Hello leasehackr community.
I have tried to find answers on these questions for several days, and still had no luck. Therefore my only way is to try out here, any help will be appreciated.
Depending on average “discount rate” that can be given, is there any reason I may pay for my lease straight away? Saying, they ask 1000$ /monthly with 36 months contract, I will pay 36000$ straight away. Will this help me to reduce the price asked by the dealer usually? Is there any estimate by how much in % for example? Is there really any reason I should do it?
I know this forum is more of US based, but still, if I’m international student studying in university somewhere in US, I got a license and I want to lease a car for the rest of the time I’m being in university (let’s say 36 months again), and I’m ready to pay in full straight away (the full leasing sum), is dealer likely to agree on that? Are dealers and banks approving leases even allow to lease in this circumstances?
What you’re alluding to is referred to as a “One Pay Lease”. When monthly payments are exceptionally low (think low $100s or less) some ppl consider one pay and thereby avoid paying any interest on the lease. There are, however, risks of such a large outlay of cash.
These risks are only exacerbated when you do a One Pay on more expensive monthly lease payments.
But to answer your question as to whether it is possible- yes it is possible.
My quick recommendation for you as someone who can put all the cash down upfront, perhaps consider buying a car outright, then selling it when you’re done with it.
Thanks for your reply.
Yes, I understand that it is much more financially adequate to buy a car and than sell it, however in case of me just not wanting to get into buying, selling procedures, and do everything based on lease.
If I ask for “one pay lease”, what average discount am I likely to get from that? Or it can vary a lot and should be discussed personally with dealer on each quote?
I was a international student, so I can answer some your question.
When holding a F1 Visa,
1.You still in school
2.You working after graduation, on OPT.
Case 1. Pretty much not possible to get a lease, maybe doable for a pay, then I don’t really see the point…why don’t just buy the thing…
Case 2. Would still be hard, bank would at least ask you for valid Visa to prove you can in US legally for
the entire time of the lease, which can be hard, since OPT is at most 36 month(assume stem).
Case 2 your best bet would be finance the car, most CU don’t care, as long as a) you got a job b) you have ssn…
Buying and selling is actually a lot easier these days.
You can sell easily to Carvana, Vroom etc. as has been documented here times over.
And buying actually also can be pretty easy.
If you have enough $ to pay at once it would be better to buy because also on the lease you will be charged ourageouse interest rate in order to extend the lease to you.
First of all, “buying procedures” are equally or even less annoying than leasing (less to negotiate especially with cash up front)
And it’s really not such a big deal to sell a car. Especially since it seems you’d only have it for a couple years. Depending on what car you want, you could save a ton by buying certified pre owned. Then you can sell it for only a couple thousand less when you’re done (assuming you keep it in good condition, and it’s a car that people buy a lot like Toyota/Honda).
What make/model you looking to get? What state are you in?
The biggest problem will be that you will have no decent credit for at least 6 months really and even then…
Some of the manufacturers (Like Volvo) have programmes designed for international students just like this, but I don’t think they will be good value. If you will be attending college somewhere that requires you to drive, i’d probably purchase a used Lexus ES or something reliably wafty and deal with leasing if and when you decide to stay. But it depends on your budget.
Leasing is arguably MORE complicated than buying and selling, because there are more numbers that will be in play (Residual Value, Money Factor, etc.), and because of the increased number and frequency of financial interactions (monthly). The more complicated the finances get, the more opportunities for dealers to lie to you, trick you, or otherwise take advantage of you. Especially if you are a foreigner. Even moreso if you are a foreigner who can throw down 36,000 USD cash (most Americans can not).
