: Why do people lease cars?


garfield
Jan 31st, 06, 7:21 AM
To most of you I know that this may sound like a silly question, but why do people do this? Some people I know will pay this huge note each month, for a car that they only have to give back when the lease is up. To me thats crazy. For the money these people are paying for a leased vehicle, they'd be better off just buying one.

I can understand why large companies or major industries do this, but why do everyday people do it :confused:

frankf72malibu
Jan 31st, 06, 7:39 AM
Garfield,
If you look at the lease deals you can lease a vehicle for lets say $199 per month. Take that same car (say an inexpensive one for $20,000 total) and when you do the math the payment ends up being over $400 on a 5 year note. It allows them to drive a car that they could not afford otherwise. Trust me, I do not lease. But I have a friend who leases a new BMW every 3 years. She does not like to work on cars. She just likes to drive them. Since she leases a BMW she gets free oil changes, tire rotations, etc, etc. my $.02 worth.
Frank

Jblack
Jan 31st, 06, 7:39 AM
well I've been leasing for the last 8 to 10 years. Actually the monthly note is cheaper than buying. But the big stickler is the miles. I'm able to keep within the 12K limit so there's no hit for extra mileage when the lease is up. Another plus is your driving a brand new car every two years, warrenty covers everything.
When you buy a new car you take a huge hit as soon as you drive off the lot as far as the value of the car. And it's almost impossible to not have a payment of some kind for a car. So every couple years I step into a brand new vehicle. In fact I just picked up a 06 Dodge Ram 1500 quad cab with a hemi for just over $300 a month,with nothing down. This thing stickers at 35K, so leasing works for me.

Tom Hendricks
Jan 31st, 06, 7:45 AM
Several reasons. With the rapid depreciation of some models, as well as huge incentives that always come out AFTER you buy, the lease is a great way to avoid having a car that is worth thousands less than you owe on it. Many cars and trucks are worth half of the purchase price in a very short time. Why would you want to own anything that is plunging in value.? Especially with the car companies supporting the leases, I can see no other way to go with the products we sell. (Chevrolet, Buick ) Everyone in our dealership leases their car. Check on lease payments and you'll find they are not nearly as high as a buy payment, and not for nearly as long. Now keep in mind, leasing is not for everyone, or for every vehicle, but there are many advantages. I have always leased my new cars. Never though twice about it. I've spent 22 years in a GM store, so I'd like to think it's a smart choice for me. One should always examine the lease before you sign on the line. :)

Tom Hendricks
Jan 31st, 06, 7:52 AM
Another factor is miles. Usually excessive miles on a lease will cost you .10 to .15 per mile. Check the trade in book and do the math on high miles if you own it !!!

Importtech
Jan 31st, 06, 7:59 AM
I equate leasing a car to renting a house....neither are the best option. JMO

dyno jonn
Jan 31st, 06, 8:00 AM
If you are able to live with an "end of year" car instead of the first one off the line, a new car can be purchased for a whole lot less. After the time a lease would be over, you still own the vehicle and can sell it and buy another "end of model year" deal. If you think lease companys are in business for your best interest, keep on leasing.

BillsCamino
Jan 31st, 06, 8:05 AM
We just leased our very first car a week ago...an '06 300C :) Gonna give it a try.
Always buy a new car every two years...did the numbers both ways-leasing or purchase outright.
Leasing made sense for us for the reasons Tom listed above. Main reason, IMO, was the $38K '04 with 12k miles we were trading in was now booked at less than $22.5K:( due to generous factory incentives and market sales volume. Heck of a hit in 2 years.

garfield
Jan 31st, 06, 8:18 AM
If you are able to live with an "end of year" car instead of the first one off the line, a new car can be purchased for a whole lot less. After the time a lease would be over, you still own the vehicle and can sell it and buy another "end of model year" deal. If you think lease companys are in business for your best interest, keep on leasing.

This is exactly how I figure.

