tryan
Thinks s/he gets paid by the post
- Joined
- Mar 25, 2005
- Messages
- 2,604
... the mileage restriction is the killer. A leased vehicle would be sitting in my driveway by Nov. I would need a junker to drive at the end of the year.
... the mileage restriction is the killer. A leased vehicle would be sitting in my driveway by Nov. I would need a junker to drive at the end of the year.
Don't overthink this. Salesman get higher compensation for the lease, which means the margins are way higher, Which means it inefficient for the consumer, all things equal.
Sent from my iPhone using Early Retirement Forum
I dont know all the answers, not being in the car business, but I could ask the same question about buying a car. How do they make money selling it at invoice or a few bucs over invoice? I'm sure there's rebates from the manufacturer for volume selling or whatever.
Everything considered, I'm a leaser for life.
NEVER put more than the minimum down on a lease. Ever.
If you wreck that car driving it out of the dealership, the $4500 is gone.
Roll as much as possible into the payment. Put the $4500 into a bank account and draw down from it to make the payment lower.
There is a great episode of This American Life where they follow a car dealership for a month. One of the main points was that if the dealership can hit the manufacturer's (somewhat arbitrary) quota for the month, they will make a profit. If not, they don't. I highly recommend giving it a listen here. My conclusion is to always by a car near the end of the month. Those guys are doing crazy things to hit the quota.
That's exactly why leases exist...they hook some people for life and have them convinced that it's a good deal to repeatedly pay 40% for the first 3 years of a product with a 12 - 15 year life span.
When we asked the salesman at another time when we went in for service, he said that it was the car that made the quota.... and the date of his sale was a few days earlier and there was no other car they could get into the prior month... so they just discounted the car until his credit went through and he could buy the car.... dated 3 days earlier....
Lease a new 2015 Toyota Venza for just $214 a month. 36 Months -month closed end lease on Venza 2015 Models 2820. $2,999 due at signing which includes first month’s payment of $214, acquisition fee of $650, customer capitalized cost reduction of $4025, security deposit of $0, and assumes $1890 lease bonus cash direct from Toyota is applied to due at signing. Lease vehicle includes the following optional equipment: 50 State Emissions, Carpet Floor Mats. $25345.84 adjusted capitalized cost assumes dealer participation, which may vary. MSRP $31540 includes destination charge. Your payment may vary depending on final price. Base monthly payment of $214 does not include tax. Taxes, license, title, insurance, regionally required equipment, and other dealer’s charges are extra, and are not included in the amounts shown. Excludes $350 disposition fee due at lease end. Lessee pays maintenance, excess wear and tear and $0.15 per mile charge for all mileage over 12000 miles per year. Lease end purchase option $17662.40.
You said you could get it for $40,000. I said Edmunds true market price is $46,218. Looks like my price is a lot more realistic. No way you're getting a few grand lower. A few hundred sure. You might even get him down to $45,500. I'd be shocked if he would sell it lower than that.
I also got 3 years of free maintenance thrown in.
If you wreck the car driving out of the dealership you're going to be upside down no matter if you bought or leased or how much you put down.
You're statement is the same as saying never pay cash for a car.
Yeah, your maintenance isn't 'free', but included in the deal. Minor point perhaps, but still...
Sent from my mobile device so please excuse grammatical errors.
Smallish observations:We only drive about 10,000 miles a year and the lease allows me 12,000. All in, then lease sounds like a sensible deal to me. What am I missing?
Smallish observations:
-- If I own cars, I don't much think about what the odometer reads. If I want to drive cross country to see someone, I have the freedom to do that without concern that I might cross some imaginary hard line and have to start paying somebody a special charge.
-- Flexibility at the endgame. If we have high unforeseen expenses (big medical bills, etc), I'm going to want to cut back somewhere else to make ends meet and avoid selling off too many assets and putting myself in a higher tax bracket. Similarly, if the market has crumped, I may want to reduce my withdrawals a bit for a few years to give assets a chance to recover. Or maybe there's a new model of some car I'd really like, but it won't be here for another year. In all these cases, if I own my vehicle I can just ask it to soldier on for another year or two without the hassle and expense of buying/leasing another car.
-- Again, another small thing, but a car I've owned for awhile has more value to me than another used car of similar stated value. If I've driven and maintained a car I know how it has been used and cared for, know its quirks and how I fixed them last time, etc. That's valuable information. If I buy a "replacement" used car (same model, same year), I'm starting with more uncertainty, and that makes it worth less to me. This argues in favor of owning rather than leasing, because I really can't obtain a similar replacement car at the end of the lease period for the stated retained value of the lease car.
I knew this would turn into "I dont like leases because...xyz". This is my first lease and I wont know for a while if I will do it again or not, but the purpose of the thread was to show that leasing and buying (with the full intention of selling or trading in 3 years) cost about the same. In fact leasing tends to be cheaper. If you don't like to lease for any number of reasons, I can see that, but it shouldn't be because it costs more. Ive heard for years that leasing costs too much because you are paying for a car you will never own but Ive shown that's false.
Again, this only applies if you know you want a brand new car every 3 yrs or so.
Smallish observations:....
+1....
I knew this would turn into "I dont like leases because...xyz". This is my first lease and I wont know for a while if I will do it again or not, but the purpose of the thread was to show that leasing and buying (with the full intention of selling or trading in 3 years) cost about the same. In fact leasing tends to be cheaper. If you don't like to lease for any number of reasons, I can see that, but it shouldn't be because it costs more. Ive heard for years that leasing costs too much because you are paying for a car you will never own but Ive shown that's false.
Again, this only applies if you know you want a brand new car every 3 yrs or so.