I've never been a fan of leasing, but given my situation now, I may give it a go.
For those who have had their lease come up and purchased the car, do you feel like the offer was fair?
Secondly, is the offer negotiable? From what I've researched, it doesn't appear to be.
I used to work at a dealership and did leases all the time, we generally tried real hard to rip off young kids who didn't know jack about financing and never read the contract in full. Sometimes they come back in a few days saying they cant afford to pay $499 per monrh over 60-months, my answer, was, too bad.
What IS your situation? Far as I can tell, the only people who should lease are businessmen who need a fancy new car at all times to impress clients, and people with way too much money who can't bear the thought of driving the same car for more than 3 years. Otherwise, why would you pay so much money towards something that won't be yours at the end of it?
Okay, so leasing might allow you to get a nicer car than you could afford if you were buying, but if you're worried about affordability, is buying any new car a good choice? Why not go for a newer used car, maybe one still under warranty?
What IS your situation? Far as I can tell, the only people who should lease are businessmen who need a fancy new car at all times to impress clients, and people with way too much money who can't bear the thought of driving the same car for more than 3 years. Otherwise, why would you pay so much money towards something that won't be yours at the end of it?
Okay, so leasing might allow you to get a nicer car than you could afford if you were buying, but if you're worried about affordability, is buying any new car a good choice? Why not go for a newer used car, maybe one still under warranty?
You're paying to use it. When you're done, you give it back. Buying a car you leased just turns it into a buy-now-pay-later situation. You don't have to worry about titles, disposal, or as much maintenance. That's why so many businesses lease equipment.
For individuals, there's a certain sweet spot between well off and dirt poor where you can afford a monthly payment, and want to have a newer car as a social status thing, but keeping a lower monthly payment is preferable, if possible, regardless of long-term costs. Leasing plays to those desires, which are not all strictly logical.
Couple that with the (admittedly incorrect) perception many people have that new = more reliable. Reinforce with memories of a shitty car you used to have (maybe a breakdown cost you a relationship, or a job) and there can be real fear associated with buying a used car. Especially for anti-gearheads who are proud of their ignorance.
Leasing a car is never a good idea if you drive a lot. The lease structures are designed to punish high mileage drivers so the dealerships have nice low mileage pre-leased vehicles to resell.
But dealerships can use lease pricing to advertise and draw people in, and once they're in the door, salespeople do their jobs. There are a lot of people putting 18k miles/year on leased cars who really need to have somebody else manage their money for them.
I used to work at a dealership and did leases all the time, we generally tried real hard to rip off young kids who didn't know jack about financing and never read the contract in full. Sometimes they come back in a few days saying they cant afford to pay $499 per monrh over 60-months, my answer, was, too bad.
All cars depreciate. Leasing is simply paying for the depreciation.
The only benefit of leasing a car versus buying one, is a slightly lower payment.
You should be real proud of dat bro.
I for one intend to rape the dealer this summer when I get my new car.
I'll go in with a cashiers check from my bank for slightly less than bluebook value, wave it in front of the salesmans face, and keep going back every day until the bastard gives in.
Thank you for editing out whatever hateful and harassing language you had in there before.
You are a true gentleman.
Excellent response and well put. I guess my only arguments/questions are two-fold.
Am I better off leasing a car (as stated above, I drive average of 5 miles a day), with an extremely low montly payment (add in the rental of my current vehicle)?
The savings by doing the above, would build faster AND I don't tap into my savings in the first place.
I guess the question becomes....Do I save more by financing over 3 years then leasing over 3 years or would there be a signfiicant enough difference in this situation?
You should be real proud of dat bro.
Well... the way you save the most is keeping your perfectly good, already paid off car.
Having had such a weird economy and job market for the last ten years, I wouldn't count on only having to drive 5 miles a day forever, although that's pretty awesome and the longer you can do that, the better. But not having a monthly payment is the stuff.
If your girlfriend doesn't have either a car or a lot of money, the cheapest option for her is buying a shitbox from a college campus somewhere that has a good 10-20k miles left on the tires and brake pads, and scrape off the VINs. Remember to unscrew the license plates when it breaks down. :twisted:
Have you considered getting financing for the Accord sale to her? Sell it to her for maybe $7k*, but you get the money up front and can reinvest it, or use it as a down payment on a new car. Meanwhile she's paying the Credit Union** back and not you, so nothing financially untoward will be likely to happen even if the relationship goes south.
*KBB has '03 Accords valued as low as $7k, depending on the trim and stuff. Maybe the car's worth more, maybe not - the bank will check - but if she has a certain amount of equity in the car - different banks, different thresholds - she can qualify for interest rate incentives, and equity is based on loan principal vs. calculated value of the car. If you want to do her a favor, you might have accept a little less than you'd absolutely like, but she'll probably make it up to you somehow. :awe:
**Support your local credit union.
are suckers or own a corporation.Those who have leased a car...
I prefer leasing. Your payment will be a third less, and no worries about trade in value. I would much rather save the two hundred dollar difference each month.
I certainly wouldn't buy out at the end. Might as well purchase in that case. Lease something, and in three years lease something else.
What IS your situation? Far as I can tell, the only people who should lease are businessmen who need a fancy new car at all times to impress clients, and people with way too much money who can't bear the thought of driving the same car for more than 3 years. Otherwise, why would you pay so much money towards something that won't be yours at the end of it?
Okay, so leasing might allow you to get a nicer car than you could afford if you were buying, but if you're worried about affordability, is buying any new car a good choice? Why not go for a newer used car, maybe one still under warranty?