Auto Lease questions never looked at a lease

[bobbay]

car died motor cooked, so I am looking at a new car.  I just purchased a used car for myself last month financed with ally.  I called back the dealer and they are suggesting I go the route of new and lease and that it would be easier for approval they have more leeway. 

i am a newb and have no idea what to look for with a lease. 

Scores are 620 ish,  Income is 170k combined.  everything is current, several new account in my file, 9 inquiries on TU for me, I think 3 for DW.  She has 2 old judgements that I am currently making payments on that report on hers but show no activity since 1/12 

Question is how do i know what rate i am being charged in a lease.  They are talking $1000 down, tax and tags and first payment at signing, payment, $400ish per month for 36 months on a $32,500 car.  How do i measure what type of deal i am being offered.  I know I will be greatful to be approved but would like to make a good/informed decision?

Any advice is much appreciated.

[Kratos-TM]

Online lease calculator. Plug in the numbers and calculate the "money factor" backwards. A good money factor is less than 0.00150. I like money factors around 0.00100. Money factors around 0.00200 and up are starting to be bad deals. Also make sure your residual car value is at least 55% for 3 years for it to be a good deal. 50% is fair. And don't take anything less than 50%.

[SamsungHDTV]

My advice, don't even consider leasing. Always purchase. Leasing is essentially a long term rental car with option to buy at end of term. Own, don't borrow. Google this to find more info.

[Creditaddict]

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@bobbay wrote:

car died motor cooked, so I am looking at a new car.  I just purchased a used car for myself last month financed with ally.  I called back the dealer and they are suggesting I go the route of new and lease and that it would be easier for approval they have more leeway. 

i am a newb and have no idea what to look for with a lease. 

Scores are 620 ish,  Income is 170k combined.  everything is current, several new account in my file, 9 inquiries on TU for me, I think 3 for DW.  She has 2 old judgements that I am currently making payments on that report on hers but show no activity since 1/12 

Question is how do i know what rate i am being charged in a lease.  They are talking $1000 down, tax and tags and first payment at signing, payment, $400ish per month for 36 months on a $32,500 car.  How do i measure what type of deal i am being offered.  I know I will be greatful to be approved but would like to make a good/informed decision?

Any advice is much appreciated.

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what kind of car? that doesn't sound that good!

I just got lease numbers on an Infiniti Q50 Hybrid yesterday which I believe is about $456-$48k for about the same price you are talking including tax AND 24 months!

I hate 36 month leases, we are in one with our Kia and I'm OVER it... I don't suggest leasing for longer than 24-27 months, cars change to much and the whole point of "renting" is you get a new car sooner... if you are going to lease for 36+ you could buy it for 72 and probably be at about same payment and own the thing.

[StartingOver10]

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@SamsungHDTV wrote:

My advice, don't even consider leasing. Always purchase. Leasing is essentially a long term rental car with option to buy at end of term. Own, don't borrow. Google this to find more info.

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^^I agree 1000% with the above. Buy - don't lease.

[dabrian]

Great advice from Samsung.