Buying car after lease reddit. Buying will allow us to take $7,500 Federal Tax Credit.

Buying car after lease reddit. I leased a 2020 civic and I want to buy it out now.

Buying car after lease reddit Leased car has limited mileage. For 2 reasons Interest rate will be low for the lease term. The only money I'm actually advancing would be the 34k to buyout my current lease (which I'm hoping would come back to me). Again, leasing is very niche and then leasing a Tesla is uber niche so even if you have leased a car in the past you might not want to lease now. So no, it is better to buy over 4 years by $3300. Anyone have any thoughts as If you never sign lease papers, and just purchase the car on day1, you don't get a $6500 discount. If you sign lease papers and lease the car for 72 hours, then buy it from TFS via the website and account that is auto-generated, you save about $6500. Pros: you have 2-4 years test drive of the car to decide does it fit your needs after the lease is over, you are buying a used car with known maintenance history I don't know why a lot of people say lease. But I’m comparing leasing vs buying the same new car. What are the pros & cons. A 2 year lease means your paying close to 30% of a cars new car value depreciation for most cars. 31%. Leasing a car basically means you're borrowing the car (typically for 36 months) while promising to pay for the depreciation the car will experience. Do it. You spend $10080. I would never lease. r/askcarsales may help as well. I knew a lady who's dad was all, "Just buy used, it's fine". The lease gives you the option to walk away effectively at a preset price and removes a lot of random worries. Ya, you can walk into your bank and talk to the loan officer saying you have this lease you're thinking of buying out. When you buy a car, you take posession of an asset that depreciates in value. In short, 3 types of people lease: They can't afford to buy and finance and are leasing a car above their means. Currently Toyota financial is offering a $4500 EV tax credit if I choose to lease. I'm at $363/month on a 2022 Carbon Edition lease, which is more expensive than the Preferred. At the end of the lease, you give the car back to the dealer and they sell it as a CPO vehicle. DON'T AGREE TO BUY ON THE SPOT. If you buy and sell cars every 3 years or so, then yeah, leasing isn’t that far off at all. Many times after the lease the company wants waaaay more than the car is worth so you unfortunately should just walk away and not buy it out right. A very simple solution for you would be to buy a used car for cash. Polestar allows you to buy the car while the lease is still active, I don't know if you can convert it to financing though and I'm also not sure if the monthly payment stays This seems very high. An example is if you leased in the past but you never kept your car to maturity to get into a new car or avoid millage or wear and tear, this simply is not an option. Many manufactures have it built in to a lease and the only ones I'm aware of that does not is Honda but I have not sold cars in over a year. It seems like leasing a vehicle through my s-Corp is maybe the best route? My understanding is it must be a vehicle 6,000lbs in weight or more and I just use it for company business at least 51% of the time. When you buy the car, they are selling you the car for $11,749. Hello! I bought a brand new car and I traded in my old car. But don't buy until June - the USA income tax refund period causes used car prices to rise. $21k-13. You're leaving $7k on the table by turning in the lease. It's not unusual for a dealer to charge a fee to process your lease-end purchase. However, there are repair costs and, in my case, the repair costs were about the same amount as leasing (i. You could almost finance the car for the number they gave you. -So after speaking to five different TSF "advocacy" representatives, and a lot of running around, Washington DC does NOT allow direct lease buyout through Toyota Financial Services. Also remember to add flair to your post by clicking the "Flair" link beneath it. Buying your lease for mainly profit has only become a thing in the past two years as we lived through this massive car and EV bubble, the issue is that this recession will pop the bubble and we already have seen Tesla values plummet via price drops and the There are friction costs every time you buy or sell a car. I just spoke to dealership about buying my leased car. Call the company the lease is through (it's not the dealership). I decided to pay £500 more and got a Merc E class estate that was 6 months older My whole thing is that most people who lease have zero interest in buying their leases. You can choose to sell that asset at any point in the future, cashing out the value. Can someone break down the math to show how does this works? The only reason a dealer would have to do an inspection on