RX469

iTrader: (1)

Going to help my sister with the paperwork this evening at a Toyota dealership......she is going to lease. Business vehicle.

What are the 'gotchas' of leasing? We already negotiated a price on the car now we have to do the 'finance office' shuffle.

We already plan on adding NOTHING!

What are the loop holes of leasing?

OH: The car has 280 miles on it, which they said will represent zero miles for us at date of signing.


Thoughts, advice needed. Thanks.

King7Two

The lease in itself is a gotcha.!!!

Any damage has to be fixed or paid at lease termination.
Amount of miles to be driven.....and pay for the excess.
No equity at end of lease......You always PAY to get rid of it.

I understand if its a business and your trying to keep assets down.....but other than that.....no thank you.


I hate leases........better to just buy.

RX469

iTrader: (1)

Well given it will be strictly a business vehicle, she can expense the use of the vehicle for such purposes....

What I wanted to learn about was the 'insider stuff' that the average person does not know or see as face value when reviewing the terms....

Tramix

Dun put much money down. Take gap please...cause if you get into an accident your responsible for the remaning amount. Toyota leases don't include gap as to other banks but in turn there is no disposition fee at the end of the lease. ALso figure out what price they are working the lease from, if you are concerned about how much you are paying. That's basically it I guess. Watch your mileage and enjoy.

RX469

iTrader: (1)

She's not planning on putting any money down.

Can you expound a little more on that gap insurance. Thanks.

Milla...

Your question^^
Your answer VV


The Gap is the difference between the actual cash value of your car and what you still owe on your loan. If your car is stolen or declared totaled, your auto insurance company will pay you the actual cash value of the car. Without Gap Insurance your lender will hold you responsible for paying the Gap. This will mean you having to come up with hundreds, even thousands of dollars to pay that debt.

GS wanted

iTrader: (9)

Since I've been curious, I'll ask. What (if any) advantages are there to leasing? I understand if it's for business use but what about personal use? To me it sounds like a no-win situation. Unless maybe you're trying to get into a car cheaper than what it would cost to buy it and later wanted to buy it after the lease is up. But even then aren't you typically overpaying for the car because the actual depreciation isn't likely reflected in the dealer's value?
Has anybody leased initially and then bought the same vehicle after the lease was up?

Lubs

That's entirely dependent on the pre-determined buy back value of the vehicle in question. I recall in the mid-late 90s SUVs had low buy back values and people were making a good lump sum at the end of their term by buying and then selling the vehicle.

The lease has these advantages: Lower payments. Easy out at the end of term. Controlled cost environment. You can think of it as paying the depreciation of the vehicle, because it more or less is. So it becomes a question of the individual's preferences in how long they want the vehicle, etc.

RX469

iTrader: (1)

Hello all,

We completed the lease successfully last night.

No money down, except first month's payment. I declined all 'extra services/add-ons' purchased the gap insurance and accepted the 15K mileage (only $5 difference) and got a lease rate of 0.0035

EVeryone was happy and I'm going today to accept the car. It was ready to go lastnight but did not want to take delivery of a car at night.

Thanks everyone.

GS wanted

iTrader: (9)

Thanks for the info. I didn't realize the buy back price is pre-determined. Seems there should be at least a little negotiation room there unless depreciation rates are fixed.

mmarshall

Leasing is actually what keeps a lot of luxury and premium-car dealerships in buisness. People lease for several reasons, besides the obvious one for buisness-use tax deductions. You often get more car for less monthly payments, you get a brand-new vehicle every 2-4 years, and you avoid the hassles of selling privately or advertising. It can also be a good deal for those who take good care of their vehicles (at least within the wear-and-tear clause) and don't drive many miles (10,000-15,000 miles a year being the typical mileage lease restriction).

SCRUFFDOGG

I've done this on a 3 year lease. I had gone over the mileage limit and modified the car with tint, wheels, springs, and stereo. The lease payoff was at the blue book trade in value which was less than the resale if I decided to sell it. I just went to my bank, got a new 3 year loan for the lease payoff and ended up paying the car off and trading it in later.

With my IS300 lease I actually traded it in about 6 months before the lease was up, a lease agreement has a payoff just like any loan.

Milla...

Its perfect for people like me. Business owner / into cars, keep them very clean / and finckle as all outdoors.

The only vehicle I own is the LX, bought from a very good friend. Been looking at replacing it with a mid size sport wagon.

leedogg

Leasing is like a long term rental.

GS wanted

iTrader: (9)

Thanks for the insight.