Ok, here's the deal.... How are these lease numbers??

Price of the car: $29,538

$800 total out of pocket

$367.50/month for 48 months.. Tax is included in the payment....

$18,500 buyout at end of 4 years..

Would I be stupid to pass this up??

Let me know how this deal compares to others.

Thanks

Also, is is a brand new '04 Sebring Silver with red and black leather.....

 

if you add up all the numbers, you'll end up paying 36,940 for the car through the lease....

or, i assume, you can buy it for 29,538 cash today.

that's about 7500 in interest over 4 years....that's A LOT in today's economy.....

 

At the same time, you must take into consideration insurance on top of that ? condition of the car ?

but on the other side of the coin, $367.50 is a nice monthly to have ?

 

You aren't looking at leasing the right way in my opinion....

You shouldn't consider the buy-out price when you are looking at the deal. You should add up the payments, which comes to $18,440.

Now if you were to buy the car, and traded it in after 4 years, you'd probably get 15k back (that's what MY2000 S2000s are going for). That means you'd lose about 15k on the car if you bought it right around 30k.

If you used these numbers to calculate the "interest" on this lease deal, by simply subtracting the amount you would pay through the lease by the amount you would lose by buying the car outright, you'd get about $3,500. If you look at a loan calculator and were to finance the car, you'd be paying around $2,800 in interest if you got a %4.5 APR. Sounds about fair if you ask me, not a great deal, but not a bad deal, just about average.

Hope that helped,
Nick

 

Insurance would not go up at all.......

Still be paying $125/month..... NOt bad for a 22 year old..

 

That's a very high residual for a 48 month lease, it's a pretty good deal. depends on if you want to keep the car that long.

You need to find out the money factor/interest rate, and tell us if tax is included. If tax is not included, it's a pretty high money factor and not a great deal.

Also, you need to tell us what year the car is and if it's new, etc. You left out a lot of critical info.

Long leases generally don't make sense from a long term perspective, you might as well buy the car, unless you NEED to keep your monthlies lower now.

 

ttt

 

http://www.carbuyingtips.com/lease.htm

You should be able to figure out if you're getting a good deal or not after reading that.

 

I might also add, that you need to consider how much you will be driving it. What is the mileage limit on the lease? This is a part that will get you on a lease if you're not careful, especially a four year.

I've known a few people who took a lease, then switched jobs and ended up driving 30 miles a day to work. That can work out to be a lot at the end if you don't plan on doing the buyout.

Jesse

 

People tell you that it's always better to buy than lease, but this is not necessarilly true any more. The lease terms you described are good.

Some factors not considered yet:

1) Taxes added to cost when buying the car outright
2) Warranty. If you need to have a car under warranty, then you'll run out of warranty (even with an extended warranty that you also have to buy) right around the time the car is paid for. And right around the time that expensive parts start to fail.

My wife and I have two leased vehicles that sell around the 34K range. Over the course of 3 years we are saving around 21 to 22 thousand dollars in payments by leasing rather than buying. Think about that.

Take the 11 grand of so you'll save over three years, and buy the next S2000 that comes along with a great down payment, thereby reducing your payments to about 200 a month on the next car.