[Mllcb42]

If I am worried about a few thousands I shouldn't be purchasing a 60k plus car.

It's a cost/benefit thing. If you can protect yourself from potentially losing thousands of dollars for next to no cost, why wouldn't you? As rates go up, next to no cost turns into an actually noticeable cost, and now the cost/benefit starts to not make much sense.

I do think it's a rule of thumb that gets overstated in many cases, especially in the days of higher interest rates, but it's a real risk that people should be aware of and understand how to mitigate.

 

[Mllcb42]

It also varies a lot by lease contract. Many brands have their contracts written such that if there is an insurance overage (that is, market value is higher than the adjusted cost balance of the lease), you agree that the overage goes to the lessor. In that case, it wouldn't matter how high of a value you convince the insurance company to pay, as you agreed that it goes to the bank, not you.

 

[Joemama]

It also varies a lot by lease contract. Many brands have their contracts written such that if there is an insurance overage (that is, market value is higher than the adjusted cost balance of the lease), you agree that the overage goes to the lessor. In that case, it wouldn't matter how high of a value you convince the insurance company to pay, as you agreed that it goes to the bank, not you.

Not if I am hurt or inconvenienced in any way from the wreck. That money goes to me, has zero to do with the car. Everyone's case is different. I would have no Shortage of attorneys mine would also be free.

 

[Mllcb42]

Not if I am hurt or inconvenienced in any way from the wreck.

Your personal injury claim would, but not the insurance payout on the vehicle. If you didn't put a downpayment down, you'd get both.

 

[Joemama]

Your personal injury claim would, but not the insurance payout on the vehicle. If you didn't put a downpayment down, you'd get both.

I get what you are saying in SC they don't have diminished value clause so its extremely hard to get you whole again. If you financed got a minor wreck worth 6k my cars resale value would go down as it would show it was in a wreck. I'd be out that money on the resale if I financed.

 

[Sheepish Lord]

That doesn't seem like a good deal IMO And I don't know what the guy above is talking about you have to put down some type of Down payment. He clearly has never leased BMW of benz.

Sad you think that...I've got some magic beans to sell you as well.

 

[Mllcb42]

I'd be out that money on the resale if I financed.

We're not talking about financing though.

It's put money down on a lease or don't put money down on a lease.

 

[Joemama]

We're not talking about financing though.

It's put money down on a lease or don't put money down on a lease.

I'd lose money regardless, so yeah I am using that as an example. So if I put zero down on a financed car I'd lose money if it got in a wreck as that would go on the title. I appreciate your opinion but I am well versed when it comes to insurances and legality.

 

[mgirls]

That doesn't seem like a good deal IMO And I don't know what the guy above is talking about you have to put down some type of Down payment. He clearly has never leased BMW of benz.

I've leased those brands and more... And you ABSOLUTELY do NOT have to put money down. People put money down so the they "feel" better about their payment. DON'T do it!

 

[Joemama]

I've leased those brands and more... And you ABSOLUTELY do NOT have to put money down. People put money down so the they "feel" better about their payment. DON'T do it!

How much is your payment over 1k? Did you lease your 4xe?

 

[Mllcb42]

I'd lose money regardless, so yeah I am using that as an example.

But it's totally irrelevant to the discussion. We're talking about the implications of money down on a lease. What happens in a finance situation is of no consequence to the specific comparison.

I appreciate that you may be well versed with liability and insurance when it comes to a purchase, but there are some nuances here specifically regarding leases that are not well known or understood.

 

[FL4xe]

but there are some nuances here specifically regarding leases that are not well known or understood.

And some of us appreciate you taking your time to help educate us.

 

[mgirls]

How much is your payment over 1k? Did you lease your 4xe?

Not even close… ZERO down, out the door was first month and dmv. 36 months 10k per year, $650. Been leasing cars since 1992 and have never put money down and have NEVER had a payment even close to $1000. Cars ranged from $40k in 1992 to $80k in 2022.

 

[mgirls]

I learned my lesson in 1992 when I leased my first ”dream car”. A brand new BMW 325is. Picked it up Friday night and totaled it Saturday night…. I purchased options in it, cd changer (remember those), and window etching. Had it been a down payment, I would’ve lost that money but because I actually bought items that were in the car, when it was totaled the insurance company owed me for those items. NEVER put money down just to lower your payment..
Side note, if your gonna do BMWs look for a state that allows MSDs (multiple security deposits), HOME RUN.

 

[Mllcb42]

Side note, if your gonna do BMWs look for a state that allows MSDs (multiple security deposits), HOME RUN

Bmw fairly recently lowered the mf reduction per msd they give killing the value of them. For other brands, it still makes a lot of sense though.

 

[Joemama]

Not even close… ZERO down, out the door was first month and dmv. 36 months 10k per year, $650. Been leasing cars since 1992 and have never put money down and have NEVER had a payment even close to $1000. Cars ranged from $40k in 1992 to $80k in 2022.

There is No way you are driving a 80k car with zero down and paying $650 absolutely NO way the number do not add up.

 

[Mllcb42]

There is No way you are driving a 80k car with zero down and paying $650 absolutely NO way the number do not add up.

I'm at $388/mo effective(I did a single pay, so thats the equivalent monthly) on my $66k wrangler lease. And my timing wasn't the best it could be.

One could easily hit $650 with $0 das on a gc 4xe with the right timing/right deal/right situation.

 

[Joemama]

I'm at $388/mo effective(I did a single pay, so thats the equivalent monthly) on my $66k wrangler lease. And my timing wasn't the best it could be.

One could easily hit $650 with $0 das on a gc 4xe with the right timing/right deal/right situation.

For 80k? okay.... I still don't see how you have a 388 month payment. No tax title fees first month payment 595 fee dealership fee here in SC there is no way you are walking out the door with that price. Not where I live.

 

[Mllcb42]

For 80k? okay.... I still don't see how you have a 388 month payment. No tax title fees first month payment 595 fee dealership fee here in SC there is no way you are walking out the door with that price. Not where I live.

Plenty of dealers across the country that will offer aggressive discounts. Rarely will it happen by just going in to your local dealer and asking them how much they want you to pay.

 

[Joemama]

Plenty of dealers across the country that will offer aggressive discounts. Rarely will it happen by just going in to your local dealer and asking them how much they want you to pay.

I talked with 5 in the state. I do my research. I am also not driving across the country for a car.