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Spork3245

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total waste of money... just like renting a house. u get nothing back in the end, just buy one and keep it 3 years, then u can decide to trade or just pay another 3 years and then have no payment. your "maintainance free" reasoning is nonsese, you do not put $400/mo into a car for maintainance once you are done paying it off..... i dont understand leasing at all
Who said anything about $400/month for maintenance? That’s the car payment. I also don’t have to deal with the huge depreciation that begins around the time I switch to a new one. I have just over 6 months left and already have dealers offering to get me out - plus, if they buy the car to resell along with taking the rest of my few remaining lease payments, and the car is worth more than the previously negotiated residual value due to a lack of miles driven, then I get to put that towards the next lease. Not to mention, with leasing, there’s the option to buy afterwards - the deal I got on my 2016 GT per month was cheaper than doing a 5 year finance with the same amount down. :shrug:
As I said to the other poster, it’s fine if you “don’t understand leasing”, I don’t understand people wanting to drive an outdated car. :D :p
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swat 79

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Who said anything about $400/month for maintenance? That’s the car payment. I also don’t have to deal with the huge depreciation that begins around the time I switch to a new one. I have just over 6 months left and already have dealers offering to get me out - plus, if they buy the car to resell along with taking the rest of my few remaining lease payments, and the car is worth more than the previously negotiated residual value due to a lack of miles driven, then I get to put that towards the next lease. Not to mention, with leasing, there’s the option to buy afterwards - the deal I got on my 2016 GT per month was cheaper than doing a 5 year finance with the same amount down. :shrug:
As I said to the other poster, it’s fine if you “don’t understand leasing”, I don’t understand people wanting to drive an outdated car. :D :p

Your logic is not wrong at all, but you never want to buy a vehicle at the end of the lease. You are essentially starting over, on a used car, with immediate negative equity...AFTER already making 2-3 years of payments.

The other down side, is when you put money down on a lease, it is a sunk cost. You will never get that money back, as opposed to when you put money down on a financed vehicle, it goes directly to your equity.

I am a big fan of leasing, but it is very easy to get taken for if you're not careful. I am all for leasing luxury vehicles and such, but when it comes to a reliable american vehicle that is often offered with heavy discounts (Mustangs, Tahoes, F150s, etc), I think it is better to buy.

It's also not good to compare leasing to renting and buying to purchasing a home. There are lots of reasons to rent a house instead of purchasing, just as there are reasons to lease over buying.
 

Cobra Jet

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Leasing is ok IF:
You take care of the vehicle (no end penalties for damages etc)
Not going to buy at end of Lease (due to reasons already noted in this thread)
You don’t drive excessive miles during the term of the lease (otherwise more end penalties)
You’re not going to modify the vehicle (which makes no sense on a lease if there’s no intention to buy)
 

Spork3245

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Your logic is not wrong at all, but you never want to buy a vehicle at the end of the lease. You are essentially starting over, on a used car, with immediate negative equity...AFTER already making 2-3 years of payments.
I’m not necessarily disagreeing, however there are other factors to consider. It depends on the total value of the lease term and what the residual value is. Mine winds up totaling at roughly MSRP, so considering interest on a finance, it wouldn’t be much of a difference overall if I did decide to keep it (on this specific lease). Others may wind up paying 2-5k more than MSRP if they decided to keep a lease... however, it’s worth noting that my residual value is already 4-5k lower than I see similarly equipped and similar mileage 2016 Mustang GTs selling for, with a difference being that I know where all but 22 miles of this leased vehicle have been driven. :)

But yea, I don’t keep leases, however I was noting the option as a counterpoint to another users argument of “you get nothing after 3 years and I get a car after 5-6”. The option is there if you’ve “fallen in love” with the car or if your situation has changed. :)
 

swat 79

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I’m not necessarily disagreeing, however there are other factors to consider. It depends on the total value of the lease term and what the residual value is. Mine winds up totaling at roughly MSRP, so considering interest on a finance, it wouldn’t be much of a difference overall if I did decide to keep it (on this specific lease). Others may wind up paying 2-5k more than MSRP if they decided to keep a lease... however, it’s worth noting that my residual value is already 4-5k lower than I see similarly equipped and similar mileage 2016 Mustang GTs selling for, with a difference being that I know where all but 22 miles of this leased vehicle have been driven. :)
This is very true, and that's an excellent point. I guess what I'm trying to say is, if you are buying it off lease, by financing it, you're starting over (albeit in your case with a lower payment).

If you have the cash to write a check, then I totally see the benefit there.
 

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Spork3245

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This is very true, and that's an excellent point. I guess what I'm trying to say is, if you are buying it off lease, by financing it, you're starting over (albeit in your case with a lower payment).

If you have the cash to write a check, then I totally see the benefit there.
Yep! I totally understand what you were getting at! It would be a very special circumstance if I kept a lease... like Ford ruining the next Mustang somehow. :lol:
 

Truckstoy

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Yep! I totally understand what you were getting at! It would be a very special circumstance if I kept a lease... like Ford ruining the next Mustang somehow. :lol:
may i ask what dealer in NJ you went to? all the ones around me say Ford doesn't lease the GT
 

obgod3

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may i ask what dealer in NJ you went to? all the ones around me say Ford doesn't lease the GT
I was told the same but local credit unions will and my dealer said they could get it leased but it wouldn't be a great lease deal.

However, I lease my wife's car, its the primary family car and she gets a new one every three years. For me when I get my Mustang this spring, thats it, I doubt Ill buy another car for myself unless I need another truck because mine dies. So it makes no sense to lease my mustang.
 

