Leasing experience?

[User_3336]

The mods thing isn't only bad information you gave. Even if you don't plan on keeping the vehicles you can most definitely use the equity in it if you know how it works. You told OP he will have "ZERO equity" which is only true if you don't know how to work a lease end deal. Meaning, being educated on how the process works. There's knowing how to run numbers to get the best up front lease deal, then there is knowing how to work a lease in your favor both up front and at lease end. You seem to be good at the former, but not the latter, when giving advice.

Ok, lets change wording. TYPICALLY, you will have ZERO equity in a lease(unless you purchase at lease end). But a lot of factors go into that. With the automotive market here in the last, lets say 2 years, it WAS possible to have equity in a lease (and may even be).
Scenario. I leased a 2019 Jeep Grand Cherokee for a term 3 years/ 30000 miles. Fast forward to 4 months before the lease ended. I got out of those four payments, didn't purchase at lease end, and dealer wrote me a check for $4500. They purchased the vehicle, sold it in 3 days, made their $4500 back, and about $2500 more. That was surely equity. But you have to agree, you probably will NEVER EVER see anything like that happen again. This was a time when vehicles were in short supply during Covid.
BTW, OP already stated he is new to leasing and not sure how the whole process works.

 

[User_3336]

Read my replies. I saved over $1000 in sales tax alone, plus had lower monthly payments for the lease term. Had I financed the entire amount up front my payments would have almost been double. Which at the time wasn't a good option financially. Especially with the sales tax on full purchase price. I knew at lease signing that I was 100% buying it out at the end.

Sales tax on a lease differs in every state. Its great you saved $1000 in sales taxes, but that example is not typical of every scenario or state.
In TN, we pay sales tax only on the lease amount per month. If you purchased the vehicle at lease end, you'd pay the remaining sales tax on the buy out amount

 

[HSKR R/T]

Sales tax on a lease differs in every state. Its great you saved $1000 in sales taxes, but that example is not typical of every scenario or state.
In TN, we pay sales tax only on the lease amount per month. If you purchased the vehicle at lease end, you'd pay the remaining sales tax on the buy out amount

That's exactly how it works in Nebraska. You are only taxed on the buy out amount. Not the full price of initial lease terms.

 

[User_3336]

That's exactly how it works in Nebraska. You are only taxed on the buy out amount. Not the full price of initial lease terms.

And you didn't pay any sales tax on the monthly lease payment? (base payment plus sales tax = payment amt)?

 

[HSKR R/T]

Ok, lets change wording. TYPICALLY, you will have ZERO equity in a lease(unless you purchase at lease end). But a lot of factors go into that. With the automotive market here in the last, lets say 2 years, it WAS possible to have equity in a lease (and may even be).
Scenario. I leased a 2019 Jeep Grand Cherokee for a term 3 years/ 30000 miles. Fast forward to 4 months before the lease ended. I got out of those four payments, didn't purchase at lease end, and dealer wrote me a check for $4500. They purchased the vehicle, sold it in 3 days, made their $4500 back, and about $2500 more. That was surely equity. But you have to agree, you probably will NEVER EVER see anything like that happen again. This was a time when vehicles were in short supply during Covid.
BTW, OP already stated he is new to leasing and not sure how the whole process works.

Back pedalling and changing your tune, after the fact, isnt helping your case much.

Obviously OP is new and was asking questions to learn more. Only giving him partial information isn't making him fully informed. Your initial comments weren't 100% correct, and now, after calling you out, you are back pedalling and confirming my statements as if you knew that all along. So which is it? Were you purposely not telling OP all the information, or are you now just trying to save face to make it seems like you actually knew what I said? Either way, your credibility is in question

 

[HSKR R/T]

And you didn't pay any sales tax on the monthly lease payment? (base payment plus sales tax = payment amt)?

View attachment 175125

Go back and read my previous comments. I spell it all out because I care about giving out ALL information, and not holding back pertinent information

 

[millerbjm]

True, but how many people know at lease signing if they are going to "buy-out"/ purchase at lease end. If that was the case, why wouldn't it just be a purchase to begin with?

