Corvette Z06 Forum banner

1 - 3 of 3 Posts

·
Registered
Joined
·
641 Posts
Discussion Starter #1
Disadvantages of Leasing:
The selling price is usually MSRP:
Many dealers hide this value from you, diverting you to low monthly payments.
Confusing finance Charges:
Some dealers try to confuse you and lie about the money factor and often they won't even tell you the money factor!
Some dealers refuse itemize your trade-in:
Dealers are not required by law to itemize your trade-in, and this opens the gate for people to get ripped off, by trading in their car, then not getting credited on the new lease for the trade-in. When buyers insist that dealer itemize their trade-in, the dealer refuses.
Most states tax your monthly payment. But some states like Illinois and Texas tax the full amount of the car even though you are only using up 50% of the value then returning it. Even worse, buy the car at the end of the lease, you again pay sales tax on that residual amount! Don't lease if you live in Illinois or Texas.
High insurance costs:
Lessors require you have minimum insurance policies of $300,000.
Just walk away!

If you lease the car you may not get the rebate.
This increases your cost by $500-$1500, or $13-$42 monthly, Also make sure you get the rebate! Some dealers try to get out of it.
Misleading dealer lease ads.
See that $275 per month BMW ad? There's a tiny stock number of the only car there at that price. To get low monthly payments, you need huge down payments. The fine print states taxes are extra. For a $699 payment, add 6% Florida tax: $740.94.
Long-term cost of leasing is more than the cost of buying:
It's more if you buy the car at the end. If long term financial benefits are your only interests you should buy. Some dealers perform an analysis of Buy vs. Lease, and show leasing always cheaper. Always check their numbers.
Mileage limits:
Leases limit you to 12000 miles/year, some are 10,000 miles. My friend paid $1400 at the end of his BMW lease for excess mileage. Those trips you took come back to haunt you, and it's time to pay the piper.
You are responsible for program maintenance.
Better keep damn good records of every oil change, tune up, etc. and do them on schedule too. Don't give them any chance to claim excess wear and tear.
Some have large up front fees:
Leases used to be $0 down, $0 deposit. Even ads touting $0 down have some fees up front. Down payments create the illusion of lower monthly payments. To accurately figure your total cost of the lease, add up all down payments, fees.
Excess wear and tear clauses:
They could nit pick when you bring the car back. They can find a way to keep your refundable security deposit to offset claims of excess wear and tear.
All 4 tires must match!
This is in every lease contract. Leasing companies charge you for mismatched tires, and they charge MSRP, which you can get cheaper in a tire shop.
Too much fraud and unfair selling practices:
Florida Attorney General settled with Toyota regarding automobile leasing and 2,200 consumers got partial refunds. People in Florida and Georgia complained they were tricked into signing leases, when they thought they were buying.
People With Ford Leases Click Here!
Accidents may trigger early termination:
Your lease is terminated, and you're obligated to pay off the lease. Car insurance covers the damages, but not the cost of paying off the lease. You'll need gap insurance for that. You should buy gap insurance when you lease, or put down less than 20% on a purchase. But don't buy it from the dealer.
People want out of their lease early.
Dealers pay your penalties and buy you out of your current lease, but they just finance all that debt into the new lease. You think the dealer is giving something for a car you don't even own. They dipped you from one lease into another, now you are paying off 2 leases.
 

·
Registered
Joined
·
4,151 Posts
Leases aren't for everybody - but some people are probably driving their dream car because it was the only way they felt they could swing the deal.

Everybody does their own pros and cons assessment of how to buy a car (buy, borrow, lease) and does what they feel is best for them. Sometimes their decision is emotionally based.

Personally I pay cash for my cars, as I grew up not liking to be in debt to someone else. But that doesn't mean paying cash is best for all.
 

·
Registered
Joined
·
25 Posts
Many dealers hide this value from you, diverting you to low monthly payments.

I happened to buy my Z06, but often lease... and when leasing with no $$ down and no desire to ever buy the car, what else matters but the lowest monthly payment?

I've leased perhaps 15 cars in the last few years. Only care about 2 things: Out-the-door $$ and lowest monthly. Why would I care about the residual when I'll never keep the thing?

So yes, leases are great for some, bad for others.
 
1 - 3 of 3 Posts
Top