if you "want/need" a warranty and something new-ish.
They hold value so damn well, I’d jump for a new one with better financing rates (usually) or incentives. I’d really have to look at the prices and market at the time i was shopping. Just a hunch that it’s only a few grand of price difference between a 1-2 year old 30k mile or less car of the civic/Camry/rav4 flavor.
What I like about leasing is that if you like the vehicle you leased you can refinance and keep it, if the leased vehicle is a warranty nightmare hand the keys back and walk away.
As stated you can get a few trim levels up and still pay less the if you were to do a loan for 60 or 72 months.
Low down payment is also nice when leasing.
When leasing the manufacturer will usually break your lease about 6 months early and get you into a newer year or different model.
Leasing prices are also determined on the residual value of the vehicle, that’s why the German cars lease so well, and a good amount of high end bmw, mbz, Audi are mostly leased.
When I worked for Bentley customers would always lease and never buy.
Also look into one time payment on leases, had a friend do a one time lease payment a 2019 Chevy equinox for 24 months 10k miles per year
As stated you can get a few trim levels up and still pay less the if you were to do a loan for 60 or 72 months.
Low down payment is also nice when leasing.
When leasing the manufacturer will usually break your lease about 6 months early and get you into a newer year or different model.
Leasing prices are also determined on the residual value of the vehicle, that’s why the German cars lease so well, and a good amount of high end bmw, mbz, Audi are mostly leased.
When I worked for Bentley customers would always lease and never buy.
Also look into one time payment on leases, had a friend do a one time lease payment a 2019 Chevy equinox for 24 months 10k miles per year
I agree with everything you said...except that german cars lease well. The money factor on german cars is incredibly high because they depreciate so terribly.
For example the money factor on an E class benz comes out to almost 5%...that's crazy.
Agree on the German side of residuals, they do suck, but all of those German brands do have some killer lease deals for sure, especially at the end of the year where MBZ and BMW are trying to out sell each other for most sales.
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