How Long Can This Lease Ride Last

[tbaptista]

So my wife has been leasing from Honda since 2008 and Honda has been swapping her lease early every 2 years on a 3 year lease. Each time she gets a new pilot and it always has additional features and a greater mileage allowance. So just this weekend Honda/Acura did it again. This time she got an MDX with the same mileage allowance but the monthly payment went down $2. Every time she does it we only have to pay the first months payment at signing so we time it to when her normal payment will be due. So she has been leasing for 8 years and this is her 4th new car and our payments have come down over time. The kicker is if we actually kept any of the first 3 pilots for the entire lease we would of owed on over miles as we drive to Florida about every other year. The pilot they just took for the MDX actually needed new tires so we totally dodged an expensive bullet.

So my question is how long can this cycle keep going. I am assuming at some point this too good to be true scenario has to end.

Does anyone else have any experience with this?

 

[IndyRnRfan]

Many leases work like that. My neighbor just turned in her 2013 Malibu for a brand new Buick Enclave fully loaded. Payment went down $20 for exact same lease. She's been leasing for over 10 years. They are trying to get her husband to turn his lease in on his truck. He has a 2014 gmc quad cab. They told him yesterday they could put him in a 2016 fully loaded Denali for the same price as his truck.
Most of the time they will do this because people tend to keep better care of newer cars than older ones. The dealer will turn around and make a quick sell on your 2-3 yr. old lease while they still make money off you leasing. Leasing is good for those that want a new car every couple years, don't drive a lot, and don't customize their vehicles.

 

[diznygirl]

It will work for as long as it's a good financial deal for the dealership. It might be a too good to be true scenario for them as well.

 

[Swank]

If you do the Math, your Monthly Payments plus the Extra payment at the beginning of each lease. Is costing you much more then buying the car and using for 8 - 10 years, even including maintenance. But there are so many benefits to having a new car every couple of years you are willing to ride this train as long as you can. Enjoy it it may last a long time, believe me, if the dealer wasn't making good money on the deal, they would not offer it.

 

[DopeyDame]

The dealership is asking the same question about you.
You're consistently giving them money - they love that. If having a brand new car with all the latest bells and whistles is important, than it may be a good deal for you also, but no doubt you're giving the dealership far more money than if you bought a car. And if giving you a new car every 2 or 3 years instead of every 4 or 5 keeps you on the hook, then that's a trade they're probably more than happy to make.

 

[kamik86]

The dealership is asking the same question about you.
You're consistently giving them money - they love that. If having a brand new car with all the latest bells and whistles is important, than it may be a good deal for you also, but no doubt you're giving the dealership far more money than if you bought a car. And if giving you a new car every 2 or 3 years instead of every 4 or 5 keeps you on the hook, then that's a trade they're probably more than happy to make.

This is what most businesses consider the perfect deal. Not only are they making alot of money off you, your happy about it and feel like you got a great deal too (and for what you want you probably have). It is also a perpetual deal, you can't switch dealerships or companies and keep getting this deal so you don't switch and your telling others about how great of a deal your getting and helping them possibly get more customers that do the same.

 

[tbaptista]

If you do the Math, your Monthly Payments plus the Extra payment at the beginning of each lease.

You lost me on this a little bit. I don't think its an extra payment as I give the dealer the first months payment and have another 35 payments to make for the remainder of the 3 year lease. To date, I have never made 2 lease payments in the same month doing these deals. Am I missing something?

 

[tbaptista]

This is what most businesses consider the perfect deal. Not only are they making alot of money off you, your happy about it and feel like you got a great deal too (and for what you want you probably have). It is also a perpetual deal, you can't switch dealerships or companies and keep getting this deal so you don't switch and your telling others about how great of a deal your getting and helping them possibly get more customers that do the same.

Part of this is having to switch dealerships. If we don't shop it out then we won't get the monthly payment to remain the same or go down. Keep in mind we also shop within a 50 mile radius which gives us a lot of options. We have not done a deal with the same dealership since we started leasing. We have however stuck with the same car manufacturer.