Who Purchased Their Leased Car?

[xrivera91]

I personally believe until that title is not in your hand you don't own the vehicle.

[xnuyokr]

# 1 reason to lease....... I you desire to drive a new/different car every 2 - 3 years and don't mind always having a car payment it's the only way to go. A close second is probably less money needed up front and lower monthly payments.

[baum]

we lease my wifes cars. we have bought out 1 car after the lease. when you sign a lease you know what the residual value will be (meaning how much you owe at the end of a lease if you want to buy it). a lease can still be negotiated some will tell you they cant, but they can as our current is a great example of it. we have a traverse, when the dealer started to work the numbers we were at a 360/mo lease. by the time we were done we were down to 280/mo, zero down, plus we got the dealer to pay off the current lease that we were getting out of (3 months of payments), then we just gave that car back to the original dealer (dealer didnt want it on trade). i thought we did good considering chevy's advertised price was 269/mo with 2500 down.

one thing to know about a lease is when the time is up, if there is positive equity in the vehicle meaning the trade value is worth more than the residual then trade it in o a new car and you get the equity. if the other way around then give it back so you dont have negative equity.

[BlueN20Camaro]

I leased my 1LE for 380 the lease is just shy of 4 years. Brand new I put every mile on it. Once my lease is up the car has to be financed for a pre agreed price of 25K doesn't matter if the car is worth more or less that's the price you pay. So for me as a part time worker since school this made sense when I'm leasing I pay 380$ when I buy after the lease pay 380$ as well just it takes 8 years to pay off but makes the car affordable to people like myself with good credit. ONLY WORKS IN YOUR FAVOR IF you are with a good credit score, but since the nation average is nearly at 630 I doubt many on this page do and gets 1LS for300$ a month. It makes the car obtainable if you aren't full time just you have payments for an extended period. Not that hard to understand.

[Demon War Horse]

Originally Posted by Rahjeir

Um, no. The bank has a lien on the car, they don't own it. It is not the same thing. Officially, you own the car and can do anything you like to it. A lease clearly states you can't altar the car.

Who maintains the title? You or the Bank? Whoever has the title has ownership legally I think. Much like Mortgages, we buy them, but the bank owns the paper on them until paid off. Once paid off you get the title in a car transaction. So the bank technically owns it until you pay it off IMO.

[Bulldog3071]

Never lease a car unless you can write off the cost associated with a business, that makes sense. Basically you are getting a car you can't afford and I'd you want to purchase it at the agreed price you can pay the residual value in cash or fiancé the car at a used car interest rate, in fact paying more. I know a lease is all some can do and I'm not knocking them just understand what you are getting into

[hworth18]

There isn't anything wrong with leasing a car if you plan to use it for a minimal commute and don't plan on keeping it. I did the lease/buy option on my GrandPrix and I will NEVER do that again.. Basically, you make small payments on the car and at the end of the lease, you'll still need in excess of 5 years to pay it off. In the end, you've paid way more than you would have if you had just bought the car outright.

[BlueN20Camaro]

Originally Posted by hworth18

There isn't anything wrong with leasing a car if you plan to use it for a minimal commute and don't plan on keeping it. I did the lease/buy option on my GrandPrix and I will NEVER do that again.. Basically, you make small payments on the car and at the end of the lease, you'll still need in excess of 5 years to pay it off. In the end, you've paid way more than you would have if you had just bought the car outright.

The level of intelligence in this page is shocking.again if you have bad credit yes you pay more than what it's worth. If you have good credit you pay the same. Multiply 380 by 8 years it's the same money if I financed my car. The same final price. The same. Take your time and read this twice, not that difficult. Now if I had 6 credit cards and show no history of paying back than yes it wouldn't be smart. But if i still pay 40K just in 8 years I'll take that any day.

[xrivera91]

Originally Posted by Demon War Horse

Who maintains the title? You or the Bank? Whoever has the title has ownership legally I think. Much like Mortgages, we buy them, but the bank owns the paper on them until paid off. Once paid off you get the title in a car transaction. So the bank technically owns it until you pay it off IMO.

Exactly. The bank always maintains the title until the balance is paid. You never really own a car unless it's fully paid with title in hand. Just because a finance allows modding doesn't mean it's yours.

[Rahjeir]

Originally Posted by Demon War Horse

Who maintains the title? You or the Bank? Whoever has the title has ownership legally I think. Much like Mortgages, we buy them, but the bank owns the paper on them until paid off. Once paid off you get the title in a car transaction. So the bank technically owns it until you pay it off IMO.

The bank has the title cause they have a lien on it. The bank gave you a loan, which you paid for a car. In the documents you sign, you give the bank the right to lien it. If you default on the loan, they can take it to repay the loan. That's not ownership, its a lien. Home mortgage works the exact same way. You can sell your car at anytime to anyone, as long as you pay off the bank so they can release the lien.

A lease simply put is a car rental.

[xrivera91]

Originally Posted by BlueN20Camaro

The level of intelligence in this page is shocking.again if you have bad credit yes you pay more than what it's worth. If you have good credit you pay the same. Multiply 380 by 8 years it's the same money if I financed my car. The same final price. The same. Take your time and read this twice, not that difficult. Now if I had 6 credit cards and show no history of paying back than yes it wouldn't be smart. But if i still pay 40K just in 8 years I'll take that any day.

Well said after my lease is over I'll be financing 18k for my 2ss/rs

[Rahjeir]

Originally Posted by baum

we lease my wifes cars. we have bought out 1 car after the lease. when you sign a lease you know what the residual value will be (meaning how much you owe at the end of a lease if you want to buy it). a lease can still be negotiated some will tell you they cant, but they can as our current is a great example of it. we have a traverse, when the dealer started to work the numbers we were at a 360/mo lease. by the time we were done we were down to 280/mo, zero down, plus we got the dealer to pay off the current lease that we were getting out of (3 months of payments), then we just gave that car back to the original dealer (dealer didnt want it on trade). i thought we did good considering chevy's advertised price was 269/mo with 2500 down.

one thing to know about a lease is when the time is up, if there is positive equity in the vehicle meaning the trade value is worth more than the residual then trade it in o a new car and you get the equity. if the other way around then give it back so you dont have negative equity.

You got a good lease. I'm not against leasing, I lease one car myself.

[67Builder]

I lease my 1LE because I can write off the entire cost of the lease, gas, upkeep... If i wasn't able to write it off. I'd never lease.
Leasing isn't a bad thing mind you. But buying makes more sense fiscally if you either (a) plan to keep your car for a long long time, or (b) plan to trade your car in for a new one around the 4-5 year mark with low miles while it still has value.
Leasing makes sense if you're planning on having a new car every 2-3 years, or if you're just unable to afford the car you want and don't mind the fact that you'll not get the full fledged equity built into a bought car.

[MLL67RSSS]

Originally Posted by Demon War Horse

Who maintains the title? You or the Bank? Whoever has the title has ownership legally I think. Much like Mortgages, we buy them, but the bank owns the paper on them until paid off. Once paid off you get the title in a car transaction. So the bank technically owns it until you pay it off IMO.

JFTR it depends on where you live. In Indiana the bank holds the title until the loan is paid off. In Arizona they do not, you have the title in hand and the banks holds a lien on the car. This caused me a real headache when I moved to AZ years ago. I went round and round with the person at the DMV, they didn't want to issue a license plate without me producing a title which I could not do as it was at the bank in Indiana until I paid off the car. You'd think in the entire history of AZ they had never dealt with this issue before...