Wanted: Stories of your leased vehicles

[nmboone]

Just for fun tonight I went to LeaseTrade.com to look at all the vehicles that people had up for grabs as leases. Most of them are really nice vehicles but some are just lower end regular cars. Many of the traders there are offering "owner incentives" like a large amount of cash to the new lessee. I would love to know the stories behind why they are trying to get rid of the leases, but unfortunately no one puts any personal info.

Anyway not that I would ever lease a vehicle because I know better, plus I would owe thousands for going over the mileage allowed, but does anyone have a good or bad story dealing with a leased vehicle they'd want to share because I'm curious. It's not to laugh at anyone for doing it and having a bad experience, I just would like to know.

Btw, I had a friend who leased a new Honda Accord two years ago. He thought he was pretty awesome for getting such a nice car. I got my Civic a few months later, and I wonder if he looked down on me for not only buying, but buying a few years used (he one of those who have to have the best of everything, i.e. leather seats) I haven't had contact with him for a long time but I'm just dying to know if he's still happy with his purchase.

[kork13]

A follow-on question.... I know that when you lease a car, you are basically just doing it as a long-term rental (you don't own it, you're just paying to use it then give it back). But I'm curious if you're also responsible for maintenance/repairs on the leased vehicle as well, or if the dealer is responsible for those since they still actually own the car?

As to experiences, I've never leased a car myself, but my grandparents did lease a Lincoln Navigator for a year or two. They loved it, and I remember my grandfather saying that even though he would have to give it back, he was glad he did it because it he liked being able to try out the vehicle for a longer term than a 10-minute test drive, and would consider buying one in the future. The reason they leased it in the first place was primarily due to my grandmother's health, she was having some trouble getting in/out of the car they owned (Lincoln Towncar, I think), and they wanted a higher-sitting vehicle with more storage space (for wheelchair and golf clubs--my grandfather's hobby). So for being able to have/use a car for what was essentially an extended trial period, my grandparents loved their lease. However, he also said that he probably wouldn't do it again, and next time they'll probably just trade out/buy for a different car.

[creditcardfree]

But I'm curious if you're also responsible for maintenance/repairs on the leased vehicle as well, or if the dealer is responsible for those since they still actually own the car?

Yes, if you lease a vehicle, you are responsible for all maintainence as if you owned the vehicle. The vehicle has to be turned in relatively the same shape and condition as when you bought it. The do allow for normal wear and tear.

We did lease a Nissan Sentra when we were first married, over 13 years ago. It was a two year lease and the payment was $132/month. I'll never forget that payment amount! I don't remember what we had to put up front, but that we did trade in a Geo Spectrum, worth $400-$600.

Overall, it was a fine experience. We stayed under the mileage. I do remember an extra month's payment that was written in the lease that I paid after we turned the vehicle in. I was annoyed by it, but it was in the contract that we signed...although not sure why!

We will never lease again. For one, we will never find such a low lease payment and at the end we had nothing to show for it. We needed another vechicle and didn't have hardly anything to put towards a down payment. We ended up purchasing a used Plymouth Breeze that was less than 2 years old. Low miles. We financed it for 5 years and paid it off in 2.

[GREENBACK]

I personally have never leased and really don't understand why you would. I tend to be slightly and unintentionally hard on vehicles. If I dent a quarterpanel on my paid for vehicles it really doesn't matter to me. If I'm making payments and I have to turn a vehicle in and pay for the damage that's another story.

I do know people that continually lease and I just don't get it. The freedom of no car payments is reason enough to not lease IMO.

[simpleyme]

I do not know about car lease but I had a guy come into my business trying to lease me a machine he said leasing (renting) does not appear on your credit report so that way it does not effect how much money you can borrow

I wonder if cars work the same way?

[disneysteve]

I wonder if any of those offers might actually be good deals at this point. If the lease holder is paying an incentive to take over the lease, might it work out to the financial advantage of the new lease holder? I'm not even sure how to go about figuring out something like that.

I would never lease as it is a total and complete waste of money. Most people use leasing to get into a car that they can't afford to buy, so just a method of living beyond your means. I say figure out how much you can afford to spend per month and BUY a car that fits that budget whether it is new or used, though I certainly prefer used.

[simpletron]

I wonder if any of those offers might actually be good deals at this point. If the lease holder is paying an incentive to take over the lease, might it work out to the financial advantage of the new lease holder? I'm not even sure how to go about figuring out something like that.

if you were planning on buying a "newish" used car, you could add up all the remianing lease payment and the lease end buyout to get an equalavent purchase price. take this one for an example. you'll pay 15*293.88+13470.30-600 = $17278.50, if you thought that was an acceptable price for the car and were going to follow the lease rules then you should buy it.(edmunds appraisal estimate puts the value at 17,725 for private party, and if in perfect condition add 974)

[EEinNJ]

OK, my story is dated, but I learned my lesson. I leased a '95 Taurus SHO for 2 years, my wife a Saab 900S for 30 months. About 400/month each. I bought extra miles up front on the Taurus (18K instead of 12K/yr).
The Taurus was fun, fast, comfortable, but also went through brake rotors and tires. The Saab was good, too, but not like the old ones.

The payments DO show up on your credit report, and count against you applying for a mortgage. The down payment and monthly payments are essentially buying the depreciation value. For the Taurus (and all Fords) that is a lot. I didn't make my last payment, turned it in a month early, told them to apply the security deposit. I knew the car was in good shape, and Ford was OK with that. The dealer tried to stick me with a 500 dollar charge for new tires (only 36K miles). I told them to go pound sand, and worked it out with Ford. They said don't worry about it and wrote it off- still showed up on my credit report even though they assured me it wouldn't.

