So my new job is giving me $500 extra a month for a car. Come in here and tell me what I should cop.

[unit321]

More info on this please

Talk to your company. How do others go about getting a lease? Is the vehicle leased to you? Do you pay for insurance? Do they check your credit? Or is the vehicle leased to the company, they pay for insurance, and the company's credit is checked.
When you lease a vehicle, the title gets handed over to the lessee. If it goes to the company, then you won't be able to the lease-end option. Maybe, maybe not. If it goes to you, then you will be able to take the lease-end option. Then, you could go for the buy option and you would have a used car for less than half the value.

The residual value of the leased vehicle is the cost of the vehicle when new minus depreciation over the life of the lease. Sometimes, the depreciation is more than the total paid during the lease. Say, you had a three-year lease at $500 a month for a $45,000 car. Then $18,000 would have been paid out. If the car depreciated faster in three-years, say it was $25,000, then the residual value would be $20,000 instead of $27,000. If you are getting a luxury car, most likely, the depreciation is going to drop faster than say a Honda Accord.

If you did this, you could potentially just immediately try to sell the car for a small profit instead of keep it.
My brother-in-law did the lease end buy out option on a Land Rover, because of depreciation and costs paid up front, it was a deal to buy it rather return it and buy/lease a new Land Rover or buy a comparable used Land Rover. So if he bought it then tried to sell it, he could have sold it at a profit. But, then to buy a Land Rover that was similar in mileage and condition, he would lose all the profit made on the sale.

 

[BLAZO da GAWD]

Talk to your company. How do others go about getting a lease? Is the vehicle leased to you? Do you pay for insurance? Do they check your credit? Or is the vehicle leased to the company, they pay for insurance, and the company's credit is checked.
When you lease a vehicle, the title gets handed over to the lessee. If it goes to the company, then you won't be able to the lease-end option. Maybe, maybe not. If it goes to you, then you will be able to take the lease-end option. Then, you could go for the buy option and you would have a used car for less than half the value.

The residual value of the leased vehicle is the cost of the vehicle when new minus depreciation over the life of the lease. Sometimes, the depreciation is more than the total paid during the lease. Say, you had a three-year lease at $500 a month for a $45,000 car. Then $18,000 would have been paid out. If the car depreciated faster in three-years, say it was $25,000, then the residual value would be $20,000 instead of $27,000. If you are getting a luxury car, most likely, the depreciation is going to drop faster than say a Honda Accord.

If you did this, you could potentially just immediately try to sell the car for a small profit instead of keep it.
My brother-in-law did the lease end buy out option on a Land Rover, because of depreciation and costs paid up front, it was a deal to buy it rather return it and buy/lease a new Land Rover or buy a comparable used Land Rover. So if he bought it then tried to sell it, he could have sold it at a profit. But, then to buy a Land Rover that was similar in mileage and condition, he would lose all the profit made on the sale.

Got damn I'm confused as fukk

My job literally just adds $6k a year ($500/month) to my salary. They aren't handling any leases or car business. They're just giving me extra cash a month so that I can never say I can't get to work because of car problems. It's given to me under the assumption my car will always be in working condition to get to work.

With that being said, in easy terms, what's my best course of action here? Lease-end buy option? I have a daily driver btw that I'm done paying off so I wouldn't be racking up mileage on a new car.

 

[unit321]

Got damn I'm confused as fukk

My job literally just adds $6k a year ($500/month) to my salary. They aren't handling any leases or car business. They're just giving me extra cash a month so that I can never say I can't get to work because of car problems. It's given to me under the assumption my car will always be in working condition to get to work.

With that being said, in easy terms, what's my best course of action here? Lease-end buy option? I have a daily driver btw that I'm done paying off so I wouldn't be racking up mileage on a new car.

Oh. So, you are getting $6,000 straight up.
When it comes to leases, you usually have a down payment and then you have a monthly lease. There are various lease terms and it is all negotiable. One is the length of the lease, you can go for 24 months, 36 months, 48 months. At the end of the lease, you can end the lease and return the car, extend the lease, or end the lease and buy the vehicle.
Some dude here actually got a lease recently on a new Dodge Durango. It's a good example of a lease. 3 years, down-payment, plus he paid for an option in case of minor damage. Dealers can charge you for problems that are beyond normal wear and tear. Or you might drive more miles than what is allotted. You might have a lease where you can drive up to 10,000 a year. This might be a problem if you drive 15,000 a year for work. You can increase your monthly lease term if you know you are going to drive more. Because they can charge you for maybe $0.25 each mile over 10,000. That would be $1,250 if you drove 5,000 miles over. It's not unusual for someone to bargain the lease terms where you can drive more miles a year so you don't get dinged by the over-mileage charge.
http://www.thecoli.com/threads/im-leasing-an-suv-next-tuesday-sell-me-on-one.347312/
It is an SUV whose MSRP was $43,575. He had $3,500 down payment. He also had to pay the first month at time of purchase, that's normal. He had $375 a month. The length is 3 years or 36 months. He had options to lease a vehicle with less options which could have lowered either the down payment or the monthly payment.

Let's use this vehicle as an example. After three years, this SUV will have depreciated in value. He can return it, extend the lease or buy it. The residual value might be less than half of the MSRP price. If it depreciated by 50% in three years as an example, it would cost $21787.50 to buy it. Let's say you returned it. If Joe Schmoe went to the dealer, saw that exact SUV and wanted to buy it, he would be paying way more than $21787 to buy it. The dealership wants to double dip on the profit from lease returns.

Since you are the taking out the lease, you would have the option to buy it after the lease is over. That would be a good opportunity for you to own a nice ride for cheap, since your company basically footed some of the bill and if you took care of it.

