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Thread: Who here leases vehicles? Do you know how they work?

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    Registered User sukie's Avatar
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    Who here leases vehicles? Do you know how they work?

    I have 2 vehicles. 1 own and 1 I lease.

    iíve made mistakes leasing in the past and wonder if you guys know how they work and how to calculate a payment before heading into the dealership.

    Iíve learned the formula and the doís and donítís of leasing.

    anyone need to know how they work?

    Ēresidual valueĒ ďmoney factorĒ. Lease cash incentives etc.

    If you have ever leased... usually you were thinking of buying and they came back with a lease payment option on a piece of paper that looked way more attractive... many jump at that and the dealer loves you for it.

    example.

    i leased a 2016 civic ex-t (turbo) with nothing but 1000 junker trade and first months payment . Monthly lease, 238 a month 36 mos (12k a year miles)

    a coworker a month month later went on her own and leased a civic LX (base model) and is paying 285 a month.
    (Same junker trade in 1000) for a car 1800 less in MSRP

    what happened?

    she didnít understand leasing. I didnít tell her her error.

    So so who Leases?

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    Registered User sahlensguy's Avatar
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    Re: Who here leases vehicles? Do you know how they work?

    I've never leased. Can't help you there. They make me cringe.

    For me, buy new or used. Put at least 50% down in cash. If I don't have 50% to put down, I can't afford that car.

    Not to hijack your thread...

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    Re: Who here leases vehicles? Do you know how they work?

    Not at all. I just don’t like the depreciation nature of buying a car. That one I traded netted me 1000 at the end. Total loss.

    now I can lease 3 times in 9 years for what it would cost to buy but in thatn9 years I have zero repair fees.

    i was asking if anyone would like to understand leases and get much better deals in the future.

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    Re: Who here leases vehicles? Do you know how they work?

    So now I’m 3 months out of turning in my lease , getting equity from it due to under mileage, and leasing either a Subaru Crosstrek or Impreza hatchback.

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    Acid Douching Asswipe OpIv37's Avatar
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    Re: Who here leases vehicles? Do you know how they work?

    Here’s the thing: if you’re a person who doesn’t put a lot of miles on cars and likes driving something new even if it means always having a car payment, leasing is the best option by far.

    We’ve tried leasing in the past but we just drive too much. We both have short commutes but my wife frequently has to go places other than the office. My parents live about 60 miles away, her twin sister about 40 miles away. And we go to WNY a couple times a year and South Jersey/Philly cuz I have family there. Because she drives more for work, we use my car unless we need her larger car for the space.

    Also be careful because if you want to buy it off the lease or trade it in, it can be a huge hassle depending on the company. I leased two Hondas- one that I traded in for the 2nd lease and one that I bought off the lease when I was going over the miles. It was easy- just had to cover the residual value. My wife leased a Mazda that she ended up not liking and I don’t recall the details but it was a pain in the ass to trade it in.

    For us, certified pre-owned works the best. You get the balance of the factory full warranty plus a great power train warranty, and the original owner took the hit on the decrease in value. Put $2k down and you’re even on what you owe vs the value when you drive off the lot. Get one of the reliable Asian brands and drive it into the ground. Honda/Acura is our favorite, but my car got totaled in an accident and my wife’s car had 160k miles on it and they weren’t selling much CPO at the time cuz of the Takata air bag recall. So she got a Nissan and I got the Infiniti and I’d recommend both.

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    Cntrygal (05-30-2019),sahlensguy (05-29-2019)

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    Re: Who here leases vehicles? Do you know how they work?

    Subaru Crosstrek or Impreza? I've owned a couple of Subies and it's not like I wouldn't recommend them but the CVT rubber band transmission? :vomit: :hurl:

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    Re: Who here leases vehicles? Do you know how they work?

    Quote Originally Posted by sahlensguy View Post
    Subaru Crosstrek or Impreza? I've owned a couple of Subies and it's not like I wouldn't recommend them but the CVT rubber band transmission? :vomit: :hurl:
    I donít know enough about them to comment on the rubber band transmission. My wifeís car has a CVT and honestly Iím not a huge fan. I like feeling it go through the gears.

