Advice about leasing a car?

For me buying is better when purchasing cheaper family type or cars with great durability/longevity. Financing say a Toyota Camry is a great idea because the car is known to have long life and will last well after you're done paying for it with not so expensive upkeep.

Leasing however in my opinion is many for more expensive cars which are built for durability and have expensive upkeep. Financing one of those cars for me is stupid because those types of cars depreciate quicker while your monthly payment won't for the 48, 60, 72, etc amount of months you'll have to pay them. A lot of the time before fully paying for them you're out of warranty and the car is already giving problems because they are built for performance/luxury and not longevity/durability.

This is my opinion on that matter...

Yes, because reliability is the only reason to drive a car.

SMH poors.

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SMH poors

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You're the one who can't afford to buy one and has to lease it, but other people are the poors. Got it

I lease and love it. I get a new ride every 3 years and don't have to worry about any up keep or maintenance whatsoever. I also am only paying for use, not depreciation as you do when buying. And I'm fortunate enough to make enough money where I can simply work a perpetual note into my budget.

But leasing works for me when it wouldn't for others. E.g. Mileage caps aren't an issue due to my work locale.

Advice? Stay abreast of the latest lease incentives and deals which run periodically. Also, negotiate the price BEFORE you tell them you went to lease rather than buy. You can still negotiate the sales price for a lease.

Not sure exactly what you're asking but clearly you'd negotiate the sales price down on a lease to obtain a lower note. Also, what I found out, was you can reduce your annual mileage cap in tiers from the default of 15k/year to 10k which is what I did, which lowers your note even more. Add that to some lease/dealer incentives and you can come away quite happy with your deal.



Eta: the biggest opponents of leasing are those where mileage caps are a big issue. If that's the case, leasing won't work.

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Leasing is about flexibility IMO.

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Exactamundo. Plus, opponents ignore the fact that you can purchase the car at the end of the lease if you so desire! And you've already negotiated the price at lease inception. All about flexibility.

Check around online or compare incentive deals to get money factors, residual %'s, and any cap cost reduction from manufacturer. Most incentives are stripped down models, but typically all of the above factors remain the same regardless of MSRP.

Verify any fees, beginning and end of lease. Also ask about allowances at lease end (eg Honda allows you $1500, max $500/panel in body damage).

Negotiate it all the same as if you were buying.

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I am interested in acquiring a high-end large luxury vehicle.

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does anyone have any advice?

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Leasing provides a good deal for four parties - the sales person, the F & I guy, the dealership’s owner and the finance company (leasing company). It is a lousy deal for the customer. You owe something, but you own nothing. Leasing adds a layer of complexity to the deal that allows the salesman to hide or misrepresent the true purchase price.

Most people are quick to answer a sales person when he/she asks if they’re planning to buy or lease a vehicle. As soon as you give away that you’re planning to lease, the price of the vehicle (capitalized cost) will freeze up. You’ve essentially lost any leverage you had at this dealership. You should negotiate the price of the new vehicle as if you’re going to pay for it with cash out of your own pocket and then bring that over to the lease.

Leasing has become an incredibly effective tool for dealers to sell their product at a significantly higher price and profit margin and is often “pushed” or “encouraged” through the sales process.

• Leasing makes the car more affordable and therefore easier to sell. The buyer gets focused on being able to drive a nicer vehicle for a lower monthly note than what they most likely could not afford to buy.

• It allows the customer to afford a more expensive car, and the more expensive the car, the larger the profit.

• Leasing allows the dealer to legally hide the true cost/price of the vehicle and charge you a higher price than you would normally agree to.

• A leasing customer is more likely to return to the same dealership to get their next vehicle and next vehicle and next vehicle. Even though your original sales person will be long gone, the dealership is able to maintain customer retention and that’s where it pays off in the long run.

An inflated residual value lowers your monthly payments, but it can also handcuff you. A more realistic residual value will make it easier to sell the lease, trade your vehicle in the middle of the lease or buy the vehicle at the end of the lease. Many people get lured in by the low initial payment, but should beware that all the financial factors that go into leasing, including trading in your current vehicle to obtain a new leased vehicle will effectively ensure your monthly payment will be much higher in subsequent leases. This makes it hard to break the cycle and purchase future vehicles with a sizable down payment.

Simply put, leasing is the equivalent of throwing a $100.00 bill out of your vehicle’s window every week for 3 years in terms of depreciation. The bottom line is this … any way you look at it, leasing is a convenience that you’ll pay for in the end. Put another way, if you can’t afford to buy your next vehicle with a four-year loan or less, then you really can’t afford it. The better deal long-term is to buy a reliable vehicle (good, late model used vehicle or lower priced new vehicle) and hold onto it as re-leasing every three to five years is no way to build wealth.

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Financing one of those cars for me is stupid because those types of cars depreciate quicker

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The depreciation is always a factor and you always pay for it whether you lease, finance, or pay cash. If you are willing to pay the high price of always being on the leading edge of the depreciation curve, hey, it's your money.

With the lease you're paying a little extra for the convenience of getting a new ride instead of having to do another purchase/trade-in. I personally would never get a new car unless I plan to drive it into the ground, but like I said it's your money.