Lease craze

[AutobahnSHO]

So the car ads recently have all been about "Get X car for only Y per month!      ((($2500 due at signing, lease)))"

This morning though I heard "drive a brand new Civic for only $5500!   That's right, $5500 gets you a brand new Honda with no other payments." 
-Sure enough, that's the entire cost of the two-year lease, due at the beginning.

And later I heard "You can drive a 2015 Accord for only $10,000"
-same thing, you pay $10k up front, drive the car 2 years, stay within mileage limit, then give the car back to them.

?!?!?!?!!!   That seems so insane to me. Business leases I can understand, but they're usually not getting Hondas anyway.

[2o6]

Leases aren't always terrible.



I think Autoblog or Jalopnik did an overview on the cost of a lease for something like a Honda Civic. The lease was only like $400 more expensive when it all came down to it.

[12,000 RPM]

If u bought and sold the car over that period it would pretty much amount to the same thing. Thats the essence of leasing.

They do get you with the down payments though. Most of em add a cool $100-150 to the monthly outlay.

Still though, I'm hoping to take advantage of the low rates. Wifey wants an SUV.... I am liking the new LWB EX35 Infiniti has coming out. She is averaging about 10K miles per year tops. Perfect lease candidate. Flip side though that also gives us latitude to go used with something a little riskier or gas guzzlier. I do like that QX50L though.

[2o6]

Low finance rates still REALLY make me consider selling the Yaris and getting one of those

[AutobahnSHO]

Low finance rates still REALLY make me consider selling the Yaris and getting one of those

They're handsome cars.

[AutobahnSHO]

Leases aren't always terrible.

I think Autoblog or Jalopnik did an overview on the cost of a lease for something like a Honda Civic. The lease was only like $400 more expensive when it all came down to it.

Sure, for owning a car just a few years. I guess I'm rare in that I've had my car 6yrs, and wife is first owner of a 2005 Impreza.

[Eye of the Tiger]

Why do you need a mini van?

[2o6]

They're handsome cars.

Eh, I think they're kind of fugly, but you get a lot of shit and a lot of room for that low entry price of 15K ish.

[AutobahnSHO]

Eh, I think they're kind of fugly, but you get a lot of shit and a lot of room for that low entry price of 15K ish.

Plus Honda reliability.   I think the first versions looked skinny tall, I like the new ones better.

[12,000 RPM]

I prefer the old ones like 1,000,000,000 times over

[2o6]

I prefer the old ones like 1,000,000,000 times over

The new ones are significantly more comfortable to drive

[Colin]

So the car ads recently have all been about "Get X car for only Y per month!      ((($2500 due at signing, lease)))"

This morning though I heard "drive a brand new Civic for only $5500!   That's right, $5500 gets you a brand new Honda with no other payments." 
-Sure enough, that's the entire cost of the two-year lease, due at the beginning.

And later I heard "You can drive a 2015 Accord for only $10,000"
-same thing, you pay $10k up front, drive the car 2 years, stay within mileage limit, then give the car back to them.

?!?!?!?!!!   That seems so insane to me. Business leases I can understand, but they're usually not getting Hondas anyway.

Yes, these sort of deals are common in Europe, too. They are simply committing to a residual value, (watch the small print on mileage and condition), so you pay are financing the delta between that and the acquisition/cost of money etc. it's the way that so many people are driving around in cars that they could not possibly afford as their list price is a multiple of their annual pre-tax salary.   

[Lebowski]

Shopping by monthly payment isn't new. 

On a true apples to apples comparison, using the correct assumptions (correct discount rate etc), it's largely a wash IMO comparing leasing to financing to paying cash.  But real life isn't apples to apples, and the best ways to save money on a new car (buy a cheaper car and keep it for a longer time) are somewhat mitigated by leasing.

People lease because it's a "cheaper" way to drive a nicer car and get into a new car more often than they otherwise would.  Which means in the long term, it's more expensive.

[Raza]

So the car ads recently have all been about "Get X car for only Y per month!      ((($2500 due at signing, lease)))"

This morning though I heard "drive a brand new Civic for only $5500!   That's right, $5500 gets you a brand new Honda with no other payments." 
-Sure enough, that's the entire cost of the two-year lease, due at the beginning.

And later I heard "You can drive a 2015 Accord for only $10,000"
-same thing, you pay $10k up front, drive the car 2 years, stay within mileage limit, then give the car back to them.

?!?!?!?!!!   That seems so insane to me. Business leases I can understand, but they're usually not getting Hondas anyway.

Leases aren't really a bad idea the way people think they are here, but paying them up front is ridiculous. Damn near predatory.

[Raza]

Low finance rates still REALLY make me consider selling the Yaris and getting one of those

What is that?

