The Trouble With Auto Leases - Lehto's Law Ep. 2.42 

Back in the early 90’s; Threw a rod on the 82 cutless, local dealer picked it up, got a lease cause it was cheap and I had no money , 3yrs later, went in for the last pm, they kept it as the lease would run out in 4-days. No warning or anything, mechanic walked in with my stuff, that’s when I knew lost my ride. There I am in a dealership with no ride, personal sh*t in a plastic bag and they are trying to get me to lease another vehicle. Walked down the street to call a ride as they would not let me use the phone. Lesson learned.

So glad I have owned my truck (380,000 miles) for 18 years and don't have to mess with dealerships. My next (used) truck will be paid for in cash with the non payments I have saved.

Something I learned the hard way and verified with a dealer is that to the dealer, a lease is the same as a sale. If you don't negotiate the price, they get the sticker price (which is paid by the leasing bank) and if you want to buy the car at the end of the lease, the residual value will be that much higher. So, even if you are leasing, you want to negotiate the sale price just like you are buying the car.

As Steve says, you have to know what you're getting into and understand the lease. As someone who never goes over miles, that's a non-issue for us. If you're someone that always wants to be in a new vehicle and find a great deal, you can surely play the system to your advantage. I leased a chevy Equinox for $900 down and $85 a month (I can't buy that car for that price), turned it in a got a Malibu for $900 down at 89 a month, again, can't buy for that price. I'm also driving a 2017 silverado 4x4 $999 down $165 a month. I'll be turning it in soon and they have a lease deal right now for $999/150 a month. I've also had a few bad leases, but all from Jeep. You have to do what works for you

Easy rule of thumb, leases, like most financial contracts, insurance, stock options, pay day lenders, credit cards, mortgage CDS’s ... were created to enrich the contract creator at the expense of the contract buyer.

Steve forgot to tell us about the finance (interest) charges included in each monthly payment. When I turned my 24-month leased car in (with dealer approval) in 18 months, they deducted the remaining 6 months interest charges -- saving me money. Finance (interest) charges apply over the time you have the car.

what I loved about leasing was knowing the car would be under warranty.

Just buy a used car with cash. You can get a pretty reliable vehicle for the equivalent of just a few months of a new lease.

My brother-in-law always leases as he thinks it saves him money. However when he gets to the point where he is close to going over the mileage he simply only uses the car for short rides. Will no longer go on a trip. He is a slave to the lease.

And keep an eye on the tires! The inspection they do at the end, usually at your home or work - they will measure the tread depth on the tires - I lucked out and had about 1/32 more than I needed to be in compliance! You can't turn it in on bald tires! Also - they will look for door dings and dimples. As Steve points out if you know you're going to deal with the same dealer when you get out of it - you can bend them over and get some flexibility on things - small dings, tires, miles - but you have to be willing to play ball with that dealer again on the 2nd lease or purchase.

The GM EV-1 was only available for lease through Saturn dealers. When GM decided to end the program they required immediate return of the vehicles whether you were at the end of your lease term or not. If you were over mileage you were charged for being over and if they was any damage you were charged for repairing the damage even though all of the EV-1s were destroyed by GM to ensure they were never used again. About 40 were saved for museums and research facilities.

My parents leased a Sentra because they knew they wouldn't be driving it more that 12000 miles a year and it was cheaper. At the end of the lease Nissan had them take it to a 3rd party inspector that signed off on the car and sent it to the dealer. The dealer then tried to tell my Dad that there was damage that the inspection didn't find and my Dad simply told him "that's too bad because I have a signed statement from an independent party that Nissan selected that says that damage is on you". He didn't pay any extra.

I always lease my car and NEVER make a down payment. I push for (and get) my desired monthly payment and so, for the last 20 years have driven a new car every 3 years, get all maintenance taken care of free of charge (well, as part of my lease payment), and I cannot imagine actually purchasing a car. I always read all leasing documents in detail (often to the great annoyance of the sales people handling it) and I usually manually modify any aspect of the documents that I don't agree with. The last time I did my lease the finance person was so impressed by my modifications that she gave me even more discounts than I anticipated! I always lease the same make/model of car and from the same dealership, so I get even more discounts and incentives.

