Must read for anyone planning to lease. NY Times has a tiered access policy. The first 10 articles each month are free: http://www.nytimes.com/2016/10/28/a...ses-can-be-the-most-binding-of-contracts.html
KNS
KNS
NY Times: Car Leases Can Be the Most Binding of Contracts
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What, another author who doesn't understand leasing? Finance a Volt, maybe you'll get lucky and even get 0%, then stop paying and let's see how "un-binding" the lender will be...lol
One thing to point out, GMF does now allow you swap a lease with someone...I've come out ahead of on every lease except for the Volt and only because the state of Cali makes you pay back the $1500 state incentive...I lost under a grand to get out of it and couldn't have been happier to do so...
One thing to point out, GMF does now allow you swap a lease with someone...I've come out ahead of on every lease except for the Volt and only because the state of Cali makes you pay back the $1500 state incentive...I lost under a grand to get out of it and couldn't have been happier to do so...
No magic, simply buy cheap and sell high...
The Volt is one of the most heavily subsidized cars out there...In Cali one can be had for about $0 drive off and $199/mo (includes everything) and since GMF pays the first payment is X 35...It's all about resale value, my $36,2XX MSRP Volt was offered $25K-$26,500 from CarMax/Beepi/Trade In Solutions which guaranteed to beat CarMaxs offer by at least $250...If you could somehow find a private party buyer you could actually make more...
Oy, I'll just comment...So the gist of the story:
"After her doctor notified the California Department of Motor Vehicles last November that she should not be allowed to drive, and her license was subsequently suspended, leasing a Ford Edge at $347 a month became an unnecessary expense."
Girl lost her license and now FEELS their monthly payment is unnecessary...I could get a DUI, lose my license and feel the same! Mean old lender won't help poor license-less me...
Again, if you didn't lease, and financed the lender most likely wouldn't budge if you lost your license...If you truly develop a phobia of losing your license, do what lilninja would do, save up until you can afford it, buy it outright and deal with the depreciation in the event you sell due to losing your license...
"After her doctor notified the California Department of Motor Vehicles last November that she should not be allowed to drive, and her license was subsequently suspended, leasing a Ford Edge at $347 a month became an unnecessary expense."
Girl lost her license and now FEELS their monthly payment is unnecessary...I could get a DUI, lose my license and feel the same! Mean old lender won't help poor license-less me...
Again, if you didn't lease, and financed the lender most likely wouldn't budge if you lost your license...If you truly develop a phobia of losing your license, do what lilninja would do, save up until you can afford it, buy it outright and deal with the depreciation in the event you sell due to losing your license...
Yeah, losing your license doesn't make a financed car payment go away either. Pretty poor article. IMO.
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That is the rare exception to the norm.
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Wow, now my name is getting dragged into a leasing thread... but my point is more than just an anti-leasing kick. It's also a "don't buy before you can afford it" kick. The entire car industry wants you to get new cars ALL the time because that's how they keep churning out vehicles. But if any event happens to cause you financial hardship, you can get yourself into a world of hurt (just ask anyone who lost their job during the financial crisis while up to their ears in debt). So for my example, i encourage people to pay cash for their cars. If you don't have the cash, that's a sign you can't afford it. Buy a cheaper car with cash you have on hand (this is temporary). With no car payments, you can always save more and upgrade cars along the way. If you lose your license, the paid-for car can sit, no skin off your back since it is paid for, your liability is $0 per month. If you decide to sell the car, you now have money in your pocket. No repo man is knocking at your door.
It's all a matter of risk. Leasing or borrowing adds risk. Paying 100% down minimizes risk.
Figured you'd comment anyways
Yup, you're anti-borrowing and often show up in leasing trends and tell people not to lease; sometimes people wrongfully ASSUME you favor financing...
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I'm in favor of buying things when you have saved the money for it. Alas, don't be like some people who deal with cash only, and buy all sorts of toys as soon as you have the cash for it (it was amazing how the ocnstruction workers working on my house were all talking about the big screen tvs and atvs there were going to buy as soon as their paychecks arrived). You also need to save for retirement. kids college, a rainy day fund, cars, and any future plans you may have. The only exception to borrowing is housing where it's really hard to pay 100% on a house. For housing you rent until you have at least 20% down and buy only if you plan on staying in the house for a half a decade or more. Renting buys you patience with increasing rates every year and buying locks in your housing costs for the long term.Figured you'd comment anyways
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Sometimes you game the system, sometimes the system games you, as brought out in the article. If you have the golden key for gaming the system that everyone can use, post a thread and get it stickied.
On the subject of housing, I could pay off my house, but I usually make more in investments than I pay in interest on the house. So there's a net gain. But if I suddenly can't pay for the house, my equity gets flushed. That's the risk.
On a side note, we got a quote for health insurance that's more than our house payment (60% increase from last year). We've made other arrangements, but I don't know where to file that outrage. I foresee people not being able to pay their car lease payments, or worse.......
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Bro tried again but the car selling service got wise to it, didn't give him that deal of the decade like the last Cruze he bought.
Yeah, I'm not looking forward to shopping healthcare plans with Obamacare. I may go out and get a regular J.O.B. Just for the company provided health plans.
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So ask yourself, if you had a paid-for house, would you borrow $100-200K against the house to make investments? If it were me, I'd pay off the house today, then without a mortgage, quickly replenish that investment account. It's amazing how much money you have when you have no payments. I'm not there yet, but having paid off two cars two years ago, the only thing I have left is the mortgage. I can't wait until that's done.
There's no secret voodoo magic sauce. Just negotiate your best deal, be aware of all the incentives, and that'll potentially put you in a position to flip a lease for positive money.....or at least break even on a future deal. I've posted my lease experiences in detail in several threads. www.leasehackr.com is a great source for lease details.
Also helps to build rapport with your local dealer. They will be willing to bend more if they know you can be a reliable source for future purchases. Using the CSI to your advantage is also another tool for negotiation.
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I see.......
Many people don't realize that the J.O.B. insurance comes fully out of pocket too. There's the part taken out of your check, and the part that's part of your compensation package. Both are really paid by you. The only advantage I'm aware of is that the insurers might be giving a better price to the big corporations.
Many people also think they haven't had a raise in a while. Not true. Your raise went to Blue Cross.
I'm telling folks, look at your enrollment package offer, before you vote. I'm hearing that people aren't opening the letter out of fear.
I might. It would depend on the market environment I suppose. My father-in-law did it, and he even mortgaged the furniture. He did pretty well, all told.
Guess you guys and the author never heard of Swapalease.
Got rid of 2 leases in the past 8 months using Swapalease, first my 2014 volt so I could get a 2016 volt.
Then I got rid of my moms 2015 Prius for her last month, after she had a stroke last summer and can no longer drive.
Of course the caveat is you have to have a decent lease to begin with to make the payment attractive enough that someone would want to take it over. (No one is going to take over a $500/month payment on a volt)
You guys are lucky to have forward thinkers on here to show you there are other ways than what the doom and gloom naysayers are preaching.
Got rid of 2 leases in the past 8 months using Swapalease, first my 2014 volt so I could get a 2016 volt.
Then I got rid of my moms 2015 Prius for her last month, after she had a stroke last summer and can no longer drive.
Of course the caveat is you have to have a decent lease to begin with to make the payment attractive enough that someone would want to take it over. (No one is going to take over a $500/month payment on a volt)
You guys are lucky to have forward thinkers on here to show you there are other ways than what the doom and gloom naysayers are preaching.
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