Is a 39 month lease bad?

Is a 39 month lease bad?

A 39-month lease based on the 36-month residual value of the car will give you lower payments, but you’ll pay more overall. And you might be driving for three months without a factory warranty so a major breakdown could cost you big time in repairs. Open-end leases are far less common.

Why is lease 39 months not 36?

Sometimes (not always) 39 month leases might have a slightly lower payment compared to 36 because the residual changes little if at all compared to 36. Advantage: (sometimes) a slightly lower payment. Disadvantage: you have the car 3 months longer for purposes of tires, brakes, inspection, etc.

How many miles is a 36-month lease?

Most standard car leases allow you to drive around 12,000 miles a year (some as low as 10,000, others as high as 15,000). The reasoning behind this is good. When you return the car in 24-36 months, the car will have under 50,000 miles on it, and the dealer can very easily sell it as a used car.

Is it better to lease for 36 or 48 months?

One advantage of leasing a vehicle for a longer term of more than 36 months is the advantage of having to make smaller monthly payments. While leasing a vehicle almost always ensures lower monthly car payments than a traditional car loan, long term leases usually provide for even smaller monthly payments.

How do you know you got a good lease deal?

To figure out the cost per $10,000 worth of vehicle, you simply divide the “real” monthly payment by MSRP, then multiply that by 10,000. Then multiply this by 10,000 and you get $121.57. This lease deal comes out to $121.57/month per $10,000 worth of vehicle. Since it’s under $125, it’s considered a good lease deal.

Is leasing a waste of money?

Leases are certainly appealing in many ways. Many may dismiss leasing as a waste of money. And it’s true, leasing a car is more expensive in the long run compared to buying one and paying it off. But for some car shoppers, it is the smarter choice.

Do I get my down payment back on a leased car?

In both a car lease and a loan, the down payment is only refundable if you don’t sign any paperwork. Once you sign all the documents, the deal is done and you can’t get your money back. You can get the security deposit back at the end of the lease term if there’s no excess wear and tear.

Why do dealerships want you to lease?

Leasing is just another method of financing, so you’ll actually be leasing through a bank or leasing company. This doesn’t mean a dealer won’t make money off a lease. In fact, most dealers LOVE leasing because it allows them to make more profit than a traditional car purchase.

Is it financially smart to lease a car?

Here’s the ugly truth: For most people, leasing doesn’t make financial sense. Lease a car if you simply love driving a new car every three years and the cost is worth it to you. As long as you’re aware, it’s fine to make a conscious decision to spend more for your cars than might be necessary.

Who is responsible for repairs on a leased car?

While some dealerships include maintenance in their lease contract, most require the borrower to pay the upkeep expenses. The contract may also list penalty charges for those who lease the vehicle and then do not keep up with the manufacturer’s suggested maintenance schedule.

Should I fix a dent in my leased car?

As a general rule, dents smaller than a quarter without any paint damage are acceptable. Anything else and the leasing company will charge you for the cost of the repair. Most dents can be fixed quickly and for a low cost, especially when the paint is not damaged.

What happens if I don’t service my leased car?

If you don’t get your car serviced properly, then you could incur charges at the end of your lease agreement, and they could be significantly more than the money you saved by not going to a franchised dealer.

What happens if your lease is a lemon?

Always remember, if your vehicle ends up being a lemon, the manufacturer is responsible for ALL of your legal costs. A skilled, trustworthy lemon law attorney will not charge you out-of-pocket-costs – as they know they will get paid from the manufacturer when they win the case.

Do lemon laws apply to leased cars?

Vehicles leased in California, whether they are trucks, vans, cars, or SUVs are specifically covered under California lemon law pursuant to Civil Code Section 1795.4(b), which provides that the California lemon law applies to leased vehicles to the same extent that it applies to purchased vehicles.