Edmunds.com | Inside Line | Auto Observer Your Account | Help | Directory
You are here:
![[F]](http://a332.g.akamai.net/f/332/936/12h/www.edmunds.com/media/townhall/webxicons/site.gif){kind=small}
Forums
Sedans Volvo S40 Volvo S40: Lease Questions
299 messages, Last post on Nov 17, 2009 at 4:49 AM
You are in the Volvo S40 Forum. Your Hosts are pat & karens
|
Replying to: qbrozen (Feb 25, 2009 9:38 am) A lease offers you the opportunity to avoid that with included GAP insurance (for most makes).. For most auto loans, this is an extra-cost item... So, why take the risk on a lease, if you don't have to?
|
|
|
Replying to: kyfdx (Feb 25, 2009 9:40 am) The only reason that makes sense to me is to take advantage of super low money factor. But the same applies to special financing rates. In either of these cases, I'm all for borrowing as much as is allowed. |
|
|
|
|
Replying to: qbrozen (Feb 25, 2009 9:38 am) When you put money down on a lease, that's money directly out of your pocket that won't be rolled in to the value owed on the car if it were to get totaled. So, when my car was deemed a total loss a few weeks ago I automatically stopped paying the payments on my car and owed nothing more, but everything I had already spent on the car (down payment + all 5 monthly payments) will not be reimbursed by the insurance company. GAP insurance does not cover what you have already spent. Instead, gap insurance is to cover the difference between the pay-off value of the car (what you would have had to pay the the finance company to buy the car the day of the crash, which is essentially what your insurance agency does) and the current market value of the car (deemed by your insurance agency through their own research). Many times, lease holders end up being upside-down on their leases (meaning the current market value is less than what the finance company is owed for the pay off). This is why Gap Insurance is definitely a good idea. I was lucky enough to have had it in my lease and to have actually had a slightly higher current value than pay-off value so I didn't have to use it:) If you finance or own a car, then all the money that you put toward it is taken away from your total selling price and whatever money you get back from the insurance company is your's to keep and put toward another car. On the car I totaled, I put about $650 down...which I thought was not a lot of money and I thought it would eventually be amortized through the course of four years. However, since my car was totaled in less than 5 months of driving it, I basically am out an extra $650 (or, for those of you who see cars through monthly payments, that breaks down to the fact that over the short period of time I had my car I was paying about $500/month rather than $350/month I negotiated). On another slightly related note, unless you are always putting the same amount down, it's hard to compare the rates you are getting on each car. At least, in my opinion. Sorry for the lengthy explanation, hopefully that makes more sense!
|
|
|
Replying to: shop4cars1 (Feb 24, 2009 4:36 pm) I know we could do better. |
|
|
|
|
Replying to: mikeut2k3 (Feb 25, 2009 1:45 pm) I contacted one dealer via email and asked for his best offer since I have to make a decision by Saturday and am ready to move. He came back with a quote of $329/month + tax with 1K down right off the bat (36mos/12k). I'm going in tonight to see the car and try and grind it down some more  Unfortunately, I don't qualify for the loyalty cash back, but that could be another 1K off! Let me know what else you find.
|
|
|
Replying to: shop4cars1 (Feb 25, 2009 2:56 pm)
|
|
|
Replying to: shop4cars1 (Feb 25, 2009 11:16 am) HOWEVER, my point is ... let's take a theoretical example. You put $650 down and lost it. If you had financed the car and put ... oh, let's say $2k down, and you purchased GAP insurance, you'd be out $2k right now because the car easily depreciated that much. So what I'm saying is, I don't see how putting more money down on a finance is any less risky than putting it down on a lease.
|
|
|
Replying to: qbrozen (Feb 26, 2009 11:23 am) ). It's just riskier putting money down on a lease, than not putting money down on a lease.. On most leases, nullifying that risk is virtually free... Which can't be said of purchases.. (though, that's not what we are discussing here... in the lease questions forum... I think..  ). regards, kyfdx
|
|
|
Replying to: kyfdx (Feb 26, 2009 11:26 am) When folks say things like "on a lease ..." and, really, my point is it applies to both lease and finance. So the lease, with regards to gap and a totalled vehicle, works no differently than a finance. You just need to buy the insurance with the finance while it comes automatically with the lease. And, no, I wouldn't say its "free" with the lease thanks to the fees. |
|
|
I don't know.... I consider it "free", when it's included, because I'm not going to pay extra for it, if it's an option... (disclaimer: never leased from a bank that didn't include it). Not on a purchase, either.... My insurance company guarantees fair value for my car, if it's totaled... That means the amount has to cover getting a comparable vehicle.... So.. even if the car is only worth $X, and I owe $X+$1000, $X will replace my car, so I'm even.... What I owe doesn't really have anything to do with how much my car is worth. But, on a lease, I may not be able to replicate the lease terms on another car... So, I can actually lose money without GAP. Just my $0.02..
|
|
You are here:
Forums
Sedans Volvo S40 Volvo S40: Lease Questions
New? Join Now!
Forum Tools
Search Forums
Browse by Vehicle
2010 Volvo S40
Browse by Board
Browse by Topic
Today's Chats
