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This is a discussion on Modding a lease within the New Member Hangout forums, part of the Community - Meet other Enthusiasts category; Originally Posted by BooSTin2014 When you lease, you are a co-owner of the car. The dealer owns 50% and you ...

  1. #16
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    Quote Originally Posted by BooSTin2014 View Post
    When you lease, you are a co-owner of the car. The dealer owns 50% and you own the other 50%.
    This is not true. When you lease you have 0% ownership in the car. The car is 100% owned by the dealer and don't let anyone tell you otherwise. It is like signing a lease on an apartment. You have zero ownership rights, instead you are just paying someone to live on the property (like borrowing). Same goes with leasing a car. You are paying the owner (the dealership) to borrow the car for the contracted time frame and the rate determined by the owner. And just like leasing an apartment, leasing a car is very contractually complex. There are usually many stipulations that require you to pay penalties for what the owner determines a "extra wear and tear" along with situations that allow the owner to terminate the contract if certain scenarios play out. Again Extremely complex. But again, don't let anyone make you think you own the car because you absolutely do not. Also like financing... There is 0% ownership by you in that situation as well. The financing company owns 100% of your car until you fulfill their contract as well. That being you pay them the full amount the car cost plus their contractually agreed interest rate per compounding period.

    Quote Originally Posted by BooSTin2014 View Post
    When you finance, you're getting a loan from the bank and the bank technically owns the car. When you lease, you aren't going through a bank. The car is half yours for the 2-4 year term as long as you continue to make the payments, at which point you can purchase the car at it's residual value.

    You have 3 options at the end of the lease.
    1. Hand the keys back to the Dealership
    2. Purchase the car at the residual value.
    3. Sell the car & keep the difference between sale price and residual value. (Residual Value goes to dealer)
    again, no
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    Quote Originally Posted by McBill View Post
    This is not true. When you lease you have 0% ownership in the car. The car is 100% owned by the dealer and don't let anyone tell you otherwise. It is like signing a lease on an apartment. You have zero ownership rights, instead you are just paying someone to live on the property (like borrowing). Same goes with leasing a car. You are paying the owner (the dealership) to borrow the car for the contracted time frame and the rate determined by the owner. And just like leasing an apartment, leasing a car is very contractually complex. There are usually many stipulations that require you to pay penalties for what the owner determines a "extra wear and tear" along with situations that allow the owner to terminate the contract if certain scenarios play out. Again Extremely complex. But again, don't let anyone make you think you own the car because you absolutely do not. Also like financing... There is 0% ownership by you in that situation as well. The financing company owns 100% of your car until you fulfill their contract as well. That being you pay them the full amount the car cost plus their contractually agreed interest rate per compounding period.



    again, no
    I beg to differ. When you lease an apartment, you don't have a contract that says you can buy the apartment at a certain value when your 1 year lease is up. It's not at all the same thing.

    Regardless, it's a poor idea to mod a leased car right out of the gate.

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    Quote Originally Posted by BooSTin2014 View Post
    I beg to differ. When you lease an apartment, you don't have a contract that says you can buy the apartment at a certain value when your 1 year lease is up. It's not at all the same thing.
    That doesn't make any lick of difference, That's just a stipulation in the agreement saying you get first rights to buy the car if you choose at the end of the lease term. Otherwise they put it back out on the lot. In no way do you have any ownership unless you pay in full with cash for the vehicle. The dealer has 100% ownership until the car is paid off or bought by a bank on a financing contract, then the bank owns.
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    Don't buy this car. There are more important things in life than cars and it would be nice to have money for them. That's an outrageous amount of money for insurance with a $2500 deductible and the money that you will spend on mods should be saved.

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    Quote Originally Posted by McBill View Post
    That doesn't make any lick of difference, That's just a stipulation in the agreement saying you get first rights to buy the car if you choose at the end of the lease term. Otherwise they put it back out on the lot. In no way do you have any ownership unless you pay in full with cash for the vehicle. The dealer has 100% ownership until the car is paid off or bought by a bank on a financing contract, then the bank owns.
    You're just arguing semantics at this point.

