So from doing some reading on the topic of leasing, I concluded that a car with high residual value is always better to lease vs. a car of the same sale value and lower residual value. Correct me if I’m wrong.
So would anyone who is experienced in the market be able to direct me towards a car between $25,000-$35,000 with a really good residual value?
I’m mainly hoping for a sedan or a smaller SUV.
I live in Missouri and would really prefer something that does not use CVT, manual is fine as well.
RV is one factor but also look at MF, Rebates and discount off msrp.
Ram trucks are not worth a dime the day after you drive off the lot but they can have very low MF and very high rebates/discounts off msrp. These factors combine to get a 60k truck to the 500’s per month.
I think the broader question you’re asking is, is there a car in the $25–35K range that leases well.
The answer is, not really (otherwise you’d see them being discussed here).
What is your effectively monthly budget? And are you open to an EV? MSRP often does not correlate w/ the lease price.
I don’t think it’ll be easy to find something in that price range that doesn’t use a CVT. I guess you could look at VW or the Korean brands. But the former will likely not lease well.
I would ideally want to stay at/below $320/month.
My car payment used to be $185 for a 6 yr. old Mazda 6, and I know it’s impossible in current market but I wouldn’t want to dish out some extravagant monthly payment just to have a current car.
If owning an EV means having to charge it in your garage at night, I would pass on that because I live in an apartment and don’t have access to a power outlet. Unless I’m misunderstanding something about owning an EV.
Some people will charge at work or have public-accessible charging stations in their area. Depends on your infrastructure and specific situation.
If that includes inception fees, I don’t think that’s possible on an ICE car.
If it doesn’t include inception fees, maybe an Acura Integra?
You can take a look at the Marketplace or Signed Deals to see if there’s anything there in your price range and that might meet your other wants.
Currently Nissan Altima (SR trim) are leasing well and you can get a fully loaded (35k MSRP) for around $350 sign and drive! Check in market place and brokers in your region.
He mentioned no CVTs
Thank you, I’ll check that out! My options are fairly limited with this budget, so I may consider going for a CVT
Yes, but I understand that there is not much picking and choosing when on such tight budget like mine. Wish the market was healthier because just 4-5 yrs. ago you could get a super nice car for $320/month.
I found a local dealer who offers $279/month on Acura. I’ll have to look a little more into this thou because that probably doesn’t include the tax/title/license and a down payment.
Dealer advertisement prices are usually not effective prices.
Sonata, Altima and Accord should be your targets (For Mazda 6 Size)
Lol we need to get Mankizord into a 2023 Arteon. @Vannarith was onto something.
0.00066 MF this month, big stacks of trunk money, and $5,000 lease rebate could be just what the non-CVT doctor ordered.
This one is about to hit 365 days aged and whacked with curtailment penalties. Do them a favor and take it off their hands before EoM.
I assume the lease will still stink w/ an RV in, what, the 40s? But OP can try and then let us know.
As @thevolvoguy points out, it’s not just about the resid. If the resid is low but there are stacks and stacks of trunk money and rebates, it’ll still lease for a low monthly.
In this case, the car is discontinued. It’s reaching its first birthday. I’d wager the trunk money is rebate is $10k. A dealer putting some of their front end or holdback into the mix means it’s a $35k car.
Here’s a very slightly used brass hat that probably went around the auto show circuit. It isn’t selling at $35k.
2023 Volkswagen Arteon SEL R-Line 4MOTION?
Some smart inventory manager will see the writing on the wall that their aged Arteons aren’t going to appreciate, and liquidate while there’s still lease support and corporate incentives.
What are curtailment penalties?
While there are some ultra fancy/special dealerships out there that are under levered and finance their inventory with cash or with a LoC against property and fixed assets, the vast majority of dealerships aren’t so lucky.
Most dealerships have a flooring line. Typically it’s 100% asset coverage against invoice. But look at one of those Arteons. If you were a bank financing 100% of a 1 year old Arteon, would you give dealer invoice? or MMR? Or some retail estimate?
Curtailment is basically these milestones where a dealer has to either get rid of a car, or pay the bank back a fee. Often set to 90/180/270/365 days aged.
Or sometimes the dealer has to cover the lost collateral value when model years change over. In this case the Arteon is discontinued. Its value as a new car has evaporated. Zero marketing support. And soon zero lease support. And eventually zero corporate rebate support.
Curtailment is probably cash the dealership never sees again since they aren’t selling an Arteon for $45k any time soon.
Bro, you wouldn’t believe but I was just on their website prior to opening leasehackr for new messages and looking at Arteon.
I also looked at another local dealer’s 2023 Arteon, they have it listed @ $35k.
What do you suggest I do? Because I would love to drive an Arteon lol.
(edit) Not sharing link so no one snipes my deal xd
Lol you won’t have to worry about a LH user sniping your deal … I hope.
If you’ve browsed this website and learned the lingo about leasing, then your next step is to put an offer together. I think every single person on this forum has their unique way to get a deal done… so find a way that suits you.
Like @GOAT rubs a genie bottle and gets $100 monthlies because he’s The GOAT. @li8625 begs for deals and eventually gets one out of pity I think. @djrabbi stares intently at a sales person (even over text!) until they blink and bend to his will. And @HersheySweet is “lol” and offends people I guess.
You may want to become a LH supporter so you can run some scenarios in the calculator.
Anyway, their advertised price is 11.5% off MSRP then they’re giving you the $5,000 customer cash from VW. You should be able to do way better if you press hard and are 100% serious about buying. Assuming 36 months and 7.5k miles per annum… pre-tax this will be $465 monthly if you capitalize the acquisition fee.
I think since this you’re targeting an a old-stock unit (every 2023 Arteon left is old stock haha!), you can press for way more than 11.5% off MSRP. Take a look at that used blue SEL R-Line 4Motion I linked above. Ultra low miles and it’s listing $35k. The dealership selling the black one may need a reminder you know what they got, and what they got is an old-as-crap discontinued Arteon.
I also don’t know if you have any other rebates (partner, F&F, etc). If they’ll do $36k on their end before your rebates (which seems generous since the one you want is a SE FWD). And the you claim the $5k from VW, it’ll be about $350 pretax monthlies. If you leased the black Arteon for what it’s actually worth to the dealer now that they’ve bag-held the thing so long, it’ll be $320 pre-tax hah.
The tough part is to convince them it won’t get better in August, and you’re their savior to take the lot anchor away today. I get the feeling some dealerships would rather take a bigger L through auction than give a buyer off the street a deal.
I hope you get an Arteon so you and @Vannarith can form the “we are the only two people on LH with Arteons” fanclub.
This guy just called out all of us . I just beg until I get what I want