Ok first off I have never leased a car. However I was thinking. My wife only drives about 2-3K a year. This has been consistent for the last 10 years. I was thinking of leasing her a car with a very low millage limit say 5-6K / Year Say a 3year leas with a 20K mile limit?. She would like an Explorer or an Escape (she likes fords) as she is short and these types of vehicles sit higher than most of the sedans and she can see (why she likes to drive the expedition)
This way she gets a new car and I will get my 13 year old truck back that she commandeered from me 10 years ago. In the last 10 years she has only put about 50K on the truck
Anyway I was thinking that she gets a new car (makes her happy) and my cost would be minimal. Then in 2-3 years I can either walk away from it and get her something else. Or exercise a purchase option. I figure with that low a millage restriction the "rental" payments would be very low.
I would be surprised if there was that much of a price break, but if there is, go for it: just be aware of the $$ implications in the event your wife's driving habits change unexpectedly, such as if a relative gets sick 75 miles away and she starts driving there three or four times a week. Nobody ever anticipates this stuff, but that doesn't mean it never happens. Personally, I'd be inclined to run the numbers for several different mileage options and pick one with some wiggle room.
AngryCorvair wrote:
dean1484 wrote:
My wife only drives about 2-3K a year. This has been consistent for the last 10 years.
In the last 10 years she has only put about 50K on the truck
My thoughts exactly.... Hell, just paying cab-fare for her each week might be cheaper than a lease.
It is an emotional decision. A want, not a need.
If you car afford it and you think $400 per month is worth the gain; do it.
dean1484 wrote:
Ok first off I have never leased a car. However I was thinking. My wife only drives about 2-3K a year. This has been consistent for the last 10 years. I was thinking of leasing her a car with a very low millage limit say 5-6K / Year Say a 3year leas with a 20K mile limit?. She would like an Explorer or an Escape (she likes fords) as she is short and these types of vehicles sit higher than most of the sedans and she can see (why she likes to drive the expedition)
This way she gets a new car and I will get my 13 year old truck back that she commandeered from me 10 years ago. In the last 10 years she has only put about 50K on the truck
Anyway I was thinking that she gets a new car (makes her happy) and my cost would be minimal. Then in 2-3 years I can either walk away from it and get her something else. Or exercise a purchase option. I figure with that low a millage restriction the "rental" payments would be very low.
[troll] Don't lease a car, it's a bad idea, pat cash for everything. Dave Ramsey. [/troll]
Lowest lease on a non exotic in terms of miles is 10k from any of the major players.
Leasing is generally a suckers game. I'd buy it, drive it 2 years, and sell it to one of the many, many people who want to buy a low mileage 2 year old car for 5% less than they would pay for a brand new one. Repeat as required.
wearymicrobe wrote:
Lowest lease on a non exotic in terms of miles is 10k from any of the major players.
Awesome. Lease her an exotic! Lots of them are made for short people
Since she puts so few miles on it, why not just buy a car a couple years old with good resale, drive it for 2-3 years, then sell it for nearly the same price? Should be free or close to it.
The lowest miles you can lease for is 10.5k/year. My wife's driving is similar, and we get interesting looks when we turn in a car after two years with only 9k on it. Especially now that our motorsports towing has been really cut back.
Don't belive the hype that leasing is bad- some are, some are not- do the math. Depending on the pacakge you get, it will be considerably less than a buying price. You will find that there are some great lease deals pretty often, and that many option packages are cheaper to lease than the stripper models.
As for the turnover- buy-sell does not give you a set price when you are done, whereas a lease basically does.
A more important question- do you need to turn it over?
Back to the most important- do the math.
The total on the truck was 50K but I drive it some for work (it was my truck). I want my truck back. When she had "her car" it was 2200-2800 / year. The 50 K on the truck is combined. Since I would get my truck back I would not drive her new car. But ya the math did not add up sorry about that.
EDIT it does add up look two posts down.