OP-ED: 1st. You CAN negotiate terms of lease such as milage/mos etc. 2nd. Your taxes and fees / down payment can be included in monthly payment (credit depending) ... typical $99- $2,999USD NOT $9000! 3. YOU CAN SELL or BUY your leased vehicle at anytime...if you're under miles, or early DONT PARK IT, sell it, or buy/trade it. Anything OVER the fixed buyout price is yours , including "appraisal" . 4. FINANCE WISDOM: Lease items that DEPRECIATE in value , Finance items that APPRECIATE in value. ( simple math, though most ignore it. ) *There's additional tax benefits to this. If the vehicle is for business purposes and you itemize milage, gas etc talk to a CPA who actually knows the difference and you're "fit". Besides your home, transportation is your biggest expense. In fact , over a life time, most people spend more real dollars on vehicles than their housing.

i ended up with a $3000 charge for overmiles. I offered to settle for $1000 and they accepted it.

My wife and I did our first lease ever on her car last year. Already there are those mileage concerns because she is now traveling for several months to a different work location (with extra pay at least for mileage.) However we went with a higher mileage limit... so still OK as long as she does not continue being reassigned the next 2 years. At this point, she loves the car. We have the option to walk away at the end, or purchase the car for a predetermined price (at the time of leasing). As it looks she will probably buy it out at the end and keep the car. But, 2 years to go, who knows. However the dealer probably despised all my questions. We have bought several cars off the same salesman, so he was patient with me. I own my truck outright. Bought it cash 3 years ago as a preowned. Still driving it today. Plan to keep driving it.

I am a CPA and a former corporate fleet manager. I have had hundreds of employees come talk to me about car leasing and I would say that no more than 10% of those people - many of them very educated - have a clue as to what they are really getting into when they lease a car. Before I leased a car, not that I ever would, I would want to now what the buyout amount is UPFRONT and have a provision where I could choose to buy the car. That way, if my conditions change and my mileage goes crazy, I have an upper limit as to what I am going to spend.

My '87 Toyota is showing some signs that it's about to cross the rainbow bridge. I appreciate this video as well as your other informative car acquisition videos.

I've watched about 10 full episodes. mind blown. thank for so much useful information

This is excellent advice. I have leased a total of 9 cars and trucks. Everything is hunky doree just as long as you understand some basic facts you can not change. 1. You lease UNTIL THE END of the lease date. No matter what. You get X amount of miles, and if you go over it is going to cost you plenty. and varies from one mfgr to another one lease vendor to another. So you better be able to accurately predict how many miles you are likely to be driving. At the end of the term, there is almost ALWAYS a turn in fee, (usually 300 dollars in my cases) no matter what. This is to get the vehicle back into re-sellable condition. Figure that in first rather than last. In some RARE cases you will have a vehicle at the end of the lease that is worth considerably more than the residual value that was assigned. (Had that happen once in my case) You can then sell that vehicle and pay that value back to the lease company and the rest is yours to keep. Rare, but it happens. I crashed 4 of the 9 lease vehicles (none of the accidents were my fault) and I did not get penalized as i had the dealership body shop repair the vehicles and on inspection not a word was said they all knew the situation and was glad to get to do the work. Just a few points. Good job Steve in making a complicated thing a bit less scary!!!!!!!

I've been leasing cars since 1993. I went for the factory lease deals, usually $199 a month. I had 2 Acuras, an Isuzu Rodeo, and 3 Nissan Altimas (bought a Ford Ranger that I kept for 7 years). For all but one of those leases I was way under milage and I used that equity to cover the entire cost of the down payment. So I love leases.

You can always buy the car which I have done provided the car was reliable. Then the mileage doesn't matter. I never really like the idea of being forced to do something 3 years from now. I might have something going on where I really don't want to deal with resolving a lease termination.

