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With leasing your won't have to pay all that depreciation!
- Thread starter ElFenix
- Start date
Yeah I am getting sick of these commercials. They flat out lie to the public. I called one of the companies and asked him to explain leasing to me, then pointed out where owning a car has many more benefits if you keep it past 5 years. He got pissed and started yelling at me. Guess the truth hurts. Those guys are scam artists.
doesn't seem like you understand how a car lease works
when you lease what you pay is the difference between the drive off price of the car and how much they project it to be worth when the lease is done. that difference is the depreciation, and there is no way around that.
You don't own the car but you do pay the depreciation on it, which is why used lease cars can be had for cheap. They are misleading the public by focusing on monthly payments and not total costs of ownership. Of course the monthly payments are going to be less when you ALWAYS have one, versus paying a car in 4-5 years and then having it payment free for another 4-5 after that.
The way a lease *basically* works is say a car has a sale price of $20,000 and a residual value of 50% after 3 years, 36,000 miles.
So, at the end of the lease the car has depreciated $10,000. You are accountable for $278 a month (10k/36) + the money factor (interest rate) + the sales tax on that payment. And then any security deposits or up front payments that they require.
So, at the end of the lease the car has depreciated $10,000. You are accountable for $278 a month (10k/36) + the money factor (interest rate) + the sales tax on that payment. And then any security deposits or up front payments that they require.
Thegonagle
Diamond Member
In training for auto sales, I was taught what I already knew: that the lease payment is depreciation + "rental fee." Mostly depreciation though.
It's a full on lie you heard on the radio.
It's a full on lie you heard on the radio.
Right. The depreciation is being paid for by the leasee. Who else pays for it? It doesn't just poof into thin air. BTW, when you rent a car, the bulk of that money is depreciation cost also. Rental companies sell those cars past a certain point of value, and who do you think pays for the depreciation on them? The customers of course.
GroundZero
Diamond Member
fools and idiots lease...
and i do not resemble either of those, you on the other hand.....
😀
Oakenfold
Diamond Member
Uh, I thought we were focusing on the language of the commercial.
You are digging too deep here for the common public as they don't think like this.
😉
They want to advertise to get leases, not to drive people away, tell me why do they want to tell people please pay for the dealerships depreciation?
You are trying to state what a lease is, we aren't questioning that, you are questioning the language right?
I agree that the wording for lease deals are misleading, however:
1) If you consistently get a new car every 2 years
And
2) You stay below the allowed mileage
It?s highly possible that you could save money by leasing.
No matter what your opinion, you need to do the math and use your brain.
1) If you consistently get a new car every 2 years
And
2) You stay below the allowed mileage
It?s highly possible that you could save money by leasing.
No matter what your opinion, you need to do the math and use your brain.
Precisely why we went with a lease. And in the realm of Minivans ~$300/mo doesn't buy sh!t. Best I was seeing was vans with 60K+ miles, and that mileage is just about the time you get nickle-n-dimed with batteries, brakes, tires, and so on. I still think it was a smart move for us to lease. Only problem is, we've recently reevaluated our goals and decided we can live with something much older, less attractive and possibly less reliable.
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