Does Car Leasing make sense?

[Vulcaneer]

Since buying our RV lot in Florida, my wife and I will be snow birding for 6 months next year. We will use our fifth wheel. But do need a car for the winter months. As an alternative to our big diesel truck. Shipping our current car from NH to Florida doesn't seem to make good sense. I believe a long term car rental is too expensive.

We have considered buying a car to leave in Florida. Maybe a newer used car, or a new moderately priced car. We expect to put on less than 4,000 miles each snowbird season.

I have never considered leasing a car to be a good investment before. But now, or needs have changed. And I am wondering if a car lease would make good sense for our needs.

Any thoughts?

[Vulcaneer]

Now these are the answers I need. I would agree that paying and insuring all year long for 6 month use doesn't seem to make sense. I will look into long term rental costs. And compare to used car purchase options.

Thank you all for your suggestion and advice.

[colliehauler]

nevadanick wrote:
All the car rental companies have long term rentals. I would check into that myself.

Thats what I thought of as well. Rent for six months and turn it in.

[GPG52_]

Retired after 42 years in the Finance/Leasing industry.
Math: lease payment + taxes on lease payments + return conditions + insurance cost/issues + possible extra conditions(no long term storage, out of state issues) = no asset/car at the end of term. Unless your tax accountant can advise you that you can benefit from an Operating Lease it is likely not beneficial. Be aware of Capital or Finance Leases as many areas will not recognize any tax advantages, again your tax account can direct you. My first option would be i) purchase ii)use what you already own, if you can Iii)short term rental. my 2c (cash) worth.
GPG

[Lantley]

Vulcaneer wrote:

Lantley wrote:
I have leased a car a while back. For me the advantage of leasing was a low payment. Disadvantage is I accrued no equity in the car. At the end of the lease I had nothing to show for my payments.
I must admit I did like the low payment. However turning the car in,leaving myself with nothing in return, left a bad taste in my mouth.
I would never lease again.
In your case a 1 year lease may have advantages, however the same pitfall exist.
How long do you plan to snowbird on your RV lot.
Is snow-birding on the lot a passing fad or something you plan to do long term.

Unless you only plan to snowbird 1 or 2 seasons, I don't see a lease as being a favorable option.
Insurance will be the deal breaker. You will have to insure the car year round.
A out of pocket used car will only need to be insured for the 6 months when you are using it.
Leasing maybe hassle free in terms of having a reliable new car with a reduced payment that won't have a lot of maintenance or unforeseen expenses however you will never own the car or accrue any equity. At some point the lease will end and you will have nothing to show for your payments.

I would not have bought an RV lot here if I wasn't planning on using it long term. Why would one buy an RV lot to use if they didn't plan on using it long term. If I bought it to rent it out, then why would I want to have a car here?

So you are saying if I use it long term, then a lease has advantages? That is what I am thinking too. I don't need equity in a car. Just pay for the use. And have a nice car to drive around while I am at it. Thanks.

In your case what makes leasing a bad idea is you only need a car for 6 months. If you lease I imagine you cannot cancel the insurance during the down time vs. an out of pocket used car that could be parked uninsured.
As to longevity. You will always have a car payment. You will have a 12 month payment for 6 months of usage. There will never be a payoff. I see no upside to a lease. If you buy the car out right after 3-5 years you could own the car free and clear vs. owning nothing via the lease. The longer you lease the less sense the idea makes in my book. Leasing has no end game.
I do think a long term rental could have merit. Not sure of the cost but I would look into the cost and availability of a 6 month rental.

[Water-Bug]

A lease vehicle is exactly what you want. A two year old vehicle returned from lease with 24, 000 miles on it. Just be sure that it is a well maintained lease return and not a used rental.

[Vulcaneer]

Lantley wrote:
I have leased a car a while back. For me the advantage of leasing was a low payment. Disadvantage is I accrued no equity in the car. At the end of the lease I had nothing to show for my payments.
I must admit I did like the low payment. However turning the car in,leaving myself with nothing in return, left a bad taste in my mouth.
I would never lease again.
In your case a 1 year lease may have advantages, however the same pitfall exist.
How long do you plan to snowbird on your RV lot.
Is snow-birding on the lot a passing fad or something you plan to do long term.

Unless you only plan to snowbird 1 or 2 seasons, I don't see a lease as being a favorable option.
Insurance will be the deal breaker. You will have to insure the car year round.
A out of pocket used car will only need to be insured for the 6 months when you are using it.
Leasing maybe hassle free in terms of having a reliable new car with a reduced payment that won't have a lot of maintenance or unforeseen expenses however you will never own the car or accrue any equity. At some point the lease will end and you will have nothing to show for your payments.

I would not have bought an RV lot here if I wasn't planning on using it long term. Why would one buy an RV lot to use if they didn't plan on using it long term. If I bought it to rent it out, then why would I want to have a car here?

So you are saying if I use it long term, then a lease has advantages? That is what I am thinking too. I don't need equity in a car. Just pay for the use. And have a nice car to drive around while I am at it. Thanks.

[nevadanick]

All the car rental companies have long term rentals. I would check into that myself.

