mazdadude
ZOOOOOOOOOM ZOOOOOOOOOM
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- '16.5 Mazda CX-5 Touring
Agreed!
At times my lifespan of the lease was dictated by the lifespan of the O.E. tires... Why spend $600-800 for tires when you can just lease another with new tires...
Lease Payments - JUST the Basics
- Thread starter Adguy21
- Start date
Agreed!
At times my lifespan of the lease was dictated by the lifespan of the O.E. tires... Why spend $600-800 for tires when you can just lease another with new tires...
I have tried to understand trading in leased cars, but I still have trouble wrapping my head around it. One of the advantages of leasing a car is at the end of lease, you turn in your keys and walk away. Unless you are always lucky with the car's residual value near the end of the lease, trading in a leased car will most likely just add to the cost of the new car that you are getting. To me this seems like a losing situation. I would rather just return the car and get a new lease. Like I said I'm probably misunderstanding something about it.
I'm not judging. Like I said, there are pros and cons to leasing and buying and each person's situation and preferences are different. In my case, I love cars too and also would like to get my hands on a lot of cars before I leave this earth, but I love not having a monthly payment more.
I understand what you mean by not worrying about tires (I think you mostly mean maintenance though), but this is a pretty bad reason to lease cars. Paying $800 for new tires that will last at least 2 years (for the average amount of miles driven per year) is way cheaper than paying thousands on a new lease.
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- Denver, CO
Different strokes for different folks. I for one do not want a perpetual car payment. No car payment for a year now on my CX-5. 
Love having a paid off car.
Though I agree that if I wanted a new car every 3 years, leasing makes sense. I am not one of those people though.
Love having a paid off car.Though I agree that if I wanted a new car every 3 years, leasing makes sense. I am not one of those people though.
I understand what you mean by not worrying about tires (I think you mostly mean maintenance though), but this is a pretty bad reason to lease cars. Paying $800 for new tires that will last at least 2 years (for the average amount of miles driven per year) is way cheaper than paying thousands on a new lease.[/QUOTE]
I'm not talking about just the tires LOL. Just using them as a reference point that I have paid nothing that an aging car could potentially need. Just basic maintenance which half the time was offered free for the duration of the lease. There is no right or wrong reason for leasing vs buying in my opinion. It's just personal preference. Also, as for turning it in what I usually do is a month or 2 before it's up I decide what car I want and turn the car into that dealer a little early which is usually a different brand. They may roll that last payment into the new lease but I try very hard to get the best possible price without them doing that.
I'm not talking about just the tires LOL. Just using them as a reference point that I have paid nothing that an aging car could potentially need. Just basic maintenance which half the time was offered free for the duration of the lease. There is no right or wrong reason for leasing vs buying in my opinion. It's just personal preference. Also, as for turning it in what I usually do is a month or 2 before it's up I decide what car I want and turn the car into that dealer a little early which is usually a different brand. They may roll that last payment into the new lease but I try very hard to get the best possible price without them doing that.
mazdadude
ZOOOOOOOOOM ZOOOOOOOOOM
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- '16.5 Mazda CX-5 Touring
Yes, I lease with all of the scheduled maintenance included. It is nice to know EXACTLY what the car is going to cost you per month, every month, for the duration of the lease.
My best leases were with Honda and Acura, as they had positive trade in value when I wanted to upgrade to another lease, and this positive equity was simply used to pay all of the drive off fees, first payment, deposit, etc. on the next car I leased. So it cost nothing for me out of pocket.
Also, with regards to the pre-paid scheduled maintenance, if I trade the lease in early, I get a pro-rated refund of the remaining unused scheduled maintenance, so there is nothing lost there either.
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- State of Jefferson
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- 2017 CX-5 GT AWD+
How exactly does this work? How can you trade in a lease that you don't own with another dealer? Don't you have to buy out the first lease with cash? Where is your equity in the lease?
mazdadude
ZOOOOOOOOOM ZOOOOOOOOOM
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- '16.5 Mazda CX-5 Touring
The dealership buys out the remaining payoff balance on the old leased car upon trade in.
Your equity is the difference between the payoff balance, and the trade-in value you recieve from the dealer.
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- State of Jefferson
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- 2017 CX-5 GT AWD+
I've always turned them in for another from the same dealer, or bought it outright. This is a great alternative, if you're lucky enough to have a low enough residual to make it work.
Thanks for pointing it out.
Here's a good resource to determine how good of a deal a given lease is. I used it when shopping for my CX-5:
https://www.leaseguide.com/leasevalue-calc/
You plug in the particulars and it cranks out a 'lease rating' from 0-100 and then categorizes it (bad, average, good, very good, etc.)
https://www.leaseguide.com/leasevalue-calc/
You plug in the particulars and it cranks out a 'lease rating' from 0-100 and then categorizes it (bad, average, good, very good, etc.)
leasing a car. It’s the most expensive way to operate a vehicle according to Consumer Reports, Smart Money magazine, and my calculator. Dave Ramsey.
https://www.youtube.com/watch?time_continue=509&v=PJ0TlFYpAXY
Pay cash for your car if you ever want to be wealthy. Your car should cost no more then 1/2 your annual salary. Dave Ramsey.
https://www.youtube.com/watch?time_continue=509&v=PJ0TlFYpAXY
Pay cash for your car if you ever want to be wealthy. Your car should cost no more then 1/2 your annual salary. Dave Ramsey.
