Leasing: Good Deal or Not?

A lot of auto companies have subsidized lease programs for the employees. Maybe not the one that you work for but yes, they do exist believe it or not.

 

From what I know you always have to make your first payment and whatever tax and lic and registration due at signing.

 

Correct - I should have said nothing else that other than the things you mentioned.

 

I just leased a 19 OR DCSB MT perm/tech with an msrp of over 40k for $240 per month which includes sales tax of 6.35%. That’s a 2 year lease with 12k miles. I put $0 down. I gave them a check for $240 and drove away. I have no brakes to replace, I have no tires to replace, all maint is covered and I don’t have to worry about diminished value in the case of an accident. The residuals on these trucks is very high right now so leasing is very attractive assuming you can stay at 12k. For me, at these rates I felt it made no sense at all to buy and I had the means to buy it. It was strictly a financial decision. This is Honda Civic payment territory.

 

Truck get totaled, insurance replaces with new. Part of my policy, has been for years.

 

I bought a 2019 because, the refresh features aren’t important to me.

 

Thats cool, it wasnt a slight at anyone...its just at this time of the year with a updated version coming in few months the 2019's should have some attractive prices.

It seems the lease deals are getting better thats for sure.

 

The biggest three auto manufacturers absolutely do not plus plenty of other mainstream brands. So tell me wise one, why do honda, toyota, GM, Ford, nissan, Hyundai, kia, and Subaru employees all still overwhelmingly lease their vehicles despite no special employee subsidy cash??

Its a ridiculously stupid argument anyways, any special cash would apply to finance and lease deals alike so there's obviously another reason they all overwhelmingly lease anyways. I know its hard to just admit you're wrong so interested what other mental backflips you'll do to double down

 

I don't know how I can break this down any more simply: they pay you the VALUE of a new one. The difference between the value of a new one and your current payoff is the $ you keep. Still with me??

Ergo you're better off with a LOWER payoff right?? Because with a lower payoff you get MORE $... Still following??

Now with a lease you'd have a lower payoff... therefore that means you get more $!

If you still don't get it, no prob, just want others to not listen to your bad info

 

Biggest three? What is the "biggest three" in your perception? What am I wrong about? VAG is the biggest one and they subsidize leases for VW Audi and Porsche brands. BMW/Mini, Mercedes do the same. I am sure there are others that I am leaving out. Frankly I don't understand why are you arguing about this, subsidized leases do exist. Or where exactly did you get your data proving that honda, toyota, GM, Ford, nissan, Hyundai, kia, and Subaru employees overwhelmingly lease their vehicles. Have you done a nationwide research to make such a claim? I am not against leases, I lease and buy vehicles all the time (close to 50 in my lifetime). I do it because it makes financial sense to me, not a Joe behind a computer screen.

 

There are options no one is mentioning or maybe not in the same way.

I have fleet trucks and its not uncommon for me to lease. Depends on the truck and terms though and Im not loyal to brand. I just have to have 3500 or 350/450 diesels. Mods.. I mod the #### out of them. When I get a new one I have the dealer swap out most of my equipment if not all not big deal and Im charged a minimum.

That residual can work both ways, Ill explain the good way. Get the lowest you can get on the residual then go after the lease payment.
so example take a 50k with a residual in 3yrs of 40K. Divide that 10k by 36 and thats usually around the dealer nuetral cost point. Get as close to that as you can. Yes your down acquisition fees are included. Thats simplified but it will put you in the ball park.---Now at the end of your lease (mileage correct ) if its worth less than market go step into another one, their problem. If the truck is worth more buy it off the lease and sale it. I do this all the time and usually make money especially on the 6.7 Fords. Use caution of the sales tax in your state because in some states they will tap you twice.

On one of the above threads someone made and incredibly accurate statement. "So youre going to go buy something that will depreciate the whole time you have it". He/she is exactly right and I notice a lot of young folk now days absolutely don't think this way. Financially in 3 years the leaser will always be ahead because he/she only paid for the depreciation, the purchaser paid depreciation and the note at 3-4%. Plus the lease will then be in a new truck. I notice with the Jeeps that the dealers are modding them out then leasing them so they are turn key off roaders. It's a pretty good ideal. Im not saying purchasing is bad, but over 40k per unit its just really hard to justify anymore. Take the money you save and put it into something that "appreciates" and hopefully say hello to capital gains someday. Hopefully we keep getting tax cuts because in the end you can be black, yellow, red, brown, or even white but we all need GREEN to live.

 

Well sharing wrong information doesn’t help your claim of my bad info. So copied from a web page, I’ll find more just to show it’s not one web page with bad info.

#1
https://www.nerdwallet.com/blog/insurance/new-car-replacement-car-insurance/
Before you drive a new car off the dealer’s lot, you may want to consider new-car replacement insurance.

Say your car — your new baby — is stolen or totaled in an accident. Comprehensive and collision insurance, both typically required for the life of an auto loan, will pay out up to the car’s value, minus any deductible.

But because new vehicles lose value quickly, that claim check will be less than what you paid for the car, leaving you in a financial bind with no ride.

New-car replacement insurance, an option with some insurers, offers to ease the financial pain. It pays the value of a brand-new car of the same make and model, minus the deductible, if your car is declared a total loss.
#2
https://youtu.be/3M5_MCyj6PE

 

For the short term owner, yes lease. But for some one who is owning that vehicle for even 8 to 10 years, I think leasing then buying costs more.