To each his own I guess :confused:

nebula72
Jan 31st, 06, 9:32 AM
I equate leasing a car to renting a house....neither are the best option. JMO



Except that houses dont generally depreciate and cars almost always depreciate.

Byfield
Jan 31st, 06, 9:36 AM
I was lead to believe that it depends upon how long you plan to keep the car. If you like getting new vehicles every few years, it pays to lease as your lease payments tend to be less than the depreciation on the vehicle. If you plan to keep it longer, you're ahead by purchasing it

Tom Hendricks
Jan 31st, 06, 9:42 AM
I equate leasing a car to renting a house....neither are the best option. JMO

The only factor to think on here is, the house goes up in value while you are renting it. The car does not. So at the end of the lease, you turn in a car that is worth a fraction of it's purchase price. When you move out of your rented house, the owner still has a property worth more than when you moved in. That's the difference.

mr 4 speed
Jan 31st, 06, 10:02 AM
This why I prefer to drive older daily drivers.
I bought my 87 Cutlass 2.5 years ago for $1800
I've spent about $250 for at home oil changes,brake pads,a battery and alternator.
So,figure $71 a month for the last 29 months :D

Tom Hendricks
Jan 31st, 06, 10:05 AM
This why I prefer to drive older daily drivers.
I bought my 87 Cutlass 2.5 years ago for $1800
I've spent about $250 for at home oil changes,brake pads,a battery and alternator.
So,figure $71 a month for the last 29 months :D

In the big picture, you are probably the wisest of us all !!! :)

Derek69SS
Jan 31st, 06, 10:34 AM
This why I prefer to drive older daily drivers.
I bought my 87 Cutlass 2.5 years ago for $1800
I've spent about $250 for at home oil changes,brake pads,a battery and alternator.
So,figure $71 a month for the last 29 months :D
Same here:
91 bonneville w/228,000 miles on it for $250
~ $50 in oil, filters, and a pair of used tires
Had it for about 10 months, now has 242,000 miles
average cost = $30/month
($0.02 per mile! :thumbsup: before gas & insurance ) -compare that to BillsCamino's $1.29 per mile loss on a new car!

BillsCamino
Jan 31st, 06, 10:42 AM
-compare that to BillsCamino's $1.29 per mile loss on a new car!
Yeah but a small price to pay to see the smile on Momma's face everytime she gets behind the wheel. :)
Not to mention...I don't have to freakin' listen to the complaints...rattles, squeaks, funny noises, that she seems to hear on old stuff.

pauls
Jan 31st, 06, 10:51 AM
Same here:
91 bonneville w/228,000 miles on it for $250
~ $50 in oil, filters, and a pair of used tires
Had it for about 10 months, now has 242,000 miles
average cost = $30/month
($0.02 per mile! :thumbsup: before gas & insurance ) -compare that to BillsCamino's $1.29 per mile loss on a new car!


That's not a fair comparison, Derek. You left out the cost of 29 sets of those bumper 'deer warning' whistles!

Paul

1BLACKHARLEY
Jan 31st, 06, 10:57 AM
there are many assumptions that people who don't believe in leasing always throw around.

you don't own it, excess miles will kill you, buying is cheaper in the long run, etc...etc... in some cases this can be true, but the people who get stuck in these deals, would have gotten screwed on a purchase anyway.

first, a lease if negoiated correctly, can be much cheaper than buying. little if any, out of pocket down (which you could put in a interest bearing account), low monthly payment (usually much less than purchase payment), you can sell the car, if it's worth more than the buy out price, you can actually make a few $.

heres an example, a few years ago, i leased a convertable sebring, for $179 a month for 36 months, with no down payment. that came to a little over $6k. now if i would have bought the car, it was over $20K, so with interest my payments would have been over $600 a month, coming to a $25,000+ investment not counting maintenence. after 36 months the car would have been worth approx. $16,000, which would have come to a $9,000 loss for me. even if you figured in the lease costs, i came out ove $2,500 ahead on the deal. now heres the kicker, towards the end of the lease, i was able to sell the car, for a little more than it was owed, netting me back almost $900, bringing my cost to drive the car for about 30 months down under $6,000.

