Never Leased Before

bill18163bill18163 Member Posts: 5
edited November 2015 in GMC
A dealer proposed this to me for a lease. I have never leased before. I trade my 2014 Equinox(paid in full) on a 2016 Terrain for a 24 month lease. I pay $8400 which includes tax and paperwork and he writes me a check for $11600. I actually pay nothing out of pocket because the $8400 comes out of the trade value of the Equinox. There are no monthly payments because I paid the lease up front. In two years he claims I can do this again and it will be cheaper for me to do it by leasing rather than paying cash for a car every two years. Does this sound like a good deal? Are there any traps or hidden fees here? He gave me a 24000 mile limit which is about what I put on a vehicle every two years with 25 cents a mile over the limit amount.

Comments

  • MichaellMichaell ColoradoModerator Posts: 209,550
    bill18163 said:

    A dealer proposed this to me for a lease. I have never leased before. I trade my 2014 Equinox(paid in full) on a 2016 Terrain for a 24 month lease. I pay $8400 which includes tax and paperwork and he writes me a check for $11600. I actually pay nothing out of pocket because the $8400 comes out of the trade value of the Equinox. There are no monthly payments because I paid the lease up front. In two years he claims I can do this again and it will be cheaper for me to do it by leasing rather than paying cash for a car every two years. Does this sound like a good deal? Are there any traps or hidden fees here? He gave me a 24000 mile limit which is about what I put on a vehicle every two years with 25 cents a mile over the limit amount.

    $350/mo ($8400 / 24 months) seems expensive for a Terrain.

    What trim level? FWD or AWD?

    Does this include tax?

    What state and tax rate?

    What are the MSRP and negotiated selling price?

    As you can see, there isn't enough information to fully evaluate this deal.

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  • kyfdxkyfdx Moderator Posts: 210,091
    @bill18163 How much is your Equinox worth? Just $11,600?

    You have two different transactions..

    You are selling your car for $11,600

    You are leasing a new car for 24 months for $350/mo.

    Look at each deal on it's own merits.

    You have a paid for car that is fairly new. Making transactions like this are usually not fruitful, as you are selling at wholesale and buying at retail. Why make a transaction where you give up money to a dealer, when you are in no need of a new car?

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  • bill18163bill18163 Member Posts: 5
    Trim level is SLT with AWD. The $8400 is an out the door price. Pennsylvania is 6% sales tax. MSRP is $35235 and negotiated selling price is $33955. They gave me $20000 for the 2014 Equinox. I would do this because I buy a car every two years and the OTD lease cost of $8400 is a lot less than I usually pay on a purchase. I pay cash for my cars. I never finance. I would pay $8400 up front for the two year lease and put the $11600 in my pocket. There was about $4000 in incentives in the deal also.
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