    But generally I like what Subaru is doing. My brother had a Forrester with the turbo 4- 225 HP IIRC- I drove it back from a ski trip and it was fast and held the snowy roads well. One of my co- workers bought a loaded Ď15 Outback new and they liked it so much that his wife got an Ď18 new. We recently helped a friend who was inexperienced in car buying- she looked at the Forester, which was ok, and ended up with an Outback.

    Iím more of a sedan guy than a crossover/SUV guy. I really liked the Legacy with the 3.6L V6, especially since Nissan is the only non-luxury company making an AWD sedan these days (it doesnít snow often around here but they canít plow for **** and we have a steep driveway that goes to a hilly alley that the city doesnít plow). I asked the Subaru salesman if they had any CPO and he said no because people donít trade them in- they drive them into the ground. I thought it was a BS line to get me to look at a new one, but I went on cars.com and the closest one was like 400 miles away. Keep in mind that Pittsburgh, Philly, DC and NYC are within that radius of my house, so thatís a lot of people and a lot of car dealerships that didnít have one.

    Iím not planning on a new ride anytime soon, but when the time comes Subaru will be on the list.

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    Re: Who here leases vehicles? Do you know how they work?

    Oh I should mention that the Legacy and Outback have paddle shifters even with the CVT. They somehow used electronic shift points.

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    Re: Who here leases vehicles? Do you know how they work?

    I could lease and have my company pay part, but still cannot see any advantage to it whatsoever. I buy all my vehicles.
    Welcome to Buffalo Carter Hutton

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    Re: Who here leases vehicles? Do you know how they work?

    Quote Originally Posted by Swiper View Post
    I could lease and have my company pay part, but still cannot see any advantage to it whatsoever. I buy all my vehicles.
    How much is “part”? Sounds like you could really make out on that one if you played it right.

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    Re: Who here leases vehicles? Do you know how they work?

    Quote Originally Posted by OpIv37 View Post
    Here’s the thing: if you’re a person who doesn’t put a lot of miles on cars and likes driving something new even if it means always having a car payment, leasing is the best option by far.

    We’ve tried leasing in the past but we just drive too much. We both have short commutes but my wife frequently has to go places other than the office. My parents live about 60 miles away, her twin sister about 40 miles away. And we go to WNY a couple times a year and South Jersey/Philly cuz I have family there. Because she drives more for work, we use my car unless we need her larger car for the space.

    Also be careful because if you want to buy it off the lease or trade it in, it can be a huge hassle depending on the company. I leased two Hondas- one that I traded in for the 2nd lease and one that I bought off the lease when I was going over the miles. It was easy- just had to cover the residual value. My wife leased a Mazda that she ended up not liking and I don’t recall the details but it was a pain in the ass to trade it in.

    For us, certified pre-owned works the best. You get the balance of the factory full warranty plus a great power train warranty, and the original owner took the hit on the decrease in value. Put $2k down and you’re even on what you owe vs the value when you drive off the lot. Get one of the reliable Asian brands and drive it into the ground. Honda/Acura is our favorite, but my car got totaled in an accident and my wife’s car had 160k miles on it and they weren’t selling much CPO at the time cuz of the Takata air bag recall. So she got a Nissan and I got the Infiniti and I’d recommend both.
    One advantage to leasing is the accident devaluation of owned cars doesn’t happen.

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    Re: Who here leases vehicles? Do you know how they work?

    Quote Originally Posted by sukie View Post
    One advantage to leasing is the accident devaluation of owned cars doesn’t happen.
    And that’s why I buy cars CPO and burn them out. I know they’re only gonna be worth a couple of grand when I turn them in and an accident won’t be more than a couple hundred different.

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    Re: Who here leases vehicles? Do you know how they work?

