Hellcat owner no longer/ Lease turn in thread

[Jimmy N.]

If you have a business Then leasing is for you, it's an effective cheaper way to own many vehicles if you know what you're doing.

That's the part I couldn't handle, spending lots of money yet not own the vehicle.
I want to be able to say "Yes, that's my car" if someone should ask me.

 

[droptopp]

^ what’s the difference, it’s a depreciating asset. Straight line write off as a fleet car for a business owner as mentioned above.

Why eat the 50%+ depreciation for a three year old car.

 

[Magnified]

First, I’m not buying a foreign car even if it has some ties to Dodge. I’ve ridden in a Mercedes before and the seats are literally too hard. Not as comfortable as the SRT to me. Second, it does not look as exotic and literally wicked as the Charger. It is a real box. Finally, it will cost you 3x as much to change oil or for any service. We used to have a POS Range Rover County. You can figure on spending $500 on an English or German car pretty much anytime you pull it in to the service bay. Not for me!

Already did. The platform is originally German (for the old E if I remember correctly), the motor is made in Mexico, the car itself is made in Canada, the oil cooler lines in Costa Rica, etc.... The car ain't "made in America" despite what the shifter says.

 

[2pac]

That's the part I couldn't handle, spending lots of money yet not own the vehicle.
I want to be able to say "Yes, that's my car" if someone should ask me.

@droptopp is right

Also the bank owns the car whether you finance or lease.

Unless you are blowing money buy purchasing cash then you don't "technically own anything," even the bank owns you for your mortgage.

 

[2pac]

Already did. The platform is originally German (for the old E if I remember correctly), the motor is made in Mexico, the car itself is made in Canada, the oil cooler lines in Costa Rica, etc.... The car ain't "made in America" despite what the shifter says.

Winner winner chicken dinner.

 

[SilverBillet]

It’s the heritage that counts for me

 

[droptopp]

It’s the heritage that counts for me

Lots of heritage and pedigree in many platforms enjoy.

 

[droptopp]

@droptopp is right

Also the bank owns the car whether you finance or lease.

Unless you are blowing money buy purchasing cash then you don't "technically own anything," even the bank owns you for your mortgage.

If I didn’t pay my taxes, doesn’t matter there is not a mortgage, “they’ll” come and take it.

Can you really own anything these days ? Hahaha

 

[Phast Hemi]

So just an update

Picked up f-150 platinum lease in February for $465/mo.

Lease was over this month, just sold it for $45,500 to a local dealer and my buyout was $42,000.

So my total cost of ownership is as follows.

$465 x 11 = $5,115 - $3500(payout) = $1615 divided by 11 months of use = $150/mo for a 1 year lease.

@ChargerChallenger hope you enjoy this Nasty deal.

Have a couple questions about what your doing here. Did you have any start up cost on this lease? Why only 11 payments, did they buy you out a month early? Have you found limitations on doing this based on the leasing bank?

 

[Jimmy N.]

@droptopp is right

Also the bank owns the car whether you finance or lease.

Unless you are blowing money buy purchasing cash then you don't "technically own anything," even the bank owns you for your mortgage.

Did I mention that I like to be able to say "It's mine"?

Well, there is that painful three month period that I do have to keep a car financed in order to get several thousands off. Then it isn't mine, and as much as I hate owing anybody anything, I do. Plus it does cost me $200-$300 in interest.

You may see that as blowing money. I see it as saving money.

Basically, if I can't afford to buy it, I don't. And that includes the house. In a sense, what I can't afford is to pay interest.

 

[2pac]

Have a couple questions about what your doing here. Did you have any start up cost on this lease? Why only 11 payments, did they buy you out a month early? Have you found limitations on doing this based on the leasing bank?

This was found on swapalease.com

Essentially it was somebody else's lease, they put down 8k at signing and wanted to get rid of it with 11 months left on a 36 month term.

They listed it and I dealt with ford and picked up the vehicle, I paid $0 to the guy and just paid a $75 transfer fee to ford.

