I consider myself a career lessee, as I usually want the latest model and never want to be out of warranty,

Personally, I never, ever put money down on a lease. A couple of reasons for this policy.

First, it keeps the perspective on the actual cost of the vehicle. Without the down payment, you can invest that down payment money at roughly the same interest rate you are paying in the lease and break even.

Second, the down payment is never insured. That is, if something were to happen to the car early in the lease term (i.e., stolen or totalled), your down payment is history. Your insurance company would pay the current market value of the car. The gap insurance would cover the difference between that amount and the sum of your remaining lease payments. What do you get for your cash up front? Nothing! Pay only first month, tag and tax up front.

In my new lease, started in January, I was offered an attractive rate on a 24 month lease vs. 36 month lease, even with no money down. Difference was about $20/month higher for the 24 months.

I actually chose the longer term. Here's why -- I figure that the $20/month I'd save would be put towards new tires sometime during the first 2 years ($480 total), so that's a wash. However, this way, I've locked in the payment for 12 extra months, at no additional cost, while remaining under the warranty for the entire lease period.

Remember that cars 2 or 3 years from now are not likely to be any cheaper than today. So why not drive a nice car for another year covered by the warranty? Sometimes 39 or 42 months works out even better, but you may have to factor in a second set of tires, or possibly a full brake job.

At that point you are getting close to 50K miles, so it's time to get out.

Hope this helps,

gatorcpa





posted by 64.157.153...

• lease cost at 36 or 39 months vs 27, Pat, Tue, 14 Mar 2006 16:11:44
  • 27 months is the cheapest with a down....., Mike Lynch , Tue, 14 Mar 2006 18:23:47
    • Re: 27 months is the cheapest with a down....., Pomalley, Tue, 14 Mar 2006 20:11:31
      • I agree with Pomalley, but for different reasons., gatorcpa, Wed, 15 Mar 2006 07:25:35 <-- Viewing This Message
        • Good advice...., Mike Lynch , Thu, 16 Mar 2006 17:33:17
          • Odd terms do not matter in FL, gatorcpa, Fri, 17 Mar 2006 08:23:47
            • MN tabs are for 11 months the first year, Pat, Fri, 17 Mar 2006 11:24:36
              • Re: MN tabs are for 11 months the first year, bwik, Mon, 20 Mar 2006 11:34:06
        • Re: I agree with Pomalley, but for different reasons., Pat, Wed, 15 Mar 2006 10:40:25
        • Re: I agree with Pomalley, but for different reasons., Pomalley, Wed, 15 Mar 2006 09:18:45
          • Re: I agree with Pomalley, but for different reasons., gatorcpa, Wed, 15 Mar 2006 12:22:51
            • Re: I agree with Pomalley, but for different reasons., Pat, Wed, 15 Mar 2006 18:48:29

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