Depends on the deal - I start every lease with the assumption I will buy at lease end (generally the dealer actually buys as my trade). I lease rather than purchase either because the lease deal is better than the financing deal or because the 2-3 cost of ownership is less than a purchase.

 

[millerbjm]

Ok, lets change wording. TYPICALLY, you will have ZERO equity in a lease(unless you purchase at lease end). But a lot of factors go into that. With the automotive market here in the last, lets say 2 years, it WAS possible to have equity in a lease (and may even be).
Scenario. I leased a 2019 Jeep Grand Cherokee for a term 3 years/ 30000 miles. Fast forward to 4 months before the lease ended. I got out of those four payments, didn't purchase at lease end, and dealer wrote me a check for $4500. They purchased the vehicle, sold it in 3 days, made their $4500 back, and about $2500 more. That was surely equity. But you have to agree, you probably will NEVER EVER see anything like that happen again. This was a time when vehicles were in short supply during Covid.
BTW, OP already stated he is new to leasing and not sure how the whole process works.

This is not an anomaly with the right vehicle and lease terms as many vehicles will perform better than the predicted residual. In this case you did essentially buy the vehicle because rather than turn it in a lease end you negotiated a sale to the dealer. I pulled equity for a 2015, 2017 and 2019 Subaru Outback lease and from a 2019, and 2021 Ram 1500 lease.

 

[Darksteel165]

After reading this thread I think I understand leases even less now.
/popcorn

 

[User_3336]

 

[User_3336]

After reading this thread I think I understand leases even less now.
/popcorn

Yep, everyone's scenario is different.

 

[Willwork4truck]

I've never leased so "consider the source"... What I have read is that you need to be careful with the condition of the vehicle when returning it. Slight scratches, wear and tear, chips in the windshield, all of that. Mileage penalties if over the amount.
Just go into it "with your eyes open".

I can say that I lost $21K of value in 22 months owning a 2022 BMW X5 bought for 2K under MSRP in Feb 2022 and trading in Dec 2023 to the RAM dealer. Might have been cheaper to have leased, overall.
I also remember (years ago) a guy had to park his rig for 3 months because he was over miles prior to turn in. Lots of variables.

Type in "wear and tear leased car" and look for the autotrader.com article:

Leasing a Car: What Type of Damage Will You Be Charged For?​

By Doug Demuro 08/01/2023 4:00pm

It's fairly comprehensive and up to date.

 

[Trippi]

First of all, welcome.
Seems high for a low mileage lease, what is the interest rate? And what is the residual value at the end of lease?
How much did you shop around?
I think they can do better.
If they can drop 100 bucks a month with you just hemming and hawing they can do better. Don't bend over, look around, even travel around to dealer 20+ miles away.

that is not a low mileage lease - 15K is at the upper end. The lease payment seems reasonable especially if coming in with nothing down. rates are just plain higher now

 

[Trippi]

what are you permitted to do to the truck while on a lease?
I have never leased a vehicle.
can you customize it?

yes - you can add whatever you want. at least that has been my experience. might draw the line at engine work

 

[HSKR R/T]

I've never leased so "consider the source"... What I have read is that you need to be careful with the condition of the vehicle when returning it. Slight scratches, wear and tear, chips in the windshield, all of that. Mileage penalties if over the amount.
Just go into it "with your eyes open".

I can say that I lost $21K of value in 22 months owning a 2022 BMW X5 bought for 2K under MSRP in Feb 2022 and trading in Dec 2023 to the RAM dealer. Might have been cheaper to have leased, overall.
I also remember (years ago) a guy had to park his rig for 3 months because he was over miles prior to turn in. Lots of variables.

Type in "wear and tear leased car" and look for the autotrader.com article:

Leasing a Car: What Type of Damage Will You Be Charged For?​

By Doug Demuro 08/01/2023 4:00pm

It's fairly comprehensive and up to date.

Just ha e to read the lease agreement and look up the lease end requirements for whoever you lease through. Different companies will have different criteria for allowable "damage". Usually window chips that haven't turned into cracks and dings under dime size are allowable, as long as not in excess. There is also allowsble tread wear measurements for tires. But like I said, look up the terms of your specific lease. But that's only if you are just going to turn in your lease and not try to do a buy out or trade in options, potentially losing out on any equity.