Lowell Tuttle
David. Generally Own and trade is better than lease and return. But, sometimes pricing can be favorable, because dealers have incentives to sell a lot of vehicles.
At trade time, market dictates value of vehicle you own....but, also could have value on vehicle you lease if you choose the correct agreement and keep mileage way under the lease terms and the vehicle in good condition. Sometimes people can sell/trade the lease just before the term ends and get a return. Since so many people lease (they can't afford to buy) used vehicles 2-3 years old in good condition can demand a premium, but owning can put you in control of the timing of that marketplace.
Negotiate, negotiate, negotiate...Leave and go back...leave and go back...
Unless you don't want to hassle with that.
Some folks lease all the time and use the same dealer and sales persons. They harp on how good a deal they got. (I would say NOT.)
Also, don't fall in love with your leased vehicle. It's not yours. If there is a total loss, (accident/flood) the settlement goes to the leasing company, not you. Have to lease again. They don't even discuss the claim with you. Plus, a lot of times the vehicle is way less than totaled, and you want to get it fixed, but you can't because it's not yours. Most leasing operations require behind scenes GAP coverage be included (cost passed onto you wihtout any disclosure, meaning included.) This allows the lease to end favorably for the risk takers.
I am sure other people have comments about this.
I have a 2003 Saturn Vue. A 2006 Nissan Titan. And a 2013 Toyota Camry. All bought new. My prior vehicle was a 2001 Chev. Suburban which ended it's life in Ennis Texas with 375,000 miles on it in 2005...So, I strech my ownership out, as you can see.
My livelyhood, to a certain extent, depends on auto shoppers re buying and re buying and re leasing..
Can you believe the prices on vehicles? Ford F150 and Explorers are over 30,000....easy...I remember my first new car, a 1973 Mazda RX 3. It was 3903.00. My Dad's 1968 Chev Malibu SS 396 convertible was 4707.00 (bought off the showroom spinning disk at Doral Chevrolet off LBJ and Inwood.)
PS Limits of liablity on car insurance requires higher than minimum limts if lease....but I am sure you have that anyway....Some people don't. Some can't get the higher limts due to credit or driving loss history. And, limits of liabity are a "policy" coverage, so you have to carry those limits on all vehicles on policy even if they are owned, and even if they just sit in the driveway...
Again, one final note. I might be like the Seinfeld "opposite" George show. Do the opposite of what Lowell says and you will come out favorably.
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