Hive please teach me leasing a new vehicle!
So we have been looking at replacing my wife’s Ford Edge. I’ve been seeing used ones that would give us the same monthly payment as leasing a new one. We have never leased a vehicle before. She only drives probably 5k miles a year so even with the minimum 10,500 we would be below that at the end. So if I were to purchase the vehicle at the end of the lease would I be potentially on the right side of the loan-value curve? If I were to turn in the vehicle would I get a refund for the miles we didn’t use?
So how do I keep from getting screwed in this endeavor? Does anyone know anything about D&M Auto leasing in Arlington, Tx?
Is your life consistent? I ask because with a 3 year lease you are making a commitment on how you will use a car for those years.
Will your commute always be the same for the next 3 years? This is important because you will be penalize if you drive too many miles and no refund if you drive too few miles.
jrflying said:
Hive please teach me leasing a new vehicle!
So we have been looking at replacing my wife’s Ford Edge. I’ve been seeing used ones that would give us the same monthly payment as leasing a new one. We have never leased a vehicle before. She only drives probably 5k miles a year so even with the minimum 10,500 we would be below that at the end. So if I were to purchase the vehicle at the end of the lease would I be potentially on the right side of the loan-value curve? If I were to turn in the vehicle would I get a refund for the miles we didn’t use?
So how do I keep from getting screwed in this endeavor? Does anyone know anything about D&M Auto leasing in Arlington, Tx?
My office is almost next to D&M, fun fact that side of the freeway is actually Grand Prairie.
I previously was in the car business, and i have experience putting people in leases and leasing vehicles myself.
NEVER lease from D&M. I found this out when I had a guy trying to trade in a 3 year old CX-9 and he was in a 60 Month Lease from D&M and he had no idea it was that long. D&M has to buy the cars from your local dealership who wants to make money and then add their money on top and then go to a bank to get the money factor(leasing has a daily interest charge called a money factor). Most Manufacturers have far better Money factors and residuals than standard banks. AKA lease from a dealership.
I don't recommend leasing from Ford, their leases are weird. I had a customer near the end of his lease who couldn't trade it in to us at mazda because they were too close to the end of the lease.
Honda and Mazda have leases where you can trade out or buy the car outright at any time.
John has a point on the mileage penalty.
My mother is driving my 2016 Mazda 6 I leased while I still worked at Mazda and i'm going to put her in another one this winter or spring because she doesn't drive a lot of miles and the low payment keeps my parents monthly expenses fixed and keeps them out of the repair shop. My mother also loves the car, loves how it drives and how it looks and she DOES NOT like cars, they are appliances and she's not ever really cared about them except for comfort. She has been thrilled with it.
So, in short, if you don't drive a lot, sub 12K miles per year and want to have a car that's always under warranty. You're probably an awesome fit for leasing.
Key is to get multiple dealerships of the same manufacturer to give you bids with a set down payment and set term length and annual mileage.
Now, as Dastun310guy said with the dave ramsey stuff, you never pay it off, you always have a payment. But cars are depreciating assets so you don't actually build equity in them like a house. which can also depreciate... so that's my thoughts on that.
Driven5
SuperDork
9/18/18 5:16 p.m.
jrflying said:
So how do I keep from getting screwed in this endeavor?
You don't, at least not entirely. There are a number of entirely valid reasons for leasing a personal vehicle, but saving money is not one of them.
You can however minimize your lease losses by taking the time to research and understand the lingo (i.e. what is a 'money factor') and math (i.e. how does money factor relate to interest rate) behind the lease, and not forgetting that the sell price (cap cost) is what you are negotiating...Not the monthly payment after the down payment. The monthly payment is merely the worm on the end of the hook.
I just leased my FiST from Ford. Three years and 31,543 miles. 15 cents per mile penalty if over.
They give a purchase option price at the end of the lease.
I leased for years , no problems. Just turned it in and and got a new one.
