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I have a friend who wishes to trade-in/sell his 50K miles, 5-speed 1999 V6 Passat and lease a new Civic (or something comparable). He asked about the transaction, but I have never leased, and so don't know much about leasing, and what to look for.
So if you can educate me about leasing, what are the things to look at, which cars lease well etc.
In addition, he will be using the car as transportation to and from work not a lot more, and is considering maybe staying with the Passat. Problem is the car started showing its age (the gauge cluster looks like a 70's night club) the ABS module needs replacement, and I told him it might be a good time to move on, before costs start ramping up, what is your take?

TCL rule:



Modified by IsraelGT at 3:45 AM 11-26-2006
 

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Re: Need help: Trade-in and leasing (IsraelGT)

depends on the lease terms. I, for one, hate leases. Did it once, and it didn't go well. But that was my experience.
Granted you can get into a car for less $/mo, but some cars require a good amount of money up front (deposits, 1st payment, etc), and then there are all of the restrictions.
I don't like leases because they are always a win win situation for the dealer. They "sell" you a portion of a car and set the terms for its use, then you have to give back the car which they can either actually sell to you again at the residual price (depends on car), or they can keep it and sell it to someone else or they can sell it at auction. Either way, the dealer comes out ahead.
The leasee can get into a newer car for close to his old payment, but still needs to come up with a downpayment (possibly) and do the process all over again. All this time never building equity and giving oneself a car payment every month as long as the leasing continues.
Good luck with finding out the right info. You might find out more info on the car buying forum.
 

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Re: Need help: Trade-in and leasing (gti dreamn)

Quote, originally posted by gti dreamn »
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The leasee can get into a newer car for close to his old payment, but still needs to come up with a downpayment (possibly) and do the process all over again. All this time never building equity and giving oneself a car payment every month as long as the leasing continues..

If you buy a relatively expensive car, $55k+....lot of times it pays to lease them. Because the used car market today is more or less in the toilet. Expensive cars just don't really hold their value anymore, even MBs. So unless you put down a good amount of money, you aren't going to be in a strong equity position after 2-3 years (most leases being in the 3 year territory, so that's what you should go by when comparing finance terms).
 
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