i'm sure all the nay sayers out there, will come up with all kinds of reasons, not to lease, mostly based on old addages. and beware, you can get screwed, but if you do your homework, add in maintenence, excess miles costs etc. you can get a lease to work in your favor. on the other hand, if your like some of my salesmen, you could cost yourself a ton of extra $. the day of the 8-10 per mile excess charge is changing quickly, it's more like 15-30 a mile. one of our salemen ran up a $7,500 excess mile charge. boss took it out of his pay. they can charge you for stains (usually $75 a stain).

the car has to be returned with average wear and tear, no body damage, worn tires, lapses in maintenence, etc. you can no longer take them to the race track (voids warranty). do your home work, and you can drive cars, that you normally wouldn't be able to afford.

let the snipping begin.......

Derek69SS
Jan 31st, 06, 11:58 AM
Yeah but a small price to pay to see the smile on Momma's face everytime she gets behind the wheel. :)
Not to mention...I don't have to freakin' listen to the complaints...rattles, squeaks, funny noises, that she seems to hear on old stuff.I would never put my fiance in a $250 car, but for me, it's fine. I'd rather drive a cheap beater and stick my money into the Chevelle anyway :D Jenna doesn't quite see it the same way for some reason :confused: so she drives the $5,000 newer, lower-mile, better-looking Bonneville

That's not a fair comparison, Derek. You left out the cost of 29 sets of those bumper 'deer warning' whistles!Nah, I don't need them... I have a car I don't care about, so it should be safe :D

Alwhite00
Jan 31st, 06, 12:15 PM
I lease a trailblazer and do so because I only put on $12,000 a year and I always get a new vehicle every 2-3 years anyways. The ammount that I would pay on a 5 year note is a lot more than my lease and I don't have to try and sell it when I am done with it.

LK

pist0lpete
Jan 31st, 06, 12:22 PM
I think what a few of you mentioned earlier makes alot of sense. If you are the kind of person who doesn't have to have a new car every 2 or 3 years and you don't mind driving one for say 5 or 6 years then buying is the best option. I can only imagine with the right vehicle you are thousands of dollars ahead if you just drive the same car for 5 years. For something like a honda/acura lexus/toyota who have extremely good value retention leasing seems less of a good option. Like I say however, these are all case sensitive.

69boo307
Jan 31st, 06, 12:53 PM
I just paid off my '04 Colorado! woohoo! :) Just thought I'd interject :)

chevelless1
Jan 31st, 06, 1:02 PM
they charge extra for any miles you go over on the lease agreement.....but do they give you money back if you end up under.......nooooooooooooo
dealerships and motor companies wouldn't offer leasing if it benefited the consumer.

1BLACKHARLEY
Jan 31st, 06, 1:09 PM
they charge extra for any miles you go over on the lease agreement.....but do they give you money back if you end up under.......nooooooooooooo
dealerships and motor companies wouldn't offer leasing if it benefited the consumer.

how many companies benifit thier customers, more than themselves? 99% of business plans, are to make something cheap at a high rate of profit. would you give $ back to somebody that under used a product? most likely not....

Dean
Jan 31st, 06, 1:26 PM
Interesting subject.

It's getting close to time for a new car for my wife, her 92 Olds Delta 88 has almost 100,000 miles on it now.

Leasing probably wouldn't be best for me since we keep our cars so long and don't put very many miles on them but it would be nice to have a new one every couple of years with no maintenance.

I've had pretty good luck buying my last few personal vehicles which have been late model used cars, bought from previous owners selling them because they bought new cars and didn't trade their old ones in.

gigem
Jan 31st, 06, 4:38 PM
Here's how I look at it...

When you lease a car, what you are really doing is reimbursing the leasing company for the depreciation the car is going to take during the course of the lease. Plus a little profit for them.

