x28

Hi,

I have a blue RX8 that I would like to lease to my friend. He is going to lease the car for about half a year, I am trying to think up a reasonable price a monthly lease.

I told him about 800 dollars. I won;t be responsible for any insurance or antyhignt like that. So just 800 dollars for the car and he takes care of everything else.

If he gets into an accident w/ structual damage, he will have to buy the car from me.

What do you guys thuink/

Sea Ray

Never do that with my car, for any price.

jonnyb

why?

RX PRN

Unless you have the car paid off, you will be in violation of your financing contract. The company I work for runs across situations like this all the time. What if your friend fails to return it as we see all the time? You won't be able to report it stolen as you gave him permission to drive it. What if he fails to keep full coverage insurance on it and it gets totaled? You have lost your car and are still responsible for payments. Also, even if he did keep full coverage insurance, many insurance companies would not pay on the claim as your friend has no "Security Interest" in the car. I strongly recommend that you reconsider leasing your car. You stand everything to lose and nothing to gain.

Tbone

I know you call this your friend, but I think you will find that would change rapidly if any of the above scenarios played out. Don'te be naive, and don't lease your car. It's YOUR car, and you will be the only one who really cares for it. Every ask a Landlord if the tennants take great care of the house? You will lose out on this deal in a HUGE way if you do it. Red flags flying all over this deal

x28

Thanks guys!!
This is great feedback, I known him from far back and I do have my car paid off.

What I was planning is to have him pay 25,000 in full for the car, and I would take out the monthly payment. If he totals the car I will keep the 25,000 dollars.

I am planning to sell this car in about 6 months casue I just bought a Z and I don't need two cars around.

I am not selling my car now cause its winter time and the second hand market price is realyl bad at the moment. New 05's are coming in and dealers are going crazy trying to sell the brand new 04's.

if I DO have to lease him my car (I really do have to cause my dad and his dad are friends), can you guys please suggest me some ideas?

I am just an undergrad, but most of you guys are professionals, please help.

THANKS

czr

iTrader: (3)

In your situation, I'd consider sub-leasing the vehicle to a very good friend especially if you have a car and are not using the 8. In a lease you basically pay the depreciation value of the vehicle, so that's what you charge your friend. What options do you have on the car? I'd charge him like $250-325 a month based on what model you have and lay down some ground rules, like mileage, maintenance, wear and tear, etc.

x28

300 or so doesn't really cover the depreciation cost, there is still cost like excise tax and lisencing fee.

I have full option on my car, other than the navigation system.
Thanks

dvarapala

This is a bad idea.

As the registered owner, you will be liable for parking tickets, toll booth violations, red light camera tickets, and any accidents your friend gets into. If your friend crashes your car, at the very least your insurance rates will go up for years to come. And if he kills someone and the family sues, your name is going to appear as one of the defendants.

If this guy has $25,000 cash to give you, and he really wants your car, just sell it to him. Then if everything's still OK in six months, you can buy it back. Or he can sell it to someone else. Better still, he can just go lease or rent a car on his own.

That way, you two get to remain friends.