petitefrancaise

totally agree.

Arranging a lease through IAS for example means you get a good interest rate and you get a car ready for when you arrive or soon after.

I know from talking to some car people in the last week that if you are a new arrival with poor credit score, little history then interest rates are ranging 3.5% - 8.5% depending on how big your deposit is. And that's on the expat programs. 12%+ from a "dell boy"

If you lease a car from IAS and you have to leave the country, then they have a clause in the contract that allows you to do that. Just hand it back.

tom169

I disagree. Leases are never good - unless it's not you paying.

Jack8602

non-immigrant temporary visa was the key word there. Why finance a car over 5 years when you're on a 3 year visa with no definite decision on whether or not you'll be staying in the US.

While leases may not be good for you, for others they may be.

Pulaski

Lease payments are the price you pay for a certain future. Personally I agree that the raw numbers suggest that leases are invariably a bad deal from the perspective of only the cost of finance, but for some people the future financial certainty, especially if it includes the option to "drop off the keys and walk away", has a value much greater than you and I would give it.

Jack8602

Yerp.

I know i pay over the odds for my lease, but it was a no-brainer when i didn't know the future of my stay in the US on my L1. my permanent residence is probably 2 or so months away from being done, then i'll go and buy a car.

Tillymin

Regarding leaving the country early. We are coming over on an L1A visa as my husband is setting up a new office for his employer. We specifically asked IAS what would happen if our visa wasn't renewed after 12 months. We were told that we would be held to the terms of the three year lease so it's not as simple as just handing the car back.

mrken30

You should always read the terms and conditions of any lease. Most are written unfavorably for the consumer. Caveat emptor , be careful. Leases are often very long and dealers don't like customers taking the time to read.

petitefrancaise

you really should check this, it was one of their selling points. Maybe it's now an optional extra?

tom169

Don't finance a car. Simple. Buy a beater and drive that for a few years. Still work out cheaper than a lease.

mrken30

They do both open and close ended leases.

Close Ended Leasing
Close-ended leasing is based on a pre-determined number of miles a customer will drive in a year.
At the end of the leasing term, the customer is responsible for any excessive damage or additional mileage overages.
Any loss of value, through depreciation of the vehicle, is the responsibility of the leasing companies, not the individual.
The lessee has the option to purchase the vehicle, at the end of the term.
The lessee has no responsibility in supporting the vehicle’s resale value.
The fixed term of the lease is usually between 24 to 36 months.
Interest rates are fixed with no variation in payments.

Open Ended Leasing
Open-ended leasing is typically used in commercial leasing.
The lessee is responsible for paying any difference between the estimated lease-end value (residual), and the actual market value at the end of the lease agreement.
The total lease costs are calculated at the end of the lease term, and the vehicle(s) under the lease are sold.
If a loss is incurred at the end of a lease term, it is treated as an additional payment.
The Federal Customer Leasing Act provides a measure of protection for open-ended leases by restricting the end-of-term liability to no more than the total three monthly payments.
Open-ended leases include variable depreciation rates.
Leases are customized in variable terms with no early termination fees or mileage restrictions.

Expat Resources - Car Leasing, Financing, and Rentals | International AutoSource


Or rent when you need a car. Sites like Turo give good rates and are flexible.

jammiie

Some people would prefer not to drive an old car around though, and leases can be the difference between and crappy old car and a nice new one.

If a car is purely a means to get from A to B then buy a cheap one but if you enjoy driving and having a nicer car is important to you, but you don't have $30-60k laying around but do have a good monthly income then why not lease?

I could think of a infinite number of things that you'd be better investing that cash in to instead of a car, but it doesn't mean you have to drive a heap.

Own things that appreciate, rent/loan things that depreciate.

tom169

This summarizes the problem with America today.

You do realize that in the lease price you are paying for the depreciation value rolled into the monthly payment?

petitefrancaise

In fact, this is exactly what leasing is.
You are being charged for the depreciation of the vehicle without having to pony up all the cash in advance.

I think the two of you are living in cloudcuckoo land! I also think that your circumstances of moving are different to the OPs. Tom, you married a USC I believe and have no kids. So, right there 1 of you has a decent credit score and a job. No kids. God knows about Ken, all I can say is that he moans a lot about things going wrong for someone with so many good investments.

Imagine a family of 4/5, 2 adults both needing cars and have to be able to get the kids around safely. Now, how many people could afford 2 safe, decent cars and maintain cashflow when moving a whole family internationally? I actually can't think of one family that did this.

I totally agree with not wasting money on a brand new car - BUT moving internationally and getting a lease car is way better than sitting around with no furniture, no tv, no electronics, no life because you were clever enough to buy an old banger with your available cash.

jammiie

My hyperbole metre is going off the charts here.

I think America has bigger problems than some people wanting to drive nice cars and being prepared to pay a fee monthly to do so.

Pulaski

I think America has several others problems, most of them bigger than how you finance you vehicle.