Lease deal-opinioms please

[Nyc_rock]

hi, my 2021 Tesla MY is costing me 666 a month and I want to lighten the load. Going from finance to lease. Been quoted the following. Taking my car and rolling in 6k in equity. Zero out of pocket (other than first months payment) and was quoted $293 a month with 13.5k miles a year for 36 months. Premium with extended range and glass roof. 52k msrp. Sound good?

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[MatchaGT]

Go for it. You won't regret it. Best car I've owned

 

[EB87]

Someone asking if they get a new vehicle with a dirt cheap payment and making it sound like they aren’t sure if it’s a good deal is hilarious

 

[moritzes]

hi, my 2021 Tesla MY is costing me 666 a month and I want to lighten the load. Going from finance to lease. Been quoted the following. Taking my car and rolling in 6k in equity. Zero out of pocket (other than first months payment) and was quoted $293 a month with 13.5k miles a year for 36 months. Premium with extended range and glass roof. 52k msrp. Sound good?

Yes, that is a good deal. Quite a bit better than mine for the same car.

 

[GreaseMonkey]

Yes, $460 a month is 0.9% of MSRP, which is a good deal.

 

[fkyct]

hi, my 2021 Tesla MY is costing me 666 a month and I want to lighten the load. Going from finance to lease. Been quoted the following. Taking my car and rolling in 6k in equity. Zero out of pocket (other than first months payment) and was quoted $293 a month with 13.5k miles a year for 36 months. Premium with extended range and glass roof. 52k msrp. Sound good?

I am picking up a 2026 Tesla LR AWD Model Y Saturday and trading my 2023 MY in on it. Look at the Tesla Inventory Deals. Tax Credit expires at the end of the month.

 

[dalola]

I would take your Tesla equity as cash, don't roll it into the lease. It's sound practice to never put extra cash into a lease.

 

[fkyct]

I would take your Tesla equity as cash, don't roll it into the lease. It's sound practice to never put extra cash into a lease.

My opinion is that the only positive aspect of putting money down on a lease is that that your monthly lease payment will be less

My 2024 Lightning Lease was zero down and 0% interest rate.

BUT!

There are negative risks putting more money down on a lease. Ford Leases include GAP insurance. If your vehicle is totaled during the lease you just walk away. If it is totaled early on you will not be refunded any down payment.

You have to weigh the benefits of putting money down in your particular financial position.

 

[GreaseMonkey]

My opinion is that the only positive aspect of putting money down on a lease is that that your monthly lease payment will be less

My 2024 Lightning Lease was zero down and 0% interest rate.

BUT!

There are negative risks putting more money down on a lease. Ford Leases include GAP insurance. If your vehicle is totaled during the lease you just walk away. If it is totaled early on you will not be refunded any down payment.

You have to weigh the benefits of putting money down in your particular financial position.

There’s no benefit to put money down for anyone’s financial situation. Put the money in a savings account and schedule an automatic draw of a small portion each month to pay Ford. Why do people complicate things?

The financial illiteracy in this country is staggering.

And this is in no way directed at you.

 

[fkyct]

There’s no benefit to put money down for anyone’s financial situation. Put the money in a savings account and schedule an automatic draw of a small portion each month to pay Ford. Why do people complicate things?

The financial illiteracy in this country is staggering.

Ans this is in no way directed at you.

No offence taken because we generally agree that it is poor financial decision for MOST people.

BUT not for all people. Here are 3 situations where putting money down on a lease may make actually sense.

1. There lots of are people who have a "how much a month" mentality and they FEEL better and sleep better with lower payments. (my wife is that way )
2. Another case is someone with a FICO score that is borderline. An extra payment may lower their score to a lower tier causing higher interest rates on other loans they may have or may be considering.
3. Another case may be someone who is looking at purchasing a home. A high lease payment would negatively affect debt-to-income ratio (or the amount of your monthly debts versus your take-home pay). This may disqualify them for a mortgage amount they need to buy a home.

Fortunately I am retired and debt free other than my 0% $0 down lease. I was recently surprised that the lease balance and payment dropped my FICO score several points. But I still am well above 800 so I still am top tier.

 

[GreaseMonkey]

No offence taken because we generally agree that it is poor financial decision for MOST people.

BUT not for all people. Here are 3 situations where putting money down on a lease may make actually sense.

