Thinking about one-pay lease of ES350 but have a question?
10-08-11, 07:12 PM
#16
Instructor
10-09-11, 07:13 AM
#19
I see a "Cruiseman" contribute on a "wing" forum we both frequent and the world being small as it is figured it might be the same person.
I cannot find a photo, but a Lexus emblem replaces a Honda one nicely on the front cowling.
I cannot find a photo, but a Lexus emblem replaces a Honda one nicely on the front cowling.
10-09-11, 09:36 AM
#20
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02-13-12, 08:15 PM
#21
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Therefore, if you have a total loss situation, you would be in the exact situation as you would be if you purchased/financed the vehicle and put money down.
You DO NOT lose the payments you've prepaid, per se. What you lose is the depreciation that's occurred prior to the total loss scenario, same as if you were purchasing/financing a vehicle.
Your insurance company uses ACV (actual cash value which is replacement cost minus depreciation) as its valuation methodology. Therefore, you are in the same boat whether you lease or "buy" your vehicle. You still get hit with depreciation so make sure you one-pay lease a vehicle that will hold its value.
03-03-14, 07:46 AM
#22
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Just wondering if anyone ever get got a positive answer to the question as to what happens if the car is a total loss before the end of the 1pay lease? would the lessee lose out all that he paid upfront? is it possible to get gap insurance on such a lease? Thanks
03-03-14, 01:42 PM
#23
I'm still trying to figure out, except for the person who's got the type of job where their car is a "STATUS SYMBOL" and they require a new car continuously; why in the world anyone would LEASE a car instead of buying it.
If the answer is you can't afford the monthly payments of owning vs monthly payments of leasing, then you most likely shouldn't have that car in the first place. You should get a car you can AFFORD and save up money for the car you WANT.
There are no advantages to "Leasing" a car. You're restricted on the amount of miles you can put on it. You're restricted from adding modifications or changing the car. And this topic is even more confusing because the OP mentioned paying the entire 3 year lease up front. If you can afford to do that, they you shouldn't have any problem buying the car.
Don't worry though. Leasing is a marketing ploy that the ignorant have been suckered into for many many years. No one, other than the individual who NEEDS the new car all the time for their job status; e.g. broker, realtor, etc. where their IMAGE is part of their business; is the only people that need to lease. But anyone else, there's NEVER been a legitimate reply as to WHY LEASE. Having spent many years traveling around the world and working in 14 countries, I still couldn't justify leasing a car. I know some will say: "To each their own". So true. It's your money. You earned it. You are free to waste it if you want. I'm still trying to hear a legitimate reason for leasing a new car instead of buying it. All I've ever heard is "Rationalization". Not reasons.
If the answer is you can't afford the monthly payments of owning vs monthly payments of leasing, then you