Us customer - I don't understand lease deals?

[globalmind]

Hello,

I am new to this forum. (Is this primarily a Canada site??)

I am a U.S. customer. I thought I had a pretty good understanding regarding how leases work.

But I guess at the end of the day i don't know how to tell if I got a good deal or not....

 

I just leased a SEL AWD. Sticker at $31,600.

Zero down, 39 month lease $400.00 per month.

Any thoughts....good or bad please.

 

thanks

[bbf2530]

Hello,

I am new to this forum. (Is this primarily a Canada site??)

I am a U.S. customer. I thought I had a pretty good understanding regarding how leases work.

But I guess at the end of the day i don't know how to tell if I got a good deal or not....

 

I just leased a SEL AWD. Sticker at $31,600.

Zero down, 39 month lease $400.00 per month.

Any thoughts....good or bad please.

 

thanks

 

Hi globalmind. :D Leasing deals are always a tough call. Leasing has its advantages, but usually those advantages are limited to those who can deduct the Leasing expenses as a business deduction. It can also be good for those who like the "stress free" aspect of just turning in their old vehicle every three years or so and Leasing a new one.

 

I personally do not care for Leasing, but only mention that quickly. Dealers always make more on a Lease when all factors are considered. When a Leased vehicle is turned in, they will inspect it and charge for every door ding, carpet stain, "unusual wear and tear", etc. Those costs will need to be figured into the final costs. You probably already knew that, but I mention it in case you are a first time Leaser.

 

All of that being said, essentially, you are paying $15,600 to use a vehicle for 39 months. You will get to use your Edge for 39 months for approximately half of it's MSRP value. If you think that is a good bargain, that is really all that matters.

 

I will now say that there are certainly those who will disagree with my opinion, (after all I understand that it is just my opinion). Hopefully, those who disagree will realize that I understand they are entitled to their opinions too, and the discussion can just be kept to their opinions, and not turn into a personal attack.

 

Oh, and concerning your question as to whether this is primarily a Canadian site. I would say no, it is not. I and many/most members are located in the U.S. There are certainly many fine members who are our Canadian cousins though.

 

I think you are happy with your Edge, and wish you many miles of happy and safe driving.

 

Good luck! :beerchug:

Edited February 29, 2008 by bbf2530

[globalmind]

Hi globalmind. :D Leasing deals are always a tough call. Leasing has its advantages, but usually those advantages are limited to those who can deduct the Leasing expenses as a business deduction. It can also be good for those who like the "stress free" aspect of just turning in their old vehicle every three years or so and Leasing a new one.

 

I personally do not care for Leasing, but only mention that quickly. Dealers always make more on a Lease when all factors are considered. When a Leased vehicle is turned in, they will inspect it and charge for every door ding, carpet stain, "unusual wear and tear", etc. Those costs will need to be figured into the final costs. You probably already knew that, but I mention it in case you are a first time Leaser.

 

All of that being said, essentially, you are paying $15,600 to use a vehicle for 39 months. You will get to use your Edge for 39 months for approximately half of it's MSRP value. If you think that is a good bargain, that is really all that matters.

 

I will now say that there are certainly those who will disagree with my opinion, (after all I understand that it is just my opinion). Hopefully, those who disagree will realize that I understand they are entitled to their opinions too, and the discussion can just be kept to their opinions, and not turn into a personal attack.

 

Oh, and concerning your question as to whether this is primarily a Canadian site. I would say no, it is not. I and many/most members are located in the U.S. There are certainly many fine members who are our Canadian cousins though.

 

I think you are happy with your Edge, and wish you many miles of happy and safe driving.

 

Good luck! :beerchug:

 

Thank you for the response. I have leased before. Overall leasing does suit my lifestyle. And I agree the dealer does make more money in the lease process. But more importantly than that is, what is MY cost of ownership for 3 years, 6 years, 10 years. I had a hard time with this lease. We have been Nissan customers for over 15 years. When we started the negotiation it revolved around MSRP and residual vales. By the end we were negotiating for monthly payments. (which I usually don't do) If you know the values and the money lines, the payment will fall in place. I guess I am just trying to help myself understand if I actually did o.k. on this one...

