Leasing/Insurance Question

[GreyFox]

I'm looking at purchasing a new car because the one I have right now I'm just pouring $$ into it like crazy for repairs, and it doesn't seem to be lightning up anytime soon haha.

So, I have a few questions...


1. If I lease a car, and at the end of the lease I wish to purchase the car, are there payment options for the residual value of the car, or do you HAVE to have that amount in cash? I wouldn't mind making montly payments for a few extra years on the remaining value of the car after the lease is up. But I need to know that I can do so first...

2. Insurance is going to make or break this vehicle purchase for me. I can't afford the 500+ a month it would cost me for full PLPD. However, I can of course afford just PL (1-way insurance). Now I know you're saying, 'but it's a new car, that's crazy!', but here is my reasoning. I either a) pay about 6000 a year for full insurance coverage and if I cause an accident or crash, my insurance will cover it....but will also go way up. or b) stick with 1 way insurance, and take the risk that I won't cause an accident myself...and even if I do, if the damage is under 6000, and I only crash 1 time/year, it would still be cheaper for me just to reapir the car instead of paying for the insurance.

Am I way out to lunch on the latter idea or does that make any sense to anyone out there?

[RickDaTuner]

The Idea makes sense, but when you lease a car it's not up to you what type of insurance coverage the car receives. all Leasing companies Require that you have full insurance on your car, some many also require a Limited depreciation clause on the car as well.

What you want to do... aint gonna happen.

As for the buy out, some leasing companies will offer you a option to finance that amount, but the general thing to do, is to seek third or fourth party financing, such as a bank or who ever, and just hand the leasing company a check for the residual

[lowryder99]

No leasing company will allow you to carry basic coverages, I have been leasing vehicles for four years now and no company would do that. It's a liability end on their part, if you write the car off and can't pay for it they are hooped!

Every vehicle I have insured that I leased required at least 1 mil liability and full collision.

As for the buy out options, once again every lease company I have dealt with have had an offer to re-open the lease for the buyout amount (say your three year term is up and the buyout is 15k but you don't have it, they WILL release that 15k to you for an extended amount of time)

[Masked Bandit]

If the insurance cost (for full coverage) is throwing that big of a wrench into things then you have no business buying a brand new car (despite what the salesman has told you).

[me&you]

Rick and the Masked banditt are both 100%, unequivocally correct.

You should only worry about the buy-out once the term is nearing the end, which you won't get anywhere close to without proper insurance.

[mekeni]

provided you have a clean driving record.....

u shouldn't be paying more than $200/month for insurance on any car unless the car cost more than $100K

[GreyFox]

Thanks for the reply's guys.

I got T-boned in a parking lot by some lady and it ended up being my fault somehow...so no dice to the clean driving record. Plus I'm a 20 year old male...I got a quote on the net and on average it came out to 500+/month for the insurance.

So I just waved the new car idea out the window. Looks like I'll be stuck with the sunfire for a lil while longer :thumbsdow