a vehicle you are currently leasing and plan to buy out would be to try and buy it instead of you during current market conditions - unless there is some special lease program im unaware of with Mercedes, you should just be able to contact that lease holding company ask them for a buyout figure with taxes included - the That’s why I recommend the 3 year lease, in general the buy out at the end is usually the best deal for buying the car fully out right. Just wanted to gather some of your opinion if its better to lease it here in CH or buy it cash. DO NOT lease a car if you want a pampersbomber for your family. If you’re not going to do that, you might as well try to get the residual value as high as possible so that the monthly payments you make are lower Tell them you’re paying cash when they ask you to fill out a credit application. I buy because I usually keep my cars for more than 5 years, and no lease package I've ever seen actually makes the car cheaper to lease than to own. I did not mention my plan to buyout early. Buy out is $36k. Buy yourself a 5 year old Toyota or Honda for $20k, and in 2 years, you can probably get $16-17k back from selling it and spend a minimum on maintenance in the meantime. 5k tax credit later. Buying will allow us to take $7,500 Federal Tax Credit. Rare sports cars, limited run cars, highly sought after cars (Tacomas, STI, Supra) are horrible leases. Best case scenario, we buy the car and it would basically be the same as buying it new but with a free trial period. I would walk away I’m attempting to buy a new car, and currently Chrysler is running a deal for $15k off leasing a new car. You'll need to pay the sales tax on the car, the registration fee, and any title change fees your state has. I found the first option more appealing, and without any risks that the car wasnt elligable, money ran out, or what not. My alternative, as far as I can tell, is to turn the current car in and fork over about $3k+ for a new lease, which I'm trying to avoid. After the lease is payed my parents give me the car After the lease, your parents can't give you the car - it has to go back to the leasing entity, or be purchased from the leasing entity; the price of the car after the lease term is complete is the "residual value", and is predetermined when the lease agreement is written. Purchasing and making monthly payments you're saying you want to own it outright in the end. It was a great upgrade over my previously leased CX5 due to my family expanding. Typically people say it's cheaper to buy a USED car than leasing a new one. They can afford it and they own their business and therefore they write-off 100% lease payments as expenses. The buy out on paper was almost $1,000 more than actual buyout price (had someone else I trust check it) and lots of extra fees that totaled $7,200. If the car was $20k, and the residual value was 54%, then the vehicle's assumed value at lease-end would be $10,800. The only benefit of it over a used car from a buying standpoint is you know how it ticks because you've been driving it over the past 2-4 years. 85 I already paid over the past 3 yrs. Also, do not lease a car if you are not either self-employed (thus car is tax-deductible) or unless the lease is done by the company you work for. Hello all, this week I bought out my leased 19 Honda Odyssey in CA. Thanks Edited: Btw thank you for all your insights. If it is not worth the buy out, do not buy it out just to try to save face. I plan to keep it for a couple years to use as a daily driver. Lease a 2019 car (hopefully payments will be $170/month). Normally, in a normal economy, a lease isn’t a bad deal contrary to popular belief You don’t waste money, you technically are not “renting” a car. I can't tell you if this will be around forever. The choice to buy out your lease when it ends (or before it ends, in some cases) is a matter of balancing finances with your car's Either way (buying or leasing), you end up eating the depreciation cost through your liabilities and your equity should decrease by the same amount. But that’s comparing two very suboptimal conditions. This includes trading up to a new car and substantially reducing the purchase price of the new vehicle. Sometimes life changes and you need a different car, maybe you move to My GF is looking at getting a second car for commuting. 