does anyone have any information on leasing a car?

[tegan382007]

does anyone know anything about leasing a car. how it works. i heard you have to put 1,000 - 1500 down which I have. i just dont know what else to expect. do you have to have good credit,how long do you lease a car,etc. any info would be greatly appreciated! thanks!
i wrecked my car,my car wasnt worth awhole lot but i did get 4,000 for it so i have nothing to trade in. i dont think you need to have a car to trade in,do u?

[Jeff H]

Leasing a car is a good option for many people with good credit who want to drive the latest technology, and always have a car under warranty. Generally speaking, yes, you need good to excellent credit to make a lease worthwhile, but if you have this, you want to put as little money down as possible. The reason for this is that if you get in a wreck, you can't get this money back. I have leased two or three cars where I didn't put down anything except my first month's payment of $275. It IS possible to get a no-money down lease. Just negotiate with your dealer.

The difference between buying and leasing a car is that with leasing, you're paying for the difference between the purchase price and the residual value (the amount you'd get for trading it in three years from the purchase date).

Another advantage to a lease is that your residual value is guaranteed by the leasing company. Many large SUV leasees are looking pretty good right now, because while their residual may have dropped substantially, they will be able to walk away from the car without losing anything when the lease term is up.

Be careful, though. Do NOT enter a lease for any more than 39 months, in my opinion. It's just not a good option. Also, remember to negotiate the price of the car first, and then base the lease payment off of that. Be sure you also understand the factors that go into a lease payment, which include money factor (which is your interest rate divided by 24. For instance, if you're getting a money factor of .003, your interest rate is 7.2%) and your residual value. Normal residual is 50-60% over 36 months.

Great leasing cars are those that get good residual value, like Hondas and Toyotas. Also look for leasing specials as these are incentivised interest rates. Good luck!

[Jeff H]

Leasing a car is a good option for many people with good credit who want to drive the latest technology, and always have a car under warranty. Generally speaking, yes, you need good to excellent credit to make a lease worthwhile, but if you have this, you want to put as little money down as possible. The reason for this is that if you get in a wreck, you can't get this money back. I have leased two or three cars where I didn't put down anything except my first month's payment of $275. It IS possible to get a no-money down lease. Just negotiate with your dealer.

The difference between buying and leasing a car is that with leasing, you're paying for the difference between the purchase price and the residual value (the amount you'd get for trading it in three years from the purchase date).

Another advantage to a lease is that your residual value is guaranteed by the leasing company. Many large SUV leasees are looking pretty good right now, because while their residual may have dropped substantially, they will be able to walk away from the car without losing anything when the lease term is up.

Be careful, though. Do NOT enter a lease for any more than 39 months, in my opinion. It's just not a good option. Also, remember to negotiate the price of the car first, and then base the lease payment off of that. Be sure you also understand the factors that go into a lease payment, which include money factor (which is your interest rate divided by 24. For instance, if you're getting a money factor of .003, your interest rate is 7.2%) and your residual value. Normal residual is 50-60% over 36 months.

Great leasing cars are those that get good residual value, like Hondas and Toyotas. Also look for leasing specials as these are incentivised interest rates. Good luck!