Is it possible to get a decent car for under $200 (lease) with ZERO money down???

[dosekies]

I agree with those saying to buy used. I bought my first car 2 years ago and went with a year old certified used Chevy Sonic. I LOVE my car and loved even more the fact that I put exactly half down, financed the rest and paid it off in under a year. I cannot imagine having monthly payments for years.

 

[NinaBella]

I am leasing my car and so far it has been great for me. It's my first lease since I never would have leased when I was active duty as we traveled to much.

Now, some leasing companies DO require higher liability limits, so that would increase insurance costs. Not an issue for me since I carry really high liability limits that exceeds my leasing company requirement anyways.

I have an aunt who has only leased cars as long as I can remember (since high school and I am in my 40's). My husband's father also only leased when he was living. For some of us, it works out great. I have a year left and think I will get a SUV this time since I miss my SUV and my teens will be driving soon. I like the idea of a higher vehicle.

Now I wouldn't lease a car for one of my kids. I would get them a used car or lower cost new car. I wouldn't have an issue with them driving my leased vehicle if there was no other vehicle available, but it would be my primary car, not theirs.

 

[NinaBella]

Here's an article on why 0-down leases are not only hard to get (if at all), but the drawbacks (and they're huge)...

https://www.autotrader.com/car-tips/leasing-a-car-the-drawbacks-of-a-zero-down-lease-225688

Sorry, I don't see any drawbacks. Did you read the comments where people dispute this article?

 

[Klayfish]

I am leasing my car and so far it has been great for me. It's my first lease since I never would have leased when I was active duty as we traveled to much.

Now, some leasing companies DO require higher liability limits, so that would increase insurance costs. Not an issue for me since I carry really high liability limits that exceeds my leasing company requirement anyways.

I have an aunt who has only leased cars as long as I can remember (since high school and I am in my 40's). My husband's father also only leased when he was living. For some of us, it works out great. I have a year left and think I will get a SUV this time since I miss my SUV and my teens will be driving soon. I like the idea of a higher vehicle.

Now I wouldn't lease a car for one of my kids. I would get them a used car or lower cost new car. I wouldn't have an issue with them driving my leased vehicle if there was no other vehicle available, but it would be my primary car, not theirs.

There's nothing wrong with leasing if you WANT to do it, but financially it's about the worst way to own a car. You're paying all the depreciation and getting zero equity, it's a lose/lose.

FYI...I strongly suggest you do NOT put your kids in an SUV. I've been in auto insurance claims for decades, and have studied tens of thousands of accidents, if not 100,000 accidents. I can tell you beyond a shadow of a doubt, an SUV isn't where you want a teenager. Get a good sedan, you'll be far better off.

 

[NinaBella]

There's nothing wrong with leasing if you WANT to do it, but financially it's about the worst way to own a car. You're paying all the depreciation and getting zero equity, it's a lose/lose.

FYI...I strongly suggest you do NOT put your kids in an SUV. I've been in auto insurance claims for decades, and have studied tens of thousands of accidents, if not 100,000 accidents. I can tell you beyond a shadow of a doubt, an SUV isn't where you want a teenager. Get a good sedan, you'll be far better off.

I hate to dispute you again, something I haven't mentioned on the boards before, but I am also in the auto insurance industry. Seems like we just are on opposite ends on everything.

But everyone is entitled to their opinions... like, I am not looking for auto equity. LOL. I won't even go there. Some of us like to have a new vehicle every few years, which if that is what you want is a win/win. It's all about perspective.

 

[NinaBella]

There's nothing wrong with leasing if you WANT to do it, but financially it's about the worst way to own a car. You're paying all the depreciation and getting zero equity, it's a lose/lose.

FYI...I strongly suggest you do NOT put your kids in an SUV. I've been in auto insurance claims for decades, and have studied tens of thousands of accidents, if not 100,000 accidents. I can tell you beyond a shadow of a doubt, an SUV isn't where you want a teenager. Get a good sedan, you'll be far better off.

