Leasing a Car

April 1, 2011

Leasing is not for most people because most of us drive more than 12K miles per year. You have to get comprehensive insurance because the car belongs to the bank. You have to worry about getting excessive door dings, and we know those are unavoidable.

Back in 1997 I leased a brand new Honda Prelude. It was a really nice car to say the least. The term was for three years and 12K miles per year. I put 3K down and paid $250 per month. My comprehensive insurance coverage came out to be around $250 per month because I was in my 20s. That’s $500 a month for a car that I couldn’t freely drive around!!

When I returned the car I got lucky because they didn’t charge for the excessive door dings. But I did go a bit over the 12K/year limit. At 18 cents per mile I ended up forking over an additional grand.

It was nice driving a brand new car and getting lots of attention on the redesigned model. Even though I had to return to my old crumpled Ford Taurus I felt a big relief when I returned the car to the dealer.

{ 1 comment… read it below or add one }

Chris December 28, 2012 at 8:02 pm

well, you can buy a one/two year old. But in the US, there have been very, very aggressive price wars. I bgohut a new, loaded 05 volvo for less than the cost of a used, less equipped 05; ditto on the Land Rover; ours wound up being less than a Ford Explorer. Since Ford owns Jaguar, Volvo, and Land Rover, perhaps they may be just as aggressive with Jags. I haven’t looked since the Jag is way out of my price capacity.

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