A big unknown for the leasing company is the amount of that depreciation. What will the car be worth in three years? Even assuming they hold you to the mileage, maintenance and condition, it's still a risk.

The leasing company will be asking you to pay for that risk.

Looking at it another way... How often do you think that a leasing company loses money on a lease? Meaning that they bought the car, took your lease payments on it, added penalties, etc. then sold it and ended up losing money? Not often, I bet. In fact, I bet it's a pretty profitable business...

I've never leased a car, and don't plan to. If I can't afford to own it, I won't drive it.

2BlueLS6's
Jan 31st, 06, 5:00 PM
I think leasing is largely a cash flow decision. There's no question that somebody can drive more car for a given amount of monthly expense by leasing, especially if they REALLY disect the numbers and don't get pencil whipped in the F & I office which is a very common practice in car dealerships these days. If somebody can afford a higher monthly payment and down payment, purchase is almost always cheaper overall.

The real hook in a lot of these deals is in the trade and the fog involved in the paperwork. Way too high a percentage of working class families get a royal screwin' when they buy a car, and figuring depreciation and the fact that they then have to trade upside down the next several times, the cycle becomes a vicious merry go round.

Edmunds Inc. put a journalist/spy in several dealerships on the west coast a year or so ago and he published the results of his sales jobs on their website. It's an interesting and informative read for anybody thinkin' about buying or leasing a car from a dealer.

Here's a link to the Edmund's article that AOL users can access. I don't know how to get into it from other ISP's. Maybe somebody smarter than me can post a better link that everybody can use. This link goes to part 6 of the article, but the navigation bar on the left will take you through in order.

http://aolsvc.edmunds.com/advice/buying/articles/42962/page006.html

1966_L78
Jan 31st, 06, 5:03 PM
they charge extra for any miles you go over on the lease agreement.....but do they give you money back if you end up under.......nooooooooooooo
dealerships and motor companies wouldn't offer leasing if it benefited the consumer.

Dealerships and motor companies wouldn't SELL cars if it benefitted the consumer... They are out to make money...

Leasing CAN benefit the consumer in some cases. It allows people to afford to drive something that they otherwise might not be able to... Maybe that person couldn't/wouldn't 'buy" a new car from any dealer (and keep driving an old beater), but they might lease...

After saying that, I have never leased, and probably won't... I'd like my wife/family to drive a newer car, but "age" doesn't matter as much as mileage (we don't need a new car every 2-3 years, but I'd like them in a car under 60K miles, etc... We are very close to the "12K per year" (22K on our vehicle, owned 21 months, but just finished an unplanned 900-mile trip), but I know IF we leased (just my luck), we'd end up going over, or having the car sit for the last several months...


If you lease, and take care of the car, you can buy it back at the end... If the initial payments are less (total) than the purchase payments over that time period, and the "value" at that time is similar, then you actually made out...

BillsCamino
Jan 31st, 06, 5:07 PM
If I can't afford to own it, I won't drive it.
Since I stepped up and admitted that I just entered into a leased vehicle, I assume this comment was aimed in my direction.
First off...I CAN afford and own anything I damn well want. :( Like I said, we BUY at least one new vehicle every two years.

Second, let me put this in a perspective I just considered...
OK, extreme but you'll get my drift;

You just purchased outright a $50K LARGE V8 powered SUV...just had to have it!
Fast forward 24 months...a God forsaken, terrorist driven, tragedy rocks the world. Gasoline screams up to $5 per gallon...long lines and odd/even days (like the mid '70s). Came damn close to this just recently. In today's world anything is possible. :mad:
Suddenly, you couldn't give that V8 SUV away. Panic!! The bottom falls out of large, "fuelish" vehicles. Everyone's paying premium prices for hybrid stuff. (Again, recently). Your SUV might be now worth $15K IF you're even able to sell it...basically can't give it away.
Now, reverse back 24 months. You purchased that same model SUV on a 24 month lease with lets say a $30K residual. When the gas crunch does hit, you've got an out on that beast. Turn it back in to the dealer and see 'ya folks. :waving:
Get my point? ;)
Like I mentioned above...my first lease...purchasing a large V8 powered 4 door sedan.
If we could only see into the future...