9%. We're long standing Honda customers and the finance buy outs at the end of a lease are ridiculous! Never worth it imo. My question is this. When they get the car back, you will have paid them more than the car has depreciated during that time. The only reason to ever lease a car, is because you only need it for a few months. If it is it is not just for leases. Essentially you would then take out an auto loan to finance that residual if you choose to purchase the car at the agreed upon price. I ended up paying $58-9k or so for the XC90 vs $75k MSRP due to the discounts. You effectively rented that car for the past two years. I am currently thinking of lease buy out. I'm currently 12k miles and almost 2 years into my 3 year 30/36k mile lease (asked for 12k a year, was agreed upon but all paperwork says 10k a year, but that's another story). The 8k would be the equity value of my current car (assuming I can trade it in for 42k). In case they charge extra fees when we return the leased car. View community ranking In the Top 1% of largest communities on Reddit. The dealer is trying to tell me to buy it out with a 5 yr loan my payment would be $369/month which results in a total of $22,140 total paid PLUS the $11,594. If they need a car now is not the time to sell back a lease early as a new lease or purchase will be more expensive. Once you save up more money after a year or what have you then maybe look to getting a more reliable car (which I'd also aim to buy in cash) My mother lives in Massachusetts. Some, but not all, lessors will allow immediate family members to buy cars at lease end for the buyout price. I leased my vehicle in 2019 and it’s about to come due, barring them refusing to sell me the car, I’ll be paying cash for it at the end of the lease. If you are not in the auto repair or dealer business, please And with Leased Tesla you have to return the car to Tesla ie. Your best bet is to give back the car at the end of the lease, and lease or buy a new unrelated car to replace it. If you are leasing it you'll have to contact the polestar (or leasing company) and ask them what it's going to cost to buy the car from them and ask them for the options. Leasing works for people willing to pay for the convenience of not having to manage their budget, and at the time I acquired my EV there were no lease packages that included ChargeFox/Evie/Jolt If you are leasing it you'll have to contact the polestar (or leasing company) and ask them what it's going to cost to buy the car from them and ask them for the options. This platform only works for commercial auto dealers and resellers because they can purchase vehicles at low costs, run them on Turo, and then wholesale or sell them on their lots for a profit. You're buying the car from the leasing company just as you would from anyone else. They are going try and make you purchase the car from them after they purchase from the lease company and charge you the current going rate. i really like the car and already have a plug in my garage set up, so I was looking into how much it would be to buy the car from the dealership - they told me it would be Dealership has been asking to buy my car from me and they've come up to a fairly reasonable offer(20,300) and I'm definitely considering accepting. The salesmen said that leasing it is the best way to go even if she plans on buying. If the lease is ending they should check what they could sell it to another dealer for and if it is more than the lease end purchase price in the original lease then buy it back. Debating whether I should lease or or finance it. I had it on my last one and it saved me $600 after I factored in the $400 I paid for it. Leasing typically gets you lower monthly payments but you're only paying for the time/mileage on the car and in the end usually costs more. Granted, you likely won't get the whole 7500 value of the credit, but same concept. = $75,000 loan, $7500 in my pocket. Sounds like your answer there. Doesn't matter if its a Lexus or a Chevy. can't find anything even close to my car for less than 15-18k. Also, cars are getting insanely expensive, leasing might be the only option Most people lease because they can get the credit applied to the price when they don’t qualify for the credit to buy. The only time a lease makes sense is if you have an employer who will pay a car lease as a benefit, and then you can just rotate from car to car every X years without thinking about the payments at all. I used to be a 'buy outright' kind of guy and had bought my previous two cars outright and new, but here in the US I would never do anything except lease. When you pay yourself a flat allowance, you're supposed to include it in your W2 as additional compensation and as an employee you cannot then offset it with deductions relating to the car. In that case you have less cash outlay generally after 3 years when you ditch the car and start the cycle over. The deals are more complex, there is less consumer protection, in general the fees are higher, and it encourages you to pay a car payment for the rest of your life. Leasing is expensive because you're perpetually getting a new car every 3 years. Having done the analysis several times, the only time leasing really makes sense is if you are A) buying brand new cars AND B) you only keep them 3 years or less. Or to just buy now then use that value that I put into the car in 2-3 years to trade it in for a new one. You're