- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: About to lease a car...any tips before I pul the trigger?
Posted on 5/26/14 at 9:08 pm to iAmBatman
Posted on 5/26/14 at 9:08 pm to iAmBatman
You will get every line here in why you should not lease, but very few people actually run through the details of why its a bad idea. Most of it comes from secondhand statements. I am in the minority and believe it can be very advantageous under the right circumstances and financial terms.
For your situation, leasing is possibly an okay decision. First, if she really only drives 5 miles a day, get a lower mileage lease. 12k/yr is the normal lease. They usually offer 8k/10k/12k/15k leases. All with different residuals. This could lower your payment even more.
If you lease and are significantly under mileage, the dealer "wins". You have to either buy the car for residual (hence dealer gets paid, but vehicle is "worth" more) or give a higher value asset to them with nothing to show. Of course you could use it to negotiate your next purchase, but they're still perpetuating the cycle.
Consider if you will be adding options to the vehicle spec'd in the advertised lease. This will affect the negotiations and usually the dealers get and advantage here. However, usually the residual % will stay the same, as will the "dealer contribution" and money factor. The key is negotiating the price of the vehicle just as if you were purchasing. Leasing is simply another way of financing that reduces your monthly payment (it's basically a balloon payment).
For your situation, leasing is possibly an okay decision. First, if she really only drives 5 miles a day, get a lower mileage lease. 12k/yr is the normal lease. They usually offer 8k/10k/12k/15k leases. All with different residuals. This could lower your payment even more.
If you lease and are significantly under mileage, the dealer "wins". You have to either buy the car for residual (hence dealer gets paid, but vehicle is "worth" more) or give a higher value asset to them with nothing to show. Of course you could use it to negotiate your next purchase, but they're still perpetuating the cycle.
Consider if you will be adding options to the vehicle spec'd in the advertised lease. This will affect the negotiations and usually the dealers get and advantage here. However, usually the residual % will stay the same, as will the "dealer contribution" and money factor. The key is negotiating the price of the vehicle just as if you were purchasing. Leasing is simply another way of financing that reduces your monthly payment (it's basically a balloon payment).
Posted on 5/26/14 at 9:43 pm to LSUtigerME
quote:
First, if she really only drives 5 miles a day, get a lower mileage lease. 12k/yr is the normal lease. They usually offer 8k/10k/12k/15k leases. All with different residuals. This could lower your payment even more.
Her school is literally 2 miles from our house. We use my SUV for everything. Granted, if her car were nicer, we would probably use it more. I would say she averages 500 miles a month. I didn't realize that you could lower the mileage totals to decrease the payment and that may be an option for us.
quote:
If you lease and are significantly under mileage, the dealer "wins". You have to either buy the car for residual (hence dealer gets paid, but vehicle is "worth" more) or give a higher value asset to them with nothing to show. Of course you could use it to negotiate your next purchase, but they're still perpetuating the cycle.
Like I said, this is not my ideal situation but given where we are, it seems to make the most sense from a financial standpoint.
quote:
Consider if you will be adding options to the vehicle spec'd in the advertised lease. This will affect the negotiations and usually the dealers get and advantage here.
I figured this was the case and the lease deal states it must be taken from dealer stock so there really isn't much I can do about that.
quote:
The key is negotiating the price of the vehicle just as if you were purchasing.
So if I were to negotiate the price to lower than what the deal is currently using then I can also lower the monthly payment? Am I understanding that correctly? Basically what you're saying is to go to the dealership and act as if I were buying the car and get the price as low as possible. Once that is done I tell them that I want that price but work it up as a lease?
Popular
Back to top
Follow TigerDroppings for LSU Football News