lease prices

[damaster32]

Hi guys I've been looking into leasing an FRS. I just wanted to know what kind of prices everyone is getting on their lease.

Term/Monthly payment/ down payment/ 12k or 15k miles


I've been getting different quotes at all the local dealerships

Thanks
Stan

[PStaff716]

$6k down
15k miles annually
36 months
$25,300 sticker
$176 monthly payment

Hope that helps man. My buyout price is $16,100 and all of this is inclusive of NY taxes and fees, etc.

[saeyedoc]

Yikes, why would anyone put $6k down on a lease? If you total your car driving off the lot, it's a complete loss. Never put money down if you can avoid it.

[Mister]

Originally Posted by saeyedoc

Yikes, why would anyone put $6k down on a lease? If you total your car driving off the lot, it's a complete loss. Never put money down if you can avoid it.

A couple reasons why, if it is a smart decision or not is something different entirely:

1. Trade-in vehicle on the lease
2. Makes for very low monthly payments. For someone who cannot afford/does not want the $300-500/month car payments, or do not wish to have those payments, this is a reasonable option to own a car you could otherwise not afford. By saving up an initial payment you can get the car sooner, and at a lower cost.

And it is not a complete loss, you typically need full insurance coverage on a leased car no? I suspect the insurance payout would be enough to get another car.

[frslee]

Save some more and finance the car... You'll end up driving more than 15k miles per year. It's just that fun. I bought mine in April and 4 months later... already reached 10k haha

[PStaff716]

I didn't want the burden of a high monthly payment in the event that something happened to my job. And it would not be a total loss, the car is fully insured. Furthermore, I'm buying the car out at the end. I'll have graduated law school at that point and will be have a career, not just a job.

And to the point about driving more than 15k a year, I have 1275 miles on the odometer and I've had it for 7 weeks now. That puts me under 9.5k a year. I don't see much changing in my driving habits between now and then. I guess for some people leasing isn't an option due to long commutes. Fortunately, I don't fall into that category.

[r311music]

I looked into leasing since my mileage would be low as I commute on my motorcycle. However unless you have excellent credit or a hefty down payment, the payments won't be much lower than just financing it. I have above average credit, was going to put 2,500 down and my payments would have been 350-375 a month...

[DeeezNuuuts83]

Originally Posted by Mister

And it is not a complete loss, you typically need full insurance coverage on a leased car no? I suspect the insurance payout would be enough to get another car.

Also, whether you're leasing the car or not, in the event of a total loss, the insurance company will only pay out whatever they determine the ACV (actual cash value) is, which 100% of the time is going to be a chunk lower than MSRP. (You can combat yourself against this if your insurance company offers the new vehicle replacement -- I know Safeco/Liberty Mutual both offer this coverage for the first year.) So if you paid a big chunk as the down payment, you may not end up being upside down (and might even get some back). If you paid the minimum, you might still have to pay a little extra out of pocket. You'll pay the money one way or another, but paying more money up front doesn't really put you at a disadvantage.

And again, whether you're financing or leasing, you'll be required by your lienholder/leaseholder to maintain full coverage anyway. Even if you pay cash, you should still get it anyway. But remember that leasing typically requires you to carry liability limits of 100/300/50 or greater, which is well above the state minimum requirement in all states. If you already have that liability limit or higher, then it's not a big deal, but for some of the minimalists who only go for the absolute minimum required, it might catch you off-guard when you have to go from 15/30/10 to 100/300/50 and your insurance rates go up a big chunk.

[damaster32]

I've got another car. So this would be my second car. Thats the reason I wanted to lease it. I also switch cars ever couple years.

[ultra_frs]

$3800 or so down? only $500 was cash. $250 a month

[gily25]

I know some people aren't great at budgeting so I totally understand why someone would do this up front, however it seems foolish on the outside.

Devil's advocate tho...if you're not trying to lower the overall debt on the car for future sale options then the money would be more useful in your savings account. For instance savings can pay higher car payments or cover the payments if you're out of work or pay the deficit in the event of a total loss.

The only reasons I can see for leasing a car is if it gets covered by your employer (they lease it for you but you can pick). I've never really believed any of the other reasons (lower payments, service plans, etc.) were worth the hassle.

[ultra_frs]

Originally Posted by gily25

I know some people aren't great at budgeting so I totally understand why someone would do this up front, however it seems foolish on the outside.

Devil's advocate tho...if you're not trying to lower the overall debt on the car for future sale options then the money would be more useful in your savings account. For instance savings can pay higher car payments or cover the payments if you're out of work or pay the deficit in the event of a total loss.

The only reasons I can see for leasing a car is if it gets covered by your employer (they lease it for you but you can pick). I've never really believed any of the other reasons (lower payments, service plans, etc.) were worth the hassle.

This really doesn't make much sense. Your opinion is fine, but what are you talking about in regards to a savings account? You do realize that the average savings account pays 0.05% interest right? And the very best, is generally still under 1% which requires usually around a $100,000+ deposit.

What leasing does is a few things. It allows you to get into a car you normally probably couldn't afford. You're only paying for the diminished value of the car for the number of years you drive it plus fees and interest. Some cars hold their value very well, and it is much cheaper to "rent" it for 3 years instead of buying it. It also eliminates the possibility of negative equity in your car. This is especially important for people that get new cars relatively often. A lot of times, if you finance the car, the amount you still owe by the time you go to trade it in is more than what the car is worth. That's negative equity. Leasing eliminates this risk. If your car is in reality worth less than what the dealer quoted your residual at the end of the lease, the dealer takes the hit. On the flip side, if it's worth more, you walk away with some money in your pocket because you overpaid for your lease. It's a win win situation if you like to change cars every few years and can't afford to finance the car you really want.

It's also not a hassle at all to lease a car. My experience was very pleasant. It all depends on the person. Leasing and financing both have pros and cons. It really just depends on the person and situation as to what is better.

[DeeezNuuuts83]

Originally Posted by ultra_frs

A lot of times, if you finance the car, the amount you still owe by the time you go to trade it in is more than what the car is worth.

But you can avoid being upside-down by making a good-sized down payment. But even with a small down payment (or even no down payment), the car's value will surpass the loan balance at some point, unless you plan on trading in a financed car relatively quickly (say, within three years, which is a situation where you should've leased anyway).

[ultra_frs]

Originally Posted by DeeezNuuuts83

But you can avoid being upside-down by making a good-sized down payment. But even with a small down payment (or even no down payment), the car's value will surpass the loan balance at some point, unless you plan on trading in a financed car relatively quickly (say, within three years, which is a situation where you should've leased anyway).

Which is more or less what I said. Anybody that understands finance and how money works also should know that with interest rates as low as they are, large down payments cost you more than just paying the interest. Most new cars you can get less than 2% interest. That doesn't even cover the devaluation of money over time. A dollar today is worth more than a dollar tomorrow.

The real issue is whether or not people know how to invest and manage their money.