basically just renting. My opinion : lease if you need it now, buy when more options will enter the If your search yields vehicles that are lower in price than the residual value of your car, turn the car in after the lease, and go buy a similar car on the used market. In New York, It's The lease depends on some factors- the residual value of the car which you have the option to buy the car for post the peasing period- if you plan to buy the car for yourself and use it long term. The title for the car is in their name. No inspection Go get the lease agreement you signed when you picked up the car. I don't believe anyone should feel that way after purchasing a new car. At our store we would have maybe 2 or 3 lease buyouts per month. Often the EV credit is applied to the lease payments or residual and you end up either breaking even or still getting a few thousand off the car via lease and buy. ELI5: Lease if you want to drive a new car every other year and pay a bit more. I paid my car off in 5 years. Or buy cash since financing a car is bar min is 5. . At the end of the term, you can give the car back, or buy it for an amount that Whether or not you should buy out your lease depends on factors such as the residual value of your vehicle, fees for excessive mileage or wear-and-tear, and your vehicle's overall condition I bought my RAV4 Prime in Feb (Virginia dealer) and got the $6500 lease cash, and also a $750 military incentive (also paid $650 lease acquisition fee - no way to avoid it). I know for a fact that I will return the car after 4 My experience in choosing between leasing or buying comes down to this. 4k under miles is nothing special. I have IMO I think there are two clear cut options. I know for a fact that I will return the car after 4 No one at the dealer can waive the damage if you are just turning the lease in. That would be the worst finanancial decision you can take. If you do lease, consider a popular option nowadays, which is to buy out your lease at the end of the lease term, and then immediately sell the car. So I leased a Chevy Volt (premium with leather seats and Bose sound, mostly so I had a back/front sensor) in 2018, my lease ends in mid Feb. Buying a car that however decreases much more than that in value is net worse than leasing a car - it's burnt money either way, just less burnt money. If you lease the M3 3x (9 years total) it comes out to the price of the car if you had bought it ($19,320 x3 = $57,960). But the high payments I’d be paying for a car that I don’t ultimately get to keep makes me think I should purchase it. If I choose to buy the car I'm only financing the prenegotiated remaining price of the car which is close to the estimated value. Are people generally leasing or buying a Rivian? The R1S I’m looking at is approx. Keep in mind that you can't sell the car to get some money back since you don't own it. It is almost always better to just buy these cars. After buyout , i was able to resell the car 7K above then predicted value of car for which i bought it out after lease (that value cant be modified by dealer since it was fixed at the time of buying the car). e. Question for people that likely know cars/finance better than I do. 44%. That's for new cars though - buying a second hand car can definitely be a ton cheaper than leasing. Take a look at the car's residual value from your lease paperwork. She will be buying her car as well as we'd like to have no car payments for 5-6 years after these are paid Don’t buy the vehicle if you just plan to sell it after 3 years anyway. I'll be contacting my finance company to pay off. How to pick a car? You might also have luck in the r/whatcarshouldibuy subreddit. My lease is about to end on my 2020 CX9 and I've grown to love it. When the lease for my Toyota Auris hybrid estate ended, I asked about buying it and it was over £16k for a 3 year old car. Buy a used car to start. They aren't going to do it for free. The lease is nearing the end, and I want the car. I see the dealership you listed is in New York. If you elect to buy the car after lease-end, this is the amount you would pay. Unless something disastrous happens, you're probably out $5k after taxes. I leased a 2020 civic and I want to buy it out now. I wouldnt mind purchasing a car but I'm skeptical about purchasing a german luxury car because of all the things i read about crazy expensive maintenance after 50k miles etc. Law requires a buyout through a dealership so I'm practically at the mercy of these businesses. Now, you had life happen and you needed a new car. I can literally buy the entire car in cash right now, and I’m wondering why I can’t use this lease offer to get a $15k lower price. We were originally going to buy out the lease at the end and sell it privately, but this offer seems close to what we would list it at and potentially less hassle. Lease ends in 6 months. In the 24 months