[MrH]

What is that?

Storm trooper helmet, obviously.

[12,000 RPM]

[MrH]

For as often as I switch cars, I should probably lease. That'd be a lot easier.

[CALL_911]

If u bought and sold the car over that period it would pretty much amount to the same thing. Thats the essence of leasing.

They do get you with the down payments though. Most of em add a cool $100-150 to the monthly outlay.

Still though, I'm hoping to take advantage of the low rates. Wifey wants an SUV.... I am liking the new LWB EX35 Infiniti has coming out. She is averaging about 10K miles per year tops. Perfect lease candidate. Flip side though that also gives us latitude to go used with something a little riskier or gas guzzlier. I do like that QX50L though.

Infiniti's coming out with a LWB EX35? The same EX35 that came out in like 2008?

[Raza]

Storm trooper helmet, obviously.

No, seriously, what car is that?

[Raza]

For as often as I switch cars, I should probably lease. That'd be a lot easier.

You should absolutely lease.  24 month leases, and usually after 18 months, dealerships will let you out without a penalty as long as you lease another car from them. 

[GoCougs]

If u bought and sold the car over that period it would pretty much amount to the same thing. Thats the essence of leasing.

They do get you with the down payments though. Most of em add a cool $100-150 to the monthly outlay.

Still though, I'm hoping to take advantage of the low rates. Wifey wants an SUV.... I am liking the new LWB EX35 Infiniti has coming out. She is averaging about 10K miles per year tops. Perfect lease candidate. Flip side though that also gives us latitude to go used with something a little riskier or gas guzzlier. I do like that QX50L though.

Leasing is always more expensive in the long run. Plus of course there is risk of huge penalty for over mileage at lease end.

It's a craze because it's how people buy cars they can't afford, and it's now approaching 30% of all new car "purchases" which is absolutely insane. If it weren't for leasing the US auto industry would be hurting major.

[Laconian]

No, seriously, what car is that?

New Fit.

[12,000 RPM]

Infiniti's coming out with a LWB EX35? The same EX35 that came out in like 2008?

Yeh... I dont see it being any different than the "new" Q50, which is pushed by a 21 yr old engine riding in a 12 yr old chassis. If it works it works. And the longer wheelbase = infant seats fit.

Leasing is always more expensive in the long run. Plus of course there is risk of huge penalty for over mileage at lease end.

It's a craze because it's how people buy cars they can't afford, and it's now approaching 30% of all new car "purchases" which is absolutely insane. If it weren't for leasing the US auto industry would be hurting major.

Well this is really all due to low rates in general. Got to get the getting while it's good. There were no 0% financing deals when rates were in the double digit range.

[Raza]

New Fit.

Ah.

[AutobahnSHO]

It's a craze because it's how people buy cars they can't afford,

I think this is the biggest problem. People are doing long-term car rentals. And you never know how life is going to turn out.

[ChrisV]

I think this is the biggest problem. People are doing long-term car rentals. And you never know how life is going to turn out.

Same with BUYING a new car over 5-6 years and having a life change in 3 and being upside down still. (regardless fo the economic level you are at. Poor people financing a 7000 car over 5 years can have the same problems as a higher income person buying a $25k car over 5 years). I've rarely kept a car longer than the finance range anyhow, so leasing makes as much sense as buying and selling in 5 years. And, for many people, they want the safest, highest tech car they can afford WITH a warranty. It sucks to be making finance payments on a car that is no longer under warranty and is starting to cost to repair/maintain.

It's easy to budget a monthly payment, like cable, or electricity, or phone, so leasing really comes into the budget, even if you're saving for the future. You can have a fixed cost that you know about in advance and there are no out of warranty surprises.

[12,000 RPM]

All anti-lease/financing folks actively manage their 6 figure retirement accounts to the tune of double digit returns, and naturally pay for all cars they own cash and drive them for at least 15 years. Anything outside of that, even financing at 0%, is just the result of welfare state brainwashing.

[AutobahnSHO]

It's easy to budget a monthly payment, like cable, or electricity, or phone, so leasing really comes into the budget, even if you're saving for the future. You can have a fixed cost that you know about in advance and there are no out of warranty surprises.

Fair enough, if people are leasing a car that's not breaking the bank.   

I'm curious as to why people in that situation would drop cash upfront to lease a car. I doubt most people wanting to drive a new Civic have $5k sitting around. I can better understand an Accord driver having $10k to sink today.

[Eye of the Tiger]

Leasing is still not a good deal compared to buying a used car that has bottomed out on depreciation and just paying the occasional repair bill. The net cost of a well used car is only repairs. The purchase price can be recovered.
The only thing leasing beats is renting.