Yes so each leasing bank is different, with ford I found you can't sell the vehicle to a 3rd party like vroom, carvana, etc etc so I Shopped these sites thinking they would buy it until I talked to ford credit, however I took these quotes to ford dealers and they shot their offer, $45,500 was the highest I got.

Leasing is very tricky, for example ally bank, gm financial, and some others do not allow out of state transfers.

Some banks like Chrysler cap do not allow transfers at all.

I have found bmw to be the easiest to get in and out of.

I had myself worked a deal with a dealership to lease a $65,000 530i for $318/month with $318 das, not less than a few months later I transferred that lease for $3,500 paid to me to another out of state buyer.

 

[2pac]

Did I mention that I like to be able to say "It's mine"?

Well, there is that painful three month period that I do have to keep a car financed in order to get several thousands off. Then it isn't mine, and as much as I hate owing anybody anything, I do. Plus it does cost me $200-$300 in interest.

You may see that as blowing money. I see it as saving money.

Basically, if I can't afford to buy it, I don't. And that includes the house. In a sense, what I can't afford is to pay interest.

Nothing wrong with that strategy because it avoids you going into debt like an average American.

Same strategy as my parents had or still have a bit... well my dad moreso runs the finances, but my mom is also very smart when it comes to spending money.

However that changed when I was able to start working leases on vehicles for them.

From 1992 when they got married until 2017 they had maybe gone through maybe 15-16 cars, from 2017-2020 they have gone through approximately 15-16 cars, while often not even paying much after positive equity or selling a lease transfer.

Again it really depends on you and your business, he is able to write 3-4 vehicles off at a time and she is able to write one vehicle off at a time, so essentially this is the real motivating factor for them, give money to the government or spend money on themselves.

If you start to acknowledge that nothing is truly yours you will start to appreciate things more in my opinion, houses, cars, jewelry, etc etc all have a finite time, so all you really can do is enjoy them and move on.

The exact reason why when he builds his new home every 8-10 years he designs them to his liking but also stay very neutral and make sure the house is not abnormal in any sense.

Essentially it works like this, leasing allows them to put their money to good use in the markets vs spending on a depreciating asset.

Take a $100,000 car for example
After 3 years it's worth $60,000
On a 3 year lease you only spent $30,000

Having that $100,000 invested in the market to find After 3 years your portfolio grows to something like $125,000.

So person A who bought the car, has $0 and a depreciating asset worth $60,000

Person B has $125,000 but no car, subtract the $30,000 from the $125k and you get $95,000

So now Person B can still continue to grow that money and the ability to rid himself of the depreciating asset.

$25,000 after 3 years is conservative considering investing in stocks like tesla, apple, netflix, nvdia, etc etc can probably net you $50k after splits, etc etc

There are different schools of thought but for me this one seems the best course.

At the end of the day for me it's about avoiding burdensome debt, and having your money create more money.

 

[Mike L.]

If you have a business

Move through cars frequently

Or want the latest and greatest

Then leasing is for you, it's an effective cheaper way to own many vehicles if you know what you're doing.

With in depth knowledge you can do some cool stuff, for me it's a hobby. For many others they work hard, make good money and don't want to stress and shop around.

In my opinion though, if the programs are good leasing is the way to go with high performance cars, no out of warranty issues, ridiculous bang for buck if you can handle shopping, and the ability to move to the latest and greatest when your term is up.

Tax write-off is a huge motivator, spend money on yourself versus giving it away to the oh so "frugal" government.

Been doing this for years. You are right on.

 

[Magnified]

It’s the heritage that counts for me

I understand that but I really hat these american companies like Black and Decker who have moved all production to China but still trade on their brand name and rep from when it was all made in america. it's all about money - they can make more money paying less to manufacture in china, but they hurt our nation in the process. Look at the corporate margin over time on products, used to be around 7 to 10 percent, now it's near 40 percent. Great for the share holders, not so great from the standpoint that we don't make anything or have good manufacturing jobs anymore. Not everyone can work at mcdonalds. but I'm a preaching again. Suffice to say I am willing to pay a few dollars more for the things I buy (like my winches) to have them made in the US.

