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Our SUV that we purchased new in 2005 has gone to that big car garage in the sky. And of course we need another vehicle. But now that were both retired and living off SS... we don't have the money to buy a new vehicle. So we were thinking of leasing a new vehicle from one of the dealerships in town. My question is Has anyone leased a vehicle locally? Any suggestions as to what dealership to try? What exactly does it entail? Is it less expensive then financing a new vehicle? Your suggestions are much appreciated...
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I've leased two cars while living here, one in 1999 and the other in 2002 which I now own. Both were from Ford. I can't tell you if you'll get a better deal, but leasing is just like financing a new car in that you pay a monthly fee. After the lease is over you have three options: simply give the car back to the dealer and walk away, lease it again or buy it. They'll give you the buying price for when the lease is over when you first lease the car.
There are risks. If you return it with damage which is more than wear and tear, you likely have to pay for the damage. Again, the amount of damage is specified in the lease agreement. Tiny dings and scratches are usually ignored. If you write the car off in a crash, you still have to pay off the lease.
After my first lease, I got a good deal from Ford to lease another car which I did and then bought it after it was over. It worked out well for me but can't say if it would suit you. One other thing to remember - you can negotiate leases just like buying a car, and if you drive less than 12,000 miles a year, you can usually get a cheaper low mileage agreement.
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Thanks Tom...Was there any up front costs on the lease? And did they pay for maintenance...or did you have to?
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There are upfront costs (fees, taxes etc). You can pay them up front or have them rolled into the lease payments, or at least that's what I did. If your current car is worth anything, you can use it as part exchange in the deal. I paid for maintenance on the second car but the first one had free maintenance as long as it was brought in for service within a 1,000 miles of the service schedule. It all depends on what deal you can negotiate.
I'm sure there are buying vs. lease calculators on the web, maybe try one of those? If I find a good one I'll let you know.
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Note that all new vehicles have built-in telematics, which data is owned by the finance company to be used as they see fit. In theory, this would include violating the warranty coverage or other lease terms if you drive somewhere not approved by the owner, such as an unpaved road.
These issues are currently theoretical, but it's safe to assume that technology will evolve faster than regulations, just a matter of time.
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One can't pay down a new car as fast as they depreciate in value, I've never owned a new vehicle and have no plans to. You can buy a good used car with a warranty and save a lot of money. It's been a seller's market for used cars since the "cash for clunkers" program that required the trade-ins to be destroyed and removed part of a "generation" of used cars, but that is expected to change later this year as a cycle of lease returns, previous rental cars, and regular trade-ins combine inventories and change to a buyer's market.
ETA: clarity
+100 ^^^ on terracore.
I never understood the reasoning behind paying down the depreciation for/to the dealer (lease) and then having nothing to show for it. Vanity ?
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Hertz Car Sales - I bought a 2 year old truck for less than half of the new price, 38k miles.
A family member got a 2 year old Altima with 30k miles for $11.9k.
Both were bought with no down and the payments were less than a lease.
https://www.hertzcarsales.com/stores/honolulu
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Don't speak unless you can improve on the silence.
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Don't speak unless you can improve on the silence.
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I prefer to buy used, but with good service records and a year or so left on manufacturer warranty. Bought a few cars off of ebay on the mainland, and always used carfax. Also used a mechanic (SGS) to go out and do a thorough independent inspection before buying.
