(Cloud9 @ Apr. 25 2007,10:20) We lease a lot of cars and the wife in in the leasing business...
1. NEVER put any money down on a lease you are pissing it away; they will always try to get you to put money down, but don't follow them. Be stern and tell them you can't put anything down.
2. DON'T buy extra miles. Buying miles up front will be lost if you are in a car accident and the car is totaled, not to mention you can trade in your lease anytime you want as long as you are not upside down on it.
3. Make sure you lease a car that will HOLD its value. If you lease a cobalt or neon for example, you will NEVER be even close to upside right on it, the value will fall through the floor and you may not have any option other then to "try" to turn it back into the leasing company. When you turn the car back into the leasing company, it has to be damn near perfect or they start charging you an dit ain't cheap.
4. If you are going to buy the car in the end, DO NOT lease the car first even though the payments are cheaper up front. If you lease the car and turn around and take out a loan on that vehicle to buy it in 3 years, you will be paying a very large sum of money for that car that wasn't worth half what you just paid for 10 years.
5. Most leasing companies state in the leasing contract you CANNOT take the car out of state. Although you may choose to anyway, it is still in the contract...
6. Make sure you can afford the car you get; I am amazed how many people lease a car that is way above their head. Make sure you can afford it up front because you are going to be stuck with it for a while...
7. Shorter leases are safer then longer leases. You can lease the car for up to 5 years, but hte odds of you being able to turn it back in with exact mileage and no damage in 5 years may be unlikely.
8. Make sure you negotiate the PRICE of the car. Although you may not think you are buying this car, you really are and the price of the vehicle makes a difference in your payment and in the payoff value you will owe in 2-5 years. When you go in there, negotiate like you are buying it for yourself because you will be kicking yourself if you don't...
Leasing is not a bad way to go. As long as you know what you are doing and protect yourself, you will be fine...
Cloud
Wow, thanks Cloud. That's a lot of good advice. Very appreciated.
1. Every lease I've seen has stated around $1,500-2,500 down. I assume by doing this I would simply be making an advance payment in order to keep monthly payments lower and LOOK more appealing when in truth I could pay that same amount to the dealer over time although my mo. payments will be higher.
2. My office commute would be 40 miles total a day plus meeting clients around town. 12,000 miles would give me 230 miles per week for the 52 week year and my wife and I have another car we OWN so we could utilize this car when it is not necessary to drive the leased car if mileage becomes an issue.
Trade in lease anytime? Is this as long as I replace w/ a purchase or new lease of equal value from the same dealer?
3. Looking at reputable 4-door sedans around $25-30k MSRP...should stay upside right. Also, I keep my cars in good condition. I'm an excellent driver.
4. Plan on leasing about 36-39 months and be rid of at the end of that time.
5. Out of state should not be a concern, especially if mileage is involved.
6. Budgeting will come into play...will likely have to sacrifice "unnecessary" services like having someone doing our house cleaning until additional income is provided. This will be hard because I typically get all the bells and whistles. Just have to remind myself I will be trading this car back in so I have to look at what options are priority.
7. Yep, 36-39 months likely.
8. Thanks for re-inforcing this. I'm waiting to see the look an a car saleman's face when you tell them you decided to lease after all. Car dealers are shady w/ hidden fees (generalizing) so I don't feel bad about playing their game. Not to mention I've been involved insales relations for over 10 years so it's pretty easy to spot the BS tactics..."Let me talk w/ my manager again and see what I can do for you" (back and forth 5 times).