Spork3245

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may i ask what dealer in NJ you went to? all the ones around me say Ford doesn't lease the GT
They’re lying, my lease is through Ford. However, I go to PA because most NJ dealerships are awful and will not work with you on pricing. I went to McCafferty in Langhorne PA for my 2013 and 2016.
 

Spork3245

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They’re lying, my lease is through Ford. However, I go to PA because most NJ dealerships are awful and will not work with you on pricing. I went to McCafferty in Langhorne PA for my 2013 and 2016.
BTW, I went to an NJ dealership in 2015 shortly before my 2013 GTs lease was up as it’s 5miles down the road from my house. Talk to a super-douchey salesman, I explained my situation (have a 2013 GT on lease, Lucas Ford is a lot closer than McCafferty is, so I wanted to stop by and establish a relationship), I then said that I was planning on leasing again, the sales guy goes “you can’t lease a GT” to which I replied “... I have a GT... on lease... as I just said”, he then goes “well, you can’t lease a GT”, I again said “I have a lease on my GT”, the guy goes “oh yea, where is it”, we’re standing next to a window so I point to it and go “right there...”. I left a moment later.
 

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okay so maybe I'm not getting this correct

36 months X $400 = $14,400 + $5k = $19.4k



So after three years and $19.4k you have nothing. No car nothing.

Thats winning ?



But you say you get to do it all over again. $19.4 k for another new car for 3 years and you get ...... nothing.

Thats $38.8k over 6 years and you still have nothing.



at least I get a 5 year old car when my 5 years are up. :headbang:




Or am I missing something :shrug:

I don't really understand leasing and maybe thats the problem :shrug:
No, you do get it. You're basically just doing long term renting. $6K + a year to rent a car. As a reward, you get a new rental car every 3 or 4 years.
It's not for me as my Mustang isn't my daily driver so after 3 years it's going to have low mileage anyway. Plus I buy low mileage used and hate car payments. And I like having tasteful mods.
 

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Leasing has to be one of the most stupid scams out there today. The reasoning as to why people lease is even more hilarious. I worked at dealerships and we LOVED leases. We get $10-$20k out of someone, get the car back, slap a certified warranty on it, detail it and put it back out on the lot for $2-5k less than MSRP on a new one. My daily driver Nissan Sentra was a returned lease in 2013, I bought it and drove it an additional 120k miles and 5 years without a single issue and i've owned it with title in hand since 2015.
 

Spork3245

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Leasing has to be one of the most stupid scams out there today. The reasoning as to why people lease is even more hilarious. I worked at dealerships and we LOVED leases. We get $10-$20k out of someone, get the car back, slap a certified warranty on it, detail it and put it back out on the lot for $2-5k less than MSRP on a new one. My daily driver Nissan Sentra was a returned lease in 2013, I bought it and drove it an additional 120k miles and 5 years without a single issue and i've owned it with title in hand since 2015.
Firstly, “stupidest”. Secondly, no, your dealership didn’t get 10-20k from someone with a lease, the company who financed the lease received payments, the dealership got a small percentage and an incentive from the manufacturer (in your case, Nissan). Thirdly, in the case of Ford, no, the dealership who negotiated the lease does not receive the leased vehicle back, Ford themselves take it and put it up for auction to their certified dealerships - the only way a dealership can get a leased Ford vehicle from a leasee is to buy said leasee out of their lease (ie: the remaining payments plus residual value), however, once the “early bird” is in effect (3 months prior to the end of a leases term), no Ford dealership is allowed to take the car - Ford takes it and pays the leasee’s remaining months in exchange for leasing (or purchasing) another Ford vehicle...
But hey, you’d know all this if you were actually familiar with how leasing worked. :shrug:
 
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rambunctious

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Leasing has to be one of the most stupid scams out there today
sorry, disagree

I lease to minimize risk.
I leased a truck,paid the lease upfront to save the interest on the amount that is being financed, (basically I prepaid the depreciation)
I then turned the truck in because of engine issues at the end of the lease (ie minimized my risk) by selling the truck (in full disclosure) to the dealer at a fair wholesale price which was above the residual. this put thousands into my pocket, and then with that and other cash I bought another new truck from them (cash)

ie. I ran the full financial analysis to make that decision.

I agree the money factor ( effective interest rate) is usually higher than a loan but this is the price for minimizing risk of a depreciating asset.

factors influencing full purchase, finance, or lease

expendable income
term you wish to keep a vehicle
particular vehicle's depreciation rate
money factor/interest rates
 

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Firstly, “stupidest”. Secondly, no, your dealership didn’t get 10-20k from someone with a lease, the company who financed the lease received payments, the dealership got a small percentage and an incentive from the manufacturer (in your case, Nissan). Thirdly, in the case of Ford, no, the dealership who negotiated the lease does not receive the leased vehicle back, Ford themselves take it and put it up for auction to their certified dealerships - the only way a dealership can get a leased Ford vehicle from a leasee is to buy said leasee out of their lease (ie: the remaining payments plus residual vehicle), however, once the “early bird” is in effect (3 months prior to the end of a leases term), no Ford dealership is allowed to take the car - Ford takes it and pays the leasee’s remaining months in exchange for leasing (or purchasing) another Ford vehicle...
But hey, you’d know all this if you were actually familiar with how leasing worked. :shrug:
Wow, you've clearly demonstrated how leasing is a great idea. :doh:
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