the car will not have gone down in value than all you have invested (cash down + payments + trade in) because the car companies would lose money if it did. Scenario 1. If you want a word track you can say “I will be writing a check for the car so I don’t want to fill out a credit application, the only thing I care about is knowing what I’ll be out the door for today so I can (get a cashiers check) (withdraw the money) (write a check) So lets say $200 a month for 2 years then $220 for 2 years. So I could buy my lease out for $31 and sell it for $36k cash to a dealer I already sold a vehicle to, so I am confident that the price was accurate and the process would be easy. Her lease is up at the end of the year and with the state of the car market right now, I’m thinking what makes the most sense is to just buy the car at the end of the process. I checked credit unions and used car rates are approx 6. If you are considering financing the car you have it may not be worth it. You've got your equity. So in effect I actually made more than 7K (well good for me , it paid for my Rav4 and then my Rav4 prime too when i traded that in) Buy out your lease and sell your used car. That means after 4 years you've paid out $20,072. Lease : you'll spend money that you won't see again but you won't be stuck with a reduced battery after the lease. - Buy car, $75k loan, $7. I have it on my current lease as well. BUT it comes at a price. 5k of cost vs $10. Some require you to go through a dealer, some will allow you to buy the car directly from them. Interest will be higher but usually the calculated value that you can buy the car at is significantly cheaper than being able to buy the same car second hand elsewhere. As long as you get a high milage lease or have a not bad overage charge, it's pretty sweet to just give up the car after 3 years and get a new one. If you are doing this correctly, this does not work. Car got rear-ended while stopped in traffic and auto body shop thinks it may be totaled. This culture of constantly having a newer car is not I want to buy out my lease, what are my options? What can I negotiate? How to calculate a lease yourself. I don't know how new cars are doing price wise so I can't tell you if you'd have to use all your equity on a new car. One is lease knowing that in two to three years you turn in your lease and lease again or buy a car but with the best selling point being that Teslas MF equates to an insane 1. Car companies never lose money on a lease. Contact the leasing company. You’ll get the $7500 tax credit applied at time of lease so you don’t have to deal with headache of claiming it on your taxes and waiting. My title will come with a bill of sale, the sales tax paid (to NJ), and the title. You lose a chunk of value to taxes, commissions, and the time, work and effort that goes into the car buying/selling process. You're not building any equity in the vehicle. We're Reddit's central hub for vehicle-related discussion, industry news, reviews, projects, DIY guides, yeah used cars can present enormous value. Leasing simply gives you more options at the end of your term, assuming you stay within the mileage. Leasing guarantees that you are paying that depreciation. Not to mention depending on who you are leasing with, they may try to take you to the cleaners on wear and tear. You buy the car out on additional financing and end up after 6 years spending a total of 29K after 6 years. The finance manager came back and told me that I was approved with TD Auto Finance but I needed to give a deposit of $1850. It's a complex question. to keep it balanced, you need to compare a lease with purchasing a car with a loan attached. But the true comparison is leasing multiple On 2, you’re absolutely right. Leasing is attractive to me because once I turn it in, I can avoid the insane amount that BMW charges for service repairs once things start falling apart, lol. That leaves me at ~5k in hand or for down payment on a new car. Grand total $33,734. Based on the info provided, you could easily buy the car and sell it for profit if you don't like the car, probably before you even need to make a payment on the loan. Now I've been driving it for free for 6 years. My lease payment was $298/month. Also, I would only consider recommending a lease right now if you plan to buy out the car at the end of lease since otherwise you're losing all the equity you paid If you want to buy, lease the car first then buy it out at the end of the lease. Buying a new car in a year or two once prices stop being crazy. This will cost you much more in interest, but there's advantages like more options at the end of the lease term without risking negative equity. Took in a few months back for an oil change and we got the dealership calling about getting us in a new lease, instead we said we wanted to buy it and they wanted us to come in and that we could purchase it before the lease ended (I know they just wanna get us in a new lease). 