Dave
Jan 31st, 06, 5:27 PM
Yeah but a small price to pay to see the smile on Momma's face everytime she gets behind the wheel. :)
Not to mention...I don't have to freakin' listen to the complaints...rattles, squeaks, funny noises, that she seems to hear on old stuff.

Ain't that the truth.:thumbsup:

Professor_SS
Jan 31st, 06, 5:30 PM
I have a buddy that leases both he and his wife's daily drivers and swaps one each year. He likes to constantly have a new car/truck. He does drive them like he stole them so they wouldn't last more than a few years anyway.

I buy a new one every 17 to 20 years. I take great care of it. I run it until it drops dead, then repeat. That new car value "hit" means nothing if you're going to drive the wheels off it. Buying even a low mileage, relatively new "used" car is a gamble I took only once. Worst car I ever owned. I have to wonder about people that think they got a great deal on a one year old car/truck. Why anyone would trade in a car or truck after only one or two years. The simplest answer is that it was a lemon and the one I bought was.

EkS
Jan 31st, 06, 5:33 PM
Since I stepped up and admitted that I just entered into a leased vehicle, I assume this comment was aimed in my direction.
First off...I CAN afford and own anything I damn well want. :( Like I said, we BUY at least one new vehicle every two years.

Second, let me put this in a perspective I just considered...
OK, extreme but you'll get my drift;

You just purchased outright a $50K LARGE V8 powered SUV...just had to have it!
Fast forward 24 months...a God forsaken, terrorist driven, tragedy rocks the world. Gasoline screams up to $5 per gallon...long lines and odd/even days (like the mid '70s). Came damn close to this just recently. In today's world anything is possible. :mad:
Suddenly, you couldn't give that V8 SUV away. Panic!! The bottom falls out of large, "fuelish" vehicles. Everyone's paying premium prices for hybrid stuff. (Again, recently). Your SUV might be now worth $15K IF you're even able to sell it...basically can't give it away.
Now, reverse back 24 months. You purchased that same model SUV on a 24 month lease with lets say a $30K residual. When the gas crunch does hit, you've got an out on that beast. Turn it back in to the dealer and see 'ya folks. :waving:
Get my point? ;)
Like I mentioned above...my first lease...purchasing a large V8 powered 4 door sedan.
If we could only see into the future...

Hey Bill, what's the lease amount on that new 300?

1BLACKHARLEY
Jan 31st, 06, 5:38 PM
no matter how you look at it, you'll never change some people's minds. yes many get screwed on leases, those are the same people that get screwed when they purchase other item's. and the, buy or rent, thing goes on and on, wether it's houses cars etc. right now, i'm purchasing two homes, and a car (mustang g.t) but there has been times that lease, or renting, worked well for me. i've had friends that totally got screwed on a purchase, chastise me for a lease that saved me thousands in the long run, i've had friends say they'd rather rent, than put out a big mortage. all i know, is what's worked for me. i watch what rich people do to save $, and avoid what poor people do to accumilate debt. so far i'm on the plus side. i could have more, and sure as heck could have less. different things work for different people, and if your comfort zone, is what puts you, where you are in life, then you shouldn't put people down, for thier attempt at getting what they want. i think gretzky said, "you miss every oppritunity, you don't take".

gigem
Jan 31st, 06, 9:44 PM
Since I stepped up and admitted that I just entered into a leased vehicle, I assume this comment was aimed in my direction.
First off...I CAN afford and own anything I damn well want. :( Like I said, we BUY at least one new vehicle every two years.

Wasn't talking to you at all. Just speaking about me. No harm intended - sorry if I offended you.

RacnJsn95
Jan 31st, 06, 10:27 PM
No one has discussed the lease buyout deal... At the end of the lease don't you have the option to buy the car? Is this stricktly a cash only deal, or can you finance it?

