Have a question about leasing ??

[fsugirl]

Does anyone know the minimum credit score in order to lease a vehicle ??

[FilingOnMyOwn]

I don't think there is one, it would vary depending on where you go. Why would you want to lease anyways?

[fsugirl]

I was just thinking you could get MORE car for your money ?? I don't know ! Just something I am kicking around. Granted I am only 6 months post-BK it makes me nauseous having to pay 12.95% interest !! YIKES !!!

[FilingOnMyOwn]

When you lease, you are paying 100% interest. You have no equity in the money you pay, you get nothing back, all the money is lost.

[BassBoy]

I have receive difference of opinions from dealers when I was inquiring about another vehicle just after my discharge. As FOMO put it, it depends on where you go. Personally, I feel some of the dealers will tell you all kinds of BS just to get you in the door, and when they do, you could be at their mercy and possibly get swindled.

12.85% is not that bad. Some pay a lot more that that. You know, you can always refinance the vehicle in about a year, thus getting a lower rate and quite possibly reducing the remaining term.

If you decide to purchase, try to put down $1000 and try to stay within a 60 month term so you're not upside down if you decide that you want another car in a few years. IMO, having a loan for 72 months or longer is just throwing money away.

[FilingOnMyOwn]

Another 'fyi' topic on leasing is maintenance. Its a rented car that you are still responsible for maintaining. If you think its 'just a lease car' you can treat it like crap and not change the oil or anything... Wrong! If you don't change the oil and the engine dies, guess what? You pay 5 grand or so for a new engine. From the dealer, crate motor, retail price, no other option. Don't like it? They'll roll that money right onto your loan. Another thing. Say your car only has a 36,000 mile warranty, and you go over 36,000 miles and it breaks down. Yup! You have to fix their car! See, its your car to use, but its their car to give back, in working order. Every dime you put into it you'll have to give back to them. And unless your dealer specifically offers free tires and brakes etc, which most don't, you'll be buying that crap too. Also, if you return the car with anything out of whack, such as tires under a certain tread depth, or brake linings too thin, they'll just charge you for that too. After you turn it in! And I'm sure you already know about mileage overage charges, and 'rollover' loans, etc. Having to pay for this car, with a negative balance that can rollover into your next car note, now thats really something to think about imo.

[BassBoy]

Good points FOMO.....too much crap at the end of a lease that can jump up and bite you on the a$$.

[FilingOnMyOwn]

Originally Posted by BassBoy

Good points FOMO.....too much crap at the end of a lease that can jump up and bite you on the a$$.

Oh they won't just bite it, they'll sit you on a wooden pole. You have no idea how many people I know that have gotten royally pounded from behind after leasing a car.

[fsugirl]

Gosh you guys (or gals) are brutal ! haha !!

It makes total sense what ya'll are saying though. It's like basically "borrowing" the car..What a rip ! I am so glad I have you guys to steer me into the right direction ! haha !!

[BassBoy]

Originally Posted by FilingOnMyOwn

Oh they won't just bite it, they'll sit you on a wooden pole. You have no idea how many people I know that have gotten royally pounded from behind after leasing a car.

So true.....so true. My friend has always leased. On his last lease, he turned his Dodge Ram in early and carried over about $3000 in negative. Now his lease payment is over $400 a month...and for a VW Jetta. Well now he's in bad financial distress and is looking into getting out of his current lease and he'd be looking at $5000 in negative. The dealer gave him some load of BS about the rebates being able to bury the negative. Yeah right. I've never heard of ANY dealer being able to bury that much negative equity.....and if they can, they've gotta be pulling some BS.

fsugirl,
Purchasing is a better way to go. You've already been given a pretty good interest rate, so go with that. And as I have said before, keep the term to a maximum of 60 months.

[JeepMom]

Leasing a car is like renting an appartment.

[fsugirl]

I think I am going to take all of your advise and RUN WITH IT ! haha !!

[anonymuse]

There are pros and cons to leasing. Look on MSN money or something like that and they'll go through the whole thing. I did a lease because it was the right thing for me at the time.

[highNdry]

Ok every one here seems to be against leasing....I'll give the other sides point of view.

I have a friend who bought a Lexus Es300 and drove 58,000 in six years, he bought it for $36,000 and the car is worth now around $8,000. He could get little more if he sells it to private party.

Basically from my friend's example he drove $28,000 worth of car in six years, had he leased the car he could have driven two brand new cars for the same price. On top of that he paid cash $36,000 (don't ask me why).

So if you drive less than 12,000 miles it makes sense to lease otherwise don't bother. They have a Toyota highlander for the wife and the kids and he uses his Lexus to drive to work. It all depends with your lifestyle, for me lease is not a option because I drive a lot and I mean a lot like 30,000 miles in a year easily.

Hope this helps, with lease you get more car for a lower payment.

[anonymuse]

Originally Posted by highNdry

Hope this helps, with lease you get more car for a lower payment.

Without having to put anything down.