Can You Guys Help Me-Lease

[Kimo]

Hey guys

Ive never owned a car, now that my lease is finally up (rent was $550 a month including food and cable) I wanted to get a car. However, i dont know anything about cars, except how to drive them. I was thinking about renting a new truck (Ford F-150) because it would be cheaper than buying, im thinking over $400 if i wanted to buy, then insurance and gas =/
Also if my car would break down, i cant fix it cuz i dont know how

I need advice from you guys, thanks for your time

[BoneThugLA]

I was really against leasing up until a couple months ago when I leased an 07 Infiniti G35. Its only been like 2 months and i'm pretty sure i'll be leasing again. There's a couple things to look at though. If you do a lot of driving (more than 12K miles a year), then leasing probably isn't a good idea cause they make you pay a fee for every mile you go over your allowance. Its also very hard, if not impossible to get out of a lease until its over. On the other hand, if you buy the car, you can just sell it and have the buyer take over the payments. But other than that, leasing allows your payments to be much lower than if you were to buy the car. You also get rid of the car after usually 3 years, which is right before any major maintenance or repair issues come up. Remember to negotiate on the price of the car and the interest rate when you're leasing. That's what determines you're payments on the lease also.

[MauriSSio]

there are a lot of misconceptions about leasing,but its actually a very good way to purchase a car.its perfect because you only pay for what you use. when you buy a car,obviously it devalues a shit load,probly more than 50% after its first 3 years! anyways,yeah you can negotiate the price and MONEY FACTOR (THERE IS NO INTEREST RATE ON A LEASE) but a lot of times,if theres a "lease special" going on, they aint gonna go any lower than that. Also, about the whole mileage thing, dont let that scare you, sure you pay probably 15cents a mile (depending on the maker) but the car DEVALUES at a rate of about 30-35 cents a mile! if you buy the car (not by leasing) and drive it over 12000 miles a year, the car will devalue by that much! (30 cents or so a mile) so you can see,if you drive a lot leasing can be a GOOD thing, thats why theres a cap as to how many miles you can drive a year and thats usually 20,000 miles because people used to lease cars and drive the shit out of them and return them with 100,000 miles on them and theyd only pay 15cents a mile (over 36000 miles) and the bank would be stuck with a car that was worth a lot less,which is why leasing ususally requires decent credit,because the banks assume a much larger risk! I dont know what the hells wrong with my writing,its like i cant write a decent paragraph,sorry for speaking in fragments. Anyways,if youre planning on buying a car,lease it anyways,you can buy it when your 3 years is up (youll pay the residual) or you can find out you hate it a walk away from it after the third year,theres no 5 or 6 year commitment!

[Mr Burns]

I think leasing is a waste of money. It is like renting an apartment. IF you can afford to buy than buy. At least when you buy a car when you want something new you get some money for your old car. Where when you lease you spend all of that money on a vechicle and in the end you get nothing for it. And God help you if you go over the mileage limits. Then they'll penalize the shit out of you. It's a suckers bet.

[BoneThugLA]

I think leasing is a waste of money. It is like renting an apartment. IF you can afford to buy than buy. At least when you buy a car when you want something new you get some money for your old car. Where when you lease you spend all of that money on a vechicle and in the end you get nothing for it. And God help you if you go over the mileage limits. Then they'll penalize the shit out of you. It's a suckers bet.


That's what I thought before I leased, but if you get into a good lease, its better than buying. Here's an example...Before the infiniti, I leased a corvette (which I ended up returning because of issues with the dealership). Anyways, they had a promo for a 5 year lease on the Vette at $400 a month, plus a $7,000 down payment up front (includes tax and license). You basically end up paying $31,000 over the 5 years to drive the vette and then returning it. On the other hand, if I bought it, the price of the car was approx $48,000. Now if you add tax, license and interest on that, you're lookin at over $60,000. This is gonna put your payments in the $900 range with the same down payment as the lease. The difference is, after 5 years you paid 31K for the lease and 60K for the buy. Now lets assume that vette is worth 29K after 5 years. If you sell it at that price, you ultimately paid the same 31K for the car and drove it the same 5 years. The big difference is that when you purchase, your payments were more than double and you have to go through the hassle of selling the damn thing later on.

