Hey guys. Anyone who knows me will tell you I have some serious commitment issues when it comes to vehicles. Iv had some really nice vehicles over the years but I just cant seem to stick with one for longer than a year. Iv always been told leasing isn't worth it because your paying for a vehicle you have to give back. The more I think about it, the more I think its perfect for me! This way, when I run out and buy a new vehicle and get bored with it, I just take it back when the lease is up and wont have to worry about being upside down (which I have been on nearly every vehicle Iv traded in).

Iv done some reading up on leases and have the general idea of how it works. My biggest question is: is there such thing as a 12 month lease? I get bored with vehicles within that time frame and don't want to be stuck with one for an extra year if I can help it.

Is there anyone else on here who leases regularly?

 

Yes, there are 12 month leases. You just have to find a company willing to write up a 12 month lease agreement. Most dealerships will not write a 12 month lease. If you live in a larger city, look for a leasing company.

Beware, most leases allow you to drive the vehicle a certain number of miles. After that, you're assessed a penalty, usually $.05 a mile, for going over the mileage allotment.

 

A lease can be a great financial choice for people who want to drive a new car every couple of years. Basically when you lease you are pay the depreciation (difference in the negotiated price and the residual value) plus interest (money factor). Most leases require you to also buy gap insurance in case the vehicle is totaled and the value is less than what you owe on the lease (typically happens when you don't pay any money down). Most leases will be 24-36 months, with 12-month leases being hard to find and less of a good deal as most of the depreciation is realized in the first year, which means the lease payment will be higher.

Read this: http://www.autos.com/car-buying/6-12...-how-to-decide

BTW - How bout some info on your user name. Do you have an El Camino? I've got a '70 that is in pretty good shape.

 

Leasing a quality vehicke ushually requires a 5k down payment. Which is ridiculous for a vehicle that will never actually be yours. Plus you cant mod it at all. Dealerships lease vehicles so they can make tens of thousands on down payments and monthly payments and then resell certified once the lease is over. They pretty much sell the vehicles twice by doing it. Buy it then sell it or trade it and do it again. If you take care of your vehicles you will never fall any farther in the hole or lose any more money then you will constantly throwing crazy down payments on leases

 

It's been a while since I leased, but the most I've ever had to pay at lease signing is the security deposit and the first payment. Most times, I've driven away with absolutely no money at signing. I'm sure that won't work in today's financial climate, but lease terms are usually very negotiable as far as money down and such. The more you pay up front' the lower your payment will be. Most lease deals you see advertised on TV are trying to lure you in based on the payment, which usually requires a significant cap reduction payment right up front. Remember you are paying the difference between the negotiated price and the residual value (what the car is expected to be worth at the end of the lease). If you put cash into the deal, that difference is going to be that much lower.

 

the problem with leasing is that you usually end up paying more than the difference between the negotiated price and the residual value. (keep in mind, that if there wasn't a ton of money to be made by leasing, dealerships would not do it)

the monthly payment may be lower, but at the end of the lease you have nothing, whereas if you buy, at the end of the year, you have a truck that is worth money.

most times, you will come out ahead if you purchase and sell, rather than lease. and, the longer you can stay out of the dealership, the less likely you are to be upside down in the loan.

don't know about a 12 month lease ... to me that's insane to be trading that often, but we are all different. If i were to trade that often, i'd be doing it with used vehicles rather than brand new ones and continually taking that initial hit time after time. do that often enough, and eventually you are going to HAVE to keep one longer than a year or three just because you won't be any room left on your MSRP to roll any more negative equity into the new one.

trading vehicles every year is a plan better suited to those that have the wherewithal to do so with cash, and the amount lost every year is unnoticeable by comparison to their overall portfolio.

not judging .... just how i see it.

 

Someone who trades vehicles every year isn't into fiscal responsibility, regardless of how they pay for them. Owning a series of vehicles and taking the biggest hit on depreciation on every one isn't a path to riches. But vehicle ownership is about many things, and having a new vehicle every year is a choice a lot of people make, and don't bother justifying to themselves or anyone else. The lease option is really pretty good in this scenario, you will be paying a lot less each month than if you bought with minimal down payment and financed over a reasonable period (48 - 60 months), plus you don't lose the depreciation, you just pay for the use of the vehicle. I never saw a 12 month lease and in fact I wouldn't bother looking for one, I would just do 24 month leases and trade early. I never saw a dealer who wouldn't roll over a lease into a new vehicle early, they love that stuff. It's not always about money, sometimes it's just about lifestyle. You can mod up a leased vehicle, you just have to return it to pristine, showroom floor stock when you give it back.

Brian

 

would they trade early?

if the vehicle has lost 3,000 in value, and you've only paid them 2,000 in rent, would they still trade early? that is essentially what we are talking about here. in one year the vehicle may have lost more in value than the monthly lease payment.

i think that is why lease terms are what they are. the idea is that the vehicle has lost less in value than what you have paid them in rent. that's the whole idea of a lease, for the dealer anyway. take the expected depreciation in a 2 year period, add a premium, and spread it out over 2 years and that's what the customer pays.

i'm sure they'll trade a few months early, no problem, but a year? not sure ...
maybe they would ... i'm just asking.

 

If you don't care about the costs, leasing is fine. There is no circumstance where leasing costs less than buying and selling. Leasing ALWAYS costs more. I have had a lot of discussions (arguments) about this over the years, but once we put the numbers down on paper, leasing ALWAYS costs more. Once you are reconciled to that, then look at the advantages and disadvantages of leasing. Low(er) down payment, lower monthly payment, you can often lease a vehicle that you could not afford to purchase, etc. Just remember that, no matter how many miles (or how few) you drive the car, you can purchase and resell ANY vehicle in any given time frame for less money than leasing the same vehicle for the same time and mileage. If you are leasing vehicles for business, vehicle depreciation and tax deductions can be beneficial.

You might do better taking the time to research and look at a lot of different vehicles before the purchase in order to be better satisfied for longer. Another truism is that the longer you keep a vehicle, the lower the average cost of ownership.

 

Avis Mini-Lease - Long-Term Rentals - Avis Car Rental

short term lease, long term rental .... perhaps another option?

edit .. never mind.

that works out to over 1,500 per month.....

this might be worth your time:
http://www.swapalease.com/