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cv91915

Should I Take Over Someone Else's Car Lease?

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There is no monthly tax...

Locally here in NY, when leasing a car, you can lay the tax into the monthly payments

 

Ny doesn't technically allow leases per say.

 

 

their are tons of leasing companies out there

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interesting idea. Some of the issues that I see are.

 

1. I looked about about a dozen and they all want a down payment. One of your pros was that the person already made the down payment.

 

I'm filtering out the listings that want money down.

 

2. It seems like there is always a credit application fee

 

Did you happen to see how much?

 

3. There are transfer fees which appear to be $350

4. You should still have to transfer plates

 

The costs for 3 and 4 may make remaining terms < 24 months a lot less attractive

 

5. On top of the $300 estimate that you said you would also have oil changes, inspections, tires, and of course break downs

 

I wouldn't get a car that wasn't under warranty. The miscellaneous costs are certainly unavoidable.

 

All told, I still think I'm way ahead compared to spending $300 for two weeks a month for a 1-cylinder Chevrolet Dingo from Enterprise.

Edited by cv91915

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interesting idea. Some of the issues that I see are.

 

1. I looked about about a dozen and they all want a down payment. One of your pros was that the person already made the down payment.

 

I'm filtering out the listings that want money down.

 

2. It seems like there is always a credit application fee

 

Did you happen to see how much?

 

3. There are transfer fees which appear to be $350

4. You should still have to transfer plates

 

The costs for 3 and 4 may make remaining terms < 24 months a lot less attractive

 

5. On top of the $300 estimate that you said you would also have oil changes, inspections, tires, and of course break downs

 

I wouldn't get a car that wasn't under warranty. The miscellaneous costs are certainly unavoidable.

 

All told, I still think I'm way ahead compared to spending $300 for two weeks a month for a 1-cylinder Chevrolet Dingo from Enterprise.

 

 

Make sure you let us know if you do this. I am very interested. I noticed that some of the listings are showing they want money down and there are some that don't say but they say contact seller for more info. I am wondering if when you contact the seller they will say they want money down.

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interesting idea. Some of the issues that I see are.

 

1. I looked about about a dozen and they all want a down payment. One of your pros was that the person already made the down payment.

 

I'm filtering out the listings that want money down.

 

2. It seems like there is always a credit application fee

 

Did you happen to see how much?

 

3. There are transfer fees which appear to be $350

4. You should still have to transfer plates

 

The costs for 3 and 4 may make remaining terms < 24 months a lot less attractive

 

5. On top of the $300 estimate that you said you would also have oil changes, inspections, tires, and of course break downs

 

I wouldn't get a car that wasn't under warranty. The miscellaneous costs are certainly unavoidable.

 

All told, I still think I'm way ahead compared to spending $300 for two weeks a month for a 1-cylinder Chevrolet Dingo from Enterprise.

Make sure you let us know if you do this. I am very interested. I noticed that some of the listings are showing they want money down and there are some that don't say but they say contact seller for more info. I am wondering if when you contact the seller they will say they want money down.

I'm definitely going to pursue this further. I'll keep this thread updated.

 

In the interim, I'd appreciate any other feedback or thoughts on this from everyone. :)

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I was 100% convinced I was going to do this because I did find a lot of great deals on leasetrader.com

 

Ultimately I ended up NOT doing it only because I decided that i wanted one specific car with all of the options and I didn't think it was very likely I would find it by waiting around for one to be available on lease trade. I ended up buying a car 1-yr used like someone else mentioned in this thread.

 

If you are flexible in what you are looking for then I think its a great idea. Id be surprised if you didn't have to pay any taxes, but I guess each state is different in that regard.

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I was 100% convinced I was going to do this because I did find a lot of great deals on leasetrader.com

 

Ultimately I ended up NOT doing it only because I decided that i wanted one specific car with all of the options and I didn't think it was very likely I would find it by waiting around for one to be available on lease trade. I ended up buying a car 1-yr used like someone else mentioned in this thread.

