I have had 4 leases from Honda starting in 2003. First was a Honda Accord, basic model for 199.00 a month 0 down. 3 yr. lease and turned it in with 35000 miles. The next 3 were Pilots, basic models and prices were 239.00, 259.00 and I think the last one was 289.00 all 0 down and I kept them below the 36000 limit. I liked it and it worked well for me. Also I worked in free oil changes. Now I drive a 2010 Ford Escape that's a work in progress since being retired. No regrets on the leases since I think I negotiated well.

It can be a good idea for several reasons. As long as you don’t think one of them is financially better over the long haul. There’s been a lot of studies that have proven it’s not a good financial decision. There’s a reason that all the car manufacturers and banks worked on making sure they don’t have to be visible on the entire percentage you are paying on that money. There’s a reason every dealership wants to get everyone a lease and it’s not so they make less money.

If you like a new car every 3 years or have a business you can write it off then it makes sense.

[QUOTE]Originally posted by BigSwede:
It can be

Check your states laws regarding sales tax, most only tax the monthly payment, some want full value tax up front which sucks donkey balls in a lease

I can’t believe I forgot about the sales tax side. If you know you are going to move to a low sales tax area, leasing then buying the vehicle in full in the new low tax jurisdiction is a definite good play. When the purchase can be in the 30k+ range that can take some sting out of the purchase.

I leased 4 Ford Taurus back in the early 90’s. They offered a 23 month lease that was extremely attractive. Payments were about $200 a month and on each car, I sold them about a month before lease end and put money in my pocket. I figured my out of pocket cost was about $125 monthly.

I leased a few other vehicles after that but felt it became less and less attractive.

It's the most expensive way to buy a vehicle. If you have the money and you prefer to have a new car every few years that can make sense. It's essentially a long-term rental and you pay for that convenience.

quote:

Originally posted by Rick_Perry:
I've been leasing for over 30 yrs. Sometimes a 2yr lease or sometime a 3yr lease.

I have not bought brakes, tires etc or had to pay for any car repairs in that time period. I change the oil every 5000 miles and put gas in it.

Monthly payments are cheaper than buying. Drawback for some is that you always have a monthly car payment. It's a monthly budgeted item for me, so it's part of my monthly bills.

I like leasing. It's nice having a new vehicle every 2 or 3 yrs.

If you have the money for the initial purchase, I think the best deal is buying a 1-2 year old car for cash, drive it for 1-2 years and then sell and repeat. Someone else eats the initial depreciation, you get a different vehicle every couple of years and should only have to pay for gas and oil.

I think leasing makes sense due to the increasing technological complexity of cars. I used to buy cars and keep them for a decade or longer. I'm skeptical that today's cars, with the amount of computers/software integrated into them, are going to last 10 years without extremely expensive repairs to the technology.

My wife's car, a 2017 Forester, which we own along with a Subaru backed extended warranty, has the Eyesight safety system (which is now standard on all Subaru vehicles, I believe). If that malfunctions it essentially bricks the car.

A local auto body shop I used to frequent went out of business because the owner couldn't deal with the complexity of the technology. He told me replacing a bumper used to be a simple job. Now, with all the sensors built into a car's bumper, it's difficult to get all the technology working properly upon the repair.

Our vehicles are increasingly computers on wheels. As Toyota and other manufacturers segue into producing exclusively hybrid and electric vehicles, the cost to fix these things out of warranty is going to get worse and worse.

I've leased my last two cars and will lease for my wife when she wants out of the Forester. One other reason I now prefer leasing that my wife and I are both in our seventies, and want to have the latest safety equipment working for us. For example, my leased Mazda has a HUD display that alerts me that somebody is in my blind spot. I still check but having that extra layer of safety is a comfort. And when that HUD breaks -- and it will -- it will be covered under warranty or be someone else's problem.

This message has been edited. Last edited by: M'headSig,

I have both leased and financed new cars. When leasing, I make sure the terms (paint damage, mileage limits, etc.) are favorable to me. And I only lease for the amount of time covered by the factory warranty. When I buy, I ensure that I have a fully factory based extended warranty for the life of the loan negotiated into the cars cost.
I dont want to make a lease or finance payment and then have to pay for expensive repairs. Tires, brakes, oil changes and other minor stuff I am fine with. Like any large purchase, negotiate your terms to make it work for you.

Depends on the person, if you log a lot of miles leasing is an extremely bad idea but if you drive fewer miles per year than what your lease permits and you enjoy endless car payments then leasing isn't a bad idea. I leased a vehicle once and it worked for me but its not something I would do again.

The last truck and two cars I have bought have been off lease cars, 3 years old and 33,000 miles is my sweet spot. I appreciate those folks who lease and turn in clean cars!

quote:

I think leasing makes sense due to the increasing technological complexity of cars. I used to buy cars and keep them for a decade or longer. I'm skeptical that today's cars, with the amount of computers/software integrated into them, are going to last 10 years without extremely expensive repairs to the technology.

For those who buy to keep, this is a great point, the tech going into new vehicles is significant, the cost of repairs are going to be high, and with chip shortage, can you even get the parts.

If you do buy, get a KIA or Hyundai with a 10 year warranty at least you'll have some coverage for the vehicle.

My wife has leased vehicles since I have known her and has always had a car payment. In that 15 yr period I have bought vehicles but have only had about 1 yr of that time without a car payment.

I bought a 2014 Toyota Tundra for 42k. 5 years later I traded it in for 30k. Over that 5 years the truck cost me 12k or $200 a month. I could not have leased it for anywhere close to that amount.