I leased a Cadillac Escalade a few years ago from GM Financial and was able to get out of it a year into the lease. They quoted me a payoff quote which actually seemed pretty reasonable considering how many payments I had already made and I was able to trade the vehicle in. It was actually pretty seamless, really no different than trading in a car on which you have financing.

always ask what the residual value of the vehicle is (within mileage limitations) at the maturity of the lease! That is the projected market value (trade in value). Lease only vehicles with high residual values ie Honda Accord, Toyota Camry, Jeep Gr. Cherokee, Full size 4dr Pickups.. Vehicles that hold their value on the aftermarket. 50-60% of MSRP on a 3yr. lease is a good residual. Combine that with the cash due at signing and compare the figures to an outright buy. Never lease a vehicle knowing your NOT going to stay under the mileage limits!! With all of the zero finance deals available now, Leasing rarely makes sense financially.

All you do with a lease is pay someone else to take out a loan on your car.

Two benefits to leasing are: a lower monthly payment for a nicer vehicle and you are always driving a car that is under warranty. Most people have a certain amount of money to spend each month and a relatively low lease payment (as opposed to a higher purchased car payment) can ease the monthly bills. I've leased about 12 vehicles from four dealerships and the only surprises I've ever had were several hundred dollars in "damage assessment". On the other hand, I've been shocked by the depreciation on every one of my purchased vehicles. Just watch the miles and you'll be fine.

For people who do not put a lot of miles on cars, leasing is the only way to go if you want a reliable vehicle. The savings on a lease are unimaginable. Aside from a payment that is often half of a purchase payment and usually last three years, you also only pay the tax on about 35% of the purchase price. On a $20k car that's a substantial savings. The real negative is turning the car in and dealing with all the backside charges. But the simple solution is to negotiate a low buyout at the beginning of the lease and just sell it at the end. A major key to leasing is to understand that you are actually buying the car and you are entitled to all the rebates a cash purchaser is entitled to. So you negotiate as if you are paying cash (or really tell them you are going to finance it cause they'll tend to give you a better final price on the car if they think they can make some more in F&I) and after price negotiations are done, tell them you want to lease.

Hi Steve, new to your channel, but want to share my story on leasing. Many years ago i was at a VW dealer in north east Pa looking at a new 1986 VW GTI, red, vroom vroom, you get it. It was a second car for me , so the salesman was selling me up on the idea of leasing instead of a conventional purchase. It was a little confusing at the time because no body was willing to talk to me about the actual cost of the car in which the lease would be based on, instead they were going for old "what monthly payment would you like " line. We got past all that crap, bla bla, but my concern was at the time was what you talk about in your podcast, which is what happens to me when I exceed my 12k annual mileage limit. Even though this was a second car for me, the salesman really keyed in on my concerns or mileage overcharging and offered me a SOLUTION. Mind you, this is 1986, Feb 14th 1986, to be exact. Follow me to the car Sir, as I did. We found the new GTI a few rows back, shows me the car, pops the hood and points to an item under the hood. The item was the speedometer drive cable, which came straight out the top of the body of the trans and curved upward through the firewall and ends in the back of the speedometer head. Back then, as you know odometers were the barrel roll type, not like today. He, the salesman, reaches down and by hand unscrews the speedo cable, then telling me how beat the system by not logging mile correctly and nobody will know. He also told me how gauge my speed by using my tack. What he didn't know was , I have been in the auto repair and maintenance business for some time, now the owner of Parkway Auto Parts & Tire Inc. I was shocked to see this person showing me how to do something very illegal at a new car dealership. I did wined up leasing the car, had it for almost three years trouble free. Toward the end of the lease in 1989, I put the car up for sale with 29k actual miles. Along comes a young man to look the car over along with his father who was somewhat older than me. Not bragging, but I keep my cars very nice, it's just the way I am. This young mans father was repeatedly asking me" IS IT A GOOD CAR", I was truthful and said yes, many times. But I was made to feel that he thought I was lying. They bought the car, I paid off the lease with no issues and went on with my life. In the summer of 2010 I was in the show room of my store, just doing my thing, a man comes walking in with a little gray at the temples and asked for some help, I said sure. As I was looking at him, I knew somehow we met before, it was a awkward moment as we looked at each other, and I said, you are the guy that bought my 86 GTI, he said yeah, and we had a laugh. So I asked him if he remembered how his DAD grilled me on "is it a good car" he said he did remember that, and then said it was a good car and asked me if I wanted to buy it back, it's right outside. I was very taken back, walked outside, there it was, 309 thousand miles, some rust, and not a straight panel on it. I passed on the buy back, but it was great to see where the car started and were it wound up. Sorry for being long winded, but I do have a question. As a small business owner, could you do a podcast on what small businesses can do to protect themselves consumers that are hell bent taking advantage of just about everything. I am in a tough type of business, auto repair and tires. I know there are some real dirt bags out there that seem to be the standard yardstick of measurement, but that's not me or my company, so I was wondering what your thoughts are. Buy the way, one of my cars is 1963 Corvair Monza 900, I have the book too, everything you said in that podcast was spot on. In closing, I will leave you with one of my favorite quotes "If you're going to be dumb, you gotta be tough"

