a question about leasing a vehicle

bowtiefan · May 22, 2001

hey guys im a new guys here pretty cool website. ok i have a question when the lease is up on a vehicle. lets say i lease a new vehicle for 3 years after the 3 years is up and it time to take it back to the dealer do i or dont i get any money for that vehicle i dont think you do since i dont really own the vehicle. if i dont get any money for it after the lease is up i have the option of buying it right for what ever the vehicle is worth but if i dont buy i would have to but a down payment down on a new vehicle. just wondering thats all thinking about leasing a new vehicle and just wondering about somethings thats all.

Zane · May 22, 2001

Hi Jason, welcome to the site!!!

Leasing, is an effective way to lower your monthly payments. The downfall is that after the term of the lease you own nothing.

Usually you pay monthly payments, and when the term is over you have one of two choices. You give the vehicle back, or you payout a substantial amount and buy the vehicle.

IMHO, leasing is really not the way to go. Yes, it lowers your monthly payment by alot, but in the end you pay much more than you would if you bought it, if you decide to keep it.

Shaners · May 22, 2001

Mervz is exaclty right. The only advantage to leasing is that you would be able to drive a vehicle with more options on it that you might not be able to afford if you were to buy it.

If you were to put alot of "hard" miles on your vehicle then you might want to consider a lease because you probably wouldn't want it when you are done with it.

Be careful though because if you have a lease and go over the allotted milage then it becomes very expensive, because you have to pay big a substantial penalty for every mile over the lease that you put on that car/truck!!!

76BBSub · May 22, 2001

The other thing is that part of the lease agreement usually specifies the residual value of the vehicle, or what it will be worth when you are finished with it. This assumes normal wear and tear, and that you don't exceed them mileage limits. Check with your lease company, but I beleive that you can purchase the lease car at the end of the lease for the agreed residual value.

Jeff

Frank S · May 22, 2001

My biggest argument against a lease is that,like stated before,the vehicle depreciates rapidly and on a lease your balance stays fairly high.

I have known three people that ended up with problems from insurance companies because they don't want to pay that much to pay off the vehicle.

It shouldn't be this way but it does happen.

Welcome aboard!

MountaineerTom · May 22, 2001

Welcome to the site bowtiefan. With a handle like that, you should fit in well here! (Not that other handles don't.)

As far as leasing a vehicle, I've never liked the idea of it because like mentioned before, after the lease, you own nothing. If it's something you know your not going to keep and it's just transportation until you save up, find, or get what you really want (whatever the case may be), then the lower payments mught be a good idea.

Roofer · May 23, 2001

I have a buddy with a '00 Ranger ext. cab 4x4 4.0L. He has a 2 year 48,000 mile lease and he pays ? a month! I think it is outrageous. We argue all the time about it. He says he owns it, but I say he doesn't. He says a lease comes out cheaper in the end if you buy it out, I think he is wrong. He says after his two years, the payoff is only ?,000. I think he must be missing something, cuz he said the price of the truck was around ?,000. How does that work out?

460x24=11040

25000-11040=13960

13960-2000(down payment)=11960???????????????

How can they lease it to him with no interest actually. Maybe I'm missing something, but it doesn't make sense to me how they can pretty much sell it to you for 0 interest. Can someone please explain. Sorry so long.

Thanks