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
mich800 wrote:jsr21 wrote:discovery4us wrote:
Mileage concerns are easily negotiated in the lease contract. The lease we currently have has 20,000 mile per year limit instead of the original 12,000 mile limit. Changed the overall lease contract by just under $300 or about $8 per month.
For selfish reasons I like the idea of being able to easily trade out and have a new car every two to three years and not have to fight negative equity.
Whether I am sending the money to a finance company or putting it in savings for the purchase of the next vehicle I am stuck with a payment so the DW might as well be driving a newer vehicle:)
Good thing is at the end of the lease if there is equity there it's yours....if there's negative equity it's not yours
Technically there is no equity, you do not own the vehicle. Now maybe the buyout at lease termination may be in your favor but this is NOT a cheap way to purchase a vehicle. There may be the rare occasion where one could theoretically flip the vehicle but this would be fairly rare. One if the leasing company continues to miss the mark on residuals they will not be in business long. Two, usually any "equity" would get eaten up from the sales tax on the purchase side.
Not true..we always gave the customer the equity if it was there. For example if the customers residual was $11000 and we appraised it at $12500...the $1500 was theirs to do what they wish.
