Lease new Camry?

[jltimm]

What are the advantages and disadvantages of a lease? $200 payments seems pretty good for a new Camry!

[GotOne]

How much do they want down? How many miles do you get per year?

[CJH]

In leasing, the devil is in the details.

It really depends on what you want out if it as well, as leasing can be a not so good deal. But if you want a new vehicle, it may be the only way to get into one.

[JollyT]

If you fit the lease terms closely it can be a good deal. If your mileage will be significantly higher or lower than what is in the terms of the lease it's probably a bad deal for you.

[LwnmwnMan2]

You're basically renting the car.

Sure you can always drive a new car, but you'll never ever have any equity in it.

Certainly a vehicle is not at all an investment opportunity, but at the end of 3-4-5 years, you DO have something you can get SOMETHING for.

If you drive about 10-20 miles roundtrip to work (if you're using it for commuting) it'll work out. If you're going to go over the alloted miles, then make sure you keep your current vehicle as backup to use.

I know of people that leased a car because the cost of driving a pickup was too great.

When I leased a pickup the one and only time I did it back in '99, my insurance rates went up as well, so check that out with your insurance company.

[jltimm]

I haven't looked into this to seriously at all. I heard the add on the radio and it was supposed to be $1500 down + tax/lic. Don't know the allowed miles per year?

[Hafnutz]

If the miles are over when you turn it back in or if it has any damage you get hit pretty hard with additional charges. You really need to do the math.

[zamboni]

Advantages of a lease:

Payments are cheaper

Maintenance/repairs covered

Disadvantages:

Nothing to show for money at end of period

Down payments close to what they are if you buy

Still have to put new car tags on (expensive)

[Black Bear]

I learned this by watching my friends lease cars over the years---If you really want to save some money or use your money for other purposes other than transportation---one of the biggest/easiest ways to do this is to simply aviod a car dealership lot at all costs. By "leasing" a car you know you are going back in 24 to 48 months---no matter what. I would only lease if money were no object or my company was paying.

[Hafnutz]

Advantages of a lease:

Payments are cheaper

Maintenance/repairs covered

Disadvantages:

Nothing to show for money at end of period

Down payments close to what they are if you buy

Still have to put new car tags on (expensive)

On a typical lease maintenance is not covered, you still have to pay for that and repairs are only covered if under warranty, the same as if you bought it.

[CJH]

And they usually jack up the price of oil changes, etc.....

[jltimm]

Sounds like the leasing thing isn't so good from what I'm reading.

[Scott K]

A lease is only good if you want to stay in a new vehicle every 2 years, and can stay under their allowed milage, and you can take care of the vehicle.

[JohnMickish]

A lease is a great deal if you know what you are getting BEFORE you sign the papers. The bad rap that leasing gets is mostly from people that didn't know how many miles they put on in a year, or didn't care until they had to pay for it.

As far as having nothing to show for it after 2 years, unless you are driving something pretty special it dosen't matter if you own or lease you don't have anything to show for it after two years so that is pretty much a moot point.

If you can stay under the millage go for it. Unless the contract says you have to get the oil changed at their shop with a "leasers special jacked up charge" oil change get your maintenance done where you want, just keep records of it.

Think about it, 24,000 miles and 24 months. What kind of maintenance will you really be needing? 6 oil changes?? Big deal.

[staresatice]

one thing to keep in mind is the interest rate on a lease. i leased a camry for something like .9% and the final cost of a 3 year lease is like $1500, now i get to buy it, take all money invested and only 1500 in interest. this was way cheaper interest wise then buying for me at time and keeps my new payments down. i guess it all depends on if you want to keep.

[GotOne]

I haven't looked into this to seriously at all. I heard the add on the radio and it was supposed to be $1500 down + tax/lic. Don't know the allowed miles per year?

Am I correct in thinking that if you take into consideration the down payment/tax/lic, it will be like adding $$ to the monthly payment over the term of the lease. Depending on the term of the lease, it could be close to 80.00 per month for a 24 month lease. Now, it would be like a 280.00 per month payment. Is my thinking/math fuzzy?

[CJH]

If you can stay under the millage go for it. Unless the contract says you have to get the oil changed at their shop with a "leasers special jacked up charge" oil change get your maintenance done where you want, just keep records of it.

Yes you have to get ALL of the maintenance done at the dealer, its part of the agreement.

Remember too, that on top of mileage, any scratches, coffee spills, etc.. are going to cost you money as well as higher insurance rates (as mentioned above).

This is the classic rent vs. own scenario and really depends on your personal situation and the deal being offered. You really need to do your due diligence flesh out all of the details of the contract.

One of the most important numbers not mentioned is the buy back value of the car, which is basically what the dealer is going to value the car at when your lease is done. The most expensive years on a car are the first two, due to the accelerated depreciation that occurs. So your payments have to cover that and make the dealership money. So the higher the buyback price they better the deal.

[Scott K]

They do allow normal wear and tear on the vehicle, small scrathes and stains are acceptable. As far as I know they can not force you to go to the dealer for maintenance, just keep a good record of what is done, is all that is required. I have leased several vehicles, I was never charged for scratches, minor dings, small stains, nor have I ever had my maintenance done through the dealer. I hunt, and fish, and use my trucks as work trucks, so they arent babied.

[Black Bear]

My last comment on this post---auto LEASING did not come about because the auto industry wanted to give the consumer a better deal.....it came about for their finance divisions to make a killing. For 95% of car drivers--not leasing is a more fiscally prudent option.

[Scott K]

My last comment on this post---auto LEASING did not come about because the auto industry wanted to give the consumer a better deal.....it came about for their finance divisions to make a killing. For 95% of car drivers--not leasing is a more fiscally prudent option.

Agreed! I have gotten myself out of the quicksand trap of leasing, it sure is nice to have a new vehicle every 2 years, but after 4 years of the same vehicle, I sure like not having a payment so much better.

[jltimm]

Am I correct in thinking that if you take into consideration the down payment/tax/lic, it will be like adding $$ to the monthly payment over the term of the lease. Depending on the term of the lease, it could be close to 80.00 per month for a 24 month lease. Now, it would be like a 280.00 per month payment. Is my thinking/math fuzzy?

You have to have a down payment for a standard loan also. I don't know, but I would think that with a standard loan your down payment would be higher than $1500?

[JohnMickish]

Here is what it all involved, right off the Toyota HSOforum. It tells you what you owe down, what the car is worth at the end of the lease and so on.

Disclaimer : Offer subject to change. Can not be combined with any other offer. Lease a new 2010 Camry Gas for $199 a month for 36 months with $1,500 due at signing, which includes first month’s payment, $651 down payment, $0 security deposit and $650 acquisition fee. Does not include taxes, license, title fees, insurance and dealer charges. Closed-end lease. Excludes Hybrid model. Example based on model #2532 with FE CF only. Total Manufacturer’s Suggested Retail Price including freight $22,850. Monthly payments of $199 total $7,164. Capitalized cost of $20,769 based on down payment and dealer participation, which may vary by dealer. Payment may vary depending on model, equipment choice, and final transaction price. Lease-end purchase option is $14,235. Customer responsible for maintenance, excess wear and tear and $0.15 per mile over 12,000 miles per year. To qualified Tier 1+ customers through Toyota Financial Services. Cannot be combined with any other offers. Subject to availability. See participating dealer for details. Offer ends 1/4/10. Offer good in Illinois, Indiana, Minnesota, Wisconsin, and Michigan’s upper peninsula.