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queensgirl
LIF Infant
Member since 11/08 321 total posts
Name:
Erica
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Leasing a car for dummies!!
I'm looking to lease a car for the first time. Money is tight so we are looking to put down very little. Is it possible to only put down 2k total?can anyone give me any basic things I should or should not look for web leasing a car? Also, if a car is advertised for $150 a month, is that usually with tax or before tax? I just don't want to get taken advantage of so any insight would be great!!
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Posted 7/17/12 6:32 PM  |
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CupcakeLady
LIF Toddler
Member since 10/10 423 total posts
Name:
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Leasing a car for dummies!!
I put down $0 when I leased, and negotiated the heck out of it. I told them I didn't want to put anything down, what I wanted to pay and what I wanted in the car. It took some haggling, and a lot of patience, but they came in $0.60 over what I wanted. Usually whatever the payment states in the ad is what you pay, but remember that it's typically for the base model car. Extras will cost you, but that's where the negotiating comes in.
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| Posted 7/17/12 6:36 PM |
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Leasing a car for dummies!!
You should never put anything down.
Also some places are going to have horrible lease deals. You would be better off financing (i.e. when we were looking, we went to Honda and they would only offer something insane like $700 a month and still wanted cash down).
Also ask around about good dealerships to work with.
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| Posted 7/17/12 6:46 PM |
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MAC222
LIF Adult
Member since 12/08 3860 total posts
Name:
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Re: Leasing a car for dummies!!
In my experience, and my honest opinion...leasing is for dummies! You are much better off financing a car, especially if you are putting money down. NEVER put any money down on a lease!
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| Posted 7/17/12 7:47 PM |
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SHOPAHOLIC
LIF Adult
Member since 1/07 1712 total posts
Name:
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Re: Leasing a car for dummies!!
Posted by MAC222
In my experience, and my honest opinion...leasing is for dummies! You are much better off financing a car, especially if you are putting money down. NEVER put any money down on a lease!
Not true. I leased a car two years ago that I thought I would be happy with. Now I hate it.... And the resale value on it BLOWS. I put nothing down except for the first month's payment. My payments are low and I am over the moon to be able to give it back and not be stuck trying to sell it. I would get killed on it if I tried to sell it and it isn't even two years old yet.
Not to mention I love having new cars every 3 years and never worrying about warranties.
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| Posted 7/17/12 8:20 PM |
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ElizaRags35
My 2 Girls
Member since 2/09 20494 total posts
Name:
Me
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Re: Leasing a car for dummies!!
Negotiate!
Negotiate!!
Negotiate!!!
We leased a Prius 2 years ago. The salesman first came to us with an offer of $3,000 down, $300/mo. on a basic model. We ended up just paying taxes and fees and have a payment of $205/mo. for the next model up with some extras.
When you find a car you like, go to different dealers to see what they are willing to do for you.
Good luck!
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| Posted 7/17/12 8:55 PM |
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MAC222
LIF Adult
Member since 12/08 3860 total posts
Name:
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Re: Leasing a car for dummies!!
Posted by SHOPAHOLIC
Posted by MAC222
In my experience, and my honest opinion...leasing is for dummies! You are much better off financing a car, especially if you are putting money down. NEVER put any money down on a lease!
Not true. I leased a car two years ago that I thought I would be happy with. Now I hate it.... And the resale value on it BLOWS. I put nothing down except for the first month's payment. My payments are low and I am over the moon to be able to give it back and not be stuck trying to sell it. I would get killed on it if I tried to sell it and it isn't even two years old yet.
Not to mention I love having new cars every 3 years and never worrying about warranties.
Well, I wouldn't finance a car unless it was one that I knew I would love..so in your case, it was a good thing you leased! Most of my friends lease, so I joked it being for dummies, I personally would just never do it again!
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| Posted 7/17/12 11:21 PM |
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EnV-McC
LIF Adolescent
Member since 8/10 885 total posts
Name:
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Re: Leasing a car for dummies!!
I leased a car in 2007 and I had a great experience with Nissan. I didn't put any money down and walked away with a monthly payment I thought was very reasonable.
Leasing is not for everyone and neither is financing. It depends on your needs and your lifestyle. When my lease was up, I didn't renew which worked out perfectly because my needs and lifestyle had changed and if I had financed, I would have been screwed.
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| Posted 7/18/12 12:16 AM |
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Leb
LIF Adult
Member since 12/09 4166 total posts
Name:
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Re: Leasing a car for dummies!!
I only lease, I love it. I don't want to own a depreciating liability.
You will always have to at least put down the first months payment, plus there are a bunch of minor charges like gas and tires and usually it is about $150 extra.
My best piece of advice is to go to at least 3 dealers (for the same model car) and pin them against each other, be prepared to walk away too. And they will always want you to sign right then and there, for x amount special price.