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- State of Jefferson
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- 2017 CX-5 GT AWD+
Still working? Not wealthy enough! (drinks)
Dave Ramsey skims over a lot if things in his 'analysis'.
1) What if you get 0% financing? With inflation, you're better off paying later than sooner as your money is actually going down in value over time.
2) What's the opportunity cost of not having that $30k that you buried into your cash car purchase? It could be in the market working for you instead of doing nothing in your car.
When your lease is up, you have 3 options:
1) If it's worth less than the residual, walk away. This happened a year ago to my wife when her Town and Country lease was up and we found out that since Chrysler replaced that with the Pacifica, T&C's were worthless on trade in. But when the lease was up, we simply handed them the keys. Even though it's trade in value was $3k less than what we owed on it. Try doing that with a purchased car.
2) If it's worth more than the residual, trade it in and pocket the difference.
3) Buy it outright.
In other words, when leasing, you're deferring a decision 3 years down the road when you will have more information than you do right now.
Leasing also allows you to always be driving a new car fully covered by the manufacturer's warranty. And with technology changing as quickly as it is, it allows you to stay up to date with the latest safety technology. Not to mention, the new technology causes your older tech car to depreciate more rapidly. Imagine trading in a CX-5 GT 2 years from now if they add the turbo and surround camera to the new ones. What will that do to your trade in value?
I would never, I mean NEVER pay cash for a car. In fact I never put a dime down on a car unless it will lower my financing rate which these days is so low it's almost free anyway.
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- State of Jefferson
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- 2017 CX-5 GT AWD+
All of the reasons I lease. Buying may be cheaper if you keep a car for many years, but I have no interest in that. The improvements are just coming too fast. And out of warranty repair have become something to fear. Car ownership is very different now than it was in the past.
And there aren't many things better in the world than getting a new car! Leasing makes it happen more often.
The majority of people who need to listen to Dave Ramsey, are those people that are really broke, living paycheck to paycheck and are buying more car than they can afford. For those people, leasing should not even be an option. Even buying new cars are not an option. Their goal first and foremost is to get out of debt. Leasing keeps them in debt so that is not an option, buying a new car costs more than buying a used car with cash.
The benefit of paying cash for a car or paying off car, is not having monthly payments. What if you lose your job? Having no monthly payments is a big boon since you don't have to worry about it. As a last resort, if you really need extra money, you can even sell your paid off car for cash. If someone who was broke, leased a car, then lost their job, they are pretty much screwed.
That said, while Dave Ramsey's advice/rules can be a bit extreme, they are generally good advice to follow if you want to get out of debt, stay out of debt and achieve financial independence. I for one want to retire at 50. I want to spend my day riding my bikes, playing video games and spending time with family. I don't want to work forever. This is another reason why leasing cars is a no go for me. My Speed3 is already 5 years old and while I am thinking of replacing it with something else, if I really think about it, there's nothing wrong with it. While it might not be the newest or faster car out on the road, it is the car that will drive me fastest to retirement.
This is not to say leasing is bad. As I have said before, there are pros and cons for each option. If you can afford it, and I mean really "afford" it, then you should be allowed to lease. I don't think anyone can deny that being able to drive a new car every 3 years is fun.
The benefit of paying cash for a car or paying off car, is not having monthly payments. What if you lose your job? Having no monthly payments is a big boon since you don't have to worry about it. As a last resort, if you really need extra money, you can even sell your paid off car for cash. If someone who was broke, leased a car, then lost their job, they are pretty much screwed.
That said, while Dave Ramsey's advice/rules can be a bit extreme, they are generally good advice to follow if you want to get out of debt, stay out of debt and achieve financial independence. I for one want to retire at 50. I want to spend my day riding my bikes, playing video games and spending time with family. I don't want to work forever. This is another reason why leasing cars is a no go for me. My Speed3 is already 5 years old and while I am thinking of replacing it with something else, if I really think about it, there's nothing wrong with it. While it might not be the newest or faster car out on the road, it is the car that will drive me fastest to retirement.
This is not to say leasing is bad. As I have said before, there are pros and cons for each option. If you can afford it, and I mean really "afford" it, then you should be allowed to lease. I don't think anyone can deny that being able to drive a new car every 3 years is fun.
With the way things have gone on here, it was gonna go off topic sooner or later LOL. That said I do apologize for adding to the off topic-ness of it. I hope OP took my advice to just enjoy his car and not worry about his lease.
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- State of Jefferson
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- 2017 CX-5 GT AWD+
He didn't say or imply that. He said he just wanted to know about the highlights. What he didn't want were the other important details that some people consider when leasing. When I started leasing, I agonized over all of that other stuff. Over time, I've come to the conclusion that the only thing that really matters is the bottom line-- the monthly payment.
Most threads here [or anywhere] go off topic. It's the nature of conversation.
There are fewer than 40 posts after a couple of weeks. The thread wasn't going anywhere. (trying to rationalize veering off topic at post 3)
I really don't relate to the leasing mindset, but I'd only bought one new car before my Mazda, and I kept that for 18 years. Actually, my wife is driving it now, still have it.
I really don't relate to the leasing mindset, but I'd only bought one new car before my Mazda, and I kept that for 18 years. Actually, my wife is driving it now, still have it.