Personally, I don't need a new car every 2-3 years. I get one car, take great care of it, and run it till it won't move under its own power anymore... Depending on the shape of the overall vehicle, I may overhaul it, and do it all again... I'm still working my way up to that one new car...

If you lease someone don't you have to have full coverage insurance? That's my problem with buying a new car right now. I can't afford full coverage. There was a super sale last year, and I was able to talk the sales guys down from 19.9k to 13.3k on an 05 Subaru Impreza 2.5RS. Little did I know that that was way under wholesale book! I would have bought it if I could have afforded the insurance ($250/mo)...

71elkySS454
Feb 1st, 06, 12:37 AM
This thread is very interesting. Having been a GM new car sales manager, I've seen it from both sides. And I probably would never lease. Having said that, I usually drive a vechile longer than a couple of years now anyway. Had my current Denali 5 years (only 43k miles). Here is the key to leasing: All vehicles are not created equal. The leasing company sets the residual (the amount the vehicle is worth at the end of the lease in %) of that vehicle at the start of the year. They go by a guide that is generally adhered to by all leasing companies. The residuals on all vehicles are different. They have to guess what they think the cars will be worth at the end of the lease, therefore in theroy the more popular cars will have a higher residual. Higher residual should equal a better lease rate. And here's the kicker, sometimes the automakers 'subsidize' the leases. This is in addition to any rebates, etc that may apply to leases. When they subsidize a car that has a high residual, then you are able to get a super low payment.

I've saw this happen in 1998 or 1999 on Yukons. GMAC came out with a super lease program on these for a short time. Ton's were leased at around $350-$400 per month. Then around 2001 when these leases started coming in, they had a popular new body style and no 'program'. Standard leases on equally equipped trucks were $550-600 per month. Customers were shocked and more than that they were p!ssed off and thought we were trying to rip them off. It was hard to make them understand that they had gotten a special deal before, and that there was no special deal at the time.

So, if you are thinking of leasing, do you shopping, and find a vehicle that had a subsidized lease. If not, wait or seriously consider purchasing it. If the 5 year loan is about the same as the 3 year lease, then BUY IT.

Jesse N.
Feb 1st, 06, 2:29 AM
I considered leasing after taking a bunch of huge hit buying used trucks. I looked at a Dodge quadcab hemi with nice options. The no down lease payment was 329 a month for 39 months with a 16,500 residual afterwards. Sticker price on this truck was about 35,000. $329x39=12,800+16,500=29,300. With the rebates I may have been able the buy the truck for about that price but a 6 year loan is $402 without interest. So I figured I would lease it and if it was a p.o.s. after 39 months it would be gone, if not I would buy it. I seems like the leasing is just an incentive to help move vehicles off the lot. I did also check into leasing a chevy 1/2 ton crew cab but the $705 a month payment says gm didn't want to lease that truck. Shop around there can be huge price differences.

Never Satisfied
Feb 1st, 06, 6:24 AM
I just leased my wife an 06 Nissan Murano AWD (that's what mommy wanted) for $360 per month. This SUV stickered for $33k. First months payment due at signing, was all they wanted down. We trade her vehicle every 2.5-3 years and only average 9k miles per year. Personally, I feel it would be silly for me to not lease her vehicle. I also figure I will almost always have a car payment, it might as well have a warranty to go along with it.

EkS
Feb 1st, 06, 12:25 PM
Come someone explain "residual" to me? I might be looking for a new car soon, and I want to be informed of all the options I have. Thanks!

71elkySS454
Feb 1st, 06, 12:36 PM
Jessie N's truck is a prime example of what I was trying to explain. The Dodge truck was a 'subsidized' or special lease, the Chevy truck was not.

To Eks; the residual is the amount the vehicle is worth at the end of the lease. It is preset at the beginning of the lease. That is how the lease is figured. You are paying only for the amount you are using, plus a lease rate (interest) which can also vary per vehicle.