    You have options at the end of the lease such as buying the car at the residual value, or selling the car and keeping the difference between the residual value and sale price. That may not be considered 'ownership' by everyone but certainly gives you special rights that - are stated in a contract - and that the dealer cannot take away from you.

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    Quote Originally Posted by BooSTin2014 View Post
    You're just arguing semantics at this point.

    You have options at the end of the lease such as buying the car at the residual value, or selling the car and keeping the difference between the residual value and sale price. That may not be considered 'ownership' by everyone but certainly gives you special rights that - are stated in a contract - and that the dealer cannot take away from you.
    We get what you're saying. There's still no ownership involved until the balance of the car is completely paid off in either scenario.
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    Quote Originally Posted by AFP520 View Post
    We get what you're saying. There's still no ownership involved until the balance of the car is completely paid off in either scenario.
    +1

    Quote Originally Posted by BooSTin2014 View Post
    You're just arguing semantics at this point.

    You have options at the end of the lease such as buying the car at the residual value, or selling the car and keeping the difference between the residual value and sale price. That may not be considered 'ownership' by everyone but certainly gives you special rights that - are stated in a contract - and that the dealer cannot take away from you.
    you are correct in that aspect, that gives you rights. But rights is not, by any means, ownership. As much as you may think you have an ownership percentage, you in fact do not have any.
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    Quote Originally Posted by McBill View Post
    +1



    you are correct in that aspect, that gives you rights. But rights is not, by any means, ownership. As much as you may think you have an ownership percentage, you in fact do not have any.
    Fair enough: it's safe to say that 90%+ of people who buy new cars don't own their cars either - technically. My initial point was that just because a guy 'leases' a car doesn't mean that he's going to put a bunch of money into it and then just hand it back when the lease is up.

    I think it's just safe to keep your warranty during the life of the lease and then mod the car if you decide to buy it at the end of the lease term, however.

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    Quote Originally Posted by AFP520 View Post
    I pay the same $250 a month for insurance with $500 deductibles all around, I'm 30. Since nobody else said it, I will. You can't afford this car yet. In the event there is an accident, anything under $2500 is all on you to fix every time. Let that sink in for a minute. I cringe when I see $1,000 deductibles because not a lot of people have that kind of money hanging around in case there is a car accident.

    Buy something older that you can afford to have fun with and doesn't financially strap you.

    Agreed! Getting an older STI wouldnt even be a bad idea if thats what you want. Dont throw yourself into a financial issue. You have to think you have your whole life ahead of you. Unless your not planning on going to college and getting a job paying starting out at atleast 100k a year I would reconsider your choice in car. I bought a WRX and love it. Yea itll lose to some people on the straights. But i bought it because it was the car for me. It was reliable. Holds value. 4doors for family. AWD for the crappy winter days. Buy the car that is best for your lifestyle and that you can afford. What what the heck is a 2500 deductable? Good night thats an expensive accident. But whatever you choose. Make sure you have enough to afford everything you want now an dyou still save money. Older subaru you can mod all day long and not have to worry about a huge payment. Just a thought.

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    Quote Originally Posted by BooSTin2014 View Post
    Fair enough: it's safe to say that 90%+ of people who buy new cars don't own their cars either - technically. My initial point was that just because a guy 'leases' a car doesn't mean that he's going to put a bunch of money into it and then just hand it back when the lease is up.

    I think it's just safe to keep your warranty during the life of the lease and then mod the car if you decide to buy it at the end of the lease term, however.
    +1