[MauriSSio]

YOU CAN BUY IT AT THE END OF THE LEASE! IF YOU BUY IT AT THE END OF THE LEASE<YOU DONT HAVE TO PAY FOR THE MILEAGE. Cars are a depreciating asset,would you buy an apartment knowing full well it would be worth half of that in three years?
The money you pay for mileage (if you dont want the car after 3years anymore) is less than the damage you actually do to the cars value,its not a penalty.If you "buy" the car and drive it THAT much,youd be paying more than the "penalty" when you try to sell the car in the future.
At the end of the lease you can get the car for what its worth in its devalued state,which is the same thing as if you would have bought from the beginning (because now theyll be asking something like 17,000 for a car that was worth 30000,again depends on make and model) EXCEPT you have the option of walking away from it.
During the lease the car is completely covered under warrantee AND GAP insurance in case it gets totaled, and usually about $1500 worth of wear and tear (dings dents and scratches, they dont expect the car to came back like it left). Also, you can sell the car while its under lease just like you would if you purchased it through a 4 or 5 or 6 year loan.

[MauriSSio]

another thing is,you pay tax on the monthly payments,not on the whole car. so if you buy a car for 20 grand,thats like 1600 in taxes down the drain if you try to get out of the car in the near future because you find out now you want a 2009 Dodge Challenger and want to get rid of your Civic Si that you just bought. All the taxes you paid on the car go to the government and you have nothing to show for it there.

[MauriSSio]

actually if you financed something like $53000 (60000-7000) i think itll come out to a bit over $1000/month

[BoneThugLA]

actually if you financed something like $53000 (60000-7000) i think itll come out to a bit over $1000/month

I included interest in the 60,000. Actual price before interest and tax and license was around $48K. Tax and license is around 10%, which brings it up to almost $53K, less the 7K down, makes it 46K that you're financing. Either way, you're still better off leasing in my opinion.

[Mr Burns]

That's what I thought before I leased, but if you get into a good lease, its better than buying. Here's an example...Before the infiniti, I leased a corvette (which I ended up returning because of issues with the dealership). Anyways, they had a promo for a 5 year lease on the Vette at $400 a month, plus a $7,000 down payment up front (includes tax and license). You basically end up paying $31,000 over the 5 years to drive the vette and then returning it. On the other hand, if I bought it, the price of the car was approx $48,000. Now if you add tax, license and interest on that, you're lookin at over $60,000. This is gonna put your payments in the $900 range with the same down payment as the lease. The difference is, after 5 years you paid 31K for the lease and 60K for the buy. Now lets assume that vette is worth 29K after 5 years. If you sell it at that price, you ultimately paid the same 31K for the car and drove it the same 5 years. The big difference is that when you purchase, your payments were more than double and you have to go through the hassle of selling the damn thing later on.
Yes leasing is a good way to be able to afford a car you normally wouldn't. However, why spend all of that money on a car and in the end get NOTHING in return? Consider this. At the end of your lease you are going to be out 31,000 dollars period. If you had bought that Vette. Even at 60,000 grand.After 5 years it'll be worth roughly half that. So I sell it for 30,000 grand. Now you go into a dealership with nothing to put down on your next lease. While I go into a dealership with 30 grand to put down on my next vechicle. That isn't even taking into account any mileage penalties that you may have built up over your lease.

YOU CAN BUY IT AT THE END OF THE LEASE! IF YOU BUY IT AT THE END OF THE LEASE<YOU DONT HAVE TO PAY FOR THE MILEAGE. Cars are a depreciating asset,would you buy an apartment knowing full well it would be worth half of that in three years?
The money you pay for mileage (if you dont want the car after 3years anymore) is less than the damage you actually do to the cars value,its not a penalty.If you "buy" the car and drive it THAT much,youd be paying more than the "penalty" when you try to sell the car in the future.
At the end of the lease you can get the car for what its worth in its devalued state,which is the same thing as if you would have bought from the beginning (because now theyll be asking something like 17,000 for a car that was worth 30000,again depends on make and model) EXCEPT you have the option of walking away from it.
During the lease the car is completely covered under warrantee AND GAP insurance in case it gets totaled, and usually about $1500 worth of wear and tear (dings dents and scratches, they dont expect the car to came back like it left). Also, you can sell the car while its under lease just like you would if you purchased it through a 4 or 5 or 6 year loan.

If you decide to buy a vechicle at the end of a lease. You are going to in the end pay far more for that car than if you'd just financed it in the first place. Cause when you buy a leased vechicle you don't just pay the reamaining balance. You have to pay the market value for that car at the time of financing. So chances are. You will essentially be paying for that car one an a half times. Not a good deal.

