Leasing a car.. how does the whole process work?

[Apotheosis]

Normally, I'm used to buying used cars and running them into the ground.. works for me.. i've been driving the same honda for 10 years, it has 236,000+ miles on it and still runs well....

i'm finally tired of the car.. and have saved some $$ due to low maintenance costs, etc..

long story short.. I fit the ideal criteria for leasing. I do not want a lease vs. own argument for this thread..


What goes into the whole process of leasing.. I've never done it before.
What do dealers base their monthly $$ on? are there 0 down options, or do I have to part with some cash up front? What are associated fees that I need to consider? Any other ideas regarding leasing options that I might not have considered?

[Drevihyin]

I have leased twice in the past and never felt a winner in the end. If your driving style includes high mileage years I would recommend against it. I think with the ease of finding 0.0 % financing that purchasing a vehicle would be more beneficial.

http://www.toyotafinancial.com/consumer/tfs.portal?_nfpb=true&_pageLabel=pg_LeasePrgDetailsPage

[Clove]

1) He specifically stated he wasn't interested in rent vs. buy arguments
2) Toyota? You trying to kill him?

[Drevihyin]

No actually it shows the lease process. No argument from me but I would bet that over 75% of people that lease are convinced by a dealer that it is the best financial option.

[Inspire]

I like leasing vehicles, something about giving it back to a dealer and having them be stuck with it instead of me is nice.

[CrystalTears]

What do dealers base their monthly $$ on?The lender will offer lease options, which are usually 12, 24 or 36 months. The purchase price, plus any additional costs that the dealership may want to tack on such as documentary fees, cap costs, cap cost reductions and whether the state has manufacturer rebates and so on, are divided by the number of payments. I'm sure there are other things I'm leaving out but that's the gist of it.

are there 0 down options or do I have to part with some cash up front? Depends who winds up financing the vehicle.

What are associated fees that I need to consider? Any other ideas regarding leasing options that I might not have considered? Depending on the state and the lender, sometimes they roll the sales tax into the payments, sometimes it's paid at the time of registration.

This may help a bit: http://www.leaseguide.com/index2.htm

[Ashliana]

I don't know exactly how leasing works (and wouldn't recommend leasing), but if it's anything like purchasing, you should get a few different offers--one from your bank, maybe one from your work's credit union, and then take it to the dealer and see if they're willing to give you a better deal. Shop around.

[Allereli]

What goes into the whole process of leasing.. I've never done it before.
What do dealers base their monthly $$ on? are there 0 down options, or do I have to part with some cash up front? What are associated fees that I need to consider? Any other ideas regarding leasing options that I might not have considered?

Only lease if you're not going to go over the mileage agreement, otherwise you'll be screwed. Dealers base the monthly cost on the depreciation of the vehicle over the life of the lease, plus a little extra for the convenience. Finding a $0 down deal is doable, but not always desirable because it'll just mean higher monthly payments.

I grew up with leasing, it was great having a new car every 3 years. I only started buying because my last lease ended when I was in a cast and I couldn't deal with shopping around, so I just bought out my lease. I just recently traded for a new car b/c having 40k miles was unacceptable, so I still have the leasing mindset.

[Apotheosis]

def. not interested in owning for a number of reasons, also plan on low mileage for the next 2 - 3 years... (13k to be safe).


right now credit union rates & bank rates seem to be on par (i am starting to hate my credit union because of this).. really sucks because they're keeping interest @ par with banks which seems to defeat the purpose of the credit union, IMO..


It looks like the best car loan rate I could get is around 4%, which makes me not happy.

[Some Rogue]

Leasing, how the fuck does it work? It's a fucking miracle.

http://i9.photobucket.com/albums/a64/lrenzo2/129192149572640351.jpg

[Clove]

Leasing, how the fuck does it work? It's a fucking miracle.

http://i9.photobucket.com/albums/a64/lrenzo2/129192149572640351.jpgWhat. The fuck. Are you wasting your time here.

Get to the 7 Dollar Gas thread and contribute something useful!!!!!1!!11111!

[Celephais]

Leasing, how the fuck does it work? It's a fucking miracle.

http://i9.photobucket.com/albums/a64/lrenzo2/129192149572640351.jpg

Thank you so much, I read this thread and thought "oh man, leasing works just like magnets! ... really hope someone made the reference". I can't rep you again, but I'm going to come back to this thread, cause this deserves it.

[JJBummer]

The lease amount is not straightforward: You take the purchase price minus the residual value of the vehicle at the end of the lease and amortize that over the term of the lease. In addition the interest only portion of the residual value is added to the total monthly amount. So calculating the price minus residual / months will not tell you what your payments are.

I've leased my last 5 vehicles and I've always been pleased with the outcome even when I went over my miles. If you trade into a new lease they often let you slide on things like mileage and new documentation or origination fees.

The major consideration when getting a lease is the lease interest rate which seems to vary considerably and the term of the lease. They generally do not negotiate a price but you can generally get them to shave a few points off. I usually have them price my lease at 10k and then when it comes to signing - ask them for 15k per year. They usually go for it without changing the payment.

[nub]

Most time you can put $0 down. What will happen is, they will first ask you to put like $4000 down (random number I am pulling out of my ass) then you say "I don't want to put anything down). If the payment was $400 a month for 39 months you add the $4000 into the payments which will now be $502 a month (400/39). +tax.