Yes It is absolutely not a need. Not really a want either. I have three cars on the road at the moment. I just was thinking of doing something nice for my wife and getting her into a new car for the least amount of cash out of pocket. Hell I approached her about it after I posted this and although she would never say no to a new car she was not all that excited about it. She likes the truck. I could go out and just by one for cash but if I can get around that and just rent a car for her for a while why not. It would be cheaper than purchasing one.
That is after all what leasing is. It is an extended rental agrement.
Oh Ya. After looking at it again my math did add up.
50K in 10 years = 5k a year. As you can see by the bolding in my original estimates I was spot on. 5-6k a year or a 3 year lease with a 20K limit equals. .. . .wait for it... . . .. . .. . 6,666 miles a year. And by the math it is more than the 5-6K I was thinking of and is more per year than the 10 year 50K total that the truck has had
So where is my bad math?
dean1484 wrote:
Ok first off I have never leased a car. However I was thinking. My wife only drives about 2-3K a year. This has been consistent for the last 10 years. I was thinking of leasing her a car with a very low millage limit say 5-6K / Year Say a 3year leas with a 20K mile limit?. She would like an Explorer or an Escape (she likes fords) as she is short and these types of vehicles sit higher than most of the sedans and she can see (why she likes to drive the expedition)
This way she gets a new car and I will get my 13 year old truck back that she commandeered from me 10 years ago. In the last 10 years she has only put about 50K on the truck
Anyway I was thinking that she gets a new car (makes her happy) and my cost would be minimal. Then in 2-3 years I can either walk away from it and get her something else. Or exercise a purchase option. I figure with that low a millage restriction the "rental" payments would be very low.
Is there something wrong with doing something nice for your wife.
Lets see since I am thinking of getting a car for my wife so I should get a car for her that I want and that I like. WTF. This method of car purchasing for ones spouse will lead to your spouse getting at least half of all your stuff while you live in a trailer on your parents property. Or worse you end up moving back in with your parents. I have been married a long time and have learned a thing or two. Ohya you last bolding is "happy" All I can say is keeping ones wife happy is very important. Trust me on this.
Get things strait before one starts judging people.
EDIT
After reading your post again I can not figure out what your point is. Yes I can afford to get my wife a car. The days when I was scraping to get her a dozen roses have passed. I equate this to when Tim purchased the 3 series and and everyone was complaining that he was spending to much $$$$$ and it was not "Grassroots" Well eventually people grow up and if you plan it rite you can stop eating mack and cheese as a necessity and instead eat it every now and then as a nostalgic walk down memory lane. Same with this whole thing. I am of the age where I am slowing down a bit and my business has done well over the last 10-15 years and I can now afford to get my wife nicer things. LIKE NEW CARS for no real reason other than she has put up with all my crazy a$$ crap for all these years.
So what is your point is it bad that she likes the car that I intend to get her ?
John EW1621 wrote:
It is an emotional decision. A want, not a need.
If you car afford it and you think $400 per month is worth the gain; do it.
dean1484 wrote:
Ok first off I have never leased a car. However I was thinking. My wife only drives about 2-3K a year. This has been consistent for the last 10 years. I was thinking of leasing her a car with a very low millage limit say 5-6K / Year Say a 3year leas with a 20K mile limit?. She would like an Explorer or an Escape (she likes fords) as she is short and these types of vehicles sit higher than most of the sedans and she can see (why she likes to drive the expedition)
This way she gets a new car and I will get my 13 year old truck back that she commandeered from me 10 years ago. In the last 10 years she has only put about 50K on the truck
Anyway I was thinking that she gets a new car (makes her happy) and my cost would be minimal. Then in 2-3 years I can either walk away from it and get her something else. Or exercise a purchase option. I figure with that low a millage restriction the "rental" payments would be very low.
