My wife totaled her car and we weren’t prepared to get a new car. We were initially planning on getting a 2-3 year old CPOd vehicle, but now we’re considering alternative routes.
Are there any downsides, financially or otherwise, to leasing to own a 2019 Volkswagen Tiguan SEL vs buying outright? The payment will be much more manageable in the short term while we save up some money to refinance and purchase at the end of the lease as opposed to purchasing up front with a small downpayment (<$2000).
We’re considering getting the smallest amount of miles possible (7,500) knowing that we drive ~20,000 miles per year and we’d risk going over ANY allotment of miles.
If the RV hit for more miles is minuscule (example, 10k to 12k is 1% on average from what I’ve noticed) it’s better to pick the highest miles you can reasonably afford. Also consider the fact the car may be a lemon or get wrecked/totaled.
“Lease to own” will almost always cost more In the long term if incentives, or lack thereof are like for like against a retail sale on a new car. You may be better off picking up a CPO car (with appropriate discounts) with additional warranty tacked on.
If lease incentives are significantly better than retail, there is potential for savings but you’re back in the boat gambling against a lemon, wreck/total. — To that end…try to minimize your inception cost (due at signing) as much as possible to mitigate the above mentioned risks on a lease.
Get the miles you need. What if the car gets in a nasty accident and you don’t want to buy it out at the end of the lease? Many people who go into leases with the intention of buying it at the end change their minds. Don’t bet on the fact that you will want to buy it out
The assumption is that OP will refinance the RV upon lease end so the additional miles are of “little consequence”, but this is also amongst the reasons I brought up a gently used CPO with a solid warranty as an option.
Very true. It only makes sense if lease cash significantly lowers the actual sales price of the vehicle. In most cases though it ends up being a wash if you consider the rent charge (interest) vs a 0% financing offer if available.
