Joey, you are consistently getting leases with no money at signing? If that's true I'm ready to go get me my own Hyundai AMG tomorrow

 

Yeah, you should never put anything down on a lease (except tax, tag, first months payment etc). You drive off the lot and total the car you don't get that cash back

 

I've never bought a new car because it never seemed worth it. I typically keep cars 10years plus. I feel confident that I could be successful at negotiating a good deal on a but buy I don't really know much about leases. I always see the commercials with the great payment but at the end of the add there's fine print about $3k+ due at signing. I can't see dropping that every 2-3 years for nothing in return. If that's not the case is it just something u negotiate?

Also what do you do if you fall on hard times with a lease? You can't sell it

 

I agree with you.

Best thing to do financially, is to buy a car and run it into the ground, then buy another. A lease is not an economical way to own cars, but it does enable one to readily get rid of a car, and get the latest and greatest car in a hurry. Just depends how reliable the cars are in the end.

 

Everything is negotiatable with car dealers, and no matter what you always lose.

 

Agree, to me leasing is a way to have what you can't really afford, it works for some, just my view.

 

That's not true. I (anyone who leased) could "afford" said car (let's say an M4) but there is no way I want to tie up that much liquid cash. Even if I was a millionaire I wouldn't buy a car with cash. Interest rates are low and even the most conservative investments should get you 5% ROI easily

I do agree it is a lower monthly than a purchase though so it is a more "affordable" way of driving the car

If I didn't like cars of course the most sense financially would be to buy a beater but where's the fun in that. also, money is only worth something when you spend it right

 

But how do you get out of putting money down except first month and tax

 

You are not required to put cash down (capital cost reduction) on a lease. Usually the only requirement is first monthly payment, security deposit, and, in some states, taxes. The first payment and security deposit are sometimes waived (or paid by the manufacturer as part of a special promotion) and, in states that do not require taxes upfront, the dealers are able to advertise $0 due at signing. However, whenever you see a lease deal advertised at a really low payment, the dealer is usually just trying to advertise a "price leader" and they will include a capital cost reduction in order to lower the payment. You are only required to put the cash down if you want to drive out at that payment. Another thing with low advertised lease payments is that they usually advertise the base models (few options). So, if you want things like leather seats, power windows, cruise control, sun roof, etc., you will have a higher payment.

My two cents.

 

From somebody who spent years in this business in a former life, I'll agree with Meatballs on leasing...

It's easy to not put any money up front except first month and DMV. Let's say you see a lease deal in the newspaper for a new BMW 328i at $399/mo for 36 months. Sounds great until you look at the out of pocket expenses. Usually it's around $2999 down + taxes + DMV. But as Meatballs said, you never want to put money down on a lease, which is very true.

A good rule of thumb if you want to figure out how much a payment will be with nothing down is this:

Figure on $30/month for every $1000 you roll into the payment of a 36 month lease. So that $2999/36 is about 90 bucks a month. So now we're up to $489/month with $0 down and taxes up front. If you want to figure how much it will be per month to roll the taxes into the payment you would multiply the new payment of 489 x 36 x your home sales tax rate. Let's say it's 7%. It comes out to $1232. Divide that by 36, and it's $34/mo. So, to add it all up its $399 + 90 + 34 = $523/month with just the first payment and DMV. It's good to use for a rough estimate and to keep the dealer honest.

Of course it's all dependent on what you can negotiate, but figure for every $1000 a dealer discounts the car, it will translate to $30/month off the payment on a 36 month lease.