Looking into leasing a 2025 SX X-Line in black with terracotta interior. This is the offer I got after sharing my credit details.
I’ve never leased before. My new job requires me to have a car, and they contribute $495 monthly towards car costs, maintenance, and insurance.
I’d love to hear your thoughts and advice.
I don’t know much about leases, but $700 a month for three years feels like a lot, especially since you don’t even own the car at the end. And 10k miles per year? That’s pretty tight for most people.
lilly said:
I don’t know much about leases, but $700 a month for three years feels like a lot, especially since you don’t even own the car at the end. And 10k miles per year? That’s pretty tight for most people.
Leases can feel like a bad deal, but they have some advantages. I’m on my first lease, and I like knowing my vehicle is under warranty and I can lock in its depreciation. At the end, I can either buy it or return it if I’m not happy.
When I financed a Tesla, it got hit twice in a year, which tanked its value. If I had leased, I could’ve just returned it without worrying about the depreciation.
lilly said:
I don’t know much about leases, but $700 a month for three years feels like a lot, especially since you don’t even own the car at the end. And 10k miles per year? That’s pretty tight for most people.
Yeah, I feel the same way! Still trying to figure out why so many people lease. Earlier this year, I financed our family car (a Honda Pilot), which will take most of our miles. This lease would mostly be for work travel and personal use, but I won’t even drive it for about a quarter of the year since I’ll be flying a lot for work.
Personally, I don’t think leases are ever worth it. This one will cost you $26k just to drive the car for three years. Does your company’s contribution apply if you buy a car instead of leasing? If so, I’d go for a used car. Vehicles only lose value, so buying used is usually smarter financially.
@Mickey
Yes, the company’s $495 a month applies whether I lease or finance.
I’d prefer to finance, but here’s the problem:
@Austin
What about buying a used car with no money down? That $495 could cover your entire payment. You can find a solid car for that amount.
Magdalina said:
@Austin
What about buying a used car with no money down? That $495 could cover your entire payment. You can find a solid car for that amount.
Exactly. Leasing just means you’re paying more for a temporary car and then end up with nothing. Get something used that fits the $495 payment. Then you can focus on your new house, enjoy the Honda Pilot, and settle in closer to home.
@Austin
Why have both a Telluride and a Pilot? If it were me, I’d sell the Pilot and get the Telluride. Or keep the Pilot and finance something fun like a Porsche. With your company covering $495, you’d have a nice car to keep even if you leave the job.
This lease doesn’t look good. Buying a used car would be a better choice. The Telluride at this price just seems like a ripoff.
ElizaFord said:
This lease doesn’t look good. Buying a used car would be a better choice. The Telluride at this price just seems like a ripoff.
I’m starting to feel that way too. Thanks for the advice.
Is the customer cash for a cap reduction? If so, I wouldn’t put any money toward a down payment.
What’s the money factor and residual value? Ask the dealer and compare with Edmunds. This deal seems pretty steep.
I was checking rates for the SX Prestige X-Line, and it had a 67% residual and a 0.00232 money factor. My lease estimate was around $665 with $0 down, including Ohio’s 7.5% upfront tax. The sale price of the car was $51k.
Also, is it the SX X-Line or SX Prestige X-Line? If it’s just the SX X-Line, why aren’t there any discounts? You should aim for at least 5-10% off plus any rebates. How’s your credit?
@fatilo
I need to check the RV and MF numbers. I’m in Georgia, so we also pay upfront tax. This is the X-Line (not Prestige). My credit is between 810 and 826.
Looks like I’ve got some research to do. Thanks for your help .
@Austin
No problem. Make sure to check Edmunds for the correct numbers for your area. With your credit, you should qualify for the best rates.
Also, search for similar cars within 500 miles to find better deals. Use that price as a starting point for negotiations. If you’re picky about the terracotta interior, you might need to manually check each car’s details since dealers don’t always update the listings correctly.
@fatilo
I checked Edmunds, and they said 69% residual and 0.00235 MF. Thanks for the advice. It’s super helpful.
Austin said:
@fatilo
I checked Edmunds, and they said 69% residual and 0.00235 MF. Thanks for the advice. It’s super helpful.
Glad to help. Based on those numbers, your payment should be around $709 with nothing down. Honestly, it’s still high, so the dealer might be padding the numbers.
Focus on negotiating the sale price first. Aim for a 10% discount and be happy with at least 6-7%. If this dealer won’t budge, check other dealerships. They can trade cars between locations, so you can still get the spec you want. Meeting a salesperson in person can also help kick things off.