EkS
Feb 1st, 06, 1:14 PM
So if you decide to buy the car, you only have to pay the residual? Does the residual get financed or do you have to pay cash for it?

Tom Hendricks
Feb 1st, 06, 1:24 PM
You can finance the residual amount at the end of the lease.

RacnJsn95
Feb 1st, 06, 8:01 PM
Is there any problem finding financing for the residual amount at the end of the lease? I know some banks will only loan money on a car that's less than 3 years old. Do the dealers find you financing, or is it totally up to you?

And if you think about it you still have 7 years / 70,000 miles warranty left if you buy a dodge (and some other makes)...

No one answered my question... Do you need full coverage insurance on a lease? Probably. :(

jpete
Feb 1st, 06, 8:20 PM
now heres the kicker, towards the end of the lease, i was able to sell the car, for a little more than it was owed,

Wanna explain how you sold something you don't own? I got a neighbor I don't like and I'd like to do the same to his house. If you found someone to take over your lease for more than you owed, then I'd say there's a village somewhere missing an idiot.

Chevello
Feb 1st, 06, 8:46 PM
You guys really got me thinking now. A lease sounds like a great deal. New car every couple of years, lower payment than purchase...

Oh wait, lets get out the calculator....

Ooops, it says I will be over 20K miles a year. Lets see, that's 8K more than the 12K allowed, so either it will have to sit the whole last year of a 3 year lease, or I'll get to pay an extra 9K at the end. I guess I'm one of those folks who it doesn't work for. :(

So, do they still make you pay the over mileage fees if you are buying the car at the end?

K

jtm60
Feb 1st, 06, 8:58 PM
You will need full coverage insurance. Dont forget your GAP insurance!

Wanna see a dealer squirm? Dont like their final lease deal? Tell them you will use their #'s and bring your own lease (any person can arrange for a lease deal through a bank..there are lots of banks out there)..might be the difference in the end when you are trying to squeeze them for a few more $ per month (which adds up over the course of 3 years).

I said I would never lease, until I got into a $0 down lease for a 2000 GMC Jimmy ($30k+ sticker) @ $203/mo for 36 months..there are some good lease deals out there if you dont drive a ton, and can take good care of the vehicle for the term of the lease.

jpete
Feb 1st, 06, 9:41 PM
So, do they still make you pay the over mileage fees if you are buying the car at the end?

K
No, and the only time I considered a lease is when I thought I was going to buy it at the end. If the residual is less than the price of a 2 or 3 year old model of that car, then a lease works for you. IF you were going to buy that car. For these guy that turn their car over every 2 years, then a lease MIGHT be goo if they don't hit the mileage. Otherwise, a lease is no good. My father was in the business for 20 years. One time, they sent him for training to be and F&I guy but he said he had too many scruples for the job.

71elkySS454
Feb 1st, 06, 10:33 PM
Another thing to remember. A lease is also figured on a price, just like a purchase. No majic 'payment'. You need to negiotate your best 'bottom' line price in order to obtain the best lease payment.

depley
Feb 2nd, 06, 1:21 AM
let see I bought a 95 bonneville with 35,000 on it for 10,500 several years ago (1997). It now has just short of 100,000 on it. Its paid for, still runs and looks excellent. Figure its worth about $3200 now. Only expense outside of normal gas oil and tuneup was the intake manifold problem all those 3.8L had which cost $800 to repair. So I figure I have owned it for 93 months. add repair to cost subtract worth it has cost me about $87 a month to own this car.

As I see it it owes me nothing at this point, but with less than 100,000 I will still get 3 more years out of it easily.

SS_Dave
Feb 2nd, 06, 9:28 AM
I buy the vehicle.
only buy what I can pay off in 1 year, at most 2 years.
That means doubling payments usually.
Keep the vehicle for at least 6 years, preferable 10.
Do the maintenance yourself.
You can have a nice dependable vehicle way less than a lease
would cost you, and, you have equity.
And, when you say, "that is my truck/car/motorcycle" your telling the
truth.

