Upfront payments when trading in on and old lease
#1
Upfront payments when trading in on and old lease
Does anyone know if you have to make a down-payment or any other fees if you lease another vehicle from the same dealer at the end of your lease?
#5
#6
#7
Though not everyone may agree, I myself tend to be of the school of thought that it is better to get as much of one's payments out of the way, as quickly as possible, and have less of the balance hanging over your head each month in debt.
Last edited by mmarshall; 01-03-16 at 09:32 PM.
Trending Topics
#8
When you put money down on a lease, you are just prepaying lease payments. If the vehicle were to be totaled or stolen or something, you loose that downpayment money because the insurance company pays the vehicle owner...Lexus Financial Services...not you.
If you have some amount of money to put down, put it in a bank account and make a chunk of the payment out of it every month, then the money stays with you and is safe.
If you rented an apartment would you put $5000 down to lower the monthly rent? No...same thing here.
#9
Perhaps not, but that's exactly why a lot of people do lease, though......they get a lower monthly payment than if they buy, and, as a result, can drive upmarket vehicles that they couldn't afford to purchase. A significant portion of Lexus. Mercedes, and BMW new-vehicle transactions are actually leases, not purchases....it keeps those dealerships in business.
#10
I'm well aware of that. To the OP's question...don't put money down on a lease. If you can't afford the payments without money down, lease something cheaper.
Just because lots of other people do it doesn't make it smart.
Just because lots of other people do it doesn't make it smart.
#11
Not a 100% true if a car is stolen or totaled on insurance payouts, a member here like a year ago had his Lexus stolen and totaled by insurance when found. The car had a cash value of around 39K and the buyout from LFS was around 36K, the person who leased the car got a check for 3K from their insurance company for the difference. I think he only put minimum down also when he leased.
It really shouldn't depend on what you can afford every month. If you are leasing because you cannot afford the payments, you should not be leasing.
When you put money down on a lease, you are just prepaying lease payments. If the vehicle were to be totaled or stolen or something, you loose that downpayment money because the insurance company pays the vehicle owner...Lexus Financial Services...not you.
If you have some amount of money to put down, put it in a bank account and make a chunk of the payment out of it every month, then the money stays with you and is safe.
If you rented an apartment would you put $5000 down to lower the monthly rent? No...same thing here.
When you put money down on a lease, you are just prepaying lease payments. If the vehicle were to be totaled or stolen or something, you loose that downpayment money because the insurance company pays the vehicle owner...Lexus Financial Services...not you.
If you have some amount of money to put down, put it in a bank account and make a chunk of the payment out of it every month, then the money stays with you and is safe.
If you rented an apartment would you put $5000 down to lower the monthly rent? No...same thing here.
#12
Not a 100% true if a car is stolen or totaled on insurance payouts, a member here like a year ago had his Lexus stolen and totaled by insurance when found. The car had a cash value of around 39K and the buyout from LFS was around 36K, the person who leased the car got a check for 3K from their insurance company for the difference. I think he only put minimum down also when he leased.
#13
It really shouldn't depend on what you can afford every month. If you are leasing because you cannot afford the payments, you should not be leasing.
When you put money down on a lease, you are just prepaying lease payments. If the vehicle were to be totaled or stolen or something, you loose that downpayment money because the insurance company pays the vehicle owner...Lexus Financial Services...not you.
If you have some amount of money to put down, put it in a bank account and make a chunk of the payment out of it every month, then the money stays with you and is safe.
If you rented an apartment would you put $5000 down to lower the monthly rent? No...same thing here.
When you put money down on a lease, you are just prepaying lease payments. If the vehicle were to be totaled or stolen or something, you loose that downpayment money because the insurance company pays the vehicle owner...Lexus Financial Services...not you.
If you have some amount of money to put down, put it in a bank account and make a chunk of the payment out of it every month, then the money stays with you and is safe.
If you rented an apartment would you put $5000 down to lower the monthly rent? No...same thing here.
#14
Perhaps not, but that's exactly why a lot of people do lease, though......they get a lower monthly payment than if they buy, and, as a result, can drive upmarket vehicles that they couldn't afford to purchase. A significant portion of Lexus. Mercedes, and BMW new-vehicle transactions are actually leases, not purchases....it keeps those dealerships in business.
#15
A little off-topic, maybe, but I want to add that I never, EVER allow interest to build up on a credit card. I always pay it off in full, each month. I've seen a lot of people get into serious financial trouble by misusing or being careless with credit cards...that double-digit interest can build up faster than Donald Trump's ego. The best and safest rule is....if you charge it, pay it off.
Last edited by mmarshall; 01-04-16 at 08:03 PM.