For the last 20 or so years, my wife has leased her Subaru (Foresters and Crosstreks) changing out every 3 years. Payment has been pretty much the same throughout. Always under warranty. Very good company to lease with - No problems ever.

During that time, I have owned 3 different used vehicles, always paid off in full so no payment. My car only gets driven 2-3 times each week.

This has worked out for us.

Law School was expensive and tough to have the $ to finish it. One thing I did was keep driving the 1972 Pinto I already had till I graduated in '81, and then I kept it a couple of years past that.

Several times I considered leasing, especially after graduation. But I resisted the urge and, when I needed a vehicle, I just bought it. I might finance it if the dealer would lower the price just a bit more, but I paid it off very shortly after driving it off the lot.

I bought Japanese models for years, though I bought an American vehicle-Ford and Oldsmobile-a couple of times, but vowed never again) and have been very satisfied with my purchases.

After so many years with the Pinto, I hope to never have to drive an older vehicle again, and we have bought a new one every few years, except for my '94 Nissan Pathfinder which I am convinced was the very best vehicle I have ever owned.

We currently drive a '20 Mazda CX-5 and a '21 Honda Pilot. Neither has 5000 miles on the odometer. If neither one gets crunched somehow, we'll probably get new ones in a couple of years, depending on our health. If our health goes down the tubes, we'll keep what we have till one or both of us quits driving.

I've looked at leasing again, a couple-three years ago, but I just can't see any advantage in it and there are, IMO, just too many disadvantages, most of which have been posted here already.

Bob

One way leases make sense is if you can expense the lease payments as a business expense. This reduces income and therefore your tax bill.

You, obviously, have to be a lower mileage driver, too.

Same as others have said. Very rare is my understanding. If you find your self trading up every two years to a new ride. Or there's some business deductible you can tie to it.

The business deduction thing is partially a red herring.

Purchased vehicles also qualify for business deductions.

The benefit of a lease is that you are only financing the anticipated depreciation of the vehicle, rather than the whole purchase price.

Every thing else about a lease is a financial disadvantage in exchange for easy money and convenience. The cost of a vehicle is primarily determined by the price, depreciation (residual value in lease terms), interest rate on financed amounts (the "money factor"), and fees tacked on at purchase/delivery/return. Repairs are neither here nor there, as they add to usable life and equity. Both an asset and a consumable.

All in all, you are stuck absorbing the high depreciation of the first few years over and over, and have the privilege of paying interest for it. However, this still might pencil out if the sales tax on vehicles in your state is high.

quote:

Originally posted by V-Tail:

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?

Yes I’m saying that. The vehicle can be purchased through ANY dealer. And you can pit them against each other. It’s a negotiation just the same as you buying a new or used car from a dealer. If you are skilled in the art of negotiation it’s worth a try. If they don’t play ball the way you want for a dollar amount you are satisfied with, ok then hand them the key fobs and say thanks. Again, leasing it first then buying it at lease end saved me 15k compared to buying it originally. I’ll take the 15k savings. Still driving it 9 years later and it’s been paid off for many years now. This will not be the case for many vehicles however. It is good for a vehicle that you know will depreciate. In my case I made the mfr eat the depreciation so I didn’t have to.

quote:

Originally posted by Prefontaine:

quote:

Originally posted by V-Tail:

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?

Yes I’m saying that. The vehicle can be purchased through ANY dealer. And you can pit them against each other. It’s a negotiation just the same as you buying a new or used car from a dealer. If you are skilled in the art of negotiation it’s worth a try. If they don’t play ball the way you want for a dollar amount you are satisfied with, ok then hand them the key fobs and say thanks. Again, leasing it first then buying it at lease end saved me 15k compared to buying it originally. I’ll take the 15k savings. Still driving it 9 years later and it’s been paid off for many years now. This will not be the case for many vehicles however. It is good for a vehicle that you know will depreciate. In my case I made the mfr eat the depreciation so I didn’t have to.

The lease contract has to allow "Third party turn in", mine doesn't [Most don't].

I've never leased because I average 25k-30k miles a year. We used to go to NC (from Ohio) several times a year to visit my son at the base (well visit his kids). But now that he's out of the country and his wife and kids are with me, I'm debating leasing.

That clause has become normal for factory leasing contracts, especially since COVID and the great shortage of cars.

Now you can take it to another dealer in the same manufacturers line and trade it in without having to go back to original dealer.

Lease turn ins are considered the gold standard for used vehicles, generally well maintained, low miles. Your original dealer gets first shot at the vehicle, if they don't want it, then it goes to the dealer network in the local zone, and after that to an auction house for the manufacturer to all of their dealers.

If you have a Lincoln and want a Mercedes, then you need to find a Mercedes dealer group that has a Ford and/or Lincoln store. That store can take it in, and transfer any equity to the Mercedes store.

Or you can trade and buy over 50 miles from the original dealer, if you don't want to deal with the original dealer.

Never made sense for me. I've modified almost every car I've owned.

quote:

Originally posted by kz1000:
Here's my .02 having leased 6 cars [sorry long post].

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 is a HUGE deal. NEVER pay more at lease inception than first month payment plus taxes and fees. The rest of the monies owed on a lease is completely fixed math. There is ZERO financial benefit to prepaying. All you will do is lower your monthly payments by the down payment divided by number of payments.

The only fee that is on a lease purchase agreement that is not on a purchase agreement is the acquisition fee. This fee is the only addition to purchase price than if I was straight up buying the vehicle. Part of this fee is used by the Lease Company to purchase GAP insurance on the vehicle. No down payment is required to lease and would be lost if the vehicle was totaled during the lease term.

Sometimes on certain vehicles it makes sense. I had a 3 year lease on a new 2008 Expedition EB based on a $36k sale price (sticker was $39k), every payment I made ($505 per month including tax, that was only 1st month and inceptions down)came off of the price of the vehicle and at the end of 3 years, buyout was $19,500 and the vehicle was worth $26k, I got $9500 for it on trade in, in 2018. I ended up keeping it until I ordered a new 2018 to replace it.

quote:

Originally posted by kz1000:

quote:

Originally posted by Prefontaine:

quote:

Originally posted by V-Tail:

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?

Yes I’m saying that. The vehicle can be purchased through ANY dealer. And you can pit them against each other. It’s a negotiation just the same as you buying a new or used car from a dealer. If you are skilled in the art of negotiation it’s worth a try. If they don’t play ball the way you want for a dollar amount you are satisfied with, ok then hand them the key fobs and say thanks. Again, leasing it first then buying it at lease end saved me 15k compared to buying it originally. I’ll take the 15k savings. Still driving it 9 years later and it’s been paid off for many years now. This will not be the case for many vehicles however. It is good for a vehicle that you know will depreciate. In my case I made the mfr eat the depreciation so I didn’t have to.

The lease contract has to allow "Third party turn in", mine doesn't [Most don't].

Any dealer means any Toyota dealer if it’s a Toyota. Any Honda dealer if it’s a Honda, etc, etc. I never said you could take a GM lease and turn it into a Ford dealer. I had zero issues. Mine had to go back to one of the mfr. dealers. I pit them against each other both in and out of state.