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Where can I find the best car leasing deals?

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rated:
Hi All

Is there any place i can go to find the absolute best prices on auto leases?   Ive gone to a couple sites but all they do is refer me to auto dealers that ive already been to around my neighborhood.  It seems there is terrific deals to be had on the coasts but here in the midwest theres no competition.  I contacted a company called nationwide auto leassing today. But they havnt gotten back to me just yet.  Any other suggestions?

Z

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Most Recent Posts
Except that my lease total per year is much higher than IRS depreciation schedule. Yes, I'm paying upfront all the depre... (more)

Rubl (May. 02, 2017 @ 9:45p) |

general rule of thumb is that the monthly payment (with taxes) should be 1% of the msrp, with 0 put down. That's a good ... (more)

kvs25 (May. 02, 2017 @ 9:56p) |

That can be a great lease, or a terrible one. Impossible to say without knowing mileage allowance and term of the lease... (more)

cestmoi123 (May. 02, 2017 @ 10:36p) |

Uber 'drivers' get some additional discounts, it might be a benefit to be registered with Uber.
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rated:
Leasehackr.com is where you go to ask.
If you are looking for an electric ev-vin.blogspot.com has them

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Don't lease is how you get the best deals.

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The best lease deals are from the manufacturer. They end up subsidizing the lease in order to sell slow moving cars. You won't get that from a regular leasing company, they just want to make money on the deal otherwise they won't do it. The auto manufacturer doesn't care that much about making money as much as selling slow moving cars. You may be in a dead period where there's no major incentives going on.

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If you're asking whether a lease is a "good deal," you need to consider two things:

1. The price you're paying for the car.
2. The financial terms you're getting on the lease.

Generally, you get the best financial terms (assuming you have good credit) from manufacturers, since they're not interested in making finance profit on the lease; they finance leases to facilitate selling cars.

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Only three things matter: the downpayment, the monthly payment and the mile allowance

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cestmoi123 said:   Generally, you get the best financial terms (assuming you have good credit) from manufacturers, since they're not interested in making finance profit on the lease; they finance leases to facilitate selling cars.
  Not necessarily true with all manufacturers.

Another common point is some states apply sales tax differently to leases.  Many charge the sales tax upfront on complete car price (and lease will "never" be a good deal on them) while others charge only sales tax on the payments (relatively better deals in these).

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Bend3r said:   
cestmoi123 said:   Generally, you get the best financial terms (assuming you have good credit) from manufacturers, since they're not interested in making finance profit on the lease; they finance leases to facilitate selling cars.
  Not necessarily true with all manufacturers.

Another common point is some states apply sales tax differently to leases.  Many charge the sales tax upfront on complete car price (and lease will "never" be a good deal on them) while others charge only sales tax on the payments (relatively better deals in these).

  Lets clarify what cesmoi123 said, The Best leases where the leasing company loses money are from manufacturers.  But the worst leases can come from them as well so that's why I said go to Leasehakr, there you can find out what are the going rates.

The statement that Bendr pointed out about States is true but is also fluff.  You aren't going to move just to get better leasing terms.

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forbin4040 said:   
 
The statement that Bendr pointed out about States is true but is also fluff.  You aren't going to move just to get better leasing terms.

  theres no favorable states that allow leasing by out of state?

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rufflesinc said:   
forbin4040 said:   
 
The statement that Bendr pointed out about States is true but is also fluff.  You aren't going to move just to get better leasing terms.

  theres no favorable states that allow leasing by out of state?

  Well my point there was really just that if you're stuck paying an extra 4-10% of the whole car's value on top of the normal lease costs then the lease is likely going to be very expensive and an even poorer financial choice relative to other options.  Ruffles has an interesting comment though.

My state charges the full sales tax up front.  And thenif you even buy out the lease at the end you pay sales tax again (on the now smaller market value).  Of course I know at least one moron who leased a Lexus right after they graduated and probably is still leasing.  There's many reasons morons making $80k complain they can't save any money and are month to month.

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rufflesinc said:   
forbin4040 said:   
 
The statement that Bendr pointed out about States is true but is also fluff.  You aren't going to move just to get better leasing terms.

  theres no favorable states that allow leasing by out of state?

  
It's an interesting question, but I don't think you can get away with taxes like on a mail order purchase. When you lease a car, you have to register it in the state that you're driving it in. When registering it, they're going to do whatever they need to do to collect their share of the sales tax. 

The key point that makes a good lease deal is the incentive that the manufacturer offers. If they're offering a 3k rebate, you apply the 3k rebate over the term of the lease. When you buy, you apply that 2k rebate over the entire cost of the car. So 3k off a 30k car is 10%, but if the residual is 50% and you apply that 3k to the 15k portion of the lease, you're getting 20% off. Plus once you add in discounts to MSRP, they have a much greater effect on the monthly lease payment. There have been some pretty good deals mentioned in leasehackr,com typically those are stacked with MSRP discounts that can go as high as 10-15%. That's for slow moving cars. Cars that are moving aren't going to have 10-15% discounts and rebates on top of it. The best deals on that site are the ones where it would take you 10+ years of monthly payments to exceed the MSRP. And you shouldn't have a downpayment with a lease as I believe you lose it if you crash the car. Stacking multiple security deposits to get a lower money factor is a valid tactic though, you get the security deposit back. 

