Car Lease Master Thread

[avromie7]

update: ended up getting accord exl 2024 (after trade in of a banged up 2019 honda accord exl) for $420 $0 down 10k per year.

$0 down or you put down the proceeds of a car? How much was your car worth?

[itunes]

Have an option to buy out a Nissan sentra with 20k miles for 16k, would that be considered a good deal?

[daybyday]

Have an option to buy out a Nissan sentra with 20k miles for 16k, would that be considered a good deal?

Cant tell you the specifics but look up the recent news car prices have been rapidly dropping. Values are not the same as a year ago.

[db23]

$0 down or you put down the proceeds of a car? How much was your car worth?

i did a car swap. my car prob had around $3000 in value after factoring in some fixing cost, at least after doin my own research that was my estimate and they kind of went with that. i gave them my car as is and i drove off all fees rolled in with a 36 month lease for $420 per.

it was at a Honda dealership, i came in with a price in mind and pretty much got what i was looking for. would of loved to pay less but my car had multiple things wrong with it. thought based off my research that i got a pretty good deal, even perhaps a great deal!

there starter price btw was $504

[DaasTora]

i did a car swap. my car prob had around $3000 in value after factoring in some fixing cost, at least after doin my own research that was my estimate and they kind of went with that. i gave them my car as is and i drove off all fees rolled in with a 36 month lease for $420 per.

it was at a Honda dealership, i came in with a price in mind and pretty much got what i was looking for. would of loved to pay less but my car had multiple things wrong with it. thought based off my research that i got a pretty good deal, even perhaps a great deal!

there starter price btw was $504

Sorry to say but nothing to call home about.

[Fish Tank]

i did a car swap. my car prob had around $3000 in value after factoring in some fixing cost, at least after doin my own research that was my estimate and they kind of went with that. i gave them my car as is and i drove off all fees rolled in with a 36 month lease for $420 per.

it was at a Honda dealership, i came in with a price in mind and pretty much got what i was looking for. would of loved to pay less but my car had multiple things wrong with it. thought based off my research that i got a pretty good deal, even perhaps a great deal!

there starter price btw was $504

So you put down $3000 . . .which is why they knocked off $85/month.
$85 x 36 = $3060

[db23]

Sorry to say but nothing to call home about.

except that with my cars damage i couldn't find a dealer to take my car as is and give me that $3000 value. nobody was interested in doing the leg work on this. they looking to do clean quick deals.  if the car was in good condition i could of traded it in and gotten a much better deal.

all the prices i was getting on this was high 4s low 5s (w/o trade in) with some money down.

the car industry is a very odd place to navigate.

i love how i do my research speak to bunch of people then make a deal..five seconds later people say ehh could of done better.

in 2019 i asked all these brokers and no one came with in $40 monthly of what i wanted. so i went to dealership and got what i wanted in 20 min. 5 days later i get a call from one of these guys and i told him the deal i got and he right away said oh could of gotten you that! SMH!

at the end of the day i believe i did get a pretty good deal.

i did reach out after to one of the brokers to tell him thanks for his help and to tell him what i ended up getting (he agreed that i should try the dealership after he couldn't get me the price i wanted) he said it was an ok deal he thought, i said OK? not amazing? i reminded him of the conversation we had a few days earlier and what exactly my situation was and after he thought about it again he said that i did in fact get a very good deal!

one more thing to consider, i didnt want to go to another bank to do the deal, i was getting a Honda and so i wanted to stick with Honda financial.

i know a lot of these dealers that advertise lower rates use banks like US BANK who i hear can be really tough when its time to return your vehicle. 

[Jeremiah]

If I buy out my lease and immediately sell it to a friend, is it possible to recover the sales tax paid to the leasing company?

[Spoon]

If I buy out my lease and immediately sell it to a friend, is it possible to recover the sales tax paid to the leasing company?

In CA yes if you sell within 10 days but I think that's the exception. Better move would be to pay a dealership to process it for you (so you don't have to pay tax) and your friend would buy it from them.

[zalman2bis]

A gut voch!

I was never able to wrap my head how leasing made any sense over buying and trading in every few years. It seemed like a no brainer for me. But people up thread said it comes out to about the same thing. I couldn't answer at the time due to lack of facts on the ground.

But now BH I can come back with some experience, and perhaps some people can make more knowledgeable decisions.