Google Teen Driver SUV or Sedan and here is the first article. SUV wins. I am sure there are many more articles, but I have errands to run. LOL. My "kids" are 25, 23, 16, and 14, so I have been there done that twice already.

https://www.thezebra.com/insurance-news/1704/which-type-of-vehicle-is-safest-suvs-or-sedans/

 

[DLgal]

I leased a car in college and it was a great deal. I got a Honda Civic EX for $199/month, zero down for 4 years. Total lease cost $9600. At the end of the lease, I bought the car outright for another $9600. At the time, my total of payments was the same as it would have been had I purchased the car outright, but it allowed me to actually afford it without stretching myself too thin while in school. By the time the lease ended and I did the buyout, I had enough in cash to cover it. So basically, I got a brand new car, and had it paid off in 4 years. I would not have been able to afford the payment if I had purchased it with $0 down and financed $19200. I could not afford a $400/month payment. I could afford half that.

I kept that car another 4 years and then sold it for $7500. It had low mileage and I took good care of it. In my situation, the lease was a win-win.

 

[Klayfish]

I hate to dispute you again, something I haven't mentioned on the boards before, but I am also in the auto insurance industry. Seems like we just are on opposite ends on everything.

But everyone is entitled to their opinions... like, I am not looking for auto equity. LOL. I won't even go there. Some of us like to have a new vehicle every few years, which if that is what you want is a win/win. It's all about perspective.

Sweet! Nice to have someone else in the business here! Are you in claims?

Yeah, I wouldn't disagree that if you want a new car every few years and have the financial resources to have a lease (and can abide by the terms), then there's nothing "wrong" with it. It's opinion. Financially though, it's not the best way to go. So in OP case, if the person has a really tight budget, I definitely would recommend against leasing. But that's why there's vanilla and chocolate ice cream, right?

As for vehicle safety, there's no perfect answer, right? I don't need a Google article to tell me, just going from decades of experience. It's a very, very complicated situation. First, what is an SUV anyway? Are they considering a Nissan Juke an SUV? The line is very, very blurry, so it's muddying the waters tremendously. Most new SUVs are now just cars wearing high heels...they're station wagons that Americans refuse to call "station wagons". So yeah, those things do quite well. I'm thinking old school, true SUVs. Could go on and on... Sadly, I've seen tragedy in every type of vehicle, so nothing is bulletproof. But trends do emerge.

 

[supersnoop]

I leased a car in college and it was a great deal. I got a Honda Civic EX for $199/month, zero down for 4 years. Total lease cost $9600. At the end of the lease, I bought the car outright for another $9600.

This demonstrates why the same decision can have such different outcomes based on the state in which you reside. In Texas, you’d have to pay the full sales tax on the lease at inception. Then, you’d be responsible for “business personal property tax” every year. And, when you bought the car at the end of the lease, you’d pay sales tax on the purchase price again.

Leasing can come with lots of hidden costs that need to be considered.

 

[leebee]

Also with leasing, when the lease ends they are often quite picky about the condition of the vehicle. We were sent a list of "requirements" that had to be met, or paid for, things like no scratches or dings over a certain size, tires had to have a certain amount of tread left OR be replaced with new tires of equal or greater quality than what was originally on the vehicle, glass requirements, interior damage limitations, etc. Our SUV was in great shape, but we were close on the tread (hmmm... they let you buy additional miles so you don't go over the mileage limitations, but if using the miles you paid for run down the tires, you have to pay for new tires... hmmm....). We knew about the mileage limits, but never thought about the other things. Turning in a leased vehicle can become a very costly experience!

 

[Nayan]

Sorry, I don't see any drawbacks. Did you read the comments where people dispute this article?

I see a number of them, especially the fact that you will have to put something down, even if it's just tax and tag. Also, payments are higher since you put nothing down so the $200/month won't work in the OP's case.

Leasing is good if you have excellent credit, have a business that you can deduct the lease and can afford everything that goes with it (you're still going to have to pay if a tire blows or if something breaks that the warranty doesn't cover, plus the cost of full insurance which depending on the vehicle could be very expensive). You can get a much better deal buying a car than leasing and when payments are done you own it, compared to paying for three years then either turning it in and owning nothing (or owing the company extra money due to damage or 'excessive wear') or buying it (in some cases) for more than it's worth. The OP would be much better off finding a good used car.

 

[LYSE]

I see a number of them, especially the fact that you will have to put something down, even if it's just tax and tag. Also, payments are higher since you put nothing down so the $200/month won't work in the OP's case.

