Anyone here ever leased a car before? Just want to know if we (me and fiance) made a big mistake by going that route.

She needed a car and for awhile the plan was to just get the e34 in a reliable condition so that she could use it and then maybe look for a car later on. Well I guess there was more issues with e34 than I had originally thought and it would have been about $2000+ to get in the shape that she would be comfortable with. A used car was another option, but again, it had to be reliable and under warranty if possible. Only problem would have been financing it...our private student loans is not exactly helping with our credit.

So yesterday she decided to stop in at a VW dealer just to see what the whole deal is with their sign then drive event. Well after spending about 4 hours there, we (she) ended up leasing a Jetta. I guess it didn't help that she kinda always wanted one. $250/month (includes everything) for 48 months w/ 12k miles/year. I'm not worried about the miles as she will only be using it to get to work pretty much. I do wish it was only 3 years instead of 4 though. The good thing is that it will be under warranty for the whole time we have it and according to the guy, the only maintenance issue would really just be oil change every 5k miles...and tires.

So any thoughts on this? It seems to be a decent enough deal to me, especially after what happened to her rodeo, but did I miss something that is obvious to you guys? Since this is a done deal already, are there any advice about driving and maintaining a leased car?

I leased a car once. Then it got wrecked (not totalled). So I was stuck in a horrible lease contract with no way out other than to trade the car in while I was very, very much upside down on the lease.

So, bottom line, because of the payment structure and contract, you are very limited on what you can do if you want to bail on the lease. For that reason alone, I won't ever lease again.

Leasing has always seemed like a sucker bet to me. You get to make the equivalent of car payments, but don't get to keep the car. Whenever the subject comes up on Clark Howard's show, he is none to fond of it either.

To each his own, but that's never been an option I've been inclined to take.

If you are one of those people who regardless of cost/being upside down, w/e, and always plan on having a car payment anyways - a short-term lease can be a very good idea. In this case though - no, not a very good idea. Especially for 4 years, if you're going to be locked into a car/payment for that long, you should be buying used with an extended warranty. If you haven't picked up the car yet, it's not too late to tell them you changed your mind. Just because you signed the papers doens't make it set in stone.

The terms of the lease are too long for where it sounds like you are in your life, which is not an insult, but an assessment which is based on the notion that you and your fiancee are relatively young and on your way up in life. It sounds as if it is safe to assume that you all will be experiencing growth in the form of finances, children, and possibly debt (again, not necessarily bad, but a reality for most of us when one becomes a homeowner) over the next few years, so a long term lease may wind up bogging you down as things in your realm change. Also, I agree with the previous poster in saying that paying for a car for four years and having nothing to show for it after the fact is a bad deal for the scenario you described.

When leases are short (24 to 36 months, max) they work well for someone who is interested in having a car under warranty for the length of their term, but in this case, your Jetta will have at least 48,000 miles on it when the lease is done. If your lifestyle changes and you have to drive that car much farther than 1,000 miles a month, you will have to deal with paying overages for miles, and be paying to maintain a car that is out of warranty that you do not and will not own.

Which leads to another point... Whatever you do, don't buy that car when the lease is up. If you do, you will wind up paying more for the car than you would have if you had just financed it for 60 months in the first place, and it will be worth much less than what the purchase price from the leasing company will be.

Why didn't you explore the 36 month option further? I'm curious to know the dealers explanation is as to why you all could not shorten the term. I know it would have raised the payment, but by how much? Once you determine that the amount is fair, it is up to you to decide whether the lower payment is worth the extra year ($3,000) of paying on a car that is not yours.

I do not want to sound too negative, but it sounds like you were placed in a lease while you did not fully understand all that it entails. It may work out to be excellent for you, but these are some things to consider in your overall analysis.

yeah i've never been a fan of leasing either...but then again I'm also not a fan of buying a new car. I guess had this car been for me, it might have turned out a little different.

Looking back again on it, theres definitely a few things I would have changed. Main thing being the length of the lease. I think we were so focused on the monthly payment that we let that one slide. And its too bad b/c I think the payment would have only been $20-25 more per month for a 36 month lease. Mileage restriction, I don't see as being a problem...unless something drastic changes.

MSHii: Thanks for the input and don't worry about sounding negative. It is what it is. I doubt that it will work out excellent for us, but I just hope that it turns out better than her first car buying experience. As for me, I guess I can just count this as my not so good first car buying experience. And as far as buying the car after the lease is up, I don't plan to and don't see that ever happening.

Well now that I'm locked on this lease for the next 4 years, any other advice?

I leased a car once. Then it got wrecked (not totalled). So I was stuck in a horrible lease contract with no way out other than to trade the car in while I was very, very much upside down on the lease.


mind explaining more how exactly that works and how insurance plays a part in it?

Might have been discussed already, but why didn't you guys consider getting a used car that would have cost about the same? You probably could have gotten a nice used car with low miles for around ~$12/$13K for the amount you're currently paying on the lease and it would be yours?

Maybe a nice '02 - '04 330i/325i with possibly an extended warranty if you were concerned about maintenance, etc.?

Anyway, if it's too late to at least shorten the lease time, enjoy it and watch out for those miles! :)

we thought about a used car for awhile but couldn't seem to get a decent enough interest rate. but then again we didn't really try too hard.

yeah i'll try to just enjoy it during the next 4 years. at least now we have 2 cars and the e34 can just sit. maybe i can get some stuff done on it.

I lease my M because I write a portion of my payments off my taxes. Self-employment, yo :D

I got a great deal on mine an I even ordered mine from the factory. In December, it goes back to BMW and I don't have to worry about selling it or anything. I put about 8k miles on my car a year, if I'm lucky so it works out for me. I tend to go through cars pretty quickly anyway, so it works out for me. And after getting rear-ended on I20, I'm glad I'm not the official owner of that depreciating asset......come December, it's BMW's problem.

Long story short, if you're going to keep a car 10 years.....buy. If your vehicle turnover is every couple of years, look into leasing. Despite what people who have never leased in their life (yet claim to be experts) say, you CAN make it work to your benefit.