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Leasing Questions

New Member

Re: Leasing Questions

Suburu uses Chase Bank to own the leased cars. At the end the price is like a wholesale price. It solves the problem of paying mileage overcharges as if you buy it mileage should be irrelevant. Also with suburu you are preapproved for a chase loan to buy it out. They offered 3,4,5 and 6 year options. We chose one so the new payments matched closely the old. I think its 3 more years. At that point it will be free and clear. And as the other writer said it will have substantial equity to apply to a new lease or a new or used car
Yes you can trade the net equity value of a used car to reduce the monthly lease payments on a new lease.
Message 11 of 16
New Member

Re: Leasing Questions

>Yes you can trade the net equity value of a used car to reduce the monthly lease payments on a new lease


Reminds me of the other thing I like about leasing with no money down, "Gap Insurance". What is gap insurance? Imagine you roll off the lot with your new $40k car and someone runs a red light and T-bones you at the first intersection, totaling it. Insurace will pay you the value of a "used" same model year car with low milage, say $36,000. You just lost $4k. Now lets say you put $2k down, and had gap insurance, now the gap insurance pays $2k and you are only out $2k. But wait, say you are clever like me and didn't put anything down? I am out $0, and my down payment is still working for me in the stock market, money market account, retirement savings, wherever. Likel

USAA includes gap insuance with all their leases, you can get it for a non-leased car, but its hard to find. 

Message 12 of 16
New Member

Re: Leasing Questions

Sorry, to be more clear, gap insurance pays the gap between what you owe on the car and what the car is worth. People have found themselves in financial trouble when their cars were totaled and they owe more than the car is worth, with no car as colateral, you have to pay the bank the difference immediately. This can be a significant burden given its unexpected nature and the fact you no longer have a car to get to work. 

Message 13 of 16
Valued Contributor

Re: Leasing Questions

All I do is lease my cars. Drive it for 3 - 4 year and get a new car.


I treat my car payment like a monthly bill.


Leasing also allows you to get more car for the money.

Message 14 of 16
Valued Contributor

Re: Leasing Questions

I financed all my life and with my last financed vehicle, I finally got fed up with the repairs. I threw so much money into my last financed vehicle for maintenance and it was a more reliable brand and it STILL died on me at around 106K miles...shortly after the infamous 100K mark that most people signal as the time the car starts to fall apart.

I traded that car in for a lease and I love it! My maintenance is rolled into the loan, I have lower monthly payments on a luxury sedan as financing would have been an extra $100 a month, I am covered by full warranty and have protection against dings and scratches so I don't pay. No more costly repair bills that adds up to several car payments after the vehicle is paid off. I have another vehicle that I own outright and has been broken since 2008. It is a 2004 and isn't even worth $2000 now! Cars depreciate too quickly for the equity to work for you.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 15 of 16

Re: Leasing Questions

Couple questions, If one leases a car and 6 months later decides they hate it are there any options to get out of the lease or are you stuck with the car until the end of the lease?


Can you get pre-approved for a lease and find out the terms before you even go into a dealership, Like you can a car loan?


t the end of the lease, if one wants to buy the car, Is the price negotiable?

Message 16 of 16