Leasing Tips for newbies

Hi Everyone,

Automan here and this is my first post. I'll keep it short, clear and concise. For the past 20 years I have been in the car business selling, and the last 10 years with Nissan, but I've been selling cars online the past 15 - so I'm a good guy to know. I'm actually the digital marketing director so I get the big picture on the consumer side (or I'm trying as it changes daily) and the dealer side. There's still confusion about leasing so I hope to clarify some points and offer some advice about that. All these answers are really based on about 1,500 personal sales and another 5,000 as an Internet Manager.

Most leases are 24, 36 or 39 months. Most purchases are 60-75 months. Most people only keep a car 3 years, so it makes sense to lease, but if anyone is considering a 48 month lease - say no. The net difference in payment I've seen on a lease for 36 months and a 72 month purchase is $100-$150 per month less. If you finance and trade in 3 years, and get your payoff, you've lost out on saving about $100-$150 should you have leased. That could save you $4-$5000 leasing over 3 years. Choose wisely. If you really consider the options, focus on the cost of ownership.

The biggest complaint against leasing is mileage. I can lease up to 30,000 miles per year, and yes it's more, but let me see you buy a car, put 90,000 miles in 3 years and not pay for it. You can get away with it in leasing.

The standard mileage on all leases in the USA is based on 15,000 miles per year. Not 12,000, not 10,000. This is where the standard residual value is based. You may see ads for 12,000 or 10,000 miles and that is because there is a 1 point bump in the residual value and they can show you a lower payment. You can buy the extra miles up front. The difference for my customers going from 15,000 down to 12,000 save them $10 per month or vice vera - no big deal. Extra miles up front can be purchased at .10 to .15 cents each. If you do not use all the miles, you do not get a refund.

Hope this helps, let me know what you guys need!

Cheers!