The Costs of a Lease

Titan04rules · 10-12-2005, 05:50 PM

Hey guys, i just want to know if anyone knows what costs of a lease are. I know the basics, such as, tax, title, regist., acquisition fees. I've also heard that a deposit which equals to about one months payment and also the first month's payment. Anything else???

In addition, how is the interest rate (money factor) determined? The dealer usually tells you that it's based on your FICO, so if i know what my FICO is, how would i find out what my rate should be? I basically want to go in the dealer knowing the approximate rate so i don't get shafted. It seems to be easier with loans since the auto loan interest rates are somewhat related to other interest rates, such as the prime rate. But it appears that's not the case in leasing.

I really appreciate any help!

Thank you!

Bayou Titan · 10-12-2005, 07:48 PM

I know I'll probably get flamed, but there are a boat load of reasons not to lease. You will usually have to buy way more insurance than you need, which protects the company leasing you the truck. In some states you are not protected by lemon laws the same as if you owned the truck outright. (remember, you don't own the truck) If you go over on the mileage you have to mileage fees. You will usually have to turn the truck back in at the end of the lease in pristine condition or you will have to pay for every little scratch or dent.
These are only the things I know about first-hand that are reasons for consideration. There are many more. There are lots of sites on the net about leasing.

**HudsonValleyTitan** · 10-12-2005, 08:00 PM

Interest rates don't usually differ between a buy or a lease. But be careful. Nissan doesn't offer anything lease-wise that would steer anyone away from buying a Titan. In fact, you lose some or all of the cash back if you don't buy. Leasing tends to be cheaper on higher priced vehicles that keep their value (high residual).
Search for FICO on the net. There are a few sites that'll tell you your score for a fee but I have no idea how that translates into a percentage rate for a loan or lease.
Leasing, other than for a business, is usually held for those who want a vehicle they really cannot afford because the monthly payments are slightly lower than a buy. You'll need GAP insurance which is cheap. Most leases require some sort of "down payment" and first month lease payment. Plus you pay taxes up front for the portion of the vehicles service life you use (add up total payments of lease...you pay taxes on that amount).

kartman · 10-12-2005, 08:06 PM

Whenever I leased in the past I just negotiated a cash price first then after the price was set then tell em lease and for how long and how much down.

Wake County Titan · 10-12-2005, 09:20 PM

Lease rates are not that great anymore. It used to be you could lease a car for 3 years for a lower monthly payment than a 5 year loan. It's not longer true. Just ask for a lease quote and a 5 year loan quote and you will see. I was told by a finance manager that the leasing companies have taken a bath because the resale value of cars was lower than expected. Consumers just handed in their cars at lease end rather than re-finance the payoff. Lease companies are raising their rates and lowering the residual values so they do not get pinched again. All the other advantages of financing over leasing still apply as well (mileage restrictions, vehicle condition, insurance coverage, etc)