64
votes
Accepted
How do car leases work?
Leases are effectively renting a car for 2-4 years. You pay a fixed monthly payment (typically after a substantial upfront payment as well) to the leasing company in exchange for the right to operate ...
43
votes
Accepted
Electric car lease or buy?
There are some who argue that you should lease an electric car. These factors are in addition to all the normal pros and cons of leasing vs. buying.
The technology is still new and is advancing ...
39
votes
Infrequent car rental vs. lease/buy
I think your math is fine, and also consider insurance costs and the convenience factor of each scenario. Moving a car frequently to avoid parking tickets will become tedious. I'd rather spend an hour ...
39
votes
How do car leases work?
D. Stanley has correctly described the process, but not a significant implication and a reason that many people do choose to lease.
If you use your car for business, the cost of leasing is probably ...
35
votes
Accepted
Leased a car but did not use the mileage - what options do I have
The most important question is: What's your buyout price and what's your car worth?
If your 3 year old car has less than 5K miles on it, most likely it's worth more than your buyout price. If it's a ...
33
votes
Accepted
Infrequent car rental vs. lease/buy
Prior to having children we did exactly what you describe. We would visit my mother in law about four to six times a year, a 350-mile-each-way trip for a weekend. We'd simply rent a car, drive down, ...
27
votes
What's the best way to quickly get a car on low budget with a poor credit score?
I'm totally unfamiliar with car leasing, which I thought might be a more affordable and suitable option right now
Leases aren't an "affordable" way to get a car. They're a way to get an ...
26
votes
Why are auto leases stubbornly strict about visa status and how to work around that?
Uh, you want to lease a car through a dealer? That is the worst possible way to obtain a car. Dealers love leases because it allows them to sell a car for an unnegotiated price and to hide additional ...
26
votes
Accepted
Suppose leased car is totalled: what are financial implications?
In general leasing requires you to have an insurance policy that meets certain criteria (such as the policy being comprehensive).
However, in the event that the vehicle is written off the insurance ...
25
votes
Accepted
Should I buy or lease a car given that its not a super luxury car and I only drive 15 miles/d on avg?
I have a few recommendations/comments:
Consider keeping your current car. The buyout amount for your lease is often negotiable. Tell the dealer you are NOT going to be leasing or buying a new car ...
21
votes
Suppose leased car is totalled: what are financial implications?
You must pay every dollar of the value of the car as agreed to on the lease. Period.
Some people carry insurance. This insurance will pay out based on the insurance policy. The usual default is ...
20
votes
How do car leases work?
I like this question because I think leasing gets a bad rap as being a rental and renting is bad so don't lease. I, personally, have never bought or leased a new car, but leasing has it's place. One ...
18
votes
Accepted
In today's low interest environment, is it generally more economical to buy or lease a new car in the US?
It's my understand that leasing is never the better overall deal, with the possible exception of a person who would otherwise buy a brand new car every 2 or 3 years, and does not drive a lot of miles.
...
17
votes
Infrequent car rental vs. lease/buy
My wife and I have been car-free since 2011. We spent about $3500 on car shares and rentals last year (I went through it recently to flag trips that were medical transportation and unreimbursed work ...
15
votes
Leased a car but did not use the mileage - what options do I have
I'd go with option #3 and pretend that the first two options were never even on the table. All things are negotiable, especially in dealerships! A dealer will NEVER send you away if you are willing ...
14
votes
What's the best way to quickly get a car on low budget with a poor credit score?
some old affordable car, say a 2008-2010 Nissan or Hyundai with at least 100k miles mileage"
A Japanese* car of that vintage is not old, and 100K miles is just nicely broken in**. You would do ...
13
votes
Electric car lease or buy?
Electric does make a difference when considering whether to lease or buy. The make/model is something to consider. The state you live in also makes a difference.
If you are purchasing a small ...
12
votes
How can the interest rate be disguised in a car lease?
You have met the money factor, an invention of some marketing department. It is a function of the capitalized cost and term you agree too.
Money Factor = Total monthly charge/((Net capitalization ...
11
votes
Why are auto leases stubbornly strict about visa status and how to work around that?
When getting a car always start with your bank or credit union. They are very likely to offer better loan rate than the dealer. Because you start there you have a data point so you can tell if the ...
10
votes
I needed a co signer but my cosigner is the primary on my auto loan
Does anyone know what the hell this guy is doing and what the hell he's talking about?
The dealer wants to sell a car. That's his job, and he doesn't really care who he sells it to.
He ran your ...
9
votes
In today's low interest environment, is it generally more economical to buy or lease a new car in the US?
The most economical way is to save your money, and buy a 1+ year old used car with cash.
8
votes
Lease vs buy car with cash?
A lease is a rental plain and simple. You borrow money to finance the expected depreciation over the course of the lease term. This arrangement will almost always cost more over time of your "...
8
votes
Lease vs buy car with cash?
If you are talking straight dollars then leasing is always a losing proposition when compared with purchasing.
The financial workings of leasing are so confusing that people don’t realize that ...
8
votes
Accepted
Drive 100 miles per month for 3 years: the most affordable way
You'll have to run the numbers, but I would recommend either:
1) Get a used "beater" car, which has already lost most of its value. You'll be able to resell it for close to the same amount. And yes, ...
8
votes
Infrequent car rental vs. lease/buy
For so little use, you are probably better off not owning a car. Car ownership has high fixed costs and unexpected ones like repairs. Difficult parking makes it worse.
If you do buy a car, you ...
8
votes
Accepted
Lease with intent to purchase a vehicle
This depends entirely on terms of the lease but it in most case a lease is not a good idea.
Car dealers are in the business of not offering you the best deal. Complicated lease terms are a good way ...
7
votes
Accepted
Car lease payment went up after moving to new state
What Chase told you is correct. You are paying for a big sales tax because the state of Ohio is assuming you bought the car in Ohio. Just fill out the form like they said and send it in.
The Kentucky ...
7
votes
Buy my leased car?
2 bits of advice.
Don't ask me any questions about my car. I know it has 4 wheels, and runs on gas. More than that, I don't know (I lied, I know it has a cassette deck), and I don't care.
Never take ...
6
votes
Accepted
How would I compute the difference between purchase and lease-to-purchase offers?
Yes.
You did not notice the "$1,410 Customer Down Payment", the "$650 Acquisition Fee", the "$350 Disposition Fee" "due at lease termination", and the "$275 security deposit" for customers who do not ...
6
votes
In today's low interest environment, is it generally more economical to buy or lease a new car in the US?
There are two reasons leases are generally a worse deal than buying.
First, inherent in the lease is the concept of trading in the car at the end of the lease term. As we all know, cars depreciate ...
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