Leasing-ownership?
Terry
required to 'transfer' title of ownership. The title is then registered in
my name. Right?
However; if I lease a vehicle the ownership remains with the owner/lessor
and I will either return it, or perhaps eventually purchase it etc. under
the terms of the leasing contract. But I don't 'own' it. Right?
So the question is; how does the Provincial Government Motor registration
'know' who is the 'entitled' driver, or driving family?
To whom do they send questions about the vehicle, parking tickets or any
other details?
To the owner? Who probably doesn't even know where the vehicle is, within
terms of the lease, at any given point in time?
Can anyone who leases explain please if/how, if they lease, they are,
perhaps, identified as 'the owner' for administrative purposes? e.g. I know
of someone who owns one vehicle and leases another!
cloud dreamer
From what I can remember of the one and only time I leased...
you're not the owner. You're the leasee.
Different name. Same responsibilities.
..
jw
vehicle,(not the leasing company) so you get all the tickets and fees.
Dan Parrell
signed document stating that you are the registered owner or leaser
recognized by motor registration, the insurance and car dealership.The
person who is passing this responsibility over to you should in all fairness
assume all
transfer costs or penalties if there are any before you take over his
agreement. I'm not even sure if want you want to do is legal from the
dealership or the DMV point of view.
"Terry" <tsan...@nf.sympatico.ca> wrote in message
news:MXSvf.42173$X25.1...@news20.bellglobal.com...
Terry
"Dan Parrell" <danp*******@nowhere.ca> wrote in message
news:KUTvf.151286$Ph4.4...@ursa-nb00s0.nbnet.nb.ca...
> First of all, don't assume anything especially a lease unless you have a
> signed document stating that you are the registered owner or leaser
> recognized by motor registration, the insurance and car dealership.The
> person who is passing this responsibility over to you should in all
> fairness assume all transfer costs or penalties if there are any before
> you take over his agreement.
.............................................................................................
Yup. That is all fairly obvious with any 'contract'. But agree it's a good
warning.
Then you wrote
> "I'm not even sure if what you want to do is legal from the dealership or
> the DMV point of view."
Don't want 'to do' anything! Was just asking a question about 'how it is
done'; because leasing, these days, is quite a common method of
having/using a vehicle. And may have some advantages?
When leasing was first offered phoned up a dealerships and their financing
manager did a good job explaining it.
Based on some typical 'what if' numbers, she provided I was able to
calculate for example; leasing ....
a) You pay off the amount (plus interest) that the vehicle will decrease in
value during the lease. For example if the vehicle is listed at $30,000 and
after 4 years it will be worth $14,000? I would pay off the $16,000
depreciation, plus interest on that $16,000 (roughly, at 7% interest rate,
that would be $380 per month for 48 months).
Also;
b) I would pay, interest only, on the remainder of the value of the vehicle
which I am, in effect, borrowing for 4 years. That would be 14,000 (roughly,
at 7% = $82.00 per month)
Total monthly payment would be (approx) 380.00 + 82 = $462 for four years.
By leasing; at the end of 4 years I would owe nothing and also own nothing,
having spent a total of $22,200.
I could then lease again or buy the vehicle I have just finished leasing.
Love or hate, it's a nice option! If the vehicle was then worth 14,000
(possibly guaranteed in the initial leasing contract) and I financed
purchase of it, it would cost about $331 per month for a further four years.
That's about 48 x 331 = $ 15,800
Total expenditures over the eight years would be 22,000 + 15,800 = $37, 800.
However with a four year old vehicle it would probably be necessary to
spend, say, another $1200 for tyres and maybe a replacement muffler system?
So total it at around $39,000 over eight years or little less than $5000
per year (or an average of $406 per month).
Instead if I then leased again a similar vehicle, instead of buying the
first; one we could assume another four years at a cost of say $22,000+ (but
increase that a bit, say 8% for annual inflation rate of less than 2% per
year) to equal say $24,000.
Then eight years of leasing would cost 22,000 + 24,000 = $46,000. Averaging
$480 per month over the eight years.
To initially purchase the vehicle instead of leasing; and therefore own it
at end of 4 years, would involve borrowing; approx $30,000 @ 7% for 48
months = $713 approx. In this case after, say 48 months, I would owe
nothing and would own the depreciated vehicle (its value depending on
condition and the market) having spent $34,200. If that vehicle lasted
another four years, with some expected repairs (say $1200?) and I then threw
it away would have spent a total of $35,400 in eight years, or the
equivalent of about $373 per month.
Both leasing and purchase have advantages?
If the assumptions and the numbers above are about right it would appear
A) Leasing eight years average $480 per month.
B) Leasing four years then buying the leased vehicle average $406 per month.
C) Not leasing but purchasing for four years and keeping vehicle for balance
of eight average $373 per month.
Using (A) as base;
A) 100%.
B) 85%
C) 78%
(B) Provided vehicle did not require extensive repairs during second four
years, about 15% less than leasing.
(C) Provided vehicle did not require extensive repairs about 22% less than
always leasing.
Just an exercise at the relatively low interest rate of 7%. At higher
interest rate would be different.