As far as putting money down...Well if you do it makes you payments go down monthly. So if you wanted to put 5k down vs. 2k your payment will reflect this, it really doesn't matter because in the end it will even out.
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| Posted 7/18/12 10:15 AM |
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queensgirl
LIF Infant
Member since 11/08 321 total posts
Name:
Erica
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Re: Leasing a car for dummies!!
Thank you all so much!!!! I feel a little more confident now :) So when you see in the advertisements that whatever is required down, and then they say bank fee and taxes... is that something that is negotiable as well?
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| Posted 7/18/12 10:53 AM |
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ElizaRags35
My 2 Girls
Member since 2/09 20494 total posts
Name:
Me
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Leasing a car for dummies!!
My sister just leased a car and she got less than the advertised rate and put half of what the advertised DP was. I believe the fees/taxes are based on what final price you end up negotiating.
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| Posted 7/18/12 11:17 AM |
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Re: Leasing a car for dummies!!
When we leased our car, we put $0 down (you still have to pay for the first month and DMV fees and stuff) and negotiated so that the monthly rate we pay includes the taxes and is what they wanted with the taxes paid up front and a down payment. We have an Acura and they were very willing to negotiate.
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| Posted 7/18/12 11:27 AM |
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KristenRSF
LIF Toddler
Member since 5/10 487 total posts
Name:
Kris
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Leasing a car for dummies!!
I am confused with those who are saying not to put anything down at all. You have to put first month, last month, tax, title and fees down no matter what. Plus, it lessens your monthly payment.
Message edited 7/18/2012 2:12:05 PM.
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| Posted 7/18/12 2:11 PM |
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KaKa2323
Got my miracle
Member since 9/11 1465 total posts
Name:
K
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Re: Leasing a car for dummies!!
Posted by KristenRSF
I am confused with those who are saying not to put anything down at all. You have to put first month, last month, tax, title and fees down no matter what. Plus, it lessens your monthly payment.
I don't believe you have to put anything down at all. They can roll whatever into the monthly payment. My last lease I just paid taxes and fees, I think I gave them about $200 and took the car.
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| Posted 7/18/12 2:23 PM |
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GoldenRod
10 years on LIF!
Member since 11/06 26792 total posts
Name:
Shawn
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Re: Leasing a car for dummies!!
Here's a good explanation of buying vs. leasing.
http://www.leaseguide.com/lease03.htm
For me, buying always makes more sense. My vehicles are 10 and 12 years old. We bought them both brand-new, and aren't planning on replacing them in the immediate future.
I also modify my cars, at least a little, sometimes more than a little, so I can't do that with a leased car.
http://www.leaseguide.com/faqs.htm
Q. What are the advantages and disadvantages of making a down payment on a lease?
A. Making a down payment can substantially reduce your monthly payment amount. If you think you might ever want to end your lease early, an initial down payment can reduce or eliminate the cost of early termination. Many promotional lease deals require a specific down payment amount in order to get the deal. Some people mistakenly think that a down payment is a kind of deposit that you get back at the end of the lease. Not true. Having said the above, a disadvantage of a down payment is that, should your vehicle get stolen or totaled in an accident, you probably won't get any of the down payment returned to you.
Message edited 7/18/2012 2:36:03 PM.
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| Posted 7/18/12 2:32 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Leasing a car for dummies!!
Don't put any money down on a lease. You risk losing your down payment if you total the car or it gets stolen and is not found.
Negotiate, compare deals, get it in writing.
The offers advertised are for real, however, they are for specific models and don't include tax or tags.
Best piece of advice I can offer is don't negotiate on the payment. You need to negotiate on the price of the car. You are only paying to rent it and a portion of the price but it's still based on the price. I always go to Edmunds.com to find out the invoice price of the car. Get that or better and negotiate from there.
The lower the price of the car, the lower your payments will be.
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| Posted 7/18/12 2:44 PM |
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KristenRSF
LIF Toddler
Member since 5/10 487 total posts
Name:
Kris
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Leasing a car for dummies!!
If you drive your cars into the ground, then financing is the best option. And those fancy lease prices they advertise on tv or for people with the highest tier credit possible.
And yes, they can roll the fees into the payment but I would rather pay it up front then have a more expensive payment.
Also, I just got into a new lease a little over a month ago. The best thing to do is give them the exact number of what you want to pay per month and let them do the work to get there. Don't negotiate, don't haggle, and be ready to get up and walk out. They WANT you to get the car and they will do whatever they can to get you into a lease.
Also, ask for extras. Tell them you want the windows tinted and remote start. If the car comes with stock wheels and they offer a nice option, ask them to throw that in too. There is a ton you can do when getting into a lease to get what you want. I have been doing it for years.
Message edited 7/18/2012 3:36:01 PM.
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| Posted 7/18/12 3:32 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Leasing a car for dummies!!
Posted by Leb
I only lease, I love it. I don't want to own a depreciating liability.
