Post # 16
We leased and loved it. It was cheaper and we didn’t have to pay for much. Mileage was nowhere near a problem. We only had 12,000 KMs in 18 months and our 5 year limit was 100,000 KMs. We had a bunch of free warranty’s thrown in that covered maintenance, tires, and damage protection at the end. Transferring our lease was so easy too so we didn’t lose any money.
Post # 17
soon2bmrsruiz : oh he had a tire actually blow out and need to replaced. He had to cover that and since he was so close to the end of the lease said “screw it” and only replaced the busted tire when really they should be replaced in sets.
Post # 18
I haven’t ever leased a car but I know some people who have. Ever since I heard Dave Ramsey say it’s a “fleece” not a lease, I’ve been wary. I know that it can serve a purpose for some people in some situations but I think the best option is more often to purchase a slightly older or lower quality car than to lease one.
My cousin was fortunate to have the option to purchase her car after her lease was up and it ended up being a great deal for her. The jury is still out on the other folks, though.
Here’s what Dave has to say about it: https://www.daveramsey.com/askdave/automobiles/10761
Post # 19
I leased a car after I got my first real job. Darling Husband was still years from paying off the car he had recently bought and the monthly lease payment was a lot lower than that, and we knew we wanted flexibility in the future and also didn’t want to deal with the hassle of selling a car. So it was more for convenience and having a new, reliable car for “cheap” at least up front, but in the end I’m very glad I did it.
At the end of 3 years I turned it in and started taking public transportation instead and saved TONS. Now we live in a downtown area where we don’t really need a vehicle and a second car would cost us like an extra $100/month for parking. Hubby’s car is paid off now and we only use it for excursions. Worked out great but in the future if/when we move to the suburbs and get more cars I imagine we’d only buy, not lease again.
PS in regards to mileage limits I upgraded to the next higher mileage limit and since my commute wasn’t super long we used the lease for all our weekend road trips and such (saved wear & tear on the car we owned) and still turned it in with miles to spare.
Post # 20
I leased a Grand Cherokee about 2 years ago. 36 month lease, 12k miles/yr. For me, it ended up being the worst decision. I drive more than I had realized and had to return it around month 18 and pay the rest of the 18 months at the return. Fun times. So then we bought a different SUV for me, so I don’t have to worry about miles anymore.
Post # 21
I lease right now and I love it. I get free maintenance and valet with loaner car for all maintenance, I don’t have to worry about anything.
Plus I love these cars, so when this lease is up I’ll want another one. I don’t drive a lot on this car, I have another car so it works really well for me. You definitely need to pay attention to the terms and make sure it’s a good fit.
Post # 22
You are essentially paying to rent a car. You never own anything. My aunt decided to lease, and had every intention of purchasing it when the lease was up so she didn’t pay attention to mileage. Well, when she tried at the end of the lease term, they told her her credit was too poor to finance it or her income wasn’t high enough or some crap, and she had to pay for all the mileage overages which was thousands of dollars she didn’t have. So she ended up having to purchase a used car off the lot that had enough equity in it to roll the mileage overage into it and max out the value that the bank would loan. So she ended up with a crappier car and paid more money than what it was advertised for because she was upside down on the lease. I’m not sure why she couldn’t buy the leased car but they would loan her on an older one? I assume because the payments were less?
Moral of the story, it’s an absolutely terrible idea.
Post # 23
- Wedding: March 2015 - City, State
LilliV : Oh. Yeah, that’s just bad luck. I wouldn’t have replaced all the tires either!
Post # 24
My husband and I have never leased, we’ve only owned.
With a lease you always have a payment unless you buy the car at the end of the lease. Everyone that I know that’s leased had to payment the overpayment for miles. You tend to drive a lot more than you think and those 10,000 miles go quickly (I easily put on 20,000 a year with my job). We both went for years without a car payment and it’s really nice to have that. We got new (to us) used cars last year after my husband got in a serious car accident. We both bought certified cars that were in the dealer’s loan fleet and got great warranties on them.
I can’t see us ever leasing.
Post # 25
Thanks for all the advice bees! We have decided against it! We are not “need a new car constantly” type of people so it wasn’t that reason. The next car we want which will be for me is a compact SUV that we’re saving a big down payment for but Darling Husband was worried my car might go out so he thought trading it in and leasing one would be better so we could have a lower payment and then get rid of it. I told him it’s a bad idea because we will be ready to buy the SUV in a year, maximum 2, and we’d we stuck in a lease throwin money away even though we’d be ready to buy in less time the lease would be up. My car is fine for the time being it’s only an issue when I have to go to trainings and stuff or when I go downhill because the commute back up the hill is what’s wearing on the turbo and it signals the check engine light to come on. We’ve had it checked by the dealer and it doesn’t need to be replaced yet unless it goes out. The light will go off on it’s own after completing the uphill mission and getting back to regular city driving. Its been like that for over two years and hasn’t gone out. Ive limited ththe amount of times I have to go up and down unless it’s for work. He is just worried it could go out and cost us more but I told him I think it’s going to be fine. Thanks for all the advice. We have never done it and I’m glad we’re choosing not to.
Post # 26
I’ve leased my last two cars (5 year terms)…I think it may be a bit different in Canada b/c I know loads of people up here, including very financially stable/saavy ones, who lease, whereas people I know in the States tend to be less enthused with the idea. I really don’t know about the details cross-border, but I’ll say for me that I’ve liked it.
I like that you are less likely not to pay for major repairs (I think if it’s going to be a lemon that will happen in the 3 year warrranty, and otherwise major repairs don’t *tend* to crop up until after 5 years). As someone who is self-employeed, I also have more ability to write a lease off in my taxes compared to a purchase.
I also had no downpayments either time and the monthly payments are lower than financing. If you choose to buy your lease out after the balloon payment at the end, we calculated and at least in my case I’ll end up paying just about to the penny the same as I would have buying the car in the first place. I also find its easier to just budget X amount per month for a lease and just keep it in my ongoing expenses. We’re planning to leave the country around when this lease is up, so at that point we’ll look into buying and reselling, giving it back, or buying it out for when we are home (planning a 6 month split annually), but that’s a few years from now. In the meantime, leasing was a good choice for us.
Post # 27
Purchased my car new – it includes no charge scheduled maintenance for 4 years. You don’t have to lease to get maintenance perks or warranty lol. The cars I was looking at had waaaay higher interest rates for leasing (since they are performance cars) so it didn’t make sense to go that route.
My gf leased a Range Rover and got nailed with THOUSANDS in charges when she returned it. Tire wear, dings, mileage etc. It’s all in the fine print of the contract so you can get screwed big time.