My wife needs a 2nd car for driving in the winter snow and she wants an SUV AWD or 4X4. I am thinking that a lease may be a good option. But I have heard that you often get hit with fees when your lease is up.

Who has had one and was it a good experience or bad? Why?

Thanks for any imput.

cars and trucks are dirt cheap right now....look on ebay and you will find a great deal
...leasing sucks for the most part

leasing for the most part is not a good idea. i've had some great leases in the past, but i do my homework, and make sure i'm not eating fees and depreciation. right now leases are harder and more expensive to get, you can in most cases buy a car cheaper. suv's are being dumped at a record rate, look around, you'll find one cheap.

think about it, somebody who has just lost a job, has the choice of rent or car payment. there are plenty of deals to be had....

leasing is great if you want to pay top dollar and then get boned when you bring it back.

I have been leasing a car for my wife for the past15 years,never had a bad experience. First off ,let me say my best friend owns a Chrysler Jeep store so I get an "insider deal". We own a business and I expense out 84% of the payment that is a big plus for leasing. Second plus is not having to come up with the sales tax all at one time which here on 30,000 it would be $1800. Third,my wife tires of vehicles easily hence the 24 month lease. The only maintence I ever pay for is oil changes,car is always under warranty.We get 30k out of brakes&tires. Never put money down on a lease.Now the pitfalls if your a novice .Aquisition fee probably around 450 to 1000. Residual rate which is estimated value of car at end of lease.The higher the redisual the lower the payment.Dealers can fool around with this to increase profit.Turn in fees and detail charges which Inever pay.Excess mileage and wear and tear (2 items which dont' bother me)I probably forgot a few things but Ithink thats the basics.

Leasing is a good alternative in an effort to keep payments to a minimum. Furthermore, it is preferential for people who turn over their new vehicles every 3 or 4 years. If you plan to keep the new vehicle for a long period of time then purchasing will be the better choice.

My wife and I have been leasing vehicles for about twenty years now. We usually rollover the pickup every three years and my business vehicle every four years. It is cost effective and we are able to keep relatively new, reliable vehicles in the driveway which avoids expensive repairs of older models.

What you have to understand is the fact your lease payment is essentially paying for two things - "Interest and Depreciation". A vehicle that holds its value better over a few years will have a lower lease payment due to the value being higher at the end. You could have two vehicles that have the identical MSRP but the lease payments could be different due to the future value issue.

The other important item in a lease is the mileage over the term of the lease. There is usually a "standard" annual mileage factor (EG - 12,000 miles per year). Should you exceed the mileage at the end of the lease then there may be an additional mileage charge. You can write into the new lease additional mileage which will cost you less per mile on a monthly basis than paying for the extra mileage at the end of the lease.

With what has happened to vehicle values this year (especially full size trucks and SUV's) as a result of gas prices and the economic downturn, I would guess leasing costs will be higher today than in the past due to the lowering of the value of the vehicle at the end of the lease.

Also, some manufacturers may not even do leases now. I believe GMAC falls into this category. I expect lease payments to be higher these days and interest rates also to be higher. I have no idea what we will do when our two leases come due with GMAC in the next year or two.

Hope this information helps a bit.

Get a Subaru.... :D

Leasing is like rent - only the landlord wins in the long run, but sometimes you have to do it in the short run. Do your homework, look at the total cost, beginning to end, compared to a car you buy.

I can't imagine you can find a better lease deal than an outright purchase if you look into it right now, there are cars being given away by dealers as well as owners that need some cash.

http://www.carbuyingtips.com/lease.htm

I have leased twice now, but I went back to buying as the lease terms have all gotten bad. I got a 3.9% loan on a used car though!

Ron

Eh, I've leased a few cars in the past. Last one was an MB AMG model and that deal sucked because Mercedes, especially the AMG ones, depreciate like there's no tomorrow. You end up paying for that "privilege". Live and learn, I guess.

Current lease is on a 2005 Acura TL which I wanted to take back last July because I was bored with it. I cannot get out of it without taking a check down to the dealership...I have to wait until June when it's up. If you like to get out of your cars or get antsy like me, leasing is not for you. The other thing is if you want to keep it longer than the term, you are also screwed. At least you have some equity when all is said and done if you buy and that is what I recommend. Next car or truck I am buying instead.

Residuals on trucks and SUVs are in the toilet right now, so lease payments will be higher than before. Several companies have also stopped leasing altogether (Chrysler and GM).

RMX