Andy69
Feb 2nd, 06, 11:13 AM
I buy a new one every 17 to 20 years. I take great care of it. I run it until it drops dead, then repeat. That new car value "hit" means nothing if you're going to drive the wheels off it. Buying even a low mileage, relatively new "used" car is a gamble I took only once. Worst car I ever owned. I have to wonder about people that think they got a great deal on a one year old car/truck. Why anyone would trade in a car or truck after only one or two years. The simplest answer is that it was a lemon and the one I bought was.

My dad always said when you buy a used car, you're just buying someone else's problems. That may have been true 40 years ago, but in my experience it is not true today. Sure, there are still lemons, but the norm seems to have become getting a new car every couple of years as opposed to keeping one for 8-10 years. Since 1988, I have owned 4 cars. Three of them were used, including a 1985 Cavalier that I bought in 1988 with 105,000 on it that I drove for 6 1/2 years and 75,000 trouble free miles, a 1994 Escort that I bought used in 1996 with 22,000 on it that I just sold to my neighbor with 180,000 trouble free miles on it, and a 2005 Grand Caravan, which has 18,000 on it and was a rental before we got it. The other car was a 1994 Sunturd that I bought new with 50 miles on it, which had one damn problem after another, most of which the dealer couldn't or wouldn't fix. I ended up dumping it after only 2 years.

The short is, I will NEVER buy another new car. Why? I can get a late model car in great condition with low mileage for 30%-50% off the price of a new one. And if I take good care of it, there is no reason it can't last 10 years or longer. Sure there is a chance you can get a lemon, but that can happen buying a new car, and dumping a 4 year old car that you bought used will cost you less in depreciation than dumping a 2 year old car you bought new. I would argue that with tools like Carfax, you stand less of a chance of getting a crappy used car than you do in getting a crappy new one. But a new car has a warrantee, you say? Both the Escort and the Caravan had/have the balance of the factory warrantee. On the other hand, the warrantee I got on the Sunturd really didn't help me much when I was constantly getting jacked around by the dealerships.

But on the subject of leasing, some of those deals people talked about above sounded pretty good. But in my mind, having NO car payment is better than having one, no matter how small. For the first time since I was 21 in 1987, I have financed a car, but I will have it paid off in less than a year. Then, for the remaining 12 years we have the car, we will have no payment. The thing I don't like about leasing is you lock yourself into having a car payment in perpituity. I would rather take take that money and use it for a trip to Palau, or perhaps a new interior for my Chevelle.

a

dittoz
Feb 2nd, 06, 5:28 PM
I guess we're in a bit of a different boat than many because as the resident tight-wad, I have NEVER bought a new vehicle. Most recently, I bought aq 2001 F-150 with 10K miles on it for $12K less than it currently was selling for new. Why buy a brand new one and take that kind of a hit when you could buy an "almost" new one, put $500 or so into a 100K warranty and then own it instead of leasing it? No mileage limitations, FAR less depreciation and I now owe an awful lot less on it than it's worth.

Sure, I'd love to drive a brand new vehicle every couple years, but that kind of luxury is something I just don't see a real value in when I could take that same money and put it somewhere that makes more sense. I'm not rich and I don't claim to be, but if I saved $12K by buying a 1-yr old vehicle that I will now hopefully drive for 10 yrs, why lease???

71elkySS454
Feb 2nd, 06, 10:41 PM
Just pay cash!

Aaron70Monte
Feb 2nd, 06, 11:44 PM
I don't lease

The lease vs. buy thing depends on the situation. I can see great benefits of leasing for some people, but not me. I like to own a car for 10+ years so buying works for me.

Last month, I just got a 2003 Malibu with 17,000 kilometers (11,000 miles) for less than half of the original price. I plan on keeping this car for more than 10 years and I will get good value out of it. There will be some stuff to fix along the way (the inevitable GM V6 head gasket) but it will work in the long run. It will become my wife's daily driver soon and I will eventually build myself a nice 68-72 A-body for daily driving. :)