Leasing a car

[91cavgt]

I’ve never leased a vehicle since I drive too many miles a year(25k to 50k) but a family member is considering leasing. Her current car (2015 Charger R/T) has 21k, is in perfect shape, and is always garage kept. But her payments are $750 a month which she is not happy with.

I recently saw an ad for a new” Buick Encore lease. 39 month lease for $300 a month with $3k down and a maximum of like 39k miles. I’m typically leary of auto ads cause they don’t tell you the true cost. So what say you lease experts? What are the hidden costs, or what is not being told in the ads for the leases?



btw, the Buick Encore lease I mentioned was just an example of what I found and not a lease she is interested in.

[thegrouse]

The drop off fee and mileage restrictions are the other costs. So a 39 month lease will be $11,700 of payments plus 3k down and taxes and a drop off fee. Probably 15-16K for 3.25 years of car ownership.

[ShockValue]

The drop off fee and mileage restrictions are the other costs. So a 39 month lease will be $11,700 of payments plus 3k down and taxes and a drop off fee. Probably 15-16K for 3.25 years of car ownership.

Plus whatever they get you per mile for being over the mileage.

Tell her not to do it!

[cantexduck]

Probaly be cheaper to keep her car or trade it in for something more reasonable priced.

[Darton]

Leasing a car never make any sense unless you are the dealer!

[CrookedArrow]

Don't

[91cavgt]

Plus whatever they get you per mile for being over the mileage.

Tell her not to do it!

She has put 21,000 miles on a car in 3 years. The ad I saw said 39,000 miles in 3 years. To me it seems like she would not be paying anything. Am I missing something?

[91cavgt]

The drop off fee and mileage restrictions are the other costs. So a 39 month lease will be $11,700 of payments plus 3k down and taxes and a drop off fee. Probably 15-16K for 3.25 years of car ownership.

$750 a month(her current payment) over 36 months is $27,000 she has paid. So paying $15k to $16k would almost drop her out of pocket by half spread out over the lease term. Do you have to pay those fees up front in a lease or are they rolled in to the monthly payment like a loan can be done?

[91cavgt]

Oh, she also tends to change vehicles every couple of years. Since 2013 she has had a Honda Odessy, a Cadillac XTS, and this Dodge Charger R/T.

Y’all say for her not to do it but I don’t see the reason why(or I’m just too tired to be thinking about this stuff).

[ShockValue]

She has put 21,000 miles on a car in 3 years. The ad I saw said 39,000 miles in 3 years. To me it seems like she would not be paying anything. Am I missing something?

What’s the current balance on her loan and what’s the value of the car today? Is she upside down?

My answer is still the same either way...NEVER lease! ��

[91cavgt]

Probaly be cheaper to keep her car or trade it in for something more reasonable priced.

I completely agree with you on this. Personally in order to save some money I commute in a cheap cash car. But she always wants a fully loaded car and refuses to drive or own anything less. I thought a lease might help her achieve both owning a new car all the time along with having a lower monthly payment. If she had to pay all the fees up front then I suppose that might be a negative for her, maybe.

[91cavgt]

What’s the current balance on her loan and what’s the value of the car today?

I don’t know the current balance on the loan. The current trade in value is somewhere around $21k-$23k according to Autotrader’s online estimate.

[Burnadell]

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.

[91cavgt]

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 bet you’re right on that. I guess the only info I haven’t posted up is her current loan balance only because she hasn’t told me what that is.

[TxAg]

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

How about a used corolla or civic?