 

If you are flexible in what you are looking for then I think its a great idea. Id be surprised if you didn't have to pay any taxes, but I guess each state is different in that regard.

 

I'm normally very particular about the cars that I buy, but this is going to be what I would consider an "extra" car. I'm not going to drive it more than 5 or 6 times a month, for an indefinite duration. This method of ownership is perfect for our (somewhat unusual) situation.

 

I am going to look more into the tax aspect today.

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In all of the states I have leased, sales tax is not charged at purchase but monthly based on your payment. So you wouldn't avoid that.

 

I don't believe BMW has an acquisition fee, so you wouldn't avoid that (and in all likelihood the original lease probably rolled it in anyways if they had one). You would still be responsible for disposition fees at the end (I think BMW was $395).

 

I don't see much advantage to assuming a lease unless you've found someone desperate to get out that throws in enough of their own cash to make the deal happen.

 

If you choose your model wisely so it has a high residual, why not just do the lease yourself? You would surely qualify for the best tiers and strongest incentives.

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There is no monthly tax...

Locally here in NY, when leasing a car, you can lay the tax into the monthly payments

 

Ny doesn't technically allow leases per say.

 

 

their are tons of leasing companies out there

 

Every auto commercial in NY has something about leasing a vehicle!

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There is no monthly tax...

Locally here in NY, when leasing a car, you can lay the tax into the monthly payments

 

Ny doesn't technically allow leases per say.

 

 

their are tons of leasing companies out there

 

Every auto commercial in NY has something about leasing a vehicle!

 

 

Walk in a NY dealer and ask for a "lease"

 

I lived there 20 years. Its a modified buy option, Its been awhile but its very similar to a traditional lease but some of the components of said lease are different.

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In all of the states I have leased, sales tax is not charged at purchase but monthly based on your payment. So you wouldn't avoid that.

I don't believe BMW has an acquisition fee, so you wouldn't avoid that (and in all likelihood the original lease probably rolled it in anyways if they had one). You would still be responsible for disposition fees at the end (I think BMW was $395).

I don't see much advantage to assuming a lease unless you've found someone desperate to get out that throws in enough of their own cash to make the deal happen.

If you choose your model wisely so it has a high residual, why not just do the lease yourself? You would surely qualify for the best tiers and strongest incentives.

There will be no monthly sales tax to consider for our situation, based on where the car will be registered. From the State's web site:

 

"...the tax will now be collected up front, on the amount to be paid by the lessee over the term of the lease. The tax is to be collected by the dealer, based on the rate in the lessee’s county of residence. The dealer remits the tax directly to the State..."

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OK, we want an AWD SUV. I picked a random Chevy Equinox LS (because that's a common car people seem to want to ditch) with 2,800 miles and 33 months remaining, and ran the numbers. No, I don't lie awake at night dreaming of someday, somehow, driving an Equinox. :P Based on the mileage and term remaining on the reference vehicle, this must have been a 3 year/36,000-mile lease.

 

I believe I factored in all of the variables we discussed in this thread so far. If I'm off by a few dollars a month either way, NBD. If I missed anything glaring and significant, please comment.

 

One big assumption I didn't test: With the purchase scenarios I assumed that with a 60-month car loan that I could sell the vehicle at 36 months and pay off the loan with the proceeds.

 

I didn't factor in maintenance, tires or vehicle registration since those wouldn't vary based on the method of acquisition. Also, I didn't compare purchasing a similar vehicle from a private party, since we would never do that. As a reference used vehicle I used a CPO price for the reference vehicle, and I got the price from (GASP) that purveyor of vehicle fiction KBB (NADA guides couldn't price a used vehicle this new with this few miles).

 

Here's my analysis:

 

EquinoxComparison_zps439e63b7.png

Edited by cv91915

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There is no monthly tax...

Locally here in NY, when leasing a car, you can lay the tax into the monthly payments

Ny doesn't technically allow leases per say.

their are tons of leasing companies out there

Every auto commercial in NY has something about leasing a vehicle!

Walk in a NY dealer and ask for a "lease"

 

I lived there 20 years. Its a modified buy option, Its been awhile but its very similar to a traditional lease but some of the components of said lease are different.

