Has anyone ever been burned leasing a car?
11-21-14, 03:20 PM
#32
Lexus Test Driver
Leasing is pretty safe. Where people get taken is driving over their mileage limit or getting dinged for excessive wear and tear (dents, tears, abuse, etc). These things are all pretty clear and not hidden in the contract.
Leasing can actually work more to your advantage. Often, you can sell the vehicle privately before the lease is up for a price higher than what the car is worth in the lease contract (the residual). If you have such a situation, you can pocket the difference and "make money." I've done this on all my leases (GMC, VW, Audi) and used that as my down payment on the next one.
Leasing can actually work more to your advantage. Often, you can sell the vehicle privately before the lease is up for a price higher than what the car is worth in the lease contract (the residual). If you have such a situation, you can pocket the difference and "make money." I've done this on all my leases (GMC, VW, Audi) and used that as my down payment on the next one.
11-21-14, 05:27 PM
#33
Driving over mileage is not a big deal. That's some of the cheapest mileage you'll pay for the car. And if you trade it in before lease end for a car of the same make, any dealer will waive the charge by simply paying your buyout. Dealers do not pay tax on the purchase of vehicles, so that cost savings is passed onto the seller (you).
The money you might lose on a lease (due to wear and tear, mileage), is the exact same money you'd lose on a financed car. These are not unexpected costs - but there are those who are ignorant of the contract they've signed, and think that they don't "own" the car makes the problems with the car someone else's problems.
The money you might lose on a lease (due to wear and tear, mileage), is the exact same money you'd lose on a financed car. These are not unexpected costs - but there are those who are ignorant of the contract they've signed, and think that they don't "own" the car makes the problems with the car someone else's problems.
11-21-14, 06:07 PM
#34
Lexus Fanatic
11-21-14, 06:17 PM
#35
Lexus Fanatic
Lets say for the sake of argument his residual is $25,000 at the end of the lease, and he has $5,000 in payments remaining. What they are doing is essentially giving him $30,000 in trade, and paying off his car. Your buyout is always the residual plus all remaining lease payments.
Something that I am curious about, given that in TN (and some other states) sales tax is paid on the purchase at the end of the lease, does the lease contract allow the lessee to assign the purchase right to someone else, basically sell that right? Otherwise if a lessee were going to sell the vehicle, they would first have to buy and pay sales tax, and then sell, with that buyer also paying sales tax. Do Lexus leases allow for this assignment of the purchase right?
When a dealership takes a vehicle on trade, they don't take title to it. When you pull the chain of title for a used car for sale, the ownership chain passes from one owner to the other, the dealer never takes title. Tax is due when a vehicle is titled.
Originally Posted by Daspyda
That is the case for temporary, permission-granted use - but not necessarily for common or exclusive use by another party..
11-22-14, 06:59 AM
#36
Lexus Fanatic
Originally Posted by Daspyda
That is the case for temporary, permission-granted use - but not necessarily for common or exclusive use by another party..
Of course, you should check with your own insurance company before you sign your lease.
Of course, you should check with your own insurance company before you sign your lease.
Originally Posted by SW13GS
This is just absolutely untrue. The person who is on the lease contract is responsible for the vehicle. Who that person allows to drive the car is immaterial. As for insurance, if you are a driver and you are insured, you are insured to drive any vehicle on your policy. For instance, both our cars right now are leased. I am the only person on both leases, my wife is not on either contract. We have insurance, both cars are on the policy, both of us drivers are on the policy, one of us is the primary on each (this is an insurance requirement, if you have an equal number of drivers and cars, one has to be the primary on each)...nobody cares who is on the contract.
11-22-14, 07:17 AM
#37
Lexus Fanatic
The logic in his argument is fundamentally flawed. For what he's saying to be true would require a level of cooperation between the insurance company and the leasing company that doesn't exist. The insurance company does not have any knowledge of what may or not be written in the lease contract, nor do they care. They provide coverage for the required amounts specified by you as the insured. You then send proof of insurance to the leasing company for their records. The leasing company is named as the leinholder on the insurance policy. Who is on the lease contract and whether or not an insurance claim will be paid are separate issues.
These things aren't as different from state to state as you may think.
11-22-14, 05:58 PM
#38
Pole Position
Yes, the value can change, but the buyout does not. The buyout is in the contract when you sign at the time of delivery.
For example, on my 2011 Tacoma lease, the buyout was around $18.5k. It was Toyota's estimate of the value of the truck after 3 years and 36k miles. However, their buyoff estimate was quite a bit off and it was worth much more than that at lease end (though that was helped by low miles of around 24k). Blue book trade in on it was around $25k, which is what I got for it. I was able to pocket the $6,500 when I traded it in. Or, had I decided to keep the Tacoma, even though the value was $25k, I could have bought it for $18,500 per the contract.
If the trade in value had been less than the buyout of $18.5k, I would have just turned it in, without having to pay anything but the disposition fee.
For example, on my 2011 Tacoma lease, the buyout was around $18.5k. It was Toyota's estimate of the value of the truck after 3 years and 36k miles. However, their buyoff estimate was quite a bit off and it was worth much more than that at lease end (though that was helped by low miles of around 24k). Blue book trade in on it was around $25k, which is what I got for it. I was able to pocket the $6,500 when I traded it in. Or, had I decided to keep the Tacoma, even though the value was $25k, I could have bought it for $18,500 per the contract.
If the trade in value had been less than the buyout of $18.5k, I would have just turned it in, without having to pay anything but the disposition fee.
11-22-14, 07:16 PM
#39
Lexus Fanatic
11-22-14, 08:12 PM
#40
Lexus Champion
11-24-14, 07:20 AM
#41
Leasing contracts are lender specific, but they all pretty much say the same thing. Why would a lender like LFS have different contracts for different states? They don't.
The logic in his argument is fundamentally flawed. For what he's saying to be true would require a level of cooperation between the insurance company and the leasing company that doesn't exist. The insurance company does not have any knowledge of what may or not be written in the lease contract, nor do they care. They provide coverage for the required amounts specified by you as the insured. You then send proof of insurance to the leasing company for their records. The leasing company is named as the leinholder on the insurance policy. Who is on the lease contract and whether or not an insurance claim will be paid are separate issues.
These things aren't as different from state to state as you may think.
The logic in his argument is fundamentally flawed. For what he's saying to be true would require a level of cooperation between the insurance company and the leasing company that doesn't exist. The insurance company does not have any knowledge of what may or not be written in the lease contract, nor do they care. They provide coverage for the required amounts specified by you as the insured. You then send proof of insurance to the leasing company for their records. The leasing company is named as the leinholder on the insurance policy. Who is on the lease contract and whether or not an insurance claim will be paid are separate issues.
These things aren't as different from state to state as you may think.
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