Leasing questions.
Looking to the future if I replace the Winnebago with a fifth wheel then I'll have to purchase a truck. Has anyone leased with good results?
Forum Discussion
Every time this discussion starts, people without knowledge, insist on chiming in with totally incorrect information about leasing. No one person can make a blanket statement that leasing is "not good for you" without knowing your complete financial picture, wants, and needs.
I was a dealer for more than forty years, operated multiple lease companies, and have a degree in leasing. I have leased thousands of vehicles and had this discussion thousands of times. Unequivocally the answer as to whether to lease or not is...Maybe!
The absolute lowest cost of ownership of a vehicle is to buy it new, pay cash, and keep it for more than ten years. Less than 10% of the owners do this and far more than 50% of people finance with an average term of more than 60 months. With the average down-payment, they will owe more than the value at least during the first 48 months of payments. So not leasing because you are throwing your money away is incorrect. With a zero down lease of thirty-six months, you will have lower payments and long before you are at break-even on your financed purchase, you will have turned in your lease and have no obligation.
You can lease a vehicle for any amount of miles you wish, generally up to a 100,000 mile total lease. Dealers and manufacturers often advertise 10,000 mile leases simply because the payment is lower. Often you can get even lower mileage leases for lower payments. You should lease the vehicle for the most reasonable amount of miles you are likely to drive. Leasing a vehicle for 10,000 miles a year and knowing you will be driving 20,000 miles a year is just dumb.
As even like you own the vehicle, you are going to pay for the original acquisition price, depreciation, and interest on the money whether it is lost interest by paying cash or interest on money borrowed. Generally, the leasing company sets the interest rate and it is non-negotiable unless the dealer is marking it up. Generally it is lower than borrowed funds because the leasing company receives great tax incentives. They also set the residual amount and that is also non-negotiable. The actual selling price of the vehicle is negotiable and even the low priced advertised leases are negotiable.
Leasing is only as complicated as you allow it to be. Any leasing contract has to meet government regulations and clearly spells out all the terms and conditions of the lease. If you are going to lease, seek out your best sales price of the vehicle and make sure you read both sides of the lease contract. A lease can be very beneficial for the buyer when they do their home work.
I was a dealer for more than forty years, operated multiple lease companies, and have a degree in leasing. I have leased thousands of vehicles and had this discussion thousands of times. Unequivocally the answer as to whether to lease or not is...Maybe!
The absolute lowest cost of ownership of a vehicle is to buy it new, pay cash, and keep it for more than ten years. Less than 10% of the owners do this and far more than 50% of people finance with an average term of more than 60 months. With the average down-payment, they will owe more than the value at least during the first 48 months of payments. So not leasing because you are throwing your money away is incorrect. With a zero down lease of thirty-six months, you will have lower payments and long before you are at break-even on your financed purchase, you will have turned in your lease and have no obligation.
You can lease a vehicle for any amount of miles you wish, generally up to a 100,000 mile total lease. Dealers and manufacturers often advertise 10,000 mile leases simply because the payment is lower. Often you can get even lower mileage leases for lower payments. You should lease the vehicle for the most reasonable amount of miles you are likely to drive. Leasing a vehicle for 10,000 miles a year and knowing you will be driving 20,000 miles a year is just dumb.
As even like you own the vehicle, you are going to pay for the original acquisition price, depreciation, and interest on the money whether it is lost interest by paying cash or interest on money borrowed. Generally, the leasing company sets the interest rate and it is non-negotiable unless the dealer is marking it up. Generally it is lower than borrowed funds because the leasing company receives great tax incentives. They also set the residual amount and that is also non-negotiable. The actual selling price of the vehicle is negotiable and even the low priced advertised leases are negotiable.
Leasing is only as complicated as you allow it to be. Any leasing contract has to meet government regulations and clearly spells out all the terms and conditions of the lease. If you are going to lease, seek out your best sales price of the vehicle and make sure you read both sides of the lease contract. A lease can be very beneficial for the buyer when they do their home work.