    Quote Originally Posted by OpIv37 View Post
    I don’t know enough about them to comment on the rubber band transmission. My wife’s car has a CVT and honestly I’m not a huge fan. I like feeling it go through the gears.

    But generally I like what Subaru is doing. My brother had a Forrester with the turbo 4- 225 HP IIRC- I drove it back from a ski trip and it was fast and held the snowy roads well. One of my co- workers bought a loaded ‘15 Outback new and they liked it so much that his wife got an ‘18 new. We recently helped a friend who was inexperienced in car buying- she looked at the Forester, which was ok, and ended up with an Outback.

    I’m more of a sedan guy than a crossover/SUV guy. I really liked the Legacy with the 3.6L V6, especially since Nissan is the only non-luxury company making an AWD sedan these days (it doesn’t snow often around here but they can’t plow for **** and we have a steep driveway that goes to a hilly alley that the city doesn’t plow). I asked the Subaru salesman if they had any CPO and he said no because people don’t trade them in- they drive them into the ground. I thought it was a BS line to get me to look at a new one, but I went on cars.com and the closest one was like 400 miles away. Keep in mind that Pittsburgh, Philly, DC and NYC are within that radius of my house, so that’s a lot of people and a lot of car dealerships that didn’t have one.

    I’m not planning on a new ride anytime soon, but when the time comes Subaru will be on the list.
    The brand new Outback looks very nice, much better than the 2010 on up generation. I've only had older Subies with manual transmissions, the only way to go with the 4 cyl imo. They've always had the best AWD system out there. Their turbos on the older ones where too high maintenance and had too much turbo lag. Not sure on the newer ones but in general they were tuned more for pulling harder off of the line than cruising on the Autobahn and I prefer it the other way around.

    Plus besides the new Outback, their other models are getting a little old in the tooth.

    BTW... JATCO is the company that makes the CVT transmissions for BOTH Subaru and Nissan.
    Last edited by sahlensguy; 05-30-2019 at 12:19 AM.

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    Re: Who here leases vehicles? Do you know how they work?

    Quote Originally Posted by OpIv37 View Post
    And that’s why I buy cars CPO and burn them out. I know they’re only gonna be worth a couple of grand when I turn them in and an accident won’t be more than a couple hundred different.
    It’s all about monthly payment. If I can pay for 8200 of the cars price, and drive it for 3 years then do it again 2 more times... I’ve had no major issues to pay for and no value drop if in an accident. For me, it works. I drive about 6-7 k a year.

    the key is always always negotiate price. Lessees don’t often do that. They maybe haggle with the first offer given and that’s silly.

    subarus have the highest residual values . 10-12 % higher than most comp. priced cars. Honda is close second.

    suburus are leased a lot. Used ones fly off lots which makes them hard to find.

    i love my Civic but Honda got rid of the best feature in their recent models... the rt lane camera.

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    Re: Who here leases vehicles? Do you know how they work?

    Quote Originally Posted by sukie View Post
    It’s all about monthly payment. If I can pay for 8200 of the cars price, and drive it for 3 years then do it again 2 more times... I’ve had no major issues to pay for and no value drop if in an accident. For me, it works. I drive about 6-7 k a year.

    the key is always always negotiate price. Lessees don’t often do that. They maybe haggle with the first offer given and that’s silly.

    subarus have the highest residual values . 10-12 % higher than most comp. priced cars. Honda is close second.

    suburus are leased a lot. Used ones fly off lots which makes them hard to find.

    i love my Civic but Honda got rid of the best feature in their recent models... the rt lane camera.
    Yeah our problem is that we drive a lot more than that. I'm usually pretty close to 12k, close enough that I wouldn't want to take a risk on a 12k/yr lease again. My wife is usually closer to 15k. You can get a 15k/yr lease but the monthly payment goes up significantly. At that point you're not saving much money over just buying the damn thing.

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    Re: Who here leases vehicles? Do you know how they work?