[BoneThugLA]

[quote=Bigcl;1645121]Yes leasing is a good way to be able to afford a car you normally wouldn't. However, why spend all of that money on a car and in the end get NOTHING in return? Consider this. At the end of your lease you are going to be out 31,000 dollars period. If you had bought that Vette. Even at 60,000 grand.After 5 years it'll be worth roughly half that. So I sell it for 30,000 grand. Now you go into a dealership with nothing to put down on your next lease. While I go into a dealership with 30 grand to put down on my next vechicle. That isn't even taking into account any mileage penalties that you may have built up over your lease.

Not true at all. I dont get the 30,000 back like you do because it never came out of my pocket. Its sitting in my bank account accumulating interest. What you're not seeing is by buying, you are out 30K also. You paid 60K and you got back 30K. Same situation. As far as mileage is concerned, i've never put more than 11K on my cars in a year. So 12K is pretty safe in my situation. Even if I go over my mileage by 5000 miles, the penalty is only about $1,000. Meanwhile, there's 65,000 miles on the vette. Is it still worth 30K? I doubt it.

[seeking]

im leasing my 06 GTI for 4 years...when the lease is up , i will finance the remaining amount....i dont mind paying more in the long run because i have the car i want right now..and for a monthly payment i can afford

[Mr Burns]

[quote=Bigcl;1645121]Yes leasing is a good way to be able to afford a car you normally wouldn't. However, why spend all of that money on a car and in the end get NOTHING in return? Consider this. At the end of your lease you are going to be out 31,000 dollars period. If you had bought that Vette. Even at 60,000 grand.After 5 years it'll be worth roughly half that. So I sell it for 30,000 grand. Now you go into a dealership with nothing to put down on your next lease. While I go into a dealership with 30 grand to put down on my next vechicle. That isn't even taking into account any mileage penalties that you may have built up over your lease.

Not true at all. I dont get the 30,000 back like you do because it never came out of my pocket. Its sitting in my bank account accumulating interest. What you're not seeing is by buying, you are out 30K also. You paid 60K and you got back 30K. Same situation. As far as mileage is concerned, i've never put more than 11K on my cars in a year. So 12K is pretty safe in my situation. Even if I go over my mileage by 5000 miles, the penalty is only about $1,000. Meanwhile, there's 65,000 miles on the vette. Is it still worth 30K? I doubt it.

But you aren't looking at the big picture. How many people here actually take(or even have) that 30 grand and put it into a bank account? The bottom line is when your lease is up you have nothing to put down towards your next vechilce. Whether it be leased or financed. Now when I finance my first Corvette, yes I'm taking a 30,000 dollar hit the first time. But when I go to buy the next one, my payment to own my Vette is going to be the same as yours is to lease one. So now we both have the same size payment, but I own my car and you do not. Oh, and yes a 5 year old Vette with 65,000 miles will easily be worth 30 grand. I've seen 2001 models that cost less when they were new than the new 2007 ones go for 25 and up.

[BoneThugLA]

[quote=BoneThugLA;1645453]

But you aren't looking at the big picture. How many people here actually take(or even have) that 30 grand and put it into a bank account? The bottom line is when your lease is up you have nothing to put down towards your next vechilce. Whether it be leased or financed. Now when I finance my first Corvette, yes I'm taking a 30,000 dollar hit the first time. But when I go to buy the next one, my payment to own my Vette is going to be the same as yours is to lease one. So now we both have the same size payment, but I own my car and you do not. Oh, and yes a 5 year old Vette with 65,000 miles will easily be worth 30 grand. I've seen 2001 models that cost less when they were new than the new 2007 ones go for 25 and up.

That 30K is accumulated over the 5 years. If my payment is 400 on the lease and 900 on the buy, then I have an extra 500 a month I can save. You multiply that by 60 payments and there's your 30K. Now if you choose not to save that money and go spend it on something else, that's a personal choice. But as far as the car is concerned, it works out to be the same thing.

Oh and let me just add that I was completely against leasing like you are. And I used to pose those same arguments that you're using right now, until I actually went through with it. I looked at it like renting and buying a house too, but you can't because a house is an asset that goes up in value over time. Cars are the opposite. Unless its a rare circumstance, no matter what you do, that car is gonna go down in value every year. The only way to buy and get the true value out of it is by keeping it at least 7 or 8 years. If you're gonna sell it once your payments are finished, you're better off leasing in most cases.