Dave Ramsey refers to leases as fleeces. As for homes and cars, you don’t own them, they own you.

Your broadcasting set up has got so much better over time xD. Watching in 2021

My total lease for 3 years is $5872. That's $152/month with a $400 turn-in fee, $0 down with 10k miles/year. A great deal for me compared to buying.

For 30 years I've thought that a lease, unless it's a business expense, is giving someone else money....buy the vehicle and keep it forever..My Subaru is 10 years old and I haven't had a payment for years,,,,I'll drive it until I die...

So Steve when you get those Apple software updates every so often you really read all that gibberish before you click that "I Agree to terms" box ???

The more I hear about what happens in US the more I get amazed. In Italy I lease a Hybrid Toyota for 3 years. No down payment. 60 K kilometers. Included in the lease I have insurance, registration, maintainance, 2 tire changes a year ( winter and summer ). I only have to provide gas. I pay per month 200 euros. I can return the car early and I do not pay a dime.

I wanted to buy a pickup but didn't want to be stuck with a vehicle I did not like so I leased one.Loved it and bought it at the end of the lease.Still have it after 22 years and 440,000 miles.

Steve I don't know how it works in your area but here you have the option to buy out the vehicle anytime during your lease. My previous car was a lease and I decided to do just that... Called the lease company and obtained the amount left to be paid ( monthly payments left plus final buyout amount ). I then sold the car for an amount close to that buyout and walked away from it.

You are the 2nd person (not including myself) I have come across that has recognized that there are benefits to renting a place to live versus buying a place to live. I don't understand why this blanket mantra stating that someone is throwing their money away by renting a place to live is so hard for people to see through.

I've never seen a car salesman's eyes light up more than when they know you want a lease. To the average consumer, leasing = fleecing.

It sounds like car and leasing companies are a ripoff and you should avoid them like the plague.

I still own my first car I bought 7 years ago. Hopeful to go another 7 years trouble free

Here's a fun story - I leased a 2008 VW GTI it was the end of the model year in September - So I kept driving down the overall cost of the car with the salesman. Then I finally agreed to terms. I think my total mileage for 4 years was 48,000 miles. I knew I'd never hit that. The lease was written by the finance woman - she mistakenly wrote it as .05 cents per overage mile. The dealer wanted it to be .15 cents per mile over. They call me at home after I get there - saying "Hey you gotta come back and resign the lease for the .15 a mile" - I don't know Steve - But I think I had no legal obligation to do so because everyone signed. They kind of fear mongered me and I went in and signed it for the .15 a mile knowing I wasn't going to go over anyways. But I'd love to know if I was legally in the right saying I didn't have to. We know what the dealer would have said if I wanted to change terms after getting home --- "Go pound sand!"

Very sage advice. In 2006, entered into a lease on a Nissan Infiniti M35 4 door car. NEVER again! The vehicle had all kinds of problems (mostly electrical). I was stuck with it for 3 years and couldn't get out of the lease without substantial penalties and costs. So, I made another deal. I sub-leased it! Yes, I leased it to lady without Nissan financial knowing. Worked out perfectly! She drove it, made all the payments under my name, reimbursed me for the insurance, and turned it back into me at the end of the lease; I drove it the last month and turned it into the dealership in Austin, TX just 4 miles short of the 36,000 miles allowed on the 36-month lease. After inspection, the dealer found the wheels scratched and notified me I could pay them $800 or I had 3 days to come get the car, get the wheels fixed, and return it. I contacted my sub-lease lady and she paid the $800! Voila, I was out of the lease, my credit remained perfect, and all is well. But NEVER again will I enter into a lease for a vehicle because if you have tons of mechanical or electrical problems with the car and/or truck, you can't get rid of it. Why? You don't own it; the finance company does. GREAT video and podcast on why not to lease a vehicle.

lease is a lease...i have rentals and it is stated in writing that if you break the lease and leave early you still owe rent until lease is up OR the unit is rented to a new tenant...whichever comes first. ..people get pissed but its right there in the lease they signed and never read..