In reply to dean1484:
Nothing wrong with your math. But the leases are 10.5 to 19.5k per year, not per lease. So for your situation, it would be the 10.5k/year lease.
edit- and don't assume that leases are $400/mo. We are $250 for an Edge Limited, fully loaded. Go to the dealer, ask for prices. Don't take numbers that are here on the web.
alfadriver wrote:
In reply to dean1484:
Nothing wrong with your math. But the leases are 10.5 to 19.5k per year, not per lease. So for your situation, it would be the 10.5k/year lease.
edit- and don't assume that leases are $400/mo. We are $250 for an Edge Limited, fully loaded. Go to the dealer, ask for prices. Don't take numbers that are here on the web.
Are you saying that the $$$$$ per year is fixed and it is not negotiable based on millage? Wait are people thinking I am talking $$$$$ / year? This may be part of the problem here. I was always talking millage on the car. i have no clue as to the $$$$$ / year. At $250 / month that is only $3000 a year That is not bad. Hell I would just give that as a single payment at the start of each year for three years. I wonder if I would get a break if I gave them 9000 up front for a 3 year lease.
Hummmmm Something to think about.
Most people don't know that you can trade a lease in against the residual and keep any equity.
Edit: an APP (advanced payment plan) doesn't have much of any advantage any more because the lease rates are so low.
In reply to dean1484:
The lease cost is partially based on the agreed limit that you will drive the car. So the lease cost will be less at 10.5kmiles/year than a 19.5kmiles/year.
Other is the value of stuff on the car- some options are worth more than others- it's kind of interesting.
The monthy/annually/single lease payment is available. BUT you have to do the math to see if it's worth it. I think we would have save something like $30 if we pre-paid a 2 years lease.
Again, the #1 most important thing- go to the dealer and get real numbers.
In reply to alfadriver:
The effect the added options have on the lease payment depends if they're residualized or not. If they are you only pay for a portion of them, if not you pay for them entirely. The decision is made by the leasing company.
Datsun1500 wrote:
Leases are based on time and miles. Most advertised leases are for 36 months with a maximum of 10,000 miles per year driven. I have no idea where the 10,500 number came from. You can negotiate the maximum number of miles, but the lowest you will find for a regular car is 10,000 per year.
You can do pretty much any number of years and miles, but obviously the payment changes. You could do a one year, 12,000 miles for $400 a month, but that same car could be $250 on a 3 year, 30,000 mile one.
Most manufacturers run a special lease. Go to the website and look under special offers.
Edit. Around here Ford has a 2 year, 10,000 mile per year lease on an Escape for $199 a month.
10.5k
I got it from the horse's mouth- http://credit.ford.com/lease-a-ford where it shows that here are 7 mileage options between 10,500 and 19,500 miles per year. (if it doesn't show, expand the line "Seven Mileage Options to Choose From- it says it there.)
Like I've been pointing out GO TO THE DEALER. Lots of numbers flying around here, the only one that matters will be the ones that you can afford paying and the ones the dealer will ask you to pay.
RossD
UberDork
2/4/13 7:39 a.m.
Take the down payment, increase it by 2-5% and divide it into the amount of months for the lease. Add that on top of your monthly payment, but put it in a unique savings account or shoe box. That will be closer to your actual cost. So when you go to trade in the old lease for the new lease, you will have your money down ready. It would be equivalent to having the equity in a vehicle you actually purchased, getting rolled into a newer vehicle.
I will get my self t the dealer in the next couple of days. My schedule is nuts at the moment. (I worked more than 24 hours this weekend to make a deadline for a client.) But after Tuesday the pressure is off.
Thanks for the info guys. I know a lot more now than when I made my OP
Per wrote a column a couple of months ago where he talked about a calculation like this. He bought a relatively high-mileage car at a discount (his E36 wagon, if memory serves). Drove it little over the course of a year or so, at which point the "high mileage" became regular mileage for that year of car. Then he sold it at a price that was the same or a bit higher than what he paid for it. I can't remember the issue it was in, but that seems like a reasonable idea considering your circumstances. After a few more years of light use, suddenly it's a low-mileage car rather than an average one.