[Mr Burns]

First off when your monthly payments on a leased vechilce are not half of what they would've been had you financed. Maybe a third. So there wouldn't be a 30,000 dollar differnce at the end of the lease/finance.

Let me use an example I am more familiar with. My Monte Carlo. I financed it in 2005 for 5 years. I put down roughly 7000.00 and financed the rest with a payment of 275.00 dollars a month. In all for me to own that car I'm looking at 16,500+the 7000 dollars over the course of 5 years for a total of 23,500 dollars. Now I looked into leasing. The first problem was if I leased the car I wouldn't have been eligable for all of the incentives that took almost 4 grand off the total price of the car. For the lease with also with 7000 down. I was looking at a payment of 199 a month. Over the course of 5 years. In all that would cost me 19 grand (or 18,940 to be exact) over the course of the lease including the down payment. So for the difference of less than 5000 dollars I get to own my Monte Carlo as oppose to leasing it. I pretty sure that in 5 years I will easily be able to get at least 14 or more grand for a 5 year old monte carlo SS(based on what the 02's are going for). So again for 75 bucks a month more I will potenially walk away with 9 grand more in my pocket than I would have had I simply leased the vechilce. Not to mention in order to lease the car my insurance would have required me to carry a heftier coverage costing me even more.

I'm not saying that leasing is always bad under certain deals you can do all right with a lease. But it has been my experience that you loose a lot of money in doing so. Your best bet is to do the math at the dealership and see which is going to work out better for you in the end.

[Kimo]

well i need a car now

im not getting a corvette lol just something decent like a new truck, how much do they cost like 30K?

thank guys for your input

/gets to repping

[BoneThugLA]

I'm not saying that leasing is always bad under certain deals you can do all right with a lease. But it has been my experience that you loose a lot of money in doing so. Your best bet is to do the math at the dealership and see which is going to work out better for you in the end.


I completely agree with you on that part. Sometimes its better to lease and sometimes its better to buy. I'd look at both options in each case and then decide what's best. Of course, in that scenario with your monte carlo, I would have decided to buy also.

[Mr Burns]

well i need a car now

im not getting a corvette lol just something decent like a new truck, how much do they cost like 30K?

thank guys for your input

/gets to repping

what kind of truck are you looking for? A base model Silverado/Tundra/F150 could probably be found for under 18 grand. But if you start adding options like automatic transmission, crew cab, bigger engines, and so on the price can go all the way up to 35+ grand. My advice is that no matter what you get or how you finance it don't kill yourself with the car payments. One thing you may want to consider is buying a 1 or 2 year old used vechilce. You'll save thousands that way if you shop around some.

[Kimo]

I want a silver/gray F-150 STX Regular Cab Flareside, V6 if possible
other than that i dont need anything, i dont care for rims, crazy stereo system or none of that

when i go to Forddirect.com and build a truck it shows:
2007 F-150 STX
Base MSRP: $20,980

when i add flareside and leave it as 4x2 instead of 4x4 it goes up a couple grand
oh and mp3 player and rear sensor would be nice but not necessary

[BoneThugLA]

I want a silver/gray F-150 STX Regular Cab Flareside, V6 if possible
other than that i dont need anything, i dont care for rims, crazy stereo system or none of that

when i go to Forddirect.com and build a truck it shows:
2007 F-150 STX
Base MSRP: $20,980

when i add flareside and leave it as 4x2 instead of 4x4 it goes up a couple grand
oh and mp3 player and rear sensor would be nice but not necessary

Find out what the invoice price is on the exact car you want and negotiate from there. You dont wanna pay MSRP.

[Kimo]

oh i see, thanks

[MauriSSio]

I pretty sure that in 5 years I will easily be able to get at least 14 or more grand for a 5 year old monte carlo SS(based on what the 02's are going for).

i just looked in craigslist.com and an 02' Monte Carlo SS was on there for $7500. Yeah u probably see Montes on the lot for $14000 but those are probably 6 or 7 pounders just because they have them for sale for that much doesnt mean people actually buy them at that price. Heres what theyre going for right now http://www.edmunds.com/used/2002/chevrolet/montecarlo/19046/options.html
until recently i worked at a dealership and honestly wed probably only offer like $5000 tops for an 02'

[Mr Burns]

^I would never trade my car in. I worked at dealerships for a long time. So I also know that you are a fool if you trade your car into them. You are basically paying them(a lot) to sell your car for you. Private sale is much more lucrative. Private trade for an 02 is 9 grand. That is still what 4 grand more than I would have had with a lease.