Leasing?
We are convinced our next car will be leased. $200-300 a month and always have a new car with no repair worries. You either make the payments or put the payments in the bank each month for the next ...
Forum Discussion
It appears there are quite a few board experts that don't understand the formula of leasing. The amount left at the end of the lease (the residual) is simply the unpaid balance which the leasing customer is not responsible for. At the end of the lease the customer has the option of buying the vehicle for the residual balance...or not..totally up to him/her.
Example...I leased a Town and Country mini van...I knew from the get go there was no way it would be worth the amount left owing at the end of the lease...and 30 months later when the lease was up I was right.
The unpaid balance was over $27000....and the market value was closer to $21000. Needless to say I walked away from it.
If it was still worth $32000 I would have bought it in a heart beat.
I have everything to gain and no risk on resale value.
If there' equity in it it's yours if you want it. If there's negative equity you don't have to deal with it.
How many times have you read someone trying to trade out of their current unit...but they owe way more money on it than it is worth?
I bet those people wish they had a lease maturing in the next month or two. They are leasing right now but they just don't realize it...trying to bail out of a unit they haven't finished paying for.
In most cases when you hear someone bad mouthing a lease experience it's because:
1) They drove way more miles than their lease was set up for.
2) They do a poor job of keeping the vehicle in good condition
and it's full of scratches, dents, etc.
Keep in mind if they bought it out at lease end the lease company doesn't care what it looks like or how many miles are on it.
Example...I leased a Town and Country mini van...I knew from the get go there was no way it would be worth the amount left owing at the end of the lease...and 30 months later when the lease was up I was right.
The unpaid balance was over $27000....and the market value was closer to $21000. Needless to say I walked away from it.
If it was still worth $32000 I would have bought it in a heart beat.
I have everything to gain and no risk on resale value.
If there' equity in it it's yours if you want it. If there's negative equity you don't have to deal with it.
How many times have you read someone trying to trade out of their current unit...but they owe way more money on it than it is worth?
I bet those people wish they had a lease maturing in the next month or two. They are leasing right now but they just don't realize it...trying to bail out of a unit they haven't finished paying for.
In most cases when you hear someone bad mouthing a lease experience it's because:
1) They drove way more miles than their lease was set up for.
2) They do a poor job of keeping the vehicle in good condition
and it's full of scratches, dents, etc.
Keep in mind if they bought it out at lease end the lease company doesn't care what it looks like or how many miles are on it.