I leased a truck and it will be the last lease I’ll ever do. Out of miles and a year left of payments. I ended up selling it to a dealership (selling to a dealership saves you from paying taxes) and paid the early termination fee & depreciation and walked away from it. Leases are headaches.

Great Insight Steve, Better than most crap on youtube. Need more horror stories though. keep up the god work.

It’s 2021 as I watch this. Many dealers are now requiring that leases must be turned back in to them, (original dealership of lease), due to people selling to Carmax, Carvana, etc.

The same thing (damage at return of lease) happened to a friend. The car was turned in, inspected by the dealership, given a 'nice condition'. A month later, a letter was received saying there was $1220 owed for (unspecified in letter) 'damages'. We called to inquire, the 'listed damages' included "excessive wear" on tires, 'many' scratches and dents, 'stained' seats, 'car has been in accident and repaired', one headlight assembly 'fogged', along with many other 'issues'. I was told it 'was owed, there is no adjustment'. I started with demanding photographs of all they claim is wrong with the car. About three weeks later we got another bill but NO PHOTOS. I called again, same conversation ensued. I mentioned the salesman's 'nice condition' comment. They told me 'it is the damage WE SEE here when we get the car back that we cost out". !!! About two months total later another letter arrives with no changes. I called once more and asked for a supervisor. When he came on I told him that I wanted to settle this but no photographs of the alleged damages were ever produced. He asked why I said 'alleged'. I told him that I had a video of the car when it was put back into the dealership's possession showing nothing was wrong. He asked about paint, headlight condition, tires etc. I told him my video showed nothing of the sort. Two weeks later a letter arrived stating "statement satisfied, paid in full". Truthfully there were one or two tiny scratches and one headlight assembly was NEWER than the other. The 'fogged' headlight was original to the car! Long story short, the damages at the end are the biggest cost, in our case fabricated.

Best solution, buy used Honda or Toyota and get thorough inspection from AAA or state approved garage, including compression test, prior to purchase. Works for me. Saved thousands of dollars.

Could you touch on “gap insurance” for leases. At least in CA, the dealer will offer a policy where if there is a difference between agreed value and actual worth at end of lease, the insurance kicks in to cover the “gap”.

I bought a 2003 Camry on 2004 with 27k miles. Will change it on 2023.

Leasing is making a 4 year loan into 7 year loan.If you have kids or dogs,the dealer will dock you big time. They want a perfect car back.

Leasing the most expensive way to operate a vehicle. There is a reason why it’s called auto fleecing. See Dave Ramsey’s channel on YT.

In todays environment, leasing a new car is by far and away THE best thing you can do. Many people go in to dealerships and pay sticker on a new car and have inflated monthly payments, and 4-5 years from now when they want to trade it in they will find themselves so "upside down" theyll financially be trapped in the vehicle. This is a leasing market until cars start showing up on dealer lots again and prices decrease. Sept. 2021

I love getting off lease cars and trucks. Low miles and two years old. Also most well taken care of just check. The best thing most have some warranty remaining and a large amount of depreciation one was a little under half price of a new one with 18,000 miles.

My husband got a Tesla, and no lease. He reads every line of a lease or purchase, and never gets in trouble. And yes, far too many people don’t read them. It’s appalling.

Check the lease paper work for disposal fee at end of lease. Could be $500 or more if you don't move into another vehicle.

If they say there is damage to the car should you report that to your insurance company?

Back in the late eighties in Alberta leasing a car was the same as renting a car the leasing company could come and get it from you or you could return it and not have to make any more payments, and they could not come after you for the rest. How things have changed...