5k - 8k incentives = 59 leased cap cost. It's usually a percentage of the agreed-upon sales price. In this guide, we'll describe what happens when you lease a car and how you can buy it after your contract ends. cost of buying used car, repairs, and car dying were a similar total cost and span of time as a lease). 85 which is bs. And if you don't buy the leased car, but swap to a new lease on another new car because you're "bored", you get to pay the highest depreciating cost on that new car. A car is a depreciating asset, whether you buy new or lease new, you will lose money nearly 100% of the time. We have a week to decide on buy or lease. Be ready to resist any pitch to sell it though. Excess wear and tear ( has other names), is usually a good add in as well. You say that the drive isn't too far a used beater or granny special ought to do. No, taxes are not included in the residual price. If you buy the car for $21000, after those 4 years, the car is still worth $13-14k private party. Lease for 48 months is $193 every 2 weeks. Wife doesn’t drive it too much and car only has 20k miles. Is it better to lease or buy a Tesla? Background: I have another high end car that I don’t want to put miles on, so the “other vehicle “ aspect kinda counts but kinda doesn’t. They can afford it and don't want to deal with maintenance so they lease to get a new car every 3 years. I renewed the registration of my vehicle last month without really thinking about what would happen after I buy out the car. I'm 45 and have never leased a car - I came close with my most recent car purchase but when I considered the finance charges associated with the lease (39 months) vs. 5k then makes sense to buy out the lease and keep the car. Buy your wife a new car instead of a lease and in a year or two sell it for I purchased my lease with the intent to sell it quickly and make a little profit. If you were going this route, it’s usually just easier to have bought the car initially, but really no harm done as you’ve paid off the depreciation and some interest to Honda over the term of the lease Hi guys, test drove the ix50 the other day and was blown away. 8k by leasing. I'm in Florida, so buying out a lease costs ~4k. I decided to pay £500 more and got a Merc E class estate that was 6 months older There's no shame in not being able buy another BMW. There is no way I can get a better deal on an equivalent used car and even if I only get 1/2 the difference in the minimum listed price for an equivalent vehicle, I’ll be ahead about $6,000 if I sold it the day I got it back. Leases are generally terrible because you're just long term renting. Lease - You pay monthly but don't own the car in the end and have to return it to the dealership. My buyout was ~27k. She likes the car so planning on buying at end of lease, especially with crazy prices of new cars. They can work with you (either setting money aside to fix the car or buying the car as a trade in), but will only do so if you are buying another car from them, and that money will have to come from somewhere. I’m in the car biz and understand the pros and cons on lease versus buy BUT Wanted to see what people think in regards to mainly the following points: Title transfer process after buying out lease? I recently bought out my lease and just received the title which states I need to go to my local motor vehicle office to complete the transfer. And I think we're at a tipping point with used car prices - I think they'll be going DOWN in by the middle of 2024 due to large inventories and high interest rates. Buying is always financially smarter than leasing. Does your commute to and from the office count towards this 51%? Is leasing better than buying? Any insight you can provide would be helpful! Before this chip shortage it wasn't an issue. Not comparing leasing new vs buying used (which has a whole other set of parameters that may still make leasing more cost effective but is highly dependent on a ton of factors). A friend of mine suggested rather than financing a new car to lease it first and then buy it with cash or a home-equity line of credit (low, under 3% interest). , therefore taking away units that the dealer would normally be receiving via grounding. Even if you are to trade in a car after financing before the payment term is up, you'll still come out on top buying vs leasing. Fair enough. Lease car #1 then buy out: Let's pick a basic Ford Escape using the numbers from their site. This lets us know where you're located so we can assist you better. Last I checked my originating dealer said they'd do this and wouldn't charge a documentation fee (probably to hope to get to do the financing). No option to buy. We'll also explore situations where it might be highly beneficial to Get at least three different auto loan rates for a car