Thanks for any help you can offer. Selling cars is hustle. If you go into a lease knowing how to structure it leases can work out to be a great deal if you want a new car every couple of years anyways.

Credit issues during lease Leases can actually be a really good way to prove to a lender you can handle a loan. Fixings car is hustle. My wife and I are planning on purchasing a new vehicle.

We have plenty of money saved up to comfortably afford this new vehicle. Best case scenario, we buy the car and it would basically be the same as buying it new but with a free trial period. However, we know that we can lease the same vehicle for three years and then purchase it afterwards.

Worst comes to worst, we finish the lease with no equity but are not tied into a car we don't want. So I decided to try the lease to handle these three points. So if you only average about 12,000 a year, go with a 15,000. A lot of people believe you will pay residual if you want to purchase after your lease term, this is simply wrong.

Generally speaking my turn ins have been easy going. For example, am I incorrectly assuming that leasing to own vs buying it new would be the same price at the end? A few luxury brands (Porsche) will not let dealers sell under residual of the lease if you take the purchase option. Turn-In: Turn in is usually done at a dealer, but it isn’t through the dealer.

It takes a lot of time and I hate to spend time on it. Just like any other company some are great to work with and some are shit. Keeping in mind that you can only exercise the "walk away" option if you turn the vehicle in within mileage guidelines and in good condition (none of which is relevant if you buy it) then it's a reasonable way to go.

The only time you should be paying residual is if the fair market value is higher than the residual amount, or if you’ve raked up enough in fees for damages or mileage that the residual makes more sense. This is something the dealer will know when you go in to sign the lease, so just ask them about it. One of my nicer cars the dealer wasn’t able to sell under residual if taking the purchase option; so what they did was simply call me when the vehicle entered the lot and I verbally told them I wanted it.

Residual: Make sure your okay with the residual amount at the onset of your lease agreement. There shouldn't be much difference. Mileage: You need to make sure at the start of the lease that you’ve got your mileage per year nailed down, then pick the next highest bracket. Cars technology advances really fast last several years. The cost of money is different on a lease than on a finance contract.

Most people who complain about leasing either damaged the vehicle and needed to pay larger fees come turn in, or went over mileage and paid mileage fees or needed to buy at residual. Residual isn’t set in stone, overage fees aren’t set in stone, everything on that paper is negotiable most people just never do it. This sounds like a good idea with no drawbacks, since at the end of the three years, we can assess if we liked the vehicle and want to keep it.

Most people who run into issues with leases blow past the mileage limit and are forced to purchase at residual pricing since overage fees are always high. Worst comes to worst, we finish the lease with no equity but are not tied into a car we don't want. Look into it and see what it amount to. At least for me. With a lease they use a money factor and that is not disclosed.

This is based off of my experience, yours may vary depending on brand. If your fees amount to over residual then it’s better just to buy the vehicle. Purchasing after lease Again there should be very few situations where you return a car under mileage and in good shape that you should actually https://cars45.co.ke/listing/nissan/commercial/2008 pay residual. Your understanding of a lease is pretty accurate.

Are there drawbacks that I am missing in terms of leasing to own vs just buying it new? For example, am I incorrectly assuming that leasing to own vs buying it new would be the same price at the end? I do not have ‘good known mechanic ‘, so usually just use dealership as in general i trust them more. (Benefits: easy to be fixed on time, warranty of the fix, cons: enormous price sometime). This is pretty different than it was before (imho) Run a comparison between the two using the total of payments method to keep them honest.

Normal use is subjective, but if you have damaged rims, dents, scratches, major chipping, or anything of the like expect to pay for it. You need to know how to structure a lease however and that means actually reviewing everything. Best case scenario, we buy the car and it would basically be the same as buying it new but with a free trial period. This is surprising for some people as they expect a car to have door dings and such after three years, but make sure it’s in a condition that you would expect to see it at a dealers lot.

The decision to lease was the following: So there is a big chance that I will want a car with new bells and whistles in 3 years.

Any drawbacks in leasing to own a new vehicle?

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p> Most people I know that have paid residual have so many fees during turn in that it makes more financial sense just to buy at residual and wipe the fees off the board. The dealer put it on hold and I purchased it a few days after turn in, saving a few thousand. Dealers are fairly willing to work around this process if you want to purchase it, you just might be without the car for a few days. You pay fair market price or you hand over the keys and turn it in. If you experience credit issues during your lease process, but you make all lease payments, there’s a really good chance they’ll approve a loan at the end of the lease.

Post note: I have bought many used cars in my life, and completely understand that buying used is often a better financial decision. My train of thought. So I’ve leased every vehicle I’ve ever owned, and purchased multiple at the end of the lease term. That being said leases by their nature aren’t economically sound, as your riding the highest dip in value you can have with a car. If you sign a three year 36,000 mile lease, are you going to be okay paying the residual for that car.

I fully understand and I am deciding that I would like to purchase a new vehicle this time. Keep in mind, if your intention is to buy it at the end, you should be ready to pay cash at that point, otherwise you will pay for the cost of the money a second time. I recently leased the first time in my life (and I bought 10+ cars before). There are companies that actually handle this process that are meant to be more fair and unbiased during the process.

Tax Benefits: Depending on your state you might have tax benefits from leasing over purchasing a car.