 

[Jimmy N.]

So person A who bought the car, has $0 and a depreciating asset worth $60,000

That would be me. And while it may cost me money to buy a car, I really like that it's not a "rental", but mine.
Heck, it can take me a year or two before a vehicle feels like it's mine anyway. Or should I say, before we're good friends.

Tax wise a lease would do nothing for me, so no incentive there. Financing a car would probably help my credit score, but I don't really care what it is.

Now, if I started pulling money out of investments, maybe leasing could become advantageous. And if I did lease, it might as well be a 4-door.

 

[droptopp]

Lol at these comments about not being able to afford a car vs lease a car and all the assumptions that go along with it.

As with any cost (I didn’t say investment since it’s a depreciating asset), do your homework and get advice. Just because you don’t lease doesn’t mean it’s not sound financial advice and could provide you with more to the bottom line.

FEIW - My hellcat I bought as a left over in the middle of winter from a showroom and wrote a check. Was a completely different market then it is now though.

Used prices are through the roof making leasing much more attractive for new as the starting point is fixed.

 

[AeroF16]

I know nothing about leases but I can see how it makes sense if you dont plan on keeping the car long term.

Does it ever make sense if you "might" keep the car long term?

 

[2pac]

I know nothing about leases but I can see how it makes sense if you dont plan on keeping the car long term.

Does it ever make sense if you "might" keep the car long term?

It depends on the incentives, there have been cases where the lease incentives are way bigger than financing incentives, in that case the play would be to lease it and then immediately financing it a lower rate.

This was actually a thing with the kia stinger or Acura tlx... forgot which one.

Essentially there was $10,000 lease incentive but a 2.5% interest rate (extremely high for leasing)

So the smart ones leased and then bought it out immediately to avoid that nasty interest rate.

Typically however most captives offer more incentives to purchases versus leases.

So the only way it would make any sense to lease to own would be in the first model of a new generation where maybe you are unsure of kinks and Don't want to deal with a car that has issues after the warranty expires... nothing an extended warranty couldn't tackle though.

Also maybe if you are unsure if a specific model is for you, you wouldn't want to be stuck with negative equity after 3 years.

It will probably cost you more for both of those scenarios but you have peace of mind.

There are also cars that just depreciate great and lease horribly i.e porsche

 

[Phast Hemi]

It depends on the incentives, there have been cases where the lease incentives are way bigger than financing incentives, in that case the play would be to lease it and then immediately financing it a lower rate.

This was actually a thing with the kia stinger or Acura tlx... forgot which one.

Essentially there was $10,000 lease incentive but a 2.5% interest rate (extremely high for leasing)

So the smart ones leased and then bought it out immediately to avoid that nasty interest rate.

Typically however most captives offer more incentives to purchases versus leases.

So the only way it would make any sense to lease to own would be in the first model of a new generation where maybe you are unsure of kinks and Don't want to deal with a car that has issues after the warranty expires... nothing an extended warranty couldn't tackle though.

Also maybe if you are unsure if a specific model is for you, you wouldn't want to be stuck with negative equity after 3 years.

It will probably cost you more for both of those scenarios but you have peace of mind.

There are also cars that just depreciate great and lease horribly i.e porsche

Have you ever been the original lesser of a new vehicle on a 3 year lease and tried to turn it in early through ccap?

 

[2pac]

Have you ever been the original lesser of a new vehicle on a 3 year lease and tried to turn it in early through ccap?

Tried to turn in early no, but once term was up yes.

I was able to get a local dealer to offer big money, more than vroom or carvana offered.

There is someone on the other forum that sold their ccap lease. So yes its possible, your buyout will reflect the remainder of payments and the residual value at time of deal. So if somebody offers about buyout you should be golden.

Ccap does not allow transfers so you have to be original leasee.