Sounds like what you thought was a deal won’t work out for you if you end up paying mileage overage fees, or paying the lease and parking it. Of course the reason why the dealerships are pushing leasing so hard is because they make a fortune from them.
yup,listen closely and you'll hear "ultra low mileage lease" not many people drive less than 10k miles a year.but the ads suck people in.
My wife probably drives about 200 miles a year, but I more than make up for it at over 20K per year. Leasing makes no sense for us as I'll blow through the mileage and the value of her cars stays pretty high because of the low mileage (we get to keep her cars almost forever). It's getting close to replace her car - someone needs to come up with a mid priced electric CUV/SUV in the next year or three or else we'll be buying an ICEr Subaru Outback.
You can't "give up" a lease. You're on the hook for all 36 months or whatever term you initially signed up for. If you drive 20K miles a year leasing is invariably a bad idea. Additionally, a a monthly number is simply not correlated with whether the deal is reasonable or not. It's one factor of several.
The dealer makes EXACTLY the same amount whether its a lease or a sale. In fact the lease is a sale -- to the lessor.
You’re right. The manufacturer’s financing arm makes the money off the lease. If the dealer decides to use a different financial institution for the deal, then that company makes the money. But think about it, if there was no profit in leasing, they would go out of business doing it. Same thing can be said about extended warranties. If leases weren’t available at that “low” monthly rate, many people wouldn’t be so apt to get new cars every 3 years. But every time I do the math, it never works out, especially in 3 years when you might feel compelled to upgrade to something more expensive. I love not having a car payment.
