I often get asked questions about leasing.
The problem with leasing is that it is fraught with confusion. It’s a tool that needs to be used the right way.
Let me explain.
Leasing is a “lifestyle” decision. Done properly, you get a new vehicle every 2 or 3 years and most of the problems you may experience with the vehicle are covered by the new car warranty. Many people never have to buy brakes or tires.
Done the wrong way, people get lured into a low payment lease with so few miles that they owe thousands at the end of the lease. They may be encouraged to sign up for such a long term that they ultimately end up paying for costly repairs on a vehicle that they do not own.
Add to this the confusion over “0 Down” that many dealers advertise.
“Down” on a lease does not necessarily cover “fees”. A dealer may advertise “0 Down” yet you must come up with thousands in “fees”. (You may have to be able to certify that you are in the “Bagpipe Players Union” in order to qualify for the rebates used in the special deal.) The advertised lease price may not explain all of this.
Bottom line, like good food, leases need to be “made to order” using good ingredients.
Having said that, I would like to show you how attractive leasing can be by using two “no-nonsense” examples, below. These assume 10,000 miles per year (12k would be just a tad more). The factories love to lease in the early spring because the cars come back at the end of the lease during the early spring. The leases are particularly good on Jeeps, Rams and Minivans.