1. There lots of are people who have a "how much a month" mentality and they FEEL better and sleep better with lower payments. (my wife is that way )
2. Another case is someone with a FICO score that is borderline. An extra payment may lower their score to a lower tier causing higher interest rates on other loans they may have or may be considering.
3. Another case may be someone who is looking at purchasing a home. A high lease payment would negatively affect debt-to-income ratio (or the amount of your monthly debts versus your take-home pay). This may disqualify them for a mortgage amount they need to buy a home.

Fortunately I am retired and debt free other than my 0% $0 down lease. I was recently surprised that the lease balance and payment dropped my FICO score several points. But I still am well above 800 so I still am top tier.

Imagine how sad it is for someone who needs to put $2,000 down on a car lease to fix their debt-to-income ratio and qualify for a mortgage. That person has no business leasing a new car or buying the home. This is what I’m lumping into the financial illiteracy bucket: driving yourself into so much debt that even the bank says you can’t afford it. You would be one leaky roof or a clogged sump pump away from foreclosure and / or bankruptcy. We have learned nothing from the 2008 great recession.

 

[RickMachE]

No offence taken because we generally agree that it is poor financial decision for MOST people.

BUT not for all people. Here are 3 situations where putting money down on a lease may make actually sense.

1. There lots of are people who have a "how much a month" mentality and they FEEL better and sleep better with lower payments. (my wife is that way )
2. Another case is someone with a FICO score that is borderline. An extra payment may lower their score to a lower tier causing higher interest rates on other loans they may have or may be considering.
3. Another case may be someone who is looking at purchasing a home. A high lease payment would negatively affect debt-to-income ratio (or the amount of your monthly debts versus your take-home pay). This may disqualify them for a mortgage amount they need to buy a home.

Fortunately I am retired and debt free other than my 0% $0 down lease. I was recently surprised that the lease balance and payment dropped my FICO score several points. But I still am well above 800 so I still am top tier.

It is still a poor financial decision. It might make good sense for a person's mental health and well-being, but that doesn't make it a good financial decison. Both #2 and #3 are very poor financial decisions because that person has no business being overextended.

On a very popular financial forum, people argue to always pay cash. Then, someone does the math of a 0% or 0.9% loan, showing the return of investing the funds instead and paying that no or low interest loan over 4 years. Then the person comes back with "but I have no debt"...

Even with a high rate, getting a loan and then immediately paying it off can yield a manufacturer's incentive. Done that on quite a few vehicles. Pay 15 days of interest, pocket $1,000. Easy peasy.

Our 0.9% Mach-E loan has just under a year left. Monthly payments are $1,190.80. S&P 500 average and return exceeds 15%. Money Market return exceeds 4%. No brainer.

Our 30 year mortgage was adjustable, with rates down at one point to the low 2s. Then it started to climb. When it got above 4%, and I projected it was going to go above 6 and then higher, I compared it to bond returns and decided it was time to pay it off after 16 years. But in those years, made magnitudes more in the market.

Everyone is different. Everyone has different things that work for them. My in-laws had no debt, they paid cash for everything until I explained how flashing a big bankroll at the grocery store when you're 80 wasn't a good idea. They had no clue on investing, paying broker after broker to buy front load mutual funds, paying cash for vehicles... I took over their funds 20 years before they passed away and grew their investments in 2 no load mutual funds and cds.

Managing your credit allows you to get lower rates and maximize life. Some people have credit scores in the high 800s. Gets you lower insurance rates also, because credit impacts insurance score.

Every day people buy things with credit they can't afford. Many of those people focus on payment, not the poor financials of the 6 or 7 year loan they just took out. Buying based on payment takes your eye off the total cost, a bad thing. Better they spend time learning why it is bad.

After doing things the same way for 40 or 50 years, people are unlikely to change. That is life. And what works for them. But hopefully more people can learn about finance and do better as a result of seeing examples.

 

[Sikkun]

On a very popular financial forum, people argue to always pay cash. Then, someone does the math of a 0% or 0.9% loan, showing the return of investing the funds instead and paying that no or low interest loan over 4 years. Then the person comes back with "but I have no debt"...

Not taking a 0% and just paying cash when CDs are hovering 4-5% is just being brain dead not following good advice.

 

[dalola]

Food for thought; smart debt will make you wealthy quicker than anything else, except luck.

 

[ChehRob]

My cash for the MME ended up a car, license, sales tax zero percent loan and went into a bond, to keep my bond/stock closer to the balance I wanted. No one, without inside information, knows where assets should go these days. But if someone wants to give me a 0% loan for $60K I'll take it.

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