Thanks again for the reply.

[bbf2530]

Thank you for the response. I have leased before. Overall leasing does suit my lifestyle. And I agree the dealer does make more money in the lease process. But more importantly than that is, what is MY cost of ownership for 3 years, 6 years, 10 years. I had a hard time with this lease. We have been Nissan customers for over 15 years. When we started the negotiation it revolved around MSRP and residual vales. By the end we were negotiating for monthly payments. (which I usually don't do) If you know the values and the money lines, the payment will fall in place. I guess I am just trying to help myself understand if I actually did o.k. on this one...

Thanks again for the reply.

 

Hi globalmind. :D Sorry if I was a little vague. My bad. In my opinion, for a Lease with no money down, no "cap-cost reduction" etc, you got a pretty good deal.

 

Best of luck! :beerchug:

[Grey]

We did a 24 month lease at $470/month on the MKX (Ultimate Pkg, Heated rear seats and Sirius) MSRP $37.300. We think our son will want the MKX when the lease is up so makes it fairly clean way to uncomplicate the value equation.

 

If (in 18 more months) the vehicle turns out to be something we don't want - we walk away from it - no harm/no foul. We know exactly what it will cost at that time if we want to buy it. (I actually think it will be worth more than the buy-out which will make it a very good deal for our son and daughter-in-law).

 

My experience has been that dealers will negotiate as closely on a lease as an outright sale. You just need to ask the right questions and know what the "Factors" are.

:shades:

[ChuckChuckington]

"I personally do not care for Leasing, but only mention that quickly. Dealers always make more on a Lease when all factors are considered. When a Leased vehicle is turned in, they will inspect it and charge for every door ding, carpet stain, "unusual wear and tear", etc. Those costs will need to be figured into the final costs. You probably already knew that, but I mention it in case you are a first time "

 

THIS IS LONG BUT VERY INFORMATIVE.......

 

DUDE YOU ARE WRONG!!! I HAVE LEASED 4 FORD VEHICLES FROM 3 DIFFERENT DEALERS. EACH TIME I TURNED THEM IN, THE DEALER DIDN'T EVEN LOOK AT THEM. THE ONLY THING A FORD DEALER WILL TRY TO GET YOU ON IS IF YOU GO OVER THE MILEAGE ALLOWED IN THE LEASE. ALSO, I TURNED IN EVERY ONE OF THE LEASES 1-6 MONTHS EARLY WITH NO PENALTY, AND IN FACT THE DEALER GAVE ME TRADE-IN VALUE ON THE LEASE. WHEN I TURNED IN MY LAST FORD LEASE, 4 MONTHS EARLY, THE DEALER GAVE ME $2,200 TRADE-IN VALUE TO LEASE A NEW EDGE. OBVIOUSLY THIS IS WHERE LEASING GETS TRICKY. THE DEALER IS GOING TO MOVE MONEY FROM ONE CATEGORY TO ANOTHER SO BE CAREFULL TO STILL NEGOTIATE THE SALE PRICE AND INCLUDE THE $2,200 OR WHATEVER TRADE-IN YOU GET.

 

HERE'S WHY LEASING JUST MAKES SENSE. I LEASED AN '07 EDGE SEL PLUS, MSRP $32,490 WITH NOTHING DOWN EXCEPT MY "4 MONTH EARLY LEASE TRADE-IN" FOR $349.00 PER MONTH FOR 36 MONTHS INCLUDING SALES TAX.

MY TOTAL COST OF OWNERSHIP OF THIS VEHICLE IS JUST THE 36 PAYMENTS =$12,564.

 

IF I WERE TO HAVE BOUGHT IT WITH $2,200 OFF MSRP WITH A 6% INTEREST RATE 72 MONTHS WOULD BE $539.68 INCLUDING MY 7%SALES TAX. TOTAL COST OF OWNERSHIP FOR THREE YEARS IS $19,428.48

60 MONTH LOAN WOULD HAVE BEEN $22,633.80

REMEMBER MY COST ON THE 36 MONTH LEASE $12,564.00 SO I CAME OUT AHEAD $7-10,000.