purchase or a lease before signing off. Leasing, then buying out a car, always ends up more expensive than taking out a loan: extra mileage, upfront fee, scratches and cosmetics. If you find that the used market for your car commands higher prices than your residual value, it makes sense for you to buy out the car after the lease. A non-accountable plan for business use of a vehicle, is a taxable fringe benefit. There It's not unusual for a dealer to charge a fee to process your lease-end purchase. People think they got smart and are trying to game the system by buying out their leases and selling to Carvana/Vroom/etc. a 3 year old ex-lease will have way more bells and whistles at a third of the price of a new car of the same model. Let’s say you buy a new car for $50K, and after 3 years you decide to sell the car, the car is now worth $25k because of depreciation, that is how it used to be pre-covid and pre market I drive about 80 miles per day so for a lease to work, i would need at least 20k miles which doesnt seem realistic since i know most offer 10k,12k,15k. I normally buy cars, but currently bmw has a $9,900 credit for lease and I can get the $7500 fed tax rebate (which I don’t qualify for if I bought). I got the KBB instant offer of ~36k. Heres something else to think about: i have never previously even considered leasing a vehicle, but if I HAD to buy one right now? Well its still earlier than I would like for an electric car but I wouldnt want to purchase a brand new gas vehicle either (as i The folks telling you to lease are nuts. Yes and no. You are definitely paying for the most expensive years of the car’s life and paying for that ability to walk away at a preset value. MSRP was around $68k. I genuinely saw more quite a few used cars being more expensive in 2022, than what they were going for in 2018-2019, particularly EVs (E-Golf, Ioniq Classic, ID. Planning to buy a car and new here in CH. Hi Reddit I'm looking to buy a car but not sure whether to go with a novated lease vs just buying a second hand one outright. With a lease, you're blowing through $5k in half a year. It has very low miles, and is in great shape and never had any issues. The dealership will try to put you into a new lease, not try to get you to do the purchase financing on the existing vehicle. In one scenario you pay an interest rate to a bank and in the other you pay a profit margin to the owner of the car you are leasing. In my situation if I lease first and buy out after lease ended in 3 years will I still enjoy the discount, or the $4500 discount will cancel out after lease end. After three year will it easy to just sell on our own if we buy it? Fortunately we can afford do both buy or lease. Are there drawbacks that I am missing in terms of leasing to own vs just buying it new? For example, am I incorrectly assuming that leasing to own vs buying it new would be the same price at the end? Thanks for any help you can Lease - You pay monthly but don't own the car in the end and have to return it to the dealership. He said that when the lease is up, the only taxes When you lease, you sign up for X many monthly payments, during that time you can drive up to Y many miles. For four years, that would be ~$8200. My wife leases as well and she's never had to buy brakes or tires - which can add up over time. This should be who you were making payments to. If you buy a car Leased a car with money down in December of 2019. Buying will allow us to take $7,500 Federal Yes the dealer is playing to your ignorance. I've also read recently that you can buy it out without a dealer (in my case Chrysler Capital) and then provide copy of the lease agreement at the DMV to avoid paying sales tax during registration. But when comparing buying new vs leasing, leasing wins every time. You return the car after leasing period end, or you get an option to buy it out. After working in the industry from the software side and working with dozens of finance managers, I think leasing is a horrible deal. Any advice would be helpful. buying (60 months) the difference in monthly payment wasn't great enough to justify leasing as the financing charge to buy was only . - Lease car, $75k - $7. $100K. I also like the idea of being the only owner and knowing exactly what the car has been through. As for buying; there's no need to 'keep 10 years'. My whole thing is that most people who lease have zero interest in buying their leases. Appreciate it very much. 3 Launch models, Tesla Model 3), so you could have had a a car with virtually no depreciation and any money spent on a lease, would likely have been money lost (here in Germany, most leasing companies don't take your Leased a car with money down in December of 2019. Also, I would only consider recommending a lease right now if you plan to buy out the car at the end of lease since otherwise you're losing all the equity you paid When you