So my friend owns a tow company..he leases all his trucks..instead of finance..he says there is a big savings on interest taxes a liability and he doesnt take as bad of hit on his credit when he gets a new truck ..he has his lease guy figure it out to where its a 1 dollar buy back..so in essence he buys them through the leasing company.. It works for him...

i think something uou leave out. is that with a lease. if you wreck the car, get it fixed through your insurance, or if its written off its not your problem. you can bring them the steering wheel. or you can bring them a repaired car. its now their problem. not yours. (at the end of the lease) if you had bought that car then smashed it and fixed it. you are stuck trying to sell it or trade it. and everyone sees that its been repaired due to a wreck. if you work for yourself. you get to write off the lease.

Is it a good idea to put bigger wheels/tires to make the odometer read less miles?

Also with a lease is that you have no equity. If you put 7k down and pay the payments ahead and you have a loss, the bank reels the proceeds not you. You get screwed.

This seems strange to me. It is like everyone is expecting to be given a 'break'. If you sign a document, it is an obligation. Just like anything else. If you sign a lease on an apartment, you can't get out early unless you happen to have a nice landlord. This is not different. A lease is not deceptive in the slightest bit. You just need to understand them. And they are not complicated. You negotiate a purchase price just like you would on a purchase. The difference is the that manufacturers is forced to determine or establish a future value at that time! That's the benefit to you. 1 of 2 things will happen at the end. The were either spot on, or they were off. If the car is worth more than what they said it would be, you can actually sell it an pocket the difference. If they car is worth less, you can just turn it in and you don't owe anything else. You essentially got a sweet deal. If it is worth exactly what it should be, you can also just turn it in and walk away, you could lease another, or you could purchase it at what is market value. What is he problem with that? What people are not realizing is that you have the same problems when you buy. If you put more miles on it than what is considered 'normal', the value of your car decreases. So you may not be able to sell it for what you owe. Also, I just read a statistic that 89% of new car buyers actually wind up trading their care in prior to paying it off anyway. So you never owned that car either. And, most likely, you are upside down in it because you've been financing the full value of the car over that time instead of just the depreciated value.

I have never had a issue where the finance company later sends a bill for damages, however, when I turn in a lease I video the inspection at the dealer, they have never had an issue with that. Also back in the day, 2007, I actually got a GMAC lease where if you paid for extra miles and ended up not using them you would get a check back for the miles you didn't use. I don't see that any more.

My buddies dad worked for Delphi and would lease a car with minimal mileage allowed for cheap price, then install a kill switch to shut down the odometer cluster....

Never understood why there is a down payment on a lease. You dont pay a down payment on an apartment lease. Sure put $50,000 down on a Lexus and have a $99/mo lease!

Maybe a lease is ok if you're a lawyer. I always thought leases were so confusing. I just buy the car and forget about the nitpicking details. A few years later I trade in the car on a new one. Maybe I'm short a few $K but I have much less stress and no surprises. "The large print giveth and the small print taketh away"

Good tutorial Steve. Keep it up!

Turning in a lease early is considered a self repo in NJ

Hi Steve, great layman’s explanation for the basics of car leasing. But what happens when the car gets written off, one year into a three year lease,and your not at fault for the accident? Does the insurance company cover the balance of the lease payments, the balloon payment, since a totaled car breaks the lease, right?

The mileage thing is the biggest ripoff....mileage does not matter to the dealer... they sent any lease returns to auctions , then they end up on some dealers used car lot ... and people buy them regardless of mileage ....

Leasing is a rip-off. We leased and at the end turned in the car with no damage, under-miles. They still wanted to charge us 1k .... for the tires being worn. Four years, or about the normal life of a set of tires ... .and they had passed inspection a couple months before. But they said the car needs new tires 1K "excessive" wear. The good thing is that this was AFTER we had bought a car at the same dealership. And still within seven days ..... I said fine. We'll bring back the car we just bought .... and we're done. Sure I risked a lot of legal headaches, but I knew that it would cost them more financially and hugely more in aggravation than they could get out of us .... and I made it plain to them sure you can sue me and maybe you'll get a couple grand out of me, and I'll pay a lawyer 10k, but while it will hurt, I can afford it -- but you've pissed me off royally with that "excessive wear" BS. Dance or walk away. They dropped it. A few years later we traded that car .. at a different dealer. Kinda sad as we had been using that dealer for 10 years and might still be as our preferred dealer. I'm willing to spend a few dollars more at a dealer (for anything) I've dealt with before and am trying to make a working relationship with. But when they make it plain a few dollars is worth more to them than an ongoing working relationship, I'm out.