There are companies that " strictly " do leasing

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There is no monthly tax...

Locally here in NY, when leasing a car, you can lay the tax into the monthly payments

Ny doesn't technically allow leases per say.

their are tons of leasing companies out there

Every auto commercial in NY has something about leasing a vehicle!

Walk in a NY dealer and ask for a "lease"

 

I lived there 20 years. Its a modified buy option, Its been awhile but its very similar to a traditional lease but some of the components of said lease are different.

There are companies that " strictly " do leasing
Read the MVRLA and then you will understand the difference between a lease in new york, and a lease in new jersey. But beyond that, CV the numbers look good, please let us know how the process works out.

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There is no monthly tax...

Locally here in NY, when leasing a car, you can lay the tax into the monthly payments

Ny doesn't technically allow leases per say.

their are tons of leasing companies out there

Every auto commercial in NY has something about leasing a vehicle!

Walk in a NY dealer and ask for a "lease"

 

I lived there 20 years. Its a modified buy option, Its been awhile but its very similar to a traditional lease but some of the components of said lease are different.

There are companies that " strictly " do leasing
Read the MVRLA and then you will understand the difference between a lease in new york, and a lease in new jersey. But beyond that, CV the numbers look good, please let us know how the process works out.

cv, please update when you know what you're going to do. :)

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I think we are going to pursue this. Normally I'm pretty particular about cars, but this thing won't see much use.

 

For a rental from Enterprise on my current trip I got "double upgraded" from an "Economy" car to a Ford Focus for $150/week, all-in. I thought a Focus WAS an economy car... But I digress...

 

I'll need a rental for about two weeks a month. I think $250 a month for a lower-end SUV is a much better value... Even with an additional auto policy for $55 a month and some maintenance and registration costs on top of that...

Edited by cv91915

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Just keep in mind that if you don't end up using it for the whole 2 weeks each month and you end up taking a long term lease, your in for a loss...

 

Is it mostly going to be used for local driving or mileage isn't a issue?

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Just keep in mind that if you don't end up using it for the whole 2 weeks each month and you end up taking a long term lease, your in for a loss...

Is it mostly going to be used for local driving or mileage isn't a issue?

This thing will double as a winter commuter car for my spouse for days when it's snowy/icy, and the prissy Prius is no match for the sh1tty weather. I plan to spend less time here in the winter months (favoring our house in San Diego for obvious weather reasons), and more time the rest of the year. Two weeks a month is a safe average.

 

The reference vehicle lease includes an average of 824 miles per month, which should be more than enough for local trips, which is the only real use this vehicle will see.

 

I need to correct an earlier post: the original lease was 30,000 miles, not 36,000 as stated previously.

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%#^#*

 

Site costs $79.95 to join so you can get the seller's contact info.

 

A lot of the listings look suspiciously similar (several list cars as "Pet Free," including the incorrect capitalization).

 

Looks fishier the more I look.

Edited by cv91915

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%#^#*

 

Site costs $79.95 to join so you can get the seller's contact info.

 

A lot of the listings look suspiciously similar (several list cars as "Pet Free," including the incorrect capitalization).

 

Looks fishier the more I look.

Referring to swapalease?

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%#^#*

 

Site costs $79.95 to join so you can get the seller's contact info.

 

A lot of the listings look suspiciously similar (several list cars as "Pet Free," including the incorrect capitalization).

 

Looks fishier the more I look.

 

Ruh roh... Which site?

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%#^#*

Site costs $79.95 to join so you can get the seller's contact info.

A lot of the listings look suspiciously similar (several list cars as "Pet Free," including the incorrect capitalization).

Looks fishier the more I look.

 

Ruh roh... Which site?

Swapalease.com

 

I'm more than wiling to pay a fee for a completed lease transfer, but this is starting to look like a bad dating site.

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You would have to figure that there are fees associated with using any such companies.

 

Often the seller takes the fees, not usually the buyer.

 

I'm assuming in this case it may be both...

 

Hidden fees suck :(

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