Car lease question - Page 3

ROMARY · ‎04-28-2010

I'm not sure (at all), but somewhere/sometime I heard that some folks who have business(s) can write off (taxes) when they lease cars and use them in their business(s).

'More or less', 'Right or wrong', 'In general', and 'Just thinking out loud ' (as usual).

lulu2 · ‎03-09-2010

One of our cars is leased and the lease is up in October. The car has under 15000 miles on it. It is leased through a bank. Last Saturday I had a call from the bank about what we planned to do with the car at lease end. We were offered a buyout price that was $8000 less than what was stated on the lease. Also, we would not be responsible for the last 6 lease payments.

We purchased the car.

GCR18 · ‎07-03-2013

The buyout price can be researched in the newspaper and Kelly's Blue Book, etc. If it's a fair deal, you like the car and can afford it, why not buy it.

Something else to think about is what if you have to break the lease. My sister leased a car in October and we are trying to break her lease. She's since been sick and no longer able to drive. We are going to have to pay thousands to terminate the lease. Waiting for the exact figure.

Mom2Dogs · ‎03-09-2010

For what it is worth our financial advisor and tax person discourages leasing....I know this does not answer your question!

kdgn · ‎03-09-2010

@Limbo4now wrote:
I have a Toyota that is leased and soon the lease will end. I need advice from anyone as I am really struggling with an issue.
It only has 24000 miles on it which is low mileage and I don't know if it is a wise decision to just keep it and finance the residual which is 16K or get another lease.
I believe the dealer is the winner no matter what I decide because the car doesn't have a scratch on it, low mileage. Any thoughts? Thanks.

This was my dilemma a couple of months ago. Leased my car, it had low mileage (much lower than yours!), was in great condition.

I priced out the new model with the same features: It had increased in price greatly over three years therefore my new lease payments would be higher. I wanted those safety features.

The manufacturer wasn't having incentives at the time for leases. When I first leased my car I had no down payment because of some great incentives. That lowered the lease price.

My leased car was worth more than the residual value.

I bought it out and kept the car. I decided if I was going to have to pay a hefty down payment it might as well go towards purchasing it and the car would be mine. I also didn't want to go through the hassle of making this decision again in 3-4 years and once again making a down payment on a car that I would not own.

Just be aware of this: If you trade in your leased car within a certain amount of time before the lease is up, most manufacturers will forgive up to 3 lease payments if you are leasing with them again. If you decide to buy out the lease those payments are not forgiven, they are part of the residual price due at the end of the lease. There is no negotiating the end of the lease price either. They are sticklers: if your contract says the value is $16,000 at the end that is what they want, no negotiating a lower price.

Friends did the opposite: They researched the new model year of their leased vehicle, found it had not gone up much in price so they ordered a new one. When it arrives, they will turn in their leased vehicle, make no down payment and their lease payments will remain the same-and they were able to get some features that weren't on their current leased car. Different car manufacturer.

queendiva · ‎03-12-2010

JMO: return your leased vehicle.

Negotiate a price much lower than $16K for your present car if you love it or buy a new or used vehicle. No more leasing!

When is your lease up? Prices on new 2017 models generally go down around July.

granny me · ‎09-05-2014

We listen to Jerry every week and he gets people calling in about leasing I linked to his FAQ page and there are blogs on there as well.

http://www.carprousa.com/faq

software · ‎06-08-2016

@GCR18 wrote:
The buyout price can be researched in the newspaper and Kelly's Blue Book, etc. If it's a fair deal, you like the car and can afford it, why not buy it.

Something else to think about is what if you have to break the lease. My sister leased a car in October and we are trying to break her lease. She's since been sick and no longer able to drive. We are going to have to pay thousands to terminate the lease. Waiting for the exact figure.

Would another family member be willing to take over the lease?

terrier3 · ‎03-10-2010

@ROMARY wrote:
I'm not sure (at all), but somewhere/sometime I heard that some folks who have business(s) can write off (taxes) when they lease cars and use them in their business(s).

My son is a freelancer in the film industry.

He's "bi-coastal" - he has a car when he stays with me in the East (his old, yet trusty 2004 Taurus.)

He leased a car in L.A., where he rents.

His last movie job was in England and now he's spending 2 months in Thailand, so his leased car will have VERY low mileage.

As an independent contractor, he can deduct the leased car as a necessary business expense. He logs his mileage - over 85% is used for work.

Tinkrbl44 · ‎08-23-2010

@esmeraldagooch wrote:
From Dave Ramsey
QUESTION: Listener asks Dave to break down the mathematical flaws in a car lease.
ANSWER: A car fleece is basically renting a car. You pay $400 a month and at the end of the new car lease, you turn it back in. If you want to buy it, you are buying it for what they estimate at the beginning of the fleece to be the market value. At the end of the lease, it’s called the residual value. If you pay $400 a month for 60 months, you pay $24,000 before turning it in. The car will not have gone down in value more than that, because the car companies would lose money if it did. When they get the car back, you will have paid them more than the car has depreciated during that time.
During that time, you’re maintaining the car as if you owned it. You’ll get charged for excessive wear and tear, or if you put too many miles on it. If you rent it for $24,000 and it went down $15,000 in value, then it cost me $9,000 to rent this car for this period of time. That is their profit during that time.
Another thing is that the interest rates on a vehicle lease are not disclosed because the Federal Trade Commission has determined that this is not a debt, so there is no federal disclosure involved. Therefore, you have no truth in lending disclosure sheet. The interest rates you get charged are unbelievably high. That’s where you’ll realize you got screwed over.
People get sold automobile leases because they are told that it’s what sophisticated people do. But as it turns out, the car companies make more money on leasing you the car than if you bought the car with cash, according to the National Auto Dealers Association. Broke people think ‘how much down and how much a month’. Rich people think ‘how much’. If you can’t pay cash for a car, then ride a bicycle. But don’t lease a car

@esmeraldagooch

I agree with everything above except the highlighted part. I find it hard to believe anyone would actually fall for that, and ignore the dollar comparisons.