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Author Topic: Lease Terms  (Read 4744 times)

Cwbb

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Lease Terms
« on: December 12, 2004, 08:24:56 pm »
I can't seem to get a 36 month lease payment to fit my budget. I will be tired of a vehicle after 2-3 years, but was thinking of getting a 4 year lease to lower the monthly payment, then just trying to sell the vehicle as a lease takeover. But I guess if I'm over my km's (they only give you 24k/yr) then it will be hard to sell....

How is it sooo many people can afford all these brand new expensive gas guzzling vehicles I see on the road every day?
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Offline ovr50

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« Reply #1 on: December 12, 2004, 09:09:31 pm »
Well, most people can stay within the 72k for 3 or 96k for 4 years allowances. Being over on kms won't make it hard to sell necessarily, but it will cost you if you decide to give it back to the leasor. Most ppl can live with it.
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Sterling

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« Reply #2 on: December 13, 2004, 12:15:19 am »
Forget about trying to sell a leased vehicle before the lease ends. That is a very dangerous game, and not one for beginners. You have to have a lot of experience to even have a chance of that working out.

As far as the km's go, every major leasing company (GMAC, Ford Credit, etc.) has provisions to increase the number of km's in a lease. However, as km's go up so does the payment. The residual drops to compensate. Makes sense right? Use up more of the car - pay more every month you have it. Then at the end a car with more km's should be less to buy (if you want) from the leasing company.

One way that many people afford those shiny new cars is by putting money down on the lease. $5000 down on 3 year lease lowers the payment about $150/ month. Compare that to a 5 year loan where the payment starts out higher and then that same $5000 only lowers it by about $100.

Of course, many people simply don't understand leasing and are afraid of it. As a consequence they end up financing over 7 years to get that low payment but always end up in a way worse position than they ever would've been in a lease.
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Mdxtasy

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« Reply #3 on: December 13, 2004, 12:35:19 am »
I think the real issue is you're probably looking at a car that is priced too high for your budget.  Somethings got to give here, either you raise the budget, increase the down payment, or move onto a lower priced car.  
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Offline johngenx

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« Reply #4 on: December 13, 2004, 01:01:56 am »
How is it sooo many people can afford all these brand new expensive gas guzzling vehicles I see on the road every day?

Depends on what you mean by "afford."  Do you mean "qualify" or really "afford?"

Lots of people bang along paying $600-800 a month for a lease payment for a car/SUV they can't really afford.  Lots of people carry Visa debt and support their lives with consumer debt of all kinds.

I take my daughter on play dates all the time to others homes filled with plasma big-screens, electronics galore and two new SUV's in the garage.  Then the parents whine about being broke.  Huh?

Glad to see that you have a budget and are sticking to it, but what is that budget?  You can get a compact sedan (Civic, Corolla, Mazda3) with nothing down for about $300 a month or so, taxes in. That's a pretty small payment.
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Mdxtasy

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« Reply #5 on: December 13, 2004, 10:55:36 am »
There are some who make a decent living these days.  The 100K club no longer is limited to executives and upper management.  Sure there are some who mismanage their money like Johngen's example, but there are families out there who just make good coin and like to enjoy it.  There are some out there who make good coin and don't buy anything fancy.  You can never tell just by what they drive, wear, or live in.  My philosophy?  Live 2 notches below your budget and the only things you take a loan for is your house and car....but the car loan isn't required.
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Offline EV-Light

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« Reply #6 on: December 13, 2004, 11:14:55 am »
Whats your budget Cwbb?
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Offline Snowman

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« Reply #7 on: December 13, 2004, 11:19:41 am »
Not me…..I like to spend money. I make the necessary contributions for retirement and to educate my children. Got to love those automatic withdraws. The remaining cash flow is used to make my life as comfortable as I can with the time I have on this planet. I am in debt and having fun. Fack it….you only live once.
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Offline safristi

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« Reply #8 on: December 13, 2004, 11:20:29 am »
Hell the whole house of cards,called the economy,would come tumbling down if everyone followed smart advice and lived a notch below their respective paychecks..WAIT A MINUTE..is that a slight wobble I see in the ace of spades?
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Cwbb

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« Reply #9 on: December 13, 2004, 12:45:24 pm »
Budget is $500/month everything in. Wife has me going out to look at Nissan X-Trail this week. Nice little vehicle, but still dont think I can get one nicely equipped on a 36 month lease for less than $500 with zero down. Thats according to "building" it on the website mind you, but we'll see when I go in.  

I guess all I'm saying is that $500 a month for an entry level vehicle seems like a lot of money. I guess I just want more and pay less, but who doesn't.
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Offline safristi

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« Reply #10 on: December 13, 2004, 02:00:47 pm »
Honest..I didn't pay him nuffin down ta say that...^^^^
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Ottawan

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« Reply #11 on: December 18, 2004, 04:34:46 pm »
Budget is $500/month everything in. Wife has me going out to look at Nissan X-Trail this week. Nice little vehicle, but still dont think I can get one nicely equipped on a 36 month lease for less than $500 with zero down. Thats according to "building" it on the website mind you, but we'll see when I go in.

You can get Escape XLT or CR-V EX for less then $500

(Message edited by Ottawan on December 18, 2004)
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Offline johngenx

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« Reply #12 on: December 18, 2004, 05:42:19 pm »
MDX:

I agree that there are many one and two income families with pretty good disposable incomes that have no trouble affording a $50K+ car/SUV.  However, I would bet that there are a great number that stretch themselves thin to have their house filled with stuff and have an expensive car.

When I worked as a bank manager, I saw them by the truckloads.  Huge VISA balances, big car loans, Brick card, store cards, etc.

But, hey, if that's your thing, go for it.  What pisses me off is when people whine about it.  People constantly complain to me about all the debt they are in.  I didn't make you do it!  Stop yer bitchin.  I didn't make you buy a $15,000 TV.  No one did.  There is some perception that they "needed" a new $55K Sienna and a $15K TV and, and, and.

$500 won't get much more than a $25K-$30K anything into the drive with nothing down.  That said, there are some pretty decent vehicles in that price range.

The one piece of advice I have is NOT to buy based on payment.  DO NOT tell the salesperson that you have "$500 a month" to spend.  You'll get hooped if you don't pay attention to the price, terms, rates, etc.
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Offline safristi

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« Reply #13 on: December 18, 2004, 06:22:26 pm »
Damn those BANK...MANAGERS!!???..makin' profits of WHO..exactly...?????
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Offline johngenx

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« Reply #14 on: December 18, 2004, 10:45:24 pm »
Not for themselves.  I made a pitiful salary when I was in banking.
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Mdxtasy

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« Reply #15 on: December 18, 2004, 10:49:18 pm »
That's because you weren't as smart as Nick Lysyk.  He made a fortune in banking.  :-)
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