My Explorer is my 5th leased vehicle and come next March I will lease again. I like to get a new vehicle every 3 - 4 years. With my As Wildcat_1 explained, you go in the same way you would as if you were buying it. Get the best price you can. In my case, I put $10k down in order to reduce the monthly payment. Others prefer to go with $0 down and have a larger monthly payment. I also put down $6250 as a refundable security payment. The amount reduced the interest fee by 1.50% and is refunded at lease end. I don't believe this option is available in the U.S. The other thing I like about leasing is that I only pay tax on the monthly payment for the duration of the lease. If I were to initially buy the vehicle, I would have to pay tax on the entire cost of it. If the vehicle is in very good shape and low mileage, you could explore the option of selling it privately and then paying the dealer the equivalent of the residual value. I know my dealer is anxious to get mine back because after 4 years it will probably only have around 14k miles on it. I'm hoping to use that in getting a better deal on the next one. My lease is through Ford Credit Canada.
I doubt that there is much room if any to negotiate the end buyout. For one thing you signed the lease agreement/contract with the residual value clearly stated. If you intend on buying it, that would mean that you are negotiating the price for a second time. As for the return date, I would think the dealer would have the say on that if you are buying it out. If this becomes a sticking point, offer to put a down payment on it. Perhaps the dealer is afraid you may change your mind after the return date has passed.
That is exactly what it always come down to, personal choice. I just don't like giving the government all their tax money at once and in the case of a lease, they don't get it all (at least not from me) the way they would on a sale. I also like the security of being able to see that money sitting in my savings account. If I personally don't make it to lease end then I'll let my estate look after it.Yes....but had you purchased it in the first place....you could have sold it when you choose and not have to deal with the problem vehicle for the full four years of your lease.....Yes I know that there will be depreciation if you had purchased it....but don't kid yourself....that is all rolled into your monthly lease payment as well. I personally prefer not to have perpetual payments, so I always purchase versus lease....just my personal choice.
That is exactly what it always come down to, personal choice. I just don't like giving the government all their tax money at once and in the case of a lease, they don't get it all (at least not from me) the way they would on a sale. I also like the security of being able to see that money sitting in my savings account. If I personally don't make it to lease end then I'll let my estate look after it.
Peter
The $10k I would have paid anyway in higher monthly payments and interest on the $6250 (amount corrected from $6750)) would have been minimal compared to the savings given today's rates. As unusual as it may sound, I'm in a position where I don't really need more income. Besides, the government will get part of that too, one way or another. But you are correct. The government always gets it dues, even if you 'kick the bucket'.Don't kid yourself.....you dropped almost $17K when you signed to lower your payments and interest rate. You basically let them use your (almost) refundable $7K for four years and all you got in return was a lower interest rate of 1.5%? You would have been better off investing that money....you could make a helluva lot more interest than what it is saving you. The government is getting it's money from you no matter whether you buy or lease......