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rufflesinc said:   Only three things matter: the downpayment, the monthly payment and the mile allowance
  
And any fee/cost you might be expected to pay when lease is over.  I heard certain types of car like BMW .. you most likely have to pay for something.

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Oh let me add something ,

If you are an 'Uber' driver, some Manufacturers / Dealers give an additional $1000 off the price. You just have to be registered to 'drive' with Uber, no need to really be an Uber driver.

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henry33 said:   
rufflesinc said:   
forbin4040 said:   
 
The statement that Bendr pointed out about States is true but is also fluff.  You aren't going to move just to get better leasing terms.

  theres no favorable states that allow leasing by out of state?

  
It's an interesting question, but I don't think you can get away with taxes like on a mail order purchase. When you lease a car, you have to register it in the state that you're driving it in. When registering it, they're going to do whatever they need to do to collect their share of the sales tax. 

The key point that makes a good lease deal is the incentive that the manufacturer offers. If they're offering a 3k rebate, you apply the 3k rebate over the term of the lease. When you buy, you apply that 2k rebate over the entire cost of the car. So 3k off a 30k car is 10%, but if the residual is 50% and you apply that 3k to the 15k portion of the lease, you're getting 20% off. Plus once you add in discounts to MSRP, they have a much greater effect on the monthly lease payment. There have been some pretty good deals mentioned in leasehackr,com typically those are stacked with MSRP discounts that can go as high as 10-15%. That's for slow moving cars. Cars that are moving aren't going to have 10-15% discounts and rebates on top of it. The best deals on that site are the ones where it would take you 10+ years of monthly payments to exceed the MSRP. And you shouldn't have a downpayment with a lease as I believe you lose it if you crash the car. Stacking multiple security deposits to get a lower money factor is a valid tactic though, you get the security deposit back. 

  There are two ways to avoid sales, use and excise taxes on cars: 

1) Legally register the car in a state with no sales, use or excise tax.

2) There used to be a loophole, that may have been closed, in some states that allowed you to take foreign delivery of a car and have it shipped to your garage. If you didn't drive it for a certain period of time, you could then register it without paying sales tax. This was used for European luxury cars.

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I have seen some good/great deals on leastrader.com, and associated sites.. Basically people wanting to get OUT of a lease providing very favorable terms...
 

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SWAPALEASE.COM can find some great deals

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Just make sure you know how to calculate a lease. Look up the formulas, money factor, etc. You should be able to know the financing rate of the manufacturer (set monthly) and the residual % value of the car, and thereby be able to calculate the exact lease payment from the purchase price. If the price they come up with doesn't match, walk away. (I once had a dealer promise he was selling me a car for $X, but the lease payment came out much higher, because he was really charging over sticker but thought people can't figure out the sales price from the monthly payment.) More moving parts to screw with people who think they're getting a good deal.

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You might also ask about multiple security deposits to lower the monthly payments.

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rufflesinc said:   Only three things matter: the downpayment, the monthly payment and the mile allowance
  I would say that the money factor is really important. 
I've been leasing more and more lately simply because I can do a flat deduction on 1099 expenses.  I lease for 4 years, so far that has been the max for cars that I've bought, then buy the car after the lease to keep for another 5-6 years as personal vehicle.

rated:
Rubl said:   
rufflesinc said:   Only three things matter: the downpayment, the monthly payment and the mile allowance
  I would say that the money factor is really important. 
I've been leasing more and more lately simply because I can do a flat deduction on 1099 expenses.  I lease for 4 years, so far that has been the max for cars that I've bought, then buy the car after the lease to keep for another 5-6 years as personal vehicle.

  I don't get this part

rated:
rufflesinc said:   
Rubl said:   
rufflesinc said:   Only three things matter: the downpayment, the monthly payment and the mile allowance
  I would say that the money factor is really important. 
I've been leasing more and more lately simply because I can do a flat deduction on 1099 expenses.  I lease for 4 years, so far that has been the max for cars that I've bought, then buy the car after the lease to keep for another 5-6 years as personal vehicle.

  I don't get this part

  We have two vehicles - 1 used for business, the other is personal/family vehicle. Example:
2000-2003 (4 yrs)  --- #1 business, X is personal, Y is for parent
2004-2007            --- #2 business, #1 is personal, X is for parent
2008-2011 - #3 business, #2 personal, #1 for parent
Parent gets free car for a few years as she doesn't drive much

rated:
Rubl said:   
rufflesinc said:   Only three things matter: the downpayment, the monthly payment and the mile allowance
  I would say that the money factor is really important. 
I've been leasing more and more lately simply because I can do a flat deduction on 1099 expenses.  I lease for 4 years, so far that has been the max for cars that I've bought, then buy the car after the lease to keep for another 5-6 years as personal vehicle.