lease a car, you don't own the car, the bank does. You have Spending 6k on a 2 year lease and buying a car that depreciates 6k immediately on driving off the lot is functionally equivalent. I'd look at certified pre-owned options. We will get $1500 NJ tax credit in buy or lease. Don't be like me at 24 who used to So we leased my wife’s Highlander in January 2021, right before the car market went to shit. The more offers you have in front of you, the better your chance of receiving a good deal. You have no buyout option. If the value is greater than $12. Usually there's an option to buy the car after the lease is over but if you don't then you won't have a car once the contract ends. Sure, that's cheaper, but this is a car loan. appreciate your opinion on it. Question I had was if most people bought the car or leased it. A business might lease a vehicle because they don't want the maintenance costs (leases usually When you should buy your leased car. Then, bring someone you trust whom you'll go to for car troubles down the road to inspect it before the purchase. My wife and I aren't crazy about the CX90 and my brother brought up that we should consider buying our CX9 after the lease. That is because there are terrible or incentives, really high interest rate or money factor, and no discount off msrp. 20 votes, 42 comments. However I don’t plan on keeping the car and am gifting it to a family member immediately. Lease vs buy is well covered on the rest of the internet. Her lease on a Hyundai Tucson is ending next month and with the value of used cars right now, it makes sense for her to buy the car at the end of her lease (she should have $6k+ in equity on the car). Thinking about buying your leased car? Find out the pros and cons of buying out a car lease, and learn how to negotiate for the best deal. I am also considering doing a single payment lease and just paying off the whole thing so I can save on interest. Back in Nov 2020, I leased a 2021 GLE350 AWD with a couple of packages included. Those friction costs are generally lower for a lease, but if you own the car for 8-10 years or longer the benefits of owning likely outweigh those costs. I was living in NJ at time of purchase, and merely days later I have moved out of state (NY). Also be aware of dealers saying you cannot I’m attempting to buy a new car, and currently Chrysler is running a deal for $15k off leasing a new car. IME, they jack it up. In there there is an agreed upon residual value of the car at the end of the lease in a section that explains your end of lease options. Buy : You'll spend less money but be aware that by the time you pay it full, assuming you are financing it, the technology will be probably much better. Also, cars are getting insanely expensive, leasing might be the only option Question, an immediate family member of mine has a car that they’re leasing and have been leasing for the last 3 years. There are some deals out there (for example, Nissan was running a deal to help get their new Frontier pickup into the market where they were giving a 98% residual on a 2-year lease. Depending on the car you lease, you may not need to replace the tires, spark plugs, brakes, etc, which is a foreseeable expense with financing. Potentially lease for 48 months, then finance up to 72 months on the "used" car (residual balance in your contract for buy out). Tell them you want to buy it out. You will go absolutely crazy trying to fight with insurance, get buy offers, try to claim diminished value for a car that you never owned from an insurance policy that is written to only protect the leasing bank and not you, and you probably won’t get a penny of the equity after This. I actually purchased an EV that has depreciated way faster than I expected it There are friction costs every time you buy or sell a car. In New York, It's Tell them you’re paying cash when they ask you to fill out a credit application. Or if to lease it and after 4 years buy the car. You're asking them to buy the car from the leasing company and sell it back to you. Buying your lease for mainly profit has only become a thing in the past two years as we lived through this massive car and EV bubble, the issue is that this recession will pop the bubble and we already have seen Tesla values plummet via price drops and the This seems very high. 5k= $7. I’ve been looking at leasing vs buying but can’t decide whether to get a short term lease around 2 years to then buy a car in cash after a year or two of bonus. Leasing new every 2-3 years vs buying 2-3 year older model and selling it after 2-3 years for another 2-3 year older model the lease. You sound grounded and willing to drive the car until the wheels fall of. 4yr/7500 miles/yr. (If you are planning to run the car into the ground and not That said, as others have told you - leasing is pointless. nabqc uesle tobwa fizws exoa djkg kjmlgfl ywh xwu mkhcs