Closed end one pay lease for elderly cash buyers who drive low miles is a great option.

I’ve noticed that a lot of your videos have exactly 6 dislikes. I have a suspicion that it’s the same 6 trolls going around and disliking your videos....

@2:43 ... because they try to get every penny on compensation for damages out of you if you turn it in, right? That part is less predictable and can be costly.

When the lease company says they won't give you anything to return it early that's because its not their problem. It's no difference then buying a brand new vehicle if you drove it for 2 years and you owe 20k on it then you need to sell it for 20k. since you bought it new and its only 2 years old you are probably negative in equity so the car may only be worth 18k so if you want to get rid of it and you are only able to sell it for 18k then YOU need to come up with that extra 2k its the same with a lease at the end of your 3 year lease they say the vehicle will be worth 20K you have all the rights over that vehicle if you hit you two year mark and want to sell it and someone says I will pay 23K you can sell it for 23K but you will have to use that extra 3K to pay up the remaining payments up front + what ever the remaining payments equal out to. ITS NO DIFFERENT then buying the car. Problem is whether you buy or lease, if you buy NEW then you are going to be negative for the first 1.5-2.5yrs depending on the car and the length of the loan. You would have been better off making use of the vehicle for the remaining 3 months and pay for the additional miles. People think it's so bad and ridiculously expensive but alot of times they just AREN"T. Yes you might pay something like 35 CENTS a mile and think that's expensive but when you got the lease you were already paying 25/29 cents a mile and you were OK with it then. They are only charging 10/6 cents more per mile. That's not that much different.

I think that the majority of leases are from irresponsible people that are in a financial situation where they can't afford to buy, or that they are wanting to drive an expensive vehicle they could never afford to buy. I have never met anyone who leased a car that wasn't in some financial situation. It seems like the dealerships use leases to get the people who can't afford the payment on a loan into a car.

"Honey, either get rid of that car or your girlfriend..." "Do you have the Dealerships' number?"

I went to the dealer to buy a specific car. I was told I couldn't afford it. They wanted to sell me a economy model. I told them "no I came here for this car" they said...well you can lease it. OK I said. Yes I ran over the miles but when the lease was done I could buy the car. When you combine the lease and the purchase price it worked out to the same as if they sold it to me in the first place. #credit is BS

Car leases are really not car leases. If you have to pay the insurance, and tag the car, you are getting screwed. To me a lease is a payment lower than one to buy the car, all maintenance and repairs are included, and you are covered on your current insurance on a "rental" vehicle.

How I avoid all this financing and leasing is I paid cash for my truck. Its a 98 Z71 Silverado I paid only $700.00 from the local insurance company I then put $15 000 into it I did all the work other then the exhaust and the a/c recharge myself. I completely redid the body new motor new front end rims tires brakes list goes on. Luckly I have the skills to do this work myself. I used to buy new trucks but It got to the point now where they are way over priced and not affordable to the average person. I've bin driving said truck last few years with only a handful of small quick cheap fixes. Four five six years from now I'm sure with our Canadian winters the body will need to be redone and I will redo it and another major probley a frame off overhaul at said point and go another however many year's.

My wife and I lease a new BMW every 3 years, at least 8 I can think of I don't pay for any maintenance. I have never bought even a set of tires. I am assured she is always safe, and of course, stylish. Cars are NOT an investment. They are an expense with massive depreciation. About the only negative I see is insurance and personal property taxes. I like having a new car every 3 years, and as long as I can afford it, that is what I will do. And it goes from zero to 60 in 5 seconds and gets 30 mpg. Really $500 a month is pretty insignificant considering what you get.