 

THE EDGE RESIDUAL VALUE FOR 36 MONTHS HOVERS AROUND 49-54% OF MSRP. THUS, THE VALUE OF THE EDGE THAT YOU BOUGHT WOULD BE ROUGHLY HALF OF MSRP AFTER THREE YEARS. IF I BOUGHT MY EDGE, I WOULD HAVE HAD TO SELL IT FOR $7,000 MORE THAN IT WOULD BE WORTH AFTER THE THREE YEARS TO BREAK EVEN. SO, YES YOU OWN IT. BUT, NO YOU DON'T HAVE ANY EQUITY IN YOUR EDGE. FORD VEHICLES DO NOT HAVE GOOD RE-SALE VALUES. I TRADED IN MY 2003 EXPLORER MSRP $30,000, BOUGHT NEW FOR $18,000, ONLY MADE $1,200 WHEN I TRADED IT. YES THAT'S RIGHT FOLKS. I GOT A $12,000 DISCOUNT OFF STICKER PRICE, HAD A 60 MONTH LOAN AT 5.85% INTEREST, AND ONLY CAME OUT AHEAD $1,200. THAT WAS BLUE BOOK VALUE!!!!!!!!!!!!

 

CONCLUSION-----A LOW LEASE RATE VEHICLE LIKE MY 2007 EDGE 0.75% IS THE BEST BET. WHY PAY 6-7% OR MORE INTEREST ON A CONVENTIONAL CAR LOAN WHEN YOU CAN PAY 0.75%APR ON A LEASE????? LOWER INTEREST=LOWER PAYMENT= MORE MONEY IN WALLET

 

YOU CAN'T LEASE ANY CAR. HONDA, TOYOTA, SATURN HARDLY EVER HAVE GOOD LEASE DEALS. BUT IF YOU WANT A NEW FORD, LEASING IS THE ONLY SMART DECISION.

[maddady]

I used to think that leasing was the way to go(since I changed vehicles every couple years anyway),but my experience was not so good.Back in 99 I leased a Pontiac and everything seemed perfect.No money down,0.9 interest it was great, until I hit 16000km and had to have it at the dealer to replace every gasket in the engine.Of course this couldn't have been done at once, I had to take it back for 3 straight weeks.When I asked if I could just buy another car,any car they said not unless I paid out the full lease(3 years).So I spent 3 years trapped in a vehicle that was a bit of a lemon.If I could write it off on my taxes I would lease again,but until then I will own.You can also save alot by buying it even 1 year old.I picked up my 07 MKX for 12 or 13 thousand less than a 08 would have cost me.

[tpm419419]

"I personally do not care for Leasing, but only mention that quickly. Dealers always make more on a Lease when all factors are considered. When a Leased vehicle is turned in, they will inspect it and charge for every door ding, carpet stain, "unusual wear and tear", etc. Those costs will need to be figured into the final costs. You probably already knew that, but I mention it in case you are a first time "

 

I have been leasing many years (Mainly Ford products) and I have NEVER had to pay for a scratch or ding on any of my vehicles when I returned them. On occasion the dealer would "suggest" that if there happened to be any chips in the windshield to have it taken care of as it would be covered under the insurance.

[ChuckChuckington]

I have been leasing many years (Mainly Ford products) and I have NEVER had to pay for a scratch or ding on any of my vehicles when I returned them. On occasion the dealer would "suggest" that if there happened to be any chips in the windshield to have it taken care of as it would be covered under the insurance.

 

 

THAT WAS MY POINT. I HAVE NEVER EVEN HAD A LEASED FORD VEHICLE INSPECTED. THEY SEEM TO ONLY CARE ABOUT MILEAGE. I ALSO DON'T GET WHY ANYONE WOULD PAY FOR REPAIRS ON A LEASED VEHICLE. THAT IS THE WHOLE POINT OF LEASING, SO YOU HAVE A VEHICLE THAT IS UNDER WARRANTY!!!!!!!!! IF SOMETHING GOES WRONG YOU TAKE IT TO THE DEALER TO GET FIXED FOR FREE.