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Anyone have good tips on leasing a car? We're leasing virgins :)


HappyGrace
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We choose to lease and its been a positive experience. We don't have to worry about maintenance, we put low miles on the car, and have never had any issues. We started leasing about 6 years ago after having our van for about 7.5 years. We loved not having a payment but it seemed like everytime we turned around we had huge car bills. We traded that in for a Toyota Corolla for $199 a month and never looked back. That lease was for 3 years. We turned that one in for a Honda Civic-again $199 a month and that lease expires in December. W will be leasing again and would rather know we have a $199 a month payment versus a few hundred-to a few thousand dollar bill every few months. Not to mention that my van would shut itself off and it just was a safety issue. I don't miss that.

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My opinion it's that it's an extremely expensive way to have low monthly payments.

 

Agreed. We have a 2006 Caravan van (paid off).  We intend to run it into the ground so even with big repair bills every once in a while ($1K for an alternator and battery a year ago. $500-ish for coolant hoses, water pump, thermometer just a week ago.) we feel in the long run we're better off with a car we own than paying $2500/yr to let someone else do the maintenance.

 

If we liked having new cars and were trading in a lot I think the economics might work out better. I know I have had two cousins lease cars and BOTH ended up with big bills at the end of the lease period for dings and extra mileages.

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I lease my car due to the fact that I put very little miles on it and for the low monthly payment. My experience has always been positive and I love having a new car every three years. I think for some it is a bad idea but for others it can be a very positive experience.

As far as down payment, I have always made a small one around a $1000 or so.

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Under ideal circumstances, a lease can be a good arrangement. But it's a narrow market and families with kids who use the vehicle a lot aren't in it.

For us the biggest drawback in a lease experience with a family car was that there was, in the end, a liability rather than an asset. There was no retail value, nothing to sell or trade towards the next vehicle (which everyone eventually needs).

I think a young person with no savings who is just out of school and needs a reliable vehicle to get to and from a first real job, who does not want or have time to deal with maintenance issues, could benefit from an economical, short term lease to get to and from that job for a year or so while at the same time setting aside money each month for a vehicle purchase. Or perhaps a retired couple who do not travel much and need a vehicle they can just take into the dealership whenever there's an issue that needs service. But the average family that might go camping, eat French fries in the car or sometimes park at Walmart? They're going to pay a lot more for that leased car than they bargained for at the outset, then have nothing to sell or trade in as down payment on the next vehicle. That lack of down payment can trap you into a cycle of leasing unless you're also consciously saving up for it while making those lease payments.

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We don't lease a car for our family, but for the past 7 or 8 years, DH has had to deal with leasing a company car for visiting colleagues (they are not from the US, come here to work, live in an apartment and they need a car while they're here).  Turning the cars in is always a pain in the neck.  Every little ding, basic wear and tear, scratch inside, extra mileage... All of it adds up.  And they really are the perfect market - no kids, using it for work only, etc.  DH finally convinced the company to just buy a car - this was after running a lot of numbers and figuring out that it makes sense financially and that buying saves money over leasing.  :)  Turning the keys in on that last leased car was great relief here!

 

I wouldn't feel comfortable leasing with kids, unless you are very strict about keeping it well maintained and cleaned inside - no eating/drinking, etc.  

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Ok we leased a long time ago.  It was the only way I could afford the Jeep Wrangler I wanted.  So when it was obvious the dog and all our outdoor gear needed a bigger vehicle we had a few months left on the lease.  But the dealer where we were going to buy the next vehicle took that Jeep from us as a trade in thing and we were able to get into our new vehicle before the lease was up.  I am sure we were young and ripped off somewhere in all that, but you don't have to turn it in.  

 

My mom just bought a lease car from her neighbor.  He was going to turn it in...but she offered to buy it.  

 

I know a few others that lease. They like the warranty.  They do not care if it makes financial sense.  It's like paying that maintenance every month instead of one lump sum for a paid off car needing repairs.  

 

We are debating another vehicle and did consider a lease b/c I don't think in the long run Dh will like his choice for commuting.  Leasing would give him time to realize his bad choice lol.   I have only ever seen excellent credit get no $ down for leasing.  I don't think it's common. 

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Why don't you want to buy one? Buying an inexpensive used car is a much better financial deal.


Only if you are able to pay cash. Just shy of two years ago when we were replacing my dh's car (which had gotten to the point that it was more expensive to fix than the car was worth), interest rates were actually better on a new car. If we wanted to get a decent used car (with a dh who has no time to fix a car and few repair skills beyond general maintenance) the payment on the used minivan was the same as a new one. The difference being the new one came with a warranty and carefree maintenance for the first three years.

There are those who disagree with me about borrowing money to buy a car. To each his own.

The takeaway is still the same. Don't lease. Your options then are to pay cash for a used car or find a lender you trust who can show you what your options are. I happen to prefer credit unions, but YMMV.
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