Overhaulin'

is Leasing a new car a bad idea for someone young and just starting out?

i work at a dodge dealership and although i love the salesmen, i'm still not sure if i can trust them to not take advantage of a young gal trying to get into a new car... i do get discounts... and my current car is broke down... and not worth fixing... i'm able to lease a new dodge caliber for 3years at only 215/mo. is it worth it?

Public Comments

1. I went through this, too. Here is what I learned. You need to look at the sticker price, and then add up all your payments plus the residual payment. That number should be VERY close to the sticker price or you're getting ripped off. For instance, the car I leased had a sticker of $35,000, but I ended up paying $48,000 after 5 years of lease payments. Ouch. A lease does allow you to get into a nicer/safer car for less, so if you go into it knowing it's a short term thing, AND make sure you keep your mileage at or below your quota, then you're ok. I also went over the mileage allotment, only by 3,000 miles, but they charged me .25 cents a mile. Another ouch. Also, your car insurance is always more expensive when you lease because you are mandated to carry the maximum liability coverage. Hope that helps.
2. 215 month x36 months is 7000plus dollars and you DONT OWN the car, then theres the return inspection, damages, wear and tear that you have to pay for when u return the car, unless you have a business or are self employed and can write off the lease expense in your income tax, id say buy is better than lease
3. No leasing is never a good deal. You will have spent almost 8000 dollars and most leases you have to put a down payment too. So after three year your going to have nothing. If you want a really good deal buy a 2005 car that was a lease or a rental.It will still be in great shape and have a warrenty and you will pay alot less.
4. No
5. read all of this, i know it is really lenghty but i used to sell cars so read all of it no....no.....no.....your best deal would be to buy a used car at wholesale or $1000 dollars back of book.. research the car you decide to buy thoroughly.. even if you decide to trust them they would rip off their grandmother... so don't trust them,,, once you buy it it's yours... and if they switch you into another car then you research that cars value first before buying do-not...do-not accept their word on what it is worth... research... remember it is your money you are spending.... don't buy the alarms,, don't buy the scotch guard and don't buy the paint sealants,,, they are stealing your money,,,, if you buy a used car get one that would still have a factory warranty remaining,,, ie hyundai carries a 10yr 100,000 mi warranty,, if you buy a warranty they will sell you at cost... the at cost they are giving you is a profit to them,,, research the true cost before you buy,,, again do not accept their word do your research,,, shop them at another dealer if you have to,,, get the best deal,,, again remember it is your money and you decide to spend it... the best tactic is use your innocence and just act real unsure of yourself and be indecisive and never ,,,never ,,,never make the deal in one day,, take days or weeks to decide,, and even get tearful and just keep saying i'm scared and i'm not sure... but hold out to the cheapest price possible..........and get the lowest interest rate,,, check credit union rates and bank rates first,,, know your credit worthyness all of this stuff is profit for the dealership as well,,, do your research first,,,if i am repeating this too much it is because it is the most important info you will ever have,,, do you homework,,, a brand new car will depreciate immeditely ---immediatly ---upon the time you pass the driveway of the dealer ship to the street so if you buy a 15000 car it will lose value instantly to about (what they would buy it for) so if you buy a 15000 car and rwreck it the same day the insurance will also only pay for what it is worth (much less than 15000 so check your insurance coverage as well,,, and your insurance costs are higher on leases due to higher coverages required by lease companies,,,due to the liability linking you and the lease company together as a team....but the higher coverage is not all that bad of an idea to protect you as well but you should know this as well... i hope i helped you a bit i used to work as a salesman and even the best intended salesman does not control the deal,,, so as long as they make money on a deal they will sell the car,,,,if they feel they can get more money from you they will hold off... and fight for every dollar,,,, so you have to be very determined to fight for yours, also remember the $5.00 a week they want (one trip to mcdonalds) their line is you can't even get a happy meal or something for that,,, adds up to 20-23 a month and over 60 monthes turns into $1200-1380 and that is not even including interest.. and it is your money,,, but if you give in it is theirs to spend,,, pay attention,,, the owners and managers all have nice houses, nice cars,, and fancy stuff,,, they didn't get this stuff by being anybodys friend,, they got it from i am going to make you a good deal,,, good luck and i hope that all of this only helps and doesnt scare you off,,,, it shouldn't just think of every dollar yuo save is dollars you get to spend for yourself....