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Leasing can be a convenient choice for some and here are some of the pros and cons of this option.



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I would add one item to that list; read the contract very closely. Some terms like "excessive wear" can be ambiguous and at the discretion of the leasee, unless spelled out. It can be a nightmare time at return, with a balloon payment for "excessive wear", items including tire replacement, servicing/repairs, and what I considered normal wear and tear.

I don't know about current leases, but in the "old days" leases were handled outside the mfgr and you could be stuck if the car depreciated beyond a certain value, especially on an early return. At the end of the lease you might find it cheaper to buy the car than settle up.

Just my thoughts. You mileage will vary.

 

[joejamieabarth]

Unless I own a business and can utilized the lease payments toward taxes (not even sure if this is still in force), I would never lease a car. It is basically renting a vehicle as when the term is over, you have nothing to show for the money you paid for three or four years. Even though our cars depreciate greatly, once paid, you own and you have something to trade, sell towards a new car. What about modifications to the car. I do not believe you can modify a leased car

I know people like to lease because they go through cars often but either way, and just my opinion, leasing is not for me

 

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I'd be interested in hearing from 500e owners. I've read all the nightmares of returning the car after the lease expires. I wonder what the residual balance is after turn in, though. Stories have a nightmare quality. Dealers out of business, others refuse to take the car, early termination requires full payment plus a $450 penalty for early return, and a high residual value. Cars sell on lots for $10K, but Fiat has the residual at double the price.

I'll have to talk to my friend's neighbor again. I see why he kept the car until the end of the lease. I'm wondering how he negotiated a repurchase... if he paid the $18K to $22K for the car, or if his dealer worked a deal.