[bigdogger]

It isn't always about the money. You can lease a great vehicle for a relatively low monthly payment. If all you are trying to do is not spend money, get rid of the RV, the Lot in Florida and hunker down for the winter. Leasing makes great sense when all you want is the use of the vehicle and also don't want the risk that it will fall out of favor in three years. Then you would be way upside down if you had financed the vehicle with payments equal to the lease payment, since to get that payment would require a much longer term. I like leasing my toy vehicles, since they are for pleasure, not profit. They are not investments. I leased my BMWs and a Mercedes Convertible for multiple hundreds of dollars less per month than I would have paid to purchase them. I didn't mind turning them in at the end of the lease because I was ready for a different toy. When my M5 lease expires, who knows what will be catching my fancy, but the odds are in three years I will be ready for something else. Can't easily change wives and jobs, but cars are a cinch with a lease.

[CKNSLS]

Lantley wrote:

CKNSLS wrote:

Lantley wrote:
I have leased a car a while back. For me the advantage of leasing was a low payment. Disadvantage is I accrued no equity in the car. At the end of the lease I had nothing to show for my payments.
I must admit I did like the low payment. However turning the car in,leaving myself with nothing in return, left a bad taste in my mouth.
I would never lease again.
In your case a 1 year lease may have advantages, however the same pitfall exist.
How long do you plan to snowbird on your RV lot.
Is snow-birding on the lot a passing fad or something you plan to do long term.

Unless you only plan to snowbird 1 or 2 seasons, I don't see a lease as being a favorable option.
Insurance will be the deal breaker. You will have to insure the car year round.
A out of pocket used car will only need to be insured for the 6 months when you are using it.
Leasing maybe hassle free in terms of having a reliable new car with a reduced payment that won't have a lot of maintenance or unforeseen expenses however you will never own the car or accrue any equity. At some point the lease will end and you will have nothing to show for your payments.

You may have had no equity-but you shouldn't have put a lot down either. That's a wash.

I agree. I got what I paid for. I used the car for 3 years and walked away.Nevertheless I made payments for 3 years and ended up with nothing.
I enjoyed the reduced payment, but in the end I still needed a car.
So 3 years later when my lease expired I purchased my next car vs.leasing.

I will never lease again

Let's be clear-you didn't like leasing. Obviously, all of the above is known before you sign the lease(that you are paying only for the use-not ownership). You ended up with the use of a late model car-without (or very little) of a down payment.

That is what you "got".

[Bird_Freak]

I don't know about Fla. but in Ga. if you drop your insurance you have to turn in your tag.

[Lantley]

CKNSLS wrote:

Lantley wrote:
I have leased a car a while back. For me the advantage of leasing was a low payment. Disadvantage is I accrued no equity in the car. At the end of the lease I had nothing to show for my payments.
I must admit I did like the low payment. However turning the car in,leaving myself with nothing in return, left a bad taste in my mouth.
I would never lease again.
In your case a 1 year lease may have advantages, however the same pitfall exist.
How long do you plan to snowbird on your RV lot.
Is snow-birding on the lot a passing fad or something you plan to do long term.

Unless you only plan to snowbird 1 or 2 seasons, I don't see a lease as being a favorable option.
Insurance will be the deal breaker. You will have to insure the car year round.
A out of pocket used car will only need to be insured for the 6 months when you are using it.
Leasing maybe hassle free in terms of having a reliable new car with a reduced payment that won't have a lot of maintenance or unforeseen expenses however you will never own the car or accrue any equity. At some point the lease will end and you will have nothing to show for your payments.

You may have had no equity-but you shouldn't have put a lot down either. That's a wash.

I agree. I got what I paid for. I used the car for 3 years and walked away.Nevertheless I made payments for 3 years and ended up with nothing.
I enjoyed the reduced payment, but in the end I still needed a car.
So 3 years later when my lease expired I purchased my next car vs.leasing.

I will never lease again

[CKNSLS]

Lantley wrote:
I have leased a car a while back. For me the advantage of leasing was a low payment. Disadvantage is I accrued no equity in the car. At the end of the lease I had nothing to show for my payments.
I must admit I did like the low payment. However turning the car in,leaving myself with nothing in return, left a bad taste in my mouth.
I would never lease again.
In your case a 1 year lease may have advantages, however the same pitfall exist.
How long do you plan to snowbird on your RV lot.
Is snow-birding on the lot a passing fad or something you plan to do long term.

Unless you only plan to snowbird 1 or 2 seasons, I don't see a lease as being a favorable option.
Insurance will be the deal breaker. You will have to insure the car year round.
A out of pocket used car will only need to be insured for the 6 months when you are using it.
Leasing maybe hassle free in terms of having a reliable new car with a reduced payment that won't have a lot of maintenance or unforeseen expenses however you will never own the car or accrue any equity. At some point the lease will end and you will have nothing to show for your payments.

You may have had no equity-but you shouldn't have put a lot down either. That's a wash.

[rockhillmanor]

6 months of a new car sitting in Florida while you are up North a lot of money.

6 car payments. Add insurance and registration. That's a lot of money spent on something you are not using just to have a car to go to the store in for a couple of months while you are there.

If you have a personal car at home you can have it driven down here. There are tons of ads for people who drive cars back and forth just for the RV'ers. The cost of doing that versus new car payments would save you a lot of money. U-Haul has contractors that move trailers, personal cars etc for people. Give them a call that might be the answer for you.
PM me I have BC card for them. They helped me move stuff down here.

[Bumpyroad]

when investigating leasing, ask them if it is OK to leave the automobile alone, in the open, unattended for 6 months.
bumpy