who leases?..
10-18-2007, 12:53 PM
#22
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Originally Posted by dumbkid,Oct 18 2007, 11:51 AM
in numerical response to your numbered points...
1. leasing allows you to drive more car than you could otherwise afford, common sense says this is a bad idea. only spend what you have, or what can easily be paid off. think milionaires lease? no.
2. does the tax break equal the car payments plus interest paid? no. tax breaks are overall percentages, buy a house, it's a tax break. leasing creates unnecessary debt.
3. at the end of the lease term, you might end up paying three more car payments, plus the buy out amount financed with an interest rate. 10 to 14 cents per overage mile, every scratch nick or ding in or out is added, plus dealer fluff fees. mathematically speaking if your pay off is 17000 plus charges of say 1300 that's 18300 financed at 5% interest that's 21,045 dollars. this is all after the car has depriciated 40%. hope you enjoy buying the car 1.75 times.
4. leasing makes car buying easy because banks make 90% of their total profit on interest alone. banks are aloud under FDIC regs. to loan ten times their worth in liquid cash. if you knew you could make one milion dollars extra a month, wouldn't you make screwing people easy?
5.people are trained to be ignorant. i am, i love cars. but what i love more is knowing that i can be smarter than the sales pitches, i drive an s2000 just like you. mine will be paid for in two years, you will still have car payments, i'll be investing the equivilant of the car payment for returns, you'll be investing for a loss. it is trully mathematically stupid. cars are status symbols. we picked one we trully enjoy. but status symbols none the less, a car is never a wise investment, only necessity. buy used, let the person that bought it new get screwed.
1. leasing allows you to drive more car than you could otherwise afford, common sense says this is a bad idea. only spend what you have, or what can easily be paid off. think milionaires lease? no.
2. does the tax break equal the car payments plus interest paid? no. tax breaks are overall percentages, buy a house, it's a tax break. leasing creates unnecessary debt.
3. at the end of the lease term, you might end up paying three more car payments, plus the buy out amount financed with an interest rate. 10 to 14 cents per overage mile, every scratch nick or ding in or out is added, plus dealer fluff fees. mathematically speaking if your pay off is 17000 plus charges of say 1300 that's 18300 financed at 5% interest that's 21,045 dollars. this is all after the car has depriciated 40%. hope you enjoy buying the car 1.75 times.
4. leasing makes car buying easy because banks make 90% of their total profit on interest alone. banks are aloud under FDIC regs. to loan ten times their worth in liquid cash. if you knew you could make one milion dollars extra a month, wouldn't you make screwing people easy?
5.people are trained to be ignorant. i am, i love cars. but what i love more is knowing that i can be smarter than the sales pitches, i drive an s2000 just like you. mine will be paid for in two years, you will still have car payments, i'll be investing the equivilant of the car payment for returns, you'll be investing for a loss. it is trully mathematically stupid. cars are status symbols. we picked one we trully enjoy. but status symbols none the less, a car is never a wise investment, only necessity. buy used, let the person that bought it new get screwed.
If you take into consideration buying a 3 year used S2000 with 36k miles, and what an under driven S2000 would be, you still make out with a great deal.
Let's say you only drive your S about 6k miles a year (like me) and at the end of my lease, you still get the buyout amount of what a 3 year/36k mile S would cost. And on top of that, you were the only one driving the car, so you don't have to worry if the previous owner bashed the car before you got it.
And also, when you are in a lease, your debt to income ratio is better because you are only responsible for the amount of the lease period, and not the entire cost of the vehicle.
10-18-2007, 12:53 PM
#23
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back in early '04, I leased an '02 with no money down for 48 months at $410. My lease is up in feb, and it's going back if I can't get rid of it before then.
10-18-2007, 03:05 PM
#24
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first of all redsinjersey is in the business of screwing people. you know better than anyone how easily screwed you become during a lease. and second of all how many times have you pushed the "paying a month" pitch? "that's all that really matters when it come down to it right?" that is the epidemy of screwed. any financial genius will and always will denounce a lease. a rapper or rockstar on the other hand will always lease due to the appearance value. money to blow, just until they hit rock bottom and go bankrupt.
a smart person has no debt.
northstar... i'm sorry? who leases a car and actually plans on keeping it. that defeats the purpose of a lease. we live in a society that pushes debt and says that is is ok. i have leased, once. i did a drivers option with VW. i ended up trading in the car because of what i was going to owe. total finance charges i ended up oweing exactly what i paid for the S. on a car that was worth half that. if you can find any true unbiased financial advice that says lease show me.
a smart person has no debt.
northstar... i'm sorry? who leases a car and actually plans on keeping it. that defeats the purpose of a lease. we live in a society that pushes debt and says that is is ok. i have leased, once. i did a drivers option with VW. i ended up trading in the car because of what i was going to owe. total finance charges i ended up oweing exactly what i paid for the S. on a car that was worth half that. if you can find any true unbiased financial advice that says lease show me.
10-18-2007, 03:24 PM
#25
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I think leasing is best for the ppl who want to drive diffent car after 3 or 4 years and just want to get to point a to point b. But i'm the type of person that when i buy a car i want to keep it as longs as it run or til i'm force to change it. I think used is a great way to get an S2000. I wanted new but it was way too much money for me but i ended up geting an 06 with 8700 miles in dec of 06 still with bumper to bumper and it was certified so its still some cover for 7 year for 23,700 Drop 10000 on it and have payment for 5 year at 280 a month
10-18-2007, 04:57 PM
#28
Nothing against anyone who wants to lease but if your able to buy I have to believe this is the better way to go.
My situation was that I was willing to pay very close to cash and possibly even cash for a new '06. The dealer knew this and yet began plying me with the advantages of leasing.
All the rhetoric did sound very appealing but at the same time I was just a little paranoid of the reasons behind this.
I was assured that I could buiy the car at anytime during the lease and that payments made toward the lease would go toward the purchase of the car.
My instinct told me that there had to be an advantage for the dealership somewhere and quickly changed the subject back into purchase numbers.
I'm glad I went the purchase route but will admit that leasing with the ability to buy at anytime may be an alternative.
As I stated, I'm not sure how the exact numbers would work out if you could get honest and accurate answers from a salesman(Lease vs. purchase) but I still have a hardtime believing everything these guys say.
My situation was that I was willing to pay very close to cash and possibly even cash for a new '06. The dealer knew this and yet began plying me with the advantages of leasing.
All the rhetoric did sound very appealing but at the same time I was just a little paranoid of the reasons behind this.
I was assured that I could buiy the car at anytime during the lease and that payments made toward the lease would go toward the purchase of the car.
My instinct told me that there had to be an advantage for the dealership somewhere and quickly changed the subject back into purchase numbers.
I'm glad I went the purchase route but will admit that leasing with the ability to buy at anytime may be an alternative.
As I stated, I'm not sure how the exact numbers would work out if you could get honest and accurate answers from a salesman(Lease vs. purchase) but I still have a hardtime believing everything these guys say.
10-18-2007, 08:04 PM
#29
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Originally Posted by Lethander,Oct 18 2007, 03:24 PM
I think leasing is best for the ppl who want to drive diffent car after 3 or 4 years and just want to get to point a to point b. But i'm the type of person that when i buy a car i want to keep it as longs as it run or til i'm force to change it. I think used is a great way to get an S2000. I wanted new but it was way too much money for me but i ended up geting an 06 with 8700 miles in dec of 06 still with bumper to bumper and it was certified so its still some cover for 7 year for 23,700 Drop 10000 on it and have payment for 5 year at 280 a month