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For Those Leasing a Vehicle?

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  • For Those Leasing a Vehicle?

    I am currently leasing a 2018 Jeep Grand Cherokee. This will be my first lease and will know how much I like or dislike leasing when we go to turn it into next year.

    Those that lease or have leased. What where/are the pros and cons of leasing? For now I am thinking of leasing our next vehicle.

  • #2
    Pros are a built in new car every lease term. My wife leases because she likes getting into different vehicles. She's never extravagant about the car so its low cost.

    I hate not having equity...so I buy...but i also dont need to change cars like outfits. You also have mileage overages with a lease if you drive a lot.

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    • #3
      The con is that you're paying tax on the entire purchase price instead of purchase price less residual value. There are ways around it - I tried negotiating a one pay lease to avoid the tax situation a few months back but ended up getting a good enough deal elsewhere that I purchased instead.
      Originally posted by davbrucas
      I want to like Slow99 since people I know say he's a good guy, but just about everything he posts is condescending and passive aggressive.

      Most people I talk to have nothing but good things to say about you, but you sure come across as a condescending prick. Do you have an inferiority complex you've attempted to overcome through overachievement? Or were you fondled as a child?

      You and slow99 should date. You both have passive aggressiveness down pat.

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      • #4
        Originally posted by slow99 View Post
        The con is that you're paying tax on the entire purchase price instead of purchase price less residual value. There are ways around it - I tried negotiating a one pay lease to avoid the tax situation a few months back but ended up getting a good enough deal elsewhere that I purchased instead.
        Maybe I am over-simplifying, but wouldn't the lower payment over the 36 month term more than negate any additional taxes? This is assuming that the lesee/buyer will be getting into a new car in 3 years either way, so there won't be much if any equity in the equation, so it's a matter of comparing the down payment and monthly. As I've understood it leasing is for people that are committed to having a new car every 3-4 years, any longer than than at buying becomes the better play.

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        • #5
          Originally posted by Big A View Post
          Maybe I am over-simplifying, but wouldn't the lower payment over the 36 month term more than negate any additional taxes? This is assuming that the lesee/buyer will be getting into a new car in 3 years either way, so there won't be much if any equity in the equation, so it's a matter of comparing the down payment and monthly. As I've understood it leasing is for people that are committed to having a new car every 3-4 years, any longer than than at buying becomes the better play.
          The amount of equity someone has after 3 years of paying shouldnt be trivial unless they carry a 7 year note right? Especially with 0-2.8% interest that most manufacturers carry.

          I'm basing this on actually putting down a small down payment and only going with a low interest 5 year term.

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          • #6
            Now I am in the thinking mode of "will a leasing company do you any good to go thru them"

            Just having a twins a little over a year ago. Just doesn't seem to be any good reasoning to buy till they are abit older. Mileage is no big deal for. My company truck saves us from putting mileage on the lease.

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            • #7
              Originally posted by lincolnboy View Post
              Now I am in the thinking mode of "will a leasing company do you any good to go thru them"

              Just having a twins a little over a year ago. Just doesn't seem to be any good reasoning to buy till they are abit older. Mileage is no big deal for. My company truck saves us from putting mileage on the lease.
              Why doesnt buying make sense because you have kids?

              I specifically bought a truck that has plastic floors and cheap cloth interior because of my son and that wont change until hes like 6 at least.

              I'm pretty sure you're on the hook for anything that gets damaged in a lease.

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              • #8
                For the changes of the kids. We got the jeep before we had the kids and it is too small inside. Now I wish we had something with more leg room in the second row.

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                • #9
                  Originally posted by Ruffdaddy View Post
                  The amount of equity someone has after 3 years of paying shouldnt be trivial unless they carry a 7 year note right? Especially with 0-2.8% interest that most manufacturers carry.

                  I'm basing this on actually putting down a small down payment and only going with a low interest 5 year term.
                  Again high-level, the way I understand it is that with a lease you basically get most of the expected equity back with the lower payment. THe bank is looking to get interest on the value of the car over 3 years, they aren't flippers. Fee shell game aside, leasing isn't radically more or less expensive up to the end of the term, by design, or nobody would do it. In either case it boils down to the negotiated cap cost/sales price in terms of getting a good deal. Unless I'm missing something, leasing's primary benefit is to be able to swap cars often without worrying about finding a buyer, or haggling a trade in.

                  At the end of the day staying in a new vehicle is a losing proposition, there's no magic bullet to dodging depreciation, other than keeping it 4+ years, or buying 3 years + used.

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                  • #10
                    I haven't looked to compare lately, but older leases told a lot about a vehicle. The down payment was the initial loss, and the monthly payment was about what they depreciate per month.

                    Worse case during a lease is a job change that forces you over your mileage limits. You can lose your ass fast.

                    I've never leased, just worked with folks who did. Some liked it like the wife mentioned above, and one that got stuck in something that cost them $12k payment at the end of a 3 year lease. It was a BMW 3.
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