We financed a vehicle back in August 2021. Leasing at that time cost about 500/month. Don't remember if that was with tax or not, but for arguments sake will leave that it was including tax. Plus at least $1000 down.

After putting $1000 down our monthly payment to finance was $933 (for 48 months).

33 months later the dealership traded our car for 8,247 (thats including tax) less than original price. Divide that by 33, come out to 250/month. Plus 12 per month for registration etc, 262/month.

Our saving vs leasing - over 8,500.

Now the extra 433 we had to pay each month, had you had that invested in 10 percent! a year your would only come out with about 2000, and taxable.

So in our experience buying saves a hefty amount of money BH.

If you're wondering that maybe the price of this car went up significantly, and that's why we got a good trade in value, we actually got the same make and model (2024) for slightly cheaper than what we paid back in 2021. So no big difference there.

One noteworthy point was that then we got the 2022 model and now only the 2024 is out. But even if we had the 2021 model, that would set us back only about $1,300 according to KBB.

All in all, I don't see how leasing cost same as buying. Unless someone must have a newer car, and can't afford the extra 400 a month or so to finance. But then he can take out a longer finance term.

If something is off with my calculations, I'll be happy to hear.

[MiInvstr]

A gut voch!

I was never able to wrap my head how leasing made any sense over buying and trading in every few years. It seemed like a no brainer for me. But people up thread said it comes out to about the same thing. I couldn't answer at the time due to lack of facts on the ground.

But now BH I can come back with some experience, and perhaps some people can make more knowledgeable decisions.

We financed a vehicle back in August 2021. Leasing at that time cost about 500/month. Don't remember if that was with tax or not, but for arguments sake will leave that it was including tax. Plus at least $1000 down.

After putting $1000 down our monthly payment to finance was $933 (for 48 months).

33 months later the dealership traded our car for 8,247 (thats including tax) less than original price. Divide that by 33, come out to 250/month. Plus 12 per month for registration etc, 262/month.

Our saving vs leasing - over 8,500.

Now the extra 433 we had to pay each month, had you had that invested in 10 percent! a year your would only come out with about 2000, and taxable.

So in our experience buying saves a hefty amount of money BH.

If you're wondering that maybe the price of this car went up significantly, and that's why we got a good trade in value, we actually got the same make and model (2024) for slightly cheaper than what we paid back in 2021. So no big difference there.

One noteworthy point was that then we got the 2022 model and now only the 2024 is out. But even if we had the 2021 model, that would set us back only about $1,300 according to KBB.

All in all, I don't see how leasing cost same as buying. Unless someone must have a newer car, and can't afford the extra 400 a month or so to finance. But then he can take out a longer finance term.

If something is off with my calculations, I'll be happy to hear.

People made a lot of money from buying out their leases and selling. You’re not considering that in your calculation.

[nucheiner]

People made a lot of money from buying out their leases and selling. You’re not considering that in your calculation.

Past performance does guarantee future results. Are you predicting that cars will surge in pricing again to enable such profits? Id guess not, but what do people think.

[zalman2bis]

People made a lot of money from buying out their leases and selling. You’re not considering that in your calculation.

1) If you're referring to scenarios when the price of the car went up during the lease, you're point is moot, as I described a scenario when the price stayed the same.

2) Do most people do that?

3) How much are they making?

4) When you do that, you're basically buying it and trading in etc. So just do that in the first place.

[MiInvstr]

1) If you're referring to scenarios when the price of the car went up during the lease, you're point is moot, as I described a scenario when the price stayed the same.

2) Do most people do that?

3) How much are they making?

4) When you do that, you're basically buying it and trading in etc. So just do that in the first place.

1) What do you mean by “went up”? All cars had their Msrp raised by a bit as normal and all cars had their resale value raised by a lot over those years.

2) No. But from what I understand lots of people did do it this time cause there was lots of equity in most cars.

3) Sometimes a nice few grand.

4) In a normal market I believe it should come out very similar and you have the added pain of having to sell your car or trading it in as opposed to just signing on a new lease.

3 year old cars should never be just $8k less than a brand new one. It’s a weird economy that you’re judging off of.

[Saver2000]

A gut voch!

I was never able to wrap my head how leasing made any sense over buying and trading in every few years. It seemed like a no brainer for me. But people up thread said it comes out to about the same thing. I couldn't answer at the time due to lack of facts on the ground.

But now BH I can come back with some experience, and perhaps some people can make more knowledgeable decisions.