  
So you pay a lot more than necessary for 9-10 years of a car.

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RBirns said:   
Rubl said:   
rufflesinc said:   Only three things matter: the downpayment, the monthly payment and the mile allowance
  I would say that the money factor is really important. 
I've been leasing more and more lately simply because I can do a flat deduction on 1099 expenses.  I lease for 4 years, so far that has been the max for cars that I've bought, then buy the car after the lease to keep for another 5-6 years as personal vehicle.

  
So you pay a lot more than necessary for 9-10 years of a car.

  "Necessary" is relevant.  And I don't know what you mean by "a lot more".  I negotiate the price of a car like anyone else does. The money factor of the current lease is somewhere around 2.6% APR, and I get to deduct full cost of the car for a year from my tax return which is hovering around 32-33% tax rate.  
 

rated:
Rubl said:   
RBirns said:   
Rubl said:   
rufflesinc said:   Only three things matter: the downpayment, the monthly payment and the mile allowance
  I would say that the money factor is really important. 
I've been leasing more and more lately simply because I can do a flat deduction on 1099 expenses.  I lease for 4 years, so far that has been the max for cars that I've bought, then buy the car after the lease to keep for another 5-6 years as personal vehicle.

  
So you pay a lot more than necessary for 9-10 years of a car.

  "Necessary" is relevant.  And I don't know what you mean by "a lot more".  I negotiate the price of a car like anyone else does. The money factor of the current lease is somewhere around 2.6% APR, and I get to deduct full cost of the car for a year from my tax return which is hovering around 32-33% tax rate.  

  
You're paying a bank fee upfront.  You're prepaying for 3 years of depreciation (mileage allowance) when you don't care what the mileage will be after year 3.  Depending on your state you might be paying sales tax twice.  If you got a favorable lease deal (high residual), it's rare for the car to be worth more than the buyout price, unless you drove fewer miles in which case you overpaid for the lease.  In most cases the purchase interest rate is lower than the lease money factor (i.e. 0.9% for 60 months).  Unless you have the cash, you're paying higher used car interest rates to finance the lease-end purchase.  Yes, if you're self employed you get to deduct from your schedule C (though not the full cost--only the % used for business), but if you buy the car you can deduct mileage and depreciation.  My point is that if you intend to keep the car for 10 years, you are better off buying upfront over leasing and then buying, with rare exception.  If leasing makes sense for you, again with rare exception, it's better to turn in the car and lease another.

rated:
RBirns said:   
Rubl said:   
RBirns said:   
Rubl said:   
rufflesinc said:   Only three things matter: the downpayment, the monthly payment and the mile allowance
  I would say that the money factor is really important. 
I've been leasing more and more lately simply because I can do a flat deduction on 1099 expenses.  I lease for 4 years, so far that has been the max for cars that I've bought, then buy the car after the lease to keep for another 5-6 years as personal vehicle.

  
So you pay a lot more than necessary for 9-10 years of a car.

  "Necessary" is relevant.  And I don't know what you mean by "a lot more".  I negotiate the price of a car like anyone else does. The money factor of the current lease is somewhere around 2.6% APR, and I get to deduct full cost of the car for a year from my tax return which is hovering around 32-33% tax rate.  

  
You're paying a bank fee upfront.  You're prepaying for 3 years of depreciation (mileage allowance) when you don't care what the mileage will be after year 3.  Depending on your state you might be paying sales tax twice.  If you got a favorable lease deal (high residual), it's rare for the car to be worth more than the buyout price, unless you drove fewer miles in which case you overpaid for the lease.  In most cases the purchase interest rate is lower than the lease money factor (i.e. 0.9% for 60 months).  Unless you have the cash, you're paying higher used car interest rates to finance the lease-end purchase.  Yes, if you're self employed you get to deduct from your schedule C (though not the full cost--only the % used for business), but if you buy the car you can deduct mileage and depreciation.  My point is that if you intend to keep the car for 10 years, you are better off buying upfront over leasing and then buying, with rare exception.  If leasing makes sense for you, again with rare exception, it's better to turn in the car and lease another.

  Except that my lease total per year is much higher than IRS depreciation schedule. Yes, I'm paying upfront all the depreciation cost, but I'm going to own the car anyway.  My car will very likely worth more than buyout price or near it based on the current value of make/model.  My APR is actually 2.2% which is below current inflation, so I'm fine with it.  I will not pay sales tax twice.  Oh, and I also got special manufacturer's incentive for lease of 3K which more than covers the cost of financing (2.2%) which was not available for buying the car.  Don't assume someone didn't think things through. 

rated:
general rule of thumb is that the monthly payment (with taxes) should be 1% of the msrp, with 0 put down. That's a good lease.

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kvs25 said:   general rule of thumb is that the monthly payment (with taxes) should be 1% of the msrp, with 0 put down. That's a good lease.

That can be a great lease, or a terrible one. Impossible to say without knowing mileage allowance and term of the lease.

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