    Quote Originally Posted by sahlensguy View Post
    The brand new Outback looks very nice, much better than the 2010 on up generation. I've only had older Subies with manual transmissions, the only way to go with the 4 cyl imo. They've always had the best AWD system out there. Their turbos on the older ones where too high maintenance and had too much turbo lag. Not sure on the newer ones but in general they were tuned more for pulling harder off of the line than cruising on the Autobahn and I prefer it the other way around.

    Plus besides the new Outback, their other models are getting a little old in the tooth.

    BTW... JATCO is the company that makes the CVT transmissions for BOTH Subaru and Nissan.
    I'd definitely have to go with the V6. Anything under high 250 hp or so is going to be too slow for me, especially if it's an SUV that has a higher curb weight and more wind resistance.

    Nissan came out with an AWD Altima for 2019. When I'm ready for a new ride, hopefully they'll have some CPO coming off of leases or something.

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    Re: Who here leases vehicles? Do you know how they work?

    Quote Originally Posted by OpIv37 View Post
    I'd definitely have to go with the V6. Anything under high 250 hp or so is going to be too slow for me, especially if it's an SUV that has a higher curb weight and more wind resistance.

    Nissan came out with an AWD Altima for 2019. When I'm ready for a new ride, hopefully they'll have some CPO coming off of leases or something.
    Totally agree on the V6.

    Unless you live in the hills or mountains, is AWD even necessary? A set of snow tires on a FWD and you should be good to go, right?

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    Re: Who here leases vehicles? Do you know how they work?

    Quote Originally Posted by sahlensguy View Post
    Totally agree on the V6.

    Unless you live in the hills or mountains, is AWD even necessary? A set of snow tires on a FWD and you should be good to go, right?
    You’d be surprised. When we were renting, we only had street parking on a one way street that went downhill. When it snowed, it was damn near impossible to back my old FWD Acura TL into a parking spot. Granted, I had all seasons and not snow tires so maybe that would have helped.

    My Infiniti is AWD because the base is RWD and those are useless in the snow. The dealer said they don’t even stock the RWD’s in this climate- they only get them if someone specifically requests it.

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    Registered User sukie's Avatar
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    Re: Who here leases vehicles? Do you know how they work?

    Quote Originally Posted by OpIv37 View Post
    Yeah our problem is that we drive a lot more than that. I'm usually pretty close to 12k, close enough that I wouldn't want to take a risk on a 12k/yr lease again. My wife is usually closer to 15k. You can get a 15k/yr lease but the monthly payment goes up significantly. At that point you're not saving much money over just buying the damn thing.
    Agree with what you said here but for the record, it’s about 11 bucks more for 15k than 12k. It’s a % point off of the 12k residual.

    i only lease 12k. Gives me gravy and I have a few thousand in lease equity at the end to take care of dealer fees and tag fees.

    i stopped to look at Subarus yesterday. The Impreza limited hatch will be the car. Still need to wait 3 mos which will be 3 mos out of end of lease.

    never put money down on a lease. The adds you see... 169 a month with 3200 due at signing is a scam.

    pre-paying a lease is a total loss if car if car is totaled.

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    Re: Who here leases vehicles? Do you know how they work?

    Quote Originally Posted by sukie View Post
    Agree with what you said here but for the record, it’s about 11 bucks more for 15k than 12k. It’s a % point off of the 12k residual.

    i only lease 12k. Gives me gravy and I have a few thousand in lease equity at the end to take care of dealer fees and tag fees.

    i stopped to look at Subarus yesterday. The Impreza limited hatch will be the car. Still need to wait 3 mos which will be 3 mos out of end of lease.

    never put money down on a lease. The adds you see... 169 a month with 3200 due at signing is a scam.

    pre-paying a lease is a total loss if car if car is totaled.
    When we did lease we put very little down- maybe a grand. I never thought about it being lost if the car is totaled.

    And they total cars like crazy these days. My friend who bought the Subaru rear ended someone in her Pathfinder at like 15 MPH and they totaled it. I think it was a ‘13 with fairly high miles but it had frame damage apparently. All the things they do to make the cars safer in accidents also makes them a lot less durable.

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