Leasing is good if you have excellent credit, have a business that you can deduct the lease and can afford everything that goes with it (you're still going to have to pay if a tire blows or if something breaks that the warranty doesn't cover, plus the cost of full insurance which depending on the vehicle could be very expensive). You can get a much better deal buying a car than leasing and when payments are done you own it, compared to paying for three years then either turning it in and owning nothing (or owing the company extra money due to damage or 'excessive wear') or buying it (in some cases) for more than it's worth. The OP would be much better off finding a good used car.

Actually it can work 0 down right at 200 a month tough but doable ..check out my link I posted earlier.

Your still paying for blown tires etc if you own or lease so for me that's a mute point, insurance is also mute because there's no way I would have a newer car without comprehensive coverage.

You can come out ahead with leasing if you never planned on owning the car for very long, look at buying a car and selling it after 2-3 years..in most cases leasing will have you out of pocket less. Leasing of course isn't one size fits all, and some cars lease MUCH better than others.

Basically cars with excellent resale value's tend to lease better since there is less depreciation to pay for, a lot of brands will also be overly optimistic on the residual and you end up paying far less depreciation than is actually incurred *cough BMW benz etc..

There's also a whole set of cars that you should ONLY lease and never purchase. (Range Rover for example)

 

[gmar1210]

$200 OTD with $0 down is not very easy. There are always fees involved and taxes along with title. Probably between $2k and $2500. I know VW is running some decent specials now.

 

[sksjasams]

There's also a whole set of cars that you should ONLY lease and never purchase. (Range Rover for example)

OT...but this is my DS's dream car. Why should you only lease it? TIA

 

[LYSE]

OT...but this is my DS's dream car. Why should you only lease it? TIA

Well because they break all the time and drop in value like a rock, by leasing it you only "own" it in warranty and are exposed only to pre determined depreciation.

You could buy an older one with a CarMax warranty and make out pretty good though...but buying a new one is horrible, you'll take a massive hit in value and once it's out of warranty repairs will beat you senseless.

 

[tvguy]

Well because they break all the time and drop in value like a rock, by leasing it you only "own" it in warranty and are exposed only to pre determined depreciation.

You could buy an older one with a CarMax warranty and make out pretty good though...but buying a new one is horrible, you'll take a massive hit in value and once it's out of warranty repairs will beat you senseless.

Or buy it new and drive it for 30 years. Repairs are MUCH cheaper than depreciation, sales tax, registration, and insurance premiums on a new car.

 

[LYSE]

Or buy it new and drive it for 30 years. Repairs are MUCH cheaper than depreciation, sales tax, registration, and insurance premiums on a new car.

Lol!!! Drive a range Rover for 30 years after buying it new?

Sorry but Google it...

Not to mention no one buying a new RR wants a very old one.

For some giggles watch this video:

 

[Klayfish]

OT...but this is my DS's dream car. Why should you only lease it? TIA

Oh goodness, you do not want a Land Rover/Range Rover. Run, run as fast as you can. I suppose if your wallet is really big and you don't mind paying a ton of money, then leasing one could work. But from a quality perspective, they are utterly horrid. Even during a lease, your odds of having to bring it back for repairs are pretty high. British heritage car company now owned by Indian interests does not make for high quality.

 

[sksjasams]

Oh goodness, you do not want a Land Rover/Range Rover. Run, run as fast as you can. I suppose if your wallet is really big and you don't mind paying a ton of money, then leasing one could work. But from a quality perspective, they are utterly horrid. Even during a lease, your odds of having to bring it back for repairs are pretty high. British heritage car company now owned by Indian interests does not make for high quality.

This is my DS's dream car, and in his dreams his wallet is really big - LOL!
Thanks for all your replies! I will def pass that info on to my DS if he is still talking about them when he is out of college.

 

[tvguy]

Lol!!! Drive a range Rover for 30 years after buying it new?

Sorry but Google it...

Not to mention no one buying a new RR wants a very old one.

For some giggles watch this video:

Nope. But a Suburban or Expedition, no problem. LOL. There is an independent British auto repair shop next to my mechanic. They make a lot of money doing warranty work on new Range Rovers that the Range Rover DEALERS can't fix.