We financed a vehicle back in August 2021. Leasing at that time cost about 500/month. Don't remember if that was with tax or not, but for arguments sake will leave that it was including tax. Plus at least $1000 down.

After putting $1000 down our monthly payment to finance was $933 (for 48 months).

33 months later the dealership traded our car for 8,247 (thats including tax) less than original price. Divide that by 33, come out to 250/month. Plus 12 per month for registration etc, 262/month.

Our saving vs leasing - over 8,500.

Now the extra 433 we had to pay each month, had you had that invested in 10 percent! a year your would only come out with about 2000, and taxable.

So in our experience buying saves a hefty amount of money BH.

If you're wondering that maybe the price of this car went up significantly, and that's why we got a good trade in value, we actually got the same make and model (2024) for slightly cheaper than what we paid back in 2021. So no big difference there.

One noteworthy point was that then we got the 2022 model and now only the 2024 is out. But even if we had the 2021 model, that would set us back only about $1,300 according to KBB.

All in all, I don't see how leasing cost same as buying. Unless someone must have a newer car, and can't afford the extra 400 a month or so to finance. But then he can take out a longer finance term.

If something is off with my calculations, I'll be happy to hear.

1) You could've leased the car and paid $500/month instead of $933 and did the same exact thing at the end. Buy it out, and trade it in for $8k.

2) $433/month invested for 33 months compounding at 10% = approx. $18k

3) You talk about investing the extra $433. Many people do not have the extra $433, therefore leasing is a "cheaper"/more feasible option for them.

[avromie7]

A gut voch!

I was never able to wrap my head how leasing made any sense over buying and trading in every few years. It seemed like a no brainer for me. But people up thread said it comes out to about the same thing. I couldn't answer at the time due to lack of facts on the ground.

But now BH I can come back with some experience, and perhaps some people can make more knowledgeable decisions.

We financed a vehicle back in August 2021. Leasing at that time cost about 500/month. Don't remember if that was with tax or not, but for arguments sake will leave that it was including tax. Plus at least $1000 down.

After putting $1000 down our monthly payment to finance was $933 (for 48 months).

33 months later the dealership traded our car for 8,247 (thats including tax) less than original price. Divide that by 33, come out to 250/month. Plus 12 per month for registration etc, 262/month.

Our saving vs leasing - over 8,500.

Now the extra 433 we had to pay each month, had you had that invested in 10 percent! a year your would only come out with about 2000, and taxable.

So in our experience buying saves a hefty amount of money BH.

If you're wondering that maybe the price of this car went up significantly, and that's why we got a good trade in value, we actually got the same make and model (2024) for slightly cheaper than what we paid back in 2021. So no big difference there.

One noteworthy point was that then we got the 2022 model and now only the 2024 is out. But even if we had the 2021 model, that would set us back only about $1,300 according to KBB.

All in all, I don't see how leasing cost same as buying. Unless someone must have a newer car, and can't afford the extra 400 a month or so to finance. But then he can take out a longer finance term.

If something is off with my calculations, I'll be happy to hear.

How much interest did you pay on those 33 months?

[zalman2bis]

1) You could've leased the car and paid $500/month instead of $933 and did the same exact thing at the end. Buy it out, and trade it in for $8k.

2) $433/month invested for 33 months compounding at 10% = approx. $18k

3) You talk about investing the extra $433. Many people do not have the extra $433, therefore leasing is a "cheaper"/more feasible option for them.

1) Interesting idea, but a) not sure how much of total leasing cost are directly paying for car plus basic interest rates, b) after buying out the car, do leasing companies take your car towards your next lease or only when selling you another car?

2) Your math is off. Besides for the fact that you can't find daily compounding etc for 10 percent.

3) I mentioned this point in my original post

[zalman2bis]

How much interest did you pay on those 33 months?

Does it make a difference? I figured whatever the rates are for financing would mirror the rates for leasing at that period

[avromie7]

Does it make a difference? I figured whatever the rates are for financing would mirror the rates for leasing at that period

Of course it matters, thats a large part of the lease cost. It was a cost in your scenario as well, why should it be ignored?

[zalman2bis]

Of course it matters, thats a large part of the lease cost. It was a cost in your scenario as well, why should it be ignored?

True point, the rate was 1.9, paid around 1,500 in interest. Should be factored in. Thanks! So came out 7k ahead.