The Saab wasn't so bad, except the trunk got dinged by a falling branch- and we got dinged, too. I think there was an over mileage charge, too.

The real scam with leases is not the money you spend every month, it's the money it costs to get out of it- unless you lease another one from them!

I would never do it again, and I've never had a car payment since.

[nmboone]

The real scam with leases is not the money you spend every month, it's the money it costs to get out of it- unless you lease another one from them!

That's what I get out of leasing too. It really sounds like they screw you over in the end. I've put 40,000 miles on my car in the last two years commuting to school. If I had leased with a limit of 15,000 miles a year at .15 (just for example), I'd pay 1500 dollars or more when I turned it in. Also what if you want to take it on long trips? You would be so limited. Maybe people are so entranced with having such a nice car they don't care. EEinNJ, sorry for your bad experience!!

[tzsgti]

Hi,

First post here. I have been lurking around this forum because i am in kinda of my own spending/debt frenzy . More on that later. I just wanted to speak up on statements that are made about leases and being dumb or smart or stupid.

First of all i fully agree that the best ways depending on your financial situation is to either buy a lightly used car where the depritiation is mostly gone or a new car if you can afford it. It goes without saying that running it to the ground will result in a much less cost overall then leasing in any case.

But where i am coming from is a Enthusiast or Finatic. Where i know i am not keeping a car for more then three years regardless of leasing or buying. Generaly the people who lease if they were to finance the car instead over 5 years or even 3 years they would turn in the car after three years and take that huge depretiation hit. So when someone know they are going to change cars every three years they will much better off doing a lease rather then finance.

Now i am not saying its the smartest thing to do but there are alot of people like me who have a hard time staying with a car for more then 3-5 years and will always be making payments.

On another point i am thinking of buying my next car for diffrent reasons and hope to be able to hold back and keep at least 5 years. I just can't stand not being able to drive cross country when i want and have to worry about the miles. But life is about sacrafices and thats one i am willing to sacrifice but cars on the other hand i am not.

[disneysteve]

But where i am coming from is a Enthusiast or Finatic. Where i know i am not keeping a car for more then three years regardless of leasing or buying. Generaly the people who lease if they were to finance the car instead over 5 years or even 3 years they would turn in the car after three years and take that huge depretiation hit. So when someone know they are going to change cars every three years they will much better off doing a lease rather then finance.

Now i am not saying its the smartest thing to do but there are alot of people like me who have a hard time staying with a car for more then 3-5 years and will always be making payments.

Welcome to the site. This is a common rationalization people use to justify leasing. I think you'll find little support for it here. Getting a brand new car every 3 years is a ridiculous luxury. Leasing it even more so. If people are looking for financial advice, which is what this site is all about, the advice is generally going to be:
1) Never lease.
2) Buy used.
3) Pay cash or finance for no more than 3 years.
4) Keep the car as long as possible.
5) Once it is paid off, if you financed, continue to save those payments in your "car fund" so that next time around, you have money set aside.

There is no valid reason to always have car payments with the rare exception of the person who drives 40,000 miles/year or more and I do know a few of those.

[tzsgti]

Welcome to the site. This is a common rationalization people use to justify leasing. I think you'll find little support for it here. Getting a brand new car every 3 years is a ridiculous luxury. Leasing it even more so. If people are looking for financial advice, which is what this site is all about, the advice is generally going to be:
1) Never lease.
2) Buy used.
3) Pay cash or finance for no more than 3 years.
4) Keep the car as long as possible.
5) Once it is paid off, if you financed, continue to save those payments in your "car fund" so that next time around, you have money set aside.

There is no valid reason to always have car payments with the rare exception of the person who drives 40,000 miles/year or more and I do know a few of those.

i agree about the luxury part but all i am saying is that it exists and by far i am not the only one. It does not justify that this behaviour should be practiced but it is what it is. The funny thing is i find that i give other people advice on buying cars and tell them exactly what you said. I myself cannot control it so i go out and live beyond my means. I have learned it from my dad.

[disneysteve]

i agree about the luxury part but all i am saying is that it exists and by far i am not the only one.

Absolutely. Personally, I don't enjoy the whole process of buying a car. I have no desire to do it any more often than necessary. I bought my current car used in 1998 and hope to have it for a few more years.

[jIM_Ohio]

Leasing- have leased twice and in right situation might do it again.

If you own a business, there is merit to using leased cars for tax purposes- you can write off the payment and any milage overage penalties.

In our case lease #1 was a way for my payment in college to be really low.

Lease #2 was turned in last weekend- and we bought the same car right back and paid no penalties on milage or similar.

Plan is to keep car for about 6 more months, then either sell it or trade it in. We needed to avoid the penalties for going over on milage. At time we acquired car (Honda Accord) we also bought a Honda Ridgeline and needed to keep payments low because we had two car payments at the time and wife travels for work (puts 20k miles per year on her car).

[tzsgti]

Absolutely. Personally, I don't enjoy the whole process of buying a car. I have no desire to do it any more often than necessary. I bought my current car used in 1998 and hope to have it for a few more years.

On another note i know this may be hard to believe and its actual harder now a days with cars being worth less used. If you are really smart and do your HW you can get a lease for about 500-1000 dollars total more then if you financed it over a 5 year loan only you have the choice to give it back. What i mean is a lease is essentially just like financing it except you have a choice if giving it back which is great if it depreciates more then expected. My dad had done this with two cars recently. He leased both and went over the mileage by almost double (the whole family drove it). He ended up paying off the residual in cash and ended up owning the car for the same amount total as if he would have financed it out right over 5 years. Yes i know a lot of people finance their car over 3 years and pay it off so they don't have payments. But you always have the option to buy and come out the same way as if you bought it our right.