Talk me out of (or into) leasing a car
09-13-2004, 09:23 AM
#1
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Talk me out of (or into) leasing a car
i thought about leasing a car, but to me its like keep paying monthly payment but will end up with nothing ...
should i or should i not do it?
how do purchase and lease compare?
should i or should i not do it?
how do purchase and lease compare?
09-13-2004, 09:56 AM
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09-13-2004, 10:09 AM
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09-13-2004, 10:35 AM
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If you buy a car for 60 months and try to sell if after 3 years, you will also most likely, end up with nothing if not owing more than the car is worth. Leasing is "ok" if you want a smaller car payment and a new car every three years.
Leasing is not good if you drive many miles, want to get rid of the car before the lease is up, or want to buy a car and not have a car payment.
Leasing is not good if you drive many miles, want to get rid of the car before the lease is up, or want to buy a car and not have a car payment.
09-13-2004, 10:42 AM
#6
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Originally Posted by suvh8r,Sep 13 2004, 02:35 PM
If you buy a car for 60 months and try to sell if after 3 years, you will also most likely, end up with nothing if not owing more than the car is worth. Leasing is "ok" if you want a smaller car payment and a new car every three years.
Leasing is not good if you drive many miles, want to get rid of the car before the lease is up, or want to buy a car and not have a car payment.
Leasing is not good if you drive many miles, want to get rid of the car before the lease is up, or want to buy a car and not have a car payment.
if i can get a car with a 70% residual and a low interest rate, i'd lease.
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09-13-2004, 12:37 PM
#8
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leasing is exactly, EXACTLY, the same as buying and selling in X years.
if you KNOW you won't keep it long, lease. Why? because you are shielded from resale risk, and if the residual is less than the current price, you can take advantage of it.
Some think that if they sell the car in X years, they have a profit. not so as you are just getting your money back. when you lease, you never pay that money to begin with.
if you KNOW you won't keep it long, lease. Why? because you are shielded from resale risk, and if the residual is less than the current price, you can take advantage of it.
Some think that if they sell the car in X years, they have a profit. not so as you are just getting your money back. when you lease, you never pay that money to begin with.
09-13-2004, 07:54 PM
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Depends on what kind of car you are going to lease. Lease something that retains it's value very well and you'll end up with a low monthly payment. Lease something like a Hyundai or a Kia and you'll wind up getting ripped off.
Here is a comparison. If you lease an S2000 for example, for 36 months, $1500 due at signing, $31,500 selling price, 0.00214 money factor, $19,291 residual value, you're looking at about $440 a month without tax, so figure about $470 a month with tax.
To buy the same car and have the same payment over the same term (36 months), at 4.5% interest, you'd have to put down about $18,500 to get near the same monthly payments and pay $1065 in interest over 36 months.
To me, it's not worth putting all that money into a car if you plan on getting rid of it in 3-4 years. If you're going to keep it until it falls apart, then fine, but otherwise, I know I don't have that kind of money to drop into something that's just going to depreciate as I use it.
Here is a comparison. If you lease an S2000 for example, for 36 months, $1500 due at signing, $31,500 selling price, 0.00214 money factor, $19,291 residual value, you're looking at about $440 a month without tax, so figure about $470 a month with tax.
To buy the same car and have the same payment over the same term (36 months), at 4.5% interest, you'd have to put down about $18,500 to get near the same monthly payments and pay $1065 in interest over 36 months.
To me, it's not worth putting all that money into a car if you plan on getting rid of it in 3-4 years. If you're going to keep it until it falls apart, then fine, but otherwise, I know I don't have that kind of money to drop into something that's just going to depreciate as I use it.