No Tucker model in the background...

i leased a car from ally bank to free up money for my sisters cancer payments. (I gave her 500K so she could die at home and leave something for her kids which her ex husband took as soon as she died. He was an attorney who wrote her will) I returned the car on time with no damage and miles under. they claimed i turned it in late and charged me another 900 dollars. I refused to pay. Eventually they reported this to equifax et el. I am a multi millionaire so I usually pay everything in cash. However, when I set up new businesses I now always have to negotiate with the power companies and landlords to not charge me 1000s of dollars more for extra deposits as now despite having multimillions and having never paid anyone late in my entire life. Ally totally destroyed my credit. I guess it still chaffs my behind because every time I start up a new venture and have to talk with the landlord about not charging me more it reminds me of my sisters death. She was 44. I still miss her.

Why would anyone put money down on a car you are essentially renting. When you go to Hertz or Avis, would you pay $300 for a $600 rental?

You didn't mention that a person can sell or transfer a lease arrangement to a second party if you run into difficulties..

Steve are lease cars subject to lemon law?

Love the show.

Suppose you have a lease, like the vehicle or are severely over the allocated mileage, how smart is it to just purchase the vehicle for the residual value?

Somerset Kia always do commercials where you can lease two cars for like $150 a month. So would you be putting a down payment on both cars or what?

I am in NM. I STILL VALUE YOUR INFORMATION.

Call leases are a rip off the buyout price is negotiated at the beginning of The lease not at the end when you turn and it in. So you're basically paying for bluebook at the and the end of the lease. if you choose to buy out the lease & own the car.

They're not going to let you read every single one words in the contract because if they do they know that they can't duped you , and you has no time to read those multiple pages of contract with a thousandsof words that you mostly don't understand .

Very great information and great stories. Subscibed.

He said bit*h! first curse word I had ever herd from Steve Lehto!! lol no complaint just surprised. Love your videos though, I am no lawyer, but excellent presentation, dictation and relevant information for the average Joe.

How far can a Corporation go, as far as writing something into the contract, does anything go. Like if you go over on the mileage, you must buy, or release the same car. Or would a Judge say, , decision for the Plaintiff , or would they say Sir did you read the contract, and it really dosent matter you signed it. If so Im going to write up a contract to mow my neighbors yard, and in fine print it states. When job is done and you are happy with the work, you will forfeit your house at said location. If that is right, Im getting started writing up some Contracts right away . And its not even a scam, the system will back you up. Thanks Stev, I knew I would find a way. Heck my wife's a Notary just one step away from being a Attorney . Now wheres that neighbor I dont like, Hey Jess have I got a deal for you brother. Trust me just sign. Yea just ignore that fine print, its so small what could it really mean anyway. Steve have you ever heard of a contract attorney named Mack Eaton. Time Line: 60s / 70s / 80s. How small can the fine print be, thinking microscope maybe, laser etched. Are there rules on this stuff, or is it "gray", like everything else. Thank You Mrs Weiss

Expensive luxury cars drop in value like a rock, and they're unreliable and expensive to repair, so you don't want to keep them too long. That makes them possibly a good candidate for a lease, if you can get a good deal. Another good candidate is an EV because the technology is advancing rapidly, and it might be obsolete in a few years.

Sure, leases are predictable. You can predict that if you're the average driver*, you'll get taken for a ride. A lease is a way for you to pay the entire cost of the vehicle PLUS an overhead charge and then give it back to the leasing company PLUS an excess mileage charge PLUS whatever repair charges the company thinks they can nail you with. "Read the lease carefully . . ." Or better yet, just tear it up and toss it in the trash. * who can't deduct lease costs on their 1040.

I have an 11 year old preugot diesel car. 130k miles and still going.

I have never leased a car but I have taken low or zero interest loans. Loans if the interest iss low great but the dealer will be less interested in giving a good deal than if you pay cash. Those loans from what I understand from my purchases make you pay a little more for the car which is o.k. if you cannot pay cash. In the last 15 years I paid cash and got a better price than if I had a car loan except if I did it with a bank but then I paid more interest to the bank do it is damned if I do damned if I don't. In my opinion (noting that I keep cars along time) leasing increases the cost of the monthly cost per mile. Saying that I am wrong for those that only want to keep a car a few years and change.