How To Lease A Car And Get The Best Deal

[@oishiitravel2436]

and in Canada, we get hosed. Hell even between provinces (BC with its ICBC taxing) get screwed royally.

[@sasha13]

Tnx !!!

[@PinkAphroditeDoll]

Can you refinance or renegotiate your leasing agreement after a certain amount of time before the lease ends?

[@billyrock8305]

Yes and it’s outrageously expensive and you’ll lose with massive penalty clauses.

[@PinkAphroditeDoll]

@ oh wow. I had no idea. Thanks for the info. I’ll have to look deeper into this

[@billyrock8305]

@@PinkAphroditeDoll You’re welcome. Happy to provide solid factual information on auto financing. Basically leasing a car is super dumb. The thought of driving around a brand-new luxury ride is hard to resist, here are a few more reasons to not lease a car: Depreciation makes you lose money. All cars go down in value (or depreciate). Let’s say a fancy new car loses $20,000 in value over a two-year period (yeah, it drops real fast). If you lease it, that loss in value has to be factored into the lease payment (or the leasing company loses money). And they’re not going to set themselves up to lose money-which means your bank account gets to take that punch in the mouth instead. It’s hard to get out of the lease early. If you get tired of a car, you can’t just return it before the lease is up-without being penalized for it, at least. You signed a lease agreement, and that baby is binding! If you want to break a car lease for any reason, you’re in for a huge, expensive headache with a lot of other fees involved. Dealers make a ton of money on interest. Dealers can easily mark up the interest rate on a lease by a small percentage that might not seem like much to you up front, but it actually equals thousands more dollars in profit for them in the long run. In the industry, this is called dealer reserve, and like the name suggests, it benefits the dealer-not you. And again, they’re not even required to tell you how much interest they’re charging you. Sketchy for sure. You pay more money in the long run. Dealers don’t like when you pay for a car with cash or check, because when you do, they don’t make as much profit. But it’s not your job to make them more money. It’s your job to make sure you keep more of your money! If you pay for a car with cash, you’ll end up saving a lot more. Plus, your payments will be $0 a month for forever! Now that’s a great deal. It’s better to be wealthy than look rich. I’m all about owning nice stuff-I just don’t want your stuff to own you. Be an owner not a loaner 💰

[@oreally8605]

You want a BMW? You want a Porsche? Lease it and get it out of your system.

[@spakuloid]

You never mentioned when in the process you tell the salesperson that you want to lease the car. At what point do you say lease? After negotiating the price? After negotiating trade in?

[@johncorman8715]

When using the 1.25% rule, should one factor in the amount "due at signing" amount?

[@TyrantPapa]

@@johncorman8715 yes, divide by the number of payments and add the result to the payment

[@NoMoreGaslighting]

Would you buy a 14 year old Lexus SUV with 120k miles (regularly serviced, 2 owners, clean title from a used car dealer) versus leasing a new SUV (VW Taos or Honda)?

[@stansydorenko8886]

Is that 1.25% rule including taxes?

[@blackwhirlwind1245]

He said out the door price, so yes, I think it includes tax.

[@fuzooli]

How to back off from a deal that is already a poor choice. I am on a finance rate of 6.99% locked for 84 months. I realise that this is a mistake based on my lifestyle and I want to get rid of my vehicle and just get a used car and move on. Everything in this country is too expensive. Do you have any advise or solution for me?

[@billyrock8305]

😣 Man, that’s brutal. 😢 Good plan to buy a 10 year old Honda or Toyota. 👍

[@fuzooli]

@@billyrock8305 Welcome to Canada.

[@billyrock8305]

@@fuzooli Leasing is not country dependent. It’s applies to every country where it’s offered. It really does suck. What type of vehicle is it?

[@fuzooli]

@@billyrock8305 loan interest rates depend on a country economy and central bank policies. Better rates in US while Canada is a disaster... If inflation is high or the economy struggles, rates go up. That’s why it’s not the same everywhere and now the cost of living is too high so I regret my decision and wondering how to get out of it. I like my car but I dont want it anymore. I want a used Honda or Toyota which I dont have to own the bank or any corp. Outlander 2023 PHEV - Good one but I put my sanity over the paying loans lol.

[@NotKid142]

Sell that car , pay off remaining loan and get used car. You may lose some money as loan maybe higher than vehicle value but it's still worth it I guess. Another option is, pay off loan asap and sell the car.

[@blackwhirlwind1245]

So the down payment is lost if you lease a car and got an accident, what about finance?

[@rwgarchia5187]

GAP coverage for financing ?

[@princevohra9714]

Legends watching in 2025 ❤

[@floridaoutdooradventures8981]

If you value your money, don't lease a car! If you want to purchase the car at the end of your lease, you will pay more than what it is really worth. If you go over the miles ( which may happen), you will pay up to your nose and some dealers will even charge you extra for little wear and tear such as tiny dents and scratches.

[@TJDST4]

And yet, that isn't true.

[@treesnmoguls]

@@TJDST4 LONG TERM it is CORRECT!

[@Level70-x4d]

Leasing is a good decision if you are going to get an EV.

[@billyrock8305]

EXACTLY!!! Leasing is designed for the poor and ill informed to rent cars from the bank they can’t afford. Aka “suckers” in the finance/lease world. Be an owner not a loaner. 💰 🤤 🤓

[@oreally8605]

​@billyrock8305 Not necessarily true. #1 You can own a Vette or a luxury car every four years without bothering about repairs #2 You can get the latest models #3 You don't have to worry about depreciation.