 

[88m3]

Thinking off copping a CLS or 6 series. My gripe with these cars though is the depreciation is fukking massive.

That's why you lease. I saw a 13' or 14' M6 new stayle with maybe 20k miles going for 60 something from a BMW dealership last week.

 

[BaldingSoHard]

Wrangler or a truck.
Imo you would look like a fool pulling up to a construction site in a luxury sedan, but then I don't know much about construction so that may just be my perception.

 

[BLAZO da GAWD]

Oh. So, you are getting $6,000 straight up.
When it comes to leases, you usually have a down payment and then you have a monthly lease. There are various lease terms and it is all negotiable. One is the length of the lease, you can go for 24 months, 36 months, 48 months. At the end of the lease, you can end the lease and return the car, extend the lease, or end the lease and buy the vehicle.
Some dude here actually got a lease recently on a new Dodge Durango. It's a good example of a lease. 3 years, down-payment, plus he paid for an option in case of minor damage. Dealers can charge you for problems that are beyond normal wear and tear. Or you might drive more miles than what is allotted. You might have a lease where you can drive up to 10,000 a year. This might be a problem if you drive 15,000 a year for work. You can increase your monthly lease term if you know you are going to drive more. Because they can charge you for maybe $0.25 each mile over 10,000. That would be $1,250 if you drove 5,000 miles over. It's not unusual for someone to bargain the lease terms where you can drive more miles a year so you don't get dinged by the over-mileage charge.
http://www.thecoli.com/threads/im-leasing-an-suv-next-tuesday-sell-me-on-one.347312/
It is an SUV whose MSRP was $43,575. He had $3,500 down payment. He also had to pay the first month at time of purchase, that's normal. He had $375 a month. The length is 3 years or 36 months. He had options to lease a vehicle with less options which could have lowered either the down payment or the monthly payment.

Let's use this vehicle as an example. After three years, this SUV will have depreciated in value. He can return it, extend the lease or buy it. The residual value might be less than half of the MSRP price. If it depreciated by 50% in three years as an example, it would cost $21787.50 to buy it. Let's say you returned it. If Joe Schmoe went to the dealer, saw that exact SUV and wanted to buy it, he would be paying way more than $21787 to buy it. The dealership wants to double dip on the profit from lease returns.

Since you are the taking out the lease, you would have the option to buy it after the lease is over. That would be a good opportunity for you to own a nice ride for cheap, since your company basically footed some of the bill and if you took care of it.

So basically I should lease some shyt and buy it at the end, correct?

 

[BLAZO da GAWD]

Wrangler or a truck.
Imo you would look like a fool pulling up to a construction site in a luxury sedan, but then I don't know much about construction so that may just be my perception.

Perception. And I wouldn't pull up to the sites in this car. I have a daily driver for that ('06 Acura RSX )

 

[BLAZO da GAWD]

That's why you lease. I saw a 13' or 14' M6 new stayle with maybe 20k miles going for 60 something from a BMW dealership last week.

SMFH. That's horrible. So lease and buy at the end of the term?

 

[BLAZO da GAWD]

Um...also...um...what them rates lookin' like if your credit is um...kinda ya know...not great?

 

[88m3]

SMFH. That's horrible. So lease and buy at the end of the term?

Yeah, it was a convertible and winters coming so I'm sure that didn't help. A 100k car can loose a lot more value than say a 40 or 60k car unless it's an SUV or some garbage. Yeah, that's the way to go if you want to keep it that is. If the car is worth less than the agreed amount at the end of lease terms the car company pays you the difference if I remember right(it may be something, it may be nothing though). Usually car companies have it down to a rough science. Anyways in my eyes with a lease the company is eating the depreciation. My car is a write off so I drive and spend whatever I want.

Um...also...um...what them rates lookin' like if your credit is um...kinda ya know...not great?

Should be fine with 680+ Experian/ FICO (probably even less honestly)

I've got 0 interest on mine.

We're at historical lows with interest rates on everything these days.

 

[unit321]

So basically I should lease some shyt and buy it at the end, correct?

Quick answer, yes. Lease a vehicle, then at the end, buy it.
Now, if the car turns out to have problems during it's lease, then just return it. You would kind of lose out considering the company has paid for some of the equity, but you wouldn't be forced to buy a lemon. It gives you an option out. You don't want to keep a Mercedes-Benz or BMW with an electrical gremlin that dealership mechanics cannot figure out.

 

[unit321]

Should be fine with 680+ Experian/ FICO (probably even less honestly)
I've got 0 interest on mine.
We're at historical lows with interest rates on everything these days.

In three years, no one is going to know what interest rates are going to be. Plus, in three years, his credit score can go up.

 

[unit321]

Perception. And I wouldn't pull up to the sites in this car. I have a daily driver for that ('06 Acura RSX )

If you are in construction and not going on work sites, I guess you are on the managerial end of things.
I worked construction in the past. Work sites are dirty, mainly muddy because roads haven't been paved on site so paths and parking lots are all dirt. Sometimes, covered in gravel if it was a big project. It wouldn't be a big deal for the big wigs to drive their fancy SUVs or cars on site.

 

[88m3]

In three years, no one is going to know what interest rates are going to be. Plus, in three years, his credit score can go up.

I think he needs a car now, not in three years?

 

[unit321]

I think he needs a car now, not in three years?

Oh, I was thinking of a loan he would need to buy the car out after the lease.
I see you were talking about credit check for the lease now. But yeah, his credit score wouldn't be a deal breaker, but he might not be able to get the best lease rate or take advantage of a low lease rate sale (the for qualified buyers only sales)