I also know someone who had a vehicle involved in a crash with an insurance claim of over 10k in damage. The car never was the same after the crash and at the end of the lease they got walk away without issues.

quote:

Originally posted by SIG4EVA:
It's the most expensive way to buy a vehicle. If you have the money and you prefer to have a new car every few years that can make sense. It's essentially a long-term rental and you pay for that convenience.

Not always, no it isn’t.

I leased my daily driver in 2014. 36 month lease. At the end of the 36 months, at lease trade in, I started negotiating with multiple dealers in and out of state to purchase it from them, and did. In the end with down payment, lease payments, loan, etc, I saved about 15k from buying it new. Should have been minimum 35k, and I paid, all in, $19,700. I knew going in it would be cheaper to lease it then buy it vs. buying it originally. Saved me 15k.

quote:

Originally posted by Prefontaine:

At the end of the 36 months, at lease trade in, I started negotiating with multiple dealers in and out of state to purchase it from them

Are you saying that a vehicle can be leased at one dealer, and then at the end of the lease term, the vehicle can be purchased through a different dealer? Very interesting. How does that work? Can you give me some details?

Having done it once, here is my understanding.

In essence, you're paying the initial depreciation on the vehicle (1-2 years) in exchange for its use, then giving it back to the dealership. If you're the type of person who likes a new vehicle every few years, can fit within the mileage constraints, and can find a good payment or lump sum deal, it might not be a bad way to go.

They'll typically have a buyout plan. That will NEVER work in your favor, if it does the dealership has the right to just take the vehicle back.

Another downside is when the lease is up you either buy it, extend it, or turn it in. So in the last 3 months of the lease you better start looking for a replacement. Buy or lease on that date you'll be sans vehicle.

I did it once, likely won't do it again. I had to extend as I had trouble finding a replacement, and they stuck it to me as it was a month to month. In my case I had to deal with the selling dealership. Granted, I had a very nice vehicle for a few years, and I did get a decent lease deal out of the gate. I did have to forego a few trips as I was getting close to mileage near the end.

Most of the stuff has been covered. I've been Leasing my cars for the last 15 years. My wife says I'm stupid. She drives a 23 year old Tacoma (that looks new).

I justified it by telling myself if I work one overtime day a month it would make my lease payment or for what my fellow co-workers spent at Starbucks everyday I could make my payment.

Staying under the mileage has never been an issue for me either. I've never paid for any maintenance other than a couple of oil changes and tires.

In my younger days I used to drive cars until the wheels fell off. I don't splurge on a lot of things, but as I got older driving a newer car every few years was my treat to myself.

quote:

Is Leasing a vehicle ever a good idea?

Maybe to others, but to me, never.

It worked fine for my mother. She stayed well under the mileage cap, bought it afterward, and drove it MANY years... then gifted it to one of her granddaughters, who drove it the rest of the way into the ground. I think (my opinion) that she lost money at the buyout point. but made money by keeping it forever.

Thanks for the input.
Hopefully Toyota will announce their official pricing numbers for the new Grand Highlander soon and I will be able to actually see what the true number options are.

The reason I asked is I was talking with a buddy and he said he is on his third leased vehicle from Toyota and paid small down payment (far less than if he were to buy) paid his monthly lease payment which was a couple hundred bucks cheaper than a loan payment, and he turned them in 3 months early and got a nice check from Toyota.
Sounds much like mcrimm did with Ford.

Wife’s vehicle has a nice chunk of equity in it. However I am constantly fixing things on it. About to roll 100k and the consensus is the transmissions are good for 120-150k and big money to replace.
I enjoy working on cars, don’t get me wrong but it brings far more enjoyment when the work is some sort of modification because I want to, or simple maintenance. Not fixing it because it is broken.
I am already strapped for time working 5 or 6 days a week and 3 sports games a week, and swimming for the boys. If Toyota would have been kind enough to offer something with both passenger AND cargo space that was actually useable then we would not be in this Suburban owning predicament.
Plus, when I do the work and the truck is down for a couple days we have to share a car. Not usually a huge deal as I have the company truck but I don’t take the kids
In it.
However Toyota has finally decided to offer something with passenger and cargo space since this new Grand Highlander will have more passenger and cargo space than the Sequoia. I am looking forward to is as we very much miss the Highlander that was replaced by the Suburban.
I am liking the idea of leasing for 3 years and not having to pay anything but gas and lease payment. Don’t have to do any work on it and when it does have to go in for maintenance I get a loaner.

If numbers are anything like my buddy and mcrimm I envision We do 2 3 year leases and likely buy out the 2nd as I should be retired when that ends so (theoretically) should be in a better spot to keep up with doing the work on it pay it off and drive it till the wheels fall off because it’s a Toyota.

If not then maybe we just buy one.

Here's my .02 having leased 6 cars [sorry long post].

Don't lease if you drive more than the mileage included.

You need a better credit leasing vs. buying.

Never ever put any money down! The max I ever put down was $1K [1st months payment plus some taxes/fees]. Any more put down is gone, never to be seen again.

This has worked for me until now, my current lease is up in October. 2021 BMW 230i with 1 option, six speed manual trans. I will never own a car with an automatic. Unfortunately, BMW only makes the M2 with a stick. About double the payment & horrible residual value. I think leasing will be a bad idea for a while in the current economy.

Here's the silver lining:
-I leased right before COVID, MSRP was $38k, I negotiated $34k.
-The good part. Residual is $19.5K, wholesale is $26k, retail is $35k [more than I paid for it new]. I'd be stupid not to buy it. Most likely buying BMW's 120k service plan [includes brakes & clutch], and getting the oil changed every 5k instead of 10k. Talking to a independent BMW shop near me, they are reliable over the long term.