: Ally vs US Bank Lease



docjay
09-10-12, 11:22 PM
Hi guys I'm about to lease a 2013 XTS Platinum series and I'm hoping you can shine some light on this situation. The dealer offered me a lease that I accepted through US Bank. Apparently, they don't like that I bought my previous cars outright and declined the application despite near perfect credit. Now the dealer checked with Ally too, and they are offering about $20 more drive-off, and then $20 more per month. However, according to the dealer, there is no lease disposition fee through Ally. So the net difference is:

US Bank: $1 x 36 months = $36 + $395 disposition fee = $441
Ally: $21 x 36 months = $756 - $395 disposition fee = $361 + $20 extra down = $381 EXTRA I'm paying through Ally over 36 months. It's not that big of a deal in the grand scheme of things - and I've read some pretty bad things about US Bank charging for everything they can think of when you return the car so Ally may turn out to be a good choice. Is there anything I'm missing? The dealer is going to talk with the higher ups at US Bank to get my application approved, but should I go with Ally over US Bank and pay the extra $10 a month or just wait and take US Bank if they approve me?

Thanks in advance.

docjay
09-10-12, 11:30 PM
By the way, did I get "bait and switched"?

Playdrv4me
09-11-12, 11:38 AM
I don't think you will find many here who believe that ANY option that involves a flease or even financing is a wise one, but we have some members associated with dealerships that might be able to help.

docjay
09-11-12, 02:23 PM
No choice here. US Bank has decided they will not approve me because of my lack of car credit history.... so Ally or bust ($20/mo more...). I'm gonna think about it and see.

hueterm
09-11-12, 04:48 PM
No choice here. US Bank has decided they will not approve me because of my lack of car credit history.... so Ally or bust ($20/mo more...). I'm gonna think about it and see.

If that amount is significant enough to be a deal breaker, I wouldn't be leasing a $60K car.

If you wait more than a couple of weeks now, the follow up inquiries on your credit report will sing your FICO.

docjay
09-11-12, 05:00 PM
Thanks - I just don't want to throw money away, whether it's $20 or $200/ month. The price raised $20/mo after the dealer and I agreed on a price because US Bank has some stupid rule about car-credit-history. But you're right - it shouldn't be a deal breaker and isn't. I'll go forward on the deal 99% today.

hueterm
09-11-12, 06:12 PM
LOL, I meant "ding" above...not "sing"... Stupid autocorrect...

I think you're making the right decision if you're going to lease. If US Bank has that rule, a lot of the others probably will too.

77CDV
09-11-12, 06:14 PM
Now I know why I don't lease. If I'm gonna buy a new car, it better be 0% financing. No way I'm paying interest on a new car, or the silly fees and restrictions that come with leasing.

orconn
09-11-12, 06:32 PM
Leasing makes sense for businesses where the car will be deductible and the business (individual or other) don't won't to tie up capital. Also where the vehicle will be traded every two to three years. mileage can be figured into the cost of the lease so extra mileage will not be charged at a ridiculous rate.

However, if an individual leases in order to be able to afford the car in the first place (rather than making amortized loan payments), leasing makes no financial sense and could end up being a really expensive way of having the car.

hueterm
09-11-12, 06:32 PM
I'm not passing judgment on whether to lease or not -- just that between those two leasing options, and his restrictions, the incremental cost w/Ally is not that big of a deal.

docjay
09-11-12, 07:16 PM
Leasing makes sense for businesses where the car will be deductible and the business (individual or other) don't won't to tie up capital. Also where the vehicle will be traded every two to three years. mileage can be figured into the cost of the lease so extra mileage will not be charged at a ridiculous rate.

However, if an individual leases in order to be able to afford the car in the first place (rather than making amortized loan payments), leasing makes no financial sense and could end up being a really expensive way of having the car.

My CPA explained to me yesterday that leasing vs. buying no longer has a "significant" benefit tax-wise. And not to base my decision on tax reasons (I am a business owner and the car is under my business). The reason I'm leasing this time instead of buying like the past 18 years is because I don't want to deal with cars without warranty and aftermarket warranty sucks and I like to change cars every 2-3 years.

BTW, the car will be delivered to my home tomorrow (or Thursday the latest!) :thumbsup:

docjay
09-11-12, 07:16 PM
duplicate.

77CDV
09-11-12, 07:38 PM
Congrats on the new ride! :)

brandondeleo
09-11-12, 09:31 PM
Hi guys I'm about to lease a 2013 XTS Platinum series

http://www.youtube.com/watch?v=MYcqToQzzGY

talismandave
09-12-12, 02:02 AM
Don't ask me. I will gladly drive someone else's car, but never pay for the experience.
I also don't know what after factory warranties you have had bad experiences with but the one I have rocks. Never pay for anything, even covers speakers and convertible top mech., window and seat motors. Was into profit vs what I paid for it in the first year and that was 2 years ago and I still have a year left!

M5eater
09-13-12, 09:15 AM
I'm leasing through ally. They've been perfectly fine so far, no complaints here.

docjay
09-13-12, 03:56 PM
Thanks for the feedback and the congrats. The car arrives within the next 2 hours... excited.

docjay
09-13-12, 09:29 PM
Here she is... I'll also post these in the XTS thread since people asked there (sorry for the duplicate in advance)

http://img607.imageshack.us/img607/9677/20120913162737.th.jpg (http://imageshack.us/photo/my-images/607/20120913162737.jpg/)
http://img228.imageshack.us/img228/3084/20120913162853.th.jpg (http://imageshack.us/photo/my-images/228/20120913162853.jpg/)
http://img29.imageshack.us/img29/6356/20120913180121.th.jpg (http://imageshack.us/photo/my-images/29/20120913180121.jpg/)
http://img843.imageshack.us/img843/3439/20120913172122.th.jpg (http://imageshack.us/photo/my-images/843/20120913172122.jpg/)
http://img19.imageshack.us/img19/6277/20120913162956.th.jpg (http://imageshack.us/photo/my-images/19/20120913162956.jpg/)
http://imageshack.us/a/img17/5601/interiorw.jpg (http://imageshack.us/photo/my-images/17/interiorw.jpg/)

77CDV
09-13-12, 10:44 PM
Beautiful! Congrats! :)

talismandave
09-13-12, 10:55 PM
Beautiful looking car, I got to see one up close in the motel parking lot last week. Impressed with the styling cues from old Cadillacs, and the interior looked high quality. Let us know in a few months how you like it.

brandondeleo
09-14-12, 02:27 AM
That thing's gorgeous...

EChas3
09-15-12, 11:02 PM
Congrats!