Leasing a car

[TexMax]

$750 a month for a charger rt? How much did she roll over. If she's upside down and they can bury her negative equity in a lease and she comes out at 0 in a few years it may be worth it but her payment would still be more than advertised. Look at residual on three year older cars with double the miles. They're not terrible. Probably 15-16k. If trade value vs po less a one pay lease and payment savings over the life of the loan comes out in the black then go for it.

[Black Ice]

Leasing a car

GENERALLY, it is better to OWN rather than lease. She has probably been taken to the cleaners every time she trades cars every few years and is probably upside down. That said, you have not given enough info to make a good decision.

I leased one vehicle in my life and it was a 2001 dodge pickup I paid $25000 for in 2001. After paying for the lease for 3 or 4 years I decided to keep it and financed it for 5 years. In all I had the truck for 6 years and traded it in still owing $12,000[emoji23]. I haven’t leased one since.


I think my notes leasing and buying were over $400.


Also for you young bucks I put $4,000 worth of lift and tires into it. But the arse I packed into that single cab short bed on crystal beach the summer of 2001 was week worth it[emoji23]. Carrying that $4000 dollars paying the minimum on my credit card for 3 years was by far the best financial decision I have ever made in my life.

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[TexMax]

It's just numbers. There's no way to say whether or not it makes sense for any one person. Based on the rate they could get buying vs what is owed vs what leasing incentive is going on at the time vs vehicle wants/needs now or in the future

[hogslayer78]

But she always wants a fully loaded car and refuses to drive or own anything less.

Trading cars every 2 or 3 years is the problem. No telling how much upside she was on the Cadillac , which is why she is at $750 per month on a charger. Eventually she is gonna have to make up the money she is upside down on to get her payment down or lower her standards and drive a basic car for a few years. Sounds like she has a champagne taste with a beer budget.

[Gunner97]

Sounds like she is the customer leasing is designed for....low mileage driver And trades vehicles every few yrs and wants lower payments. Probably a good decision minus any negative equity going into new lease payment.

With that said we leased one vehicle years ago and will not lease another. Bad decision on our part when we much younger.

If she is interested in leasing she should do her homework and read and understand all details of the contract.

[Mike D]

Trading cars every 2 or 3 years is the problem. No telling how much upside she was on the Cadillac , which is why she is at $750 per month on a charger. Eventually she is gonna have to make up the money she is upside down on to get her payment down or lower her standards and drive a basic car for a few years. Sounds like she has a champagne taste with a beer budget.

This sums it up well. She is making stupid, terrible financial decisions and it will come crashing down at some point.

She needs to get out of the cycle of constant car payments. A lease won’t do that.


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[Atfulldraw]

Effective interest rate is about 11-14 percent in a typical lease.

Even though you are technically borrowing money, they don’t have to, nor will they disclose this cost.

Don’t do it

No one with any money and common sense ever leases a car

[Fishndude]

Been leasing for years. Works out great for us.

It’s all about the car you lease (Honda, Lexus, cars with resale value etc..) and your miles.

Lexus’ lease program is greatness.

But I’m poor and obviously dumb.

[Robert]

On the wife's 3rd lease. For her it's great see drives 14 miles a day 5 days a week she put around 500 a month on her SUV. She is in the loaded Tahoe with 523.00 a month. The main thing is you trade every 36 months and you keep your mileage under the cap. On the last trade we actually were 1200 to the good.

[alwaysinshorts]

$750 a month for a charger rt? How much did she roll over. If she's upside down and they can bury her negative equity in a lease and she comes out at 0 in a few years it may be worth it but her payment would still be more than advertised. Look at residual on three year older cars with double the miles. They're not terrible. Probably 15-16k. If trade value vs po less a one pay lease and payment savings over the life of the loan comes out in the black then go for it.

I do not want to criticize but I will. I have a car that is near 100k and my payment is 850 per month. I don’t think a charger is close to that cost. Which makes me believe that with the turn over of vehicles that she is really upside down. She may not qualify for the lease if she doesn’t have money to get out of the negative.

[SmTx]

Her priblem is her choice of vehicle. She needs practicality, not looks.

How about a used corolla or civic?

Heck even a new corolla is around 18k-ish and usually 0% financing.

I'm no car guy but I'm pretty sure those would be all I drove if I was.

[TCB]

It’s easy to sit back and saying leasing is horrible and she needs to be more financially responsible. How many of you have to have the newest bow every year at $1000+? Do you have a machine that sends ozone over you to kill your scent that cost $300+? Why do we need 9 different rifles when you can only hunt with one at a time?

If driving a new car is her “thing”, then a lease could be perfect for her.

Not picking a fight with anyone. I spend just as much on hunting “stuff” as the next guy. I’m sure people who don’t hunt would consider it to be financially irresponsible to them.

Just sayin

[91cavgt]

I do not want to criticize but I will. I have a car that is near 100k and my payment is 850 per month. I don’t think a charger is close to that cost. Which makes me believe that with the turn over of vehicles that she is really upside down. She may not qualify for the lease if she doesn’t have money to get out of the negative.

Oh she would qualify for a lease, this I am confident in. It’s not that she doesn’t have money, she just doesn’t want to spend it and she doesn’t like the $750 a month payment.

She prefers cars that typically have good resale value, it’s just the last couple of vehicles she has bought have been on the recommendation of someone who does not have her best interests at heart. My wife and I are trying to guide her in a way to help her recover and get back to low car payments.

[curtintex]

Been leasing for years. Works out great for us.

It’s all about the car you lease (Honda, Lexus, cars with resale value etc..) and your miles.

Lexus’ lease program is greatness.

But I’m poor and obviously dumb.

There are absolutely instances where it makes sense.

[HogHunter34]

I agree with others on going practical or economical. The economics on a civic or corolla are better all around...tire cost, fuel cost, & reliability.

My general rule of thumb is never dump a lot of money into a depreciating asset