Schmexus

Did I bring up the idea of leasing? No.

Seriously, do you feel the need to argue with EVERYBODY in this forum? Every post I read on this site has you in it arguing with someone. Get a life and let people have their own opinions.

SW17LS

I'm the one who won't let others have their own opinions? Pretty funny.

If you can't handle people challenging statements you make...and referring to people's leased cars as"rental cars" is not merely stating an opinion, it's a derision and you know it...don't post them in a public forum.

You trolled the thread and you got exactly what you were looking for. Don't play the victim now lol

Schmexus

Hahaha, get over it buddy. The guy doesn't want to LEASE a new car ffs. Is that ok with you?? Lol

Why do you keep replying? You have argued everything I've said and contradicted yourself with every post. Great job. You're winning!!!

SW17LS

Contradicted myself? How?

BTW...you certainly are also free to stop replying whenever you like. Takes two to tango.

Schmexus

You win. I'm done. Happy? Geez us...


Back to the topic now??

FastTags

100% agreed here. same here. trade them every 2-3y. I was upside down only once and that only because I had an accident and the loss was about $1200 in neg. eq.

The key in smart trading, is to Lease vehicles that keep their residual high.

SW17LS

And that's the beautiful thing about a lease, in that scenario with your accident...you can just turn it in and walk away if that's financially more advantageous.

Schmexus

You would still take the same $1200 loss whether you turned it in or kept it, right?

I'm not sure how you would lose less in a lease vs a purchase in the case of an accident?

These are serious questions, not looking to argue and I'm not saying you're wrong. I'm asking because it doesn't make sense to me and I'm curious.

ItzFilyO

In my case when I leased a Camry and got rear ended, I got it fixed and returned it when the lease was up and walked away without any negative equity. It was reported to DMV and the dealer didn't say anything about it.

Had I bought the car I would be stuck with a lower resale value. So I just leased another car and not worrying about the old one.

SW17LS

No. As long as the vehicle is repaired properly the actual value at the end of the lease is not your concern as the leasee, so diminished value due to an accident is a non issue. This is the benefit of a "closed end" lease. If you total the car...the lease is over. You don't owe unpaid payments, etc (provided the lease includes gap insurance which all manufacturer leases do). If the leasing company over-estimates the residual value and its not worth that at the end...you walk away and its their problem.

So in this scenario, if because of the prior accident damage the car is worth less than the residual value at the end...you simply turn it in and walk away. If its worth more than the residual value at the end, you can trade it in or sell it and pocket that difference. For instance, on my 2010 ES350 lease I traded 7 months early...so the dealer needed to give me the residual value, plus the cost of the 7 remaining payments in trade in value to make it work. They offered me $1,000 more than that. So, I got out of the lease 7 months early, made $1,000 and got the sales tax credit on the new lease which saved me another $1,500. You could see how if I had waited until the end of the lease to trade I would have had several thousand dollars in equity (I.e the car wasn't going to depreciate an additional $3,600 in 7 months).

Just did the same with our 2011 Jeep. 6 months early, traded it in, made $1,000 plus the sales tax savings. This way mileage doesn't matter, the Jeep was out of miles with 6 months to go and I made a thousand bucks on it.

Schmexus

Interesting. In his situation, why did the accident cause him to have an extra $1200 in neg equity though? The diminished value shouldn't have effected his lease?

harryra

This is an understatement. But with all do respect I will tell you that this happens on most forums from people like this that have 1,000's of posts. They begin to feel superior to everyone else on the site and start to take "ownership" of the forum as if it was their own kingdom. Best off just tuning out these type of people. They clearly have very little else to do in life other than to post on their chosen forum.....

SW17LS

Because he probably traded it in anyways. Depending on the tax situation it may make more sense to do that. Using my ES lease as a comparison, the sales tax savings on the new one was $1,500. So if I traded, even if I was $1,200 negative I would still come out $300 ahead.

Bear in mind that particular situation depends on how your state deals with sales tax on leases. In MD unfortunately we have to pay sales tax on the full sales price. So if you turn your leased car in, you're leaving sales tax paid on the table. If your state uses a monthly use tax (like most states) then that particular variable is taken out of the equation.

I have plenty of other things to do in my life...I post here because its enjoyable. When it ceases to be enjoyable...I will cease to post. Without us people "with thousands of posts who take ownership of their forum and post like they have no lives" none of these forums would exist for you to use to get the knowledge you need/ want.

How have you contributed to the forums in any way since you joined here? The answer is you havent. Thats fine, lots of people take knowledge from these forums and don't give and thats fine. BUT...don't insult those of us who put the knowledge here in the first place.

moose66

Wow guys and gals. I thought this was a site for people who want to talk cars? This is starting to get the feel of some left OR right political website! Where are the moderators to set people straight.

DaveAMass

We never will be at a break even point. She drives a ton of miles. I mean, we could make higher payments to get caught up, but what's the difference between that and just paying the cash difference in the trade value?

I know eventually the car will be paid and we will have some equity, but at that point the car is going to have 150k miles and will be worth about $1500 or so.