While I am sure you have your reasons to prefer leasing, you are basically contradicting yourself with this statement.
The last thing people who lease should care about is depreciation, because cars depreciate the most when they're new (and you are paying for this depreciation in your lease payments)!
People who lease don't care about depreciating because they pay big monthly bucks to own a new model car.
If you cared about owning a depreciating liability, you would be used (and an old model at that).
Owning or not owning doesn't matter in your example as you are still paying for the most depreciation (whether you are financing or renting).
Message edited 7/18/2012 4:31:21 PM.
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| Posted 7/18/12 4:30 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Leasing a car for dummies!!
Posted by ave1024
Posted by Leb
I only lease, I love it. I don't want to own a depreciating liability.
While I am sure you have your reasons to prefer leasing, you are basically contradicting yourself with this statement.
The last thing people who lease should care about is depreciation, because cars depreciate the most when they're new (and you are paying for this depreciation in your lease payments)!
People who lease don't care about depreciating because they pay big monthly bucks to own a new model car.
If you cared about owning a depreciating liability, you would be used (and an old model at that).
Owning or not owning doesn't matter in your example as you are still paying for the most depreciation (whether you are financing or renting).
I get what she is saying. She doesn't want to own anything that depreciates and would rather rent it. I have been stuck with an old car that needed repairs that wasn't worth what I owed. That sucked. Like being underwater on a house.
You rent it for a few years at what you can afford and give it back. It's a never ending payment but if that's how you roll, so be it.
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| Posted 7/18/12 5:15 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Leasing a car for dummies!!
Posted by KaKa2323
Posted by KristenRSF
I am confused with those who are saying not to put anything down at all. You have to put first month, last month, tax, title and fees down no matter what. Plus, it lessens your monthly payment.
I don't believe you have to put anything down at all. They can roll whatever into the monthly payment. My last lease I just paid taxes and fees, I think I gave them about $200 and took the car.
You don't have to do anything out of pocket. I did registration and plates last time and first month's payment.
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| Posted 7/18/12 5:16 PM |
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Blu-ize
Plan B is Now Plan A
Member since 7/05 32475 total posts
Name:
Susan
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Re: Leasing a car for dummies!!
Posted by KristenRSF
If you drive your cars into the ground, then financing is the best option. And those fancy lease prices they advertise on tv or for people with the highest tier credit possible.
And yes, they can roll the fees into the payment but I would rather pay it up front then have a more expensive payment.
Also, I just got into a new lease a little over a month ago. The best thing to do is give them the exact number of what you want to pay per month and let them do the work to get there. Don't negotiate, don't haggle, and be ready to get up and walk out. They WANT you to get the car and they will do whatever they can to get you into a lease.
Also, ask for extras. Tell them you want the windows tinted and remote start. If the car comes with stock wheels and they offer a nice option, ask them to throw that in too. There is a ton you can do when getting into a lease to get what you want. I have been doing it for years.
If you negotiate on payment alone you will never know if you got the right price for the car. Also, if you end up wanting to purchase the car off the lease at the end you will probably end up paying more overall for the car than you could have.
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| Posted 7/18/12 5:18 PM |
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MAC222
LIF Adult
Member since 12/08 3860 total posts
Name:
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Re: Leasing a car for dummies!!
Posted by KristenRSF
I am confused with those who are saying not to put anything down at all. You have to put first month, last month, tax, title and fees down no matter what. Plus, it lessens your monthly payment.
This is not true, you don't have to put anything down at all if you don't want to. I don't care about paying the first month, but I meant people putting 1K-5K down on a lease, it just doesn't make sense.
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| Posted 7/18/12 6:00 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Leasing a car for dummies!!
Posted by Blu-ize
I get what she is saying. She doesn't want to own anything that depreciates and would rather rent it.
I get it... but as I said if you care about depreciating assets you typically don't buy new in the first place. Regardless if you are renting vs. owning, you are still paying huge depreciation costs in the first few years of driving.
I just don't get the whole "I don't rent depreciating assets" statement. I find that with leases, you are actually MORE restricted with what you can do with the vechicle than buying.
If I am going to lease, I look for cars with very low money factors and super high residuals (BMW is great in this regard). But even those cars are good to buy because they are typically cars with high resale value, cars that dealers will have no problem giving me top dollar for in a trade.
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| Posted 7/18/12 7:05 PM |
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WannaBeAMom11
LIF Adult
Member since 1/11 7391 total posts
Name:
Name
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Re: Leasing a car for dummies!!
We have dh's lease and own my train car. This was our first lease and honestly I know everyone on here says negotiate but most of the dealers were like you pay this for this car. None of them really negotiated. 3 different dealers gave us close to the same price. We made tax, title and first and last month. The option to roll that into the payment wasn't available. We leased a dodge so I don't if that makes any difference and I have good credit so that wasn't a factor.
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| Posted 7/18/12 9:11 PM |
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