Car Lease Master Thread

[thaber]

Does anyone know how the leasing companies work? Are they licensed car dealers? I know they approach fleet managers at various dealerships to get the vehicles but I'm curious how they are recognized/licensed legally, and how they get compensated.

http://forums.dansdeals.com/index.php?topic=2990.msg1010527#msg1010527
I don't believe they are licensed legally

[Yehuda25]

http://forums.dansdeals.com/index.php?topic=2990.msg1010527#msg1010527
I don't believe they are licensed legally

+1

[judahk88]

http://forums.dansdeals.com/index.php?topic=2990.msg1010527#msg1010527
I don't believe they are licensed legally

Well not all are licensed, but Wheels to Lease and PAL are both license dealers and have DMV licenses.

[ejb123]

ur right im wrong. but what i did find is that when theres no money down it usually comes out a lot more expensive in the long run.

That is correct since you are financing your upfront costs (tax, registration, fees, etc.) over the course of the lease term. However, what most people don't realize is that if you total your car or if your car is stolen during your lease term, your car insurance will (most likely) cover the cost of the car and payoff the remaining lease payments with your leasing company, but any money that you put down upfront is not recoverable.

[skyguy918]

That is correct since you are financing your upfront costs (tax, registration, fees, etc.) over the course of the lease term. However, what most people don't realize is that if you total your car or if your car is stolen during your lease term, your car insurance will (most likely) cover the cost of the car and payoff the remaining lease payments with your leasing company, but any money that you put down upfront is not recoverable.

-1 to the first sentence. If the only difference between 2 options is that there are financing costs, but otherwise the 2 options are mathematically equivalent, then it's not 'a lot more expensive in the long run'. The way the lease deals are structured, the implicit financing rates are extremely low. And in fact, most of the time the deals with money down (I mean other than tax, title, and fees) are significantly more expensive overall.

[ejb123]

-1 to the first sentence. If the only difference between 2 options is that there are financing costs, but otherwise the 2 options are mathematically equivalent, then it's not 'a lot more expensive in the long run'. The way the lease deals are structured, the implicit financing rates are extremely low. And in fact, most of the time the deals with money down (I mean other than tax, title, and fees) are significantly more expensive overall.

Ok - correct. They are not "a lot more expensive" just "more expensive" based on the financing cost and the taxes (depending on the state).

[Super Speed]

That is correct since you are financing your upfront costs (tax, registration, fees, etc.) over the course of the lease term. However, what most people don't realize is that if you total your car or if your car is stolen during your lease term, your car insurance will (most likely) cover the cost of the car and payoff the remaining lease payments with your leasing company, but any money that you put down upfront is not recoverable.

From what I understand is that insurance payments have nothing to do with your payments. If your total the car they give you a check for the current value of the car which you in turn pay the company that owned your car. At times you come out ahead and at times you'll come out behind.

[sammy n]

That is correct since you are financing your upfront costs (tax, registration, fees, etc.) over the course of the lease term. However, what most people don't realize is that if you total your car or if your car is stolen during your lease term, your car insurance will (most likely) cover the cost of the car and payoff the remaining lease payments with your leasing company, but any money that you put down upfront is not recoverable.

If what your saying is true that would be a solid reason to roll all those fees into the payments.

[CS1]

Well not all are licensed, but Wheels to Lease and PAL are both license dealers and have DMV licenses.

what about Leasing Direct? Are they also license dealers?

[ejb123]

From what I understand is that insurance payments have nothing to do with your payments. If your total the car they give you a check for the current value of the car which you in turn pay the company that owned your car. At times you come out ahead and at times you'll come out behind.

That should not be true since you don't own your car - your leasing company does. I think that would be considered insurance fraud.

[Super Speed]

That should not be true since you don't own your car - your leasing company does. I think that would be considered insurance fraud.

Insurance fraud??? I'm talking about how the payment is structured. When you lease a car your essentially leasing the whole 25K car and making small monthly payments and at the end you can buy it for the remaining amount or return it. When someone gets in to an accident the lesse basically forces them to buy it out for the remaining payments + buyout and what insurance pays you has nothing to do with what you owe the bank rather based on the value of the car.

[Jkhein]

Insurance fraud??? I'm talking about how the payment is structured. When you lease a car your essentially leasing the whole 25K car and making small monthly payments and at the end you can buy it for the remaining amount or return it. When someone gets in to an accident the lesse basically forces them to buy it out for the remaining payments + buyout and what insurance pays you has nothing to do with what you owe the bank rather based on the value of the car.

from what I have heard from people who have experienced it, they only paid what you still owed and they lost what they prepaid.

[Dr Moose]

from what I have heard from people who have experienced it, they only paid what you still owed and they lost what they prepaid.

Typically what you have left to pay is totally in line with what the car is worth.

[Excalibur]

I just got quoted 169 sentra blue tooth and backup cam nothing down

[davidb]

I just got quoted 169 sentra blue tooth and backup cam nothing down

From?

[Excalibur]

shloimy hammer

[ejb123]

Typically what you have left to pay is totally in line with what the car is worth.

Not always. The leasing company (usually affiliated with the car company) owns the care and takes the risk on the residual value of the car at the end of the lease period. In some cases the car is worth more than the buyout price and in other cases it is worth less and the leasing company absorbs the loss. However, in a situation where the car is totaled during the lease term, the value of the car is zero and your insurance will only cover your remaining lease payments and you won't be able to take advantage of a situation where the car is worth more than the buyout price.

[ad120]

So it is the beginning of the month!
What are this months deals?

[smurf]

So it is the beginning of the month!
What are this months deals?

Camry SE (Leather,Spoiler, Alloy Wheels..) $175 incl. NJ Tax
PM for details

[zandray35]

I want to lease out east and truck the car to the midwest, anyone know a cheap car transport?