    All in all, If you plan to lease to own it is just a waste of money and loan term in the long run. You will pay a lot more on the vehicle, after all is said and done, rather than if you would have originally financed. But again, it's all personal preference and if you need the lower payments for the first 3 years or so than leasing to own may be the best option. Just let it be known OP Leasing to own will cost you a significant amount more in the end. And during that 3 year lease you are limited with what you can do to the car as well as penalized by the dealer for extra wear and tear. I can only imagine if they find you modding outside the parameters of the lease they will heavily penalize you or could possibly be grounds to terminate the lease with what I could only imagine to be an extremely steep contract breaking fee.
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    a $2500 deductible is ridiculous. I wouldn't ever do that no matter how low the premium is. I'm going to have to agree with another poster (forgot the name and it's on the other page) who said this isn't what you should be doing. You are 22. you have a long time to be driving race cars. Until you reach an age where the insurance company isn't raping you, stick with a good quality car. $250 a month for insurance? that's insane. That's $3000 a year in insurance alone! Dude, get a honda civic until you're 25 or whenever your insurance drops again. save up your cash on a cheap civic loan to put a down payment on a wrx in 3-4 years. best of luck. I'm not touching the lease ownership thing haha. I will tell you though that I have leased, and I always just buy out the rest of the car after the lease. Knew it when I started, so I did what I wanted to the cars (which wasn't much) and didn't have to worry about mileage or door dings. gets you a lower payment for a while.
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    Quote Originally Posted by McBill View Post
    +1

    All in all, If you plan to lease to own it is just a waste of money and loan term in the long run. You will pay a lot more on the vehicle, after all is said and done, rather than if you would have originally financed. But again, it's all personal preference and if you need the lower payments for the first 3 years or so than leasing to own may be the best option. Just let it be known OP Leasing to own will cost you a significant amount more in the end. And during that 3 year lease you are limited with what you can do to the car as well as penalized by the dealer for extra wear and tear. I can only imagine if they find you modding outside the parameters of the lease they will heavily penalize you or could possibly be grounds to terminate the lease with what I could only imagine to be an extremely steep contract breaking fee.
    I would agree with this, but it's not set in stone. I negotiated $2500 off the residual of the car when I bought out a lease once. And I did a traditional bank loan with a decent interest rate. If you put in some leg work, you don't necessarily get hosed on a "lease to own." It will be more than just a standard loan, but it doesn't have to kill you either. The other option is to buy out the residual and then sell or trade it in. Just have to look at the options and see what's best.
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    Lol I swear there was this exact same thread on Nasioc last night... Again, don't even think about doing anything to the car till it is in your full possession. A stock STI is good enough as is.

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    If you mod the leased car, keep the original parts and put them back on the car before you turn it in. You run the risk of voiding the warranty if you take it to a dealer for repair and they notice and care enough to void it.

    I've done this in the past and plan to do it on my leased WRX.
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    Quote Originally Posted by McBill View Post
    +1

    All in all, If you plan to lease to own it is just a waste of money and loan term in the long run. You will pay a lot more on the vehicle, after all is said and done, rather than if you would have originally financed. But again, it's all personal preference and if you need the lower payments for the first 3 years or so than leasing to own may be the best option. Just let it be known OP Leasing to own will cost you a significant amount more in the end. And during that 3 year lease you are limited with what you can do to the car as well as penalized by the dealer for extra wear and tear. I can only imagine if they find you modding outside the parameters of the lease they will heavily penalize you or could possibly be grounds to terminate the lease with what I could only imagine to be an extremely steep contract breaking fee.
    Quote Originally Posted by WRXcritter View Post
    I would agree with this, but it's not set in stone. I negotiated $2500 off the residual of the car when I bought out a lease once. And I did a traditional bank loan with a decent interest rate. If you put in some leg work, you don't necessarily get hosed on a "lease to own." It will be more than just a standard loan, but it doesn't have to kill you either. The other option is to buy out the residual and then sell or trade it in. Just have to look at the options and see what's best.
    Right. You can - in some instances - make money off of the car if you decide that you want to sell it at the end of the lease, though. Just looking around on the market, I'm seeing 2009 WRX's with a lot of miles that people are still asking 18k for, so it's not a bad deal if you want to lease your WRX for a few years & then decide to sell it for 3-4 grand over it's residual value & pocket the money or use it as a down payment for another car that you're interested in. It at least gives you options in case you really like the new WRX that is coming out but want to wait to see the reviews on it or want to wait & see what Mitsubishi has in store for the 2016 Evo.

    Leasing is not for everyone though & most would rather just buy. My general manager who makes over 100k a year leases car after car & it's not like he can't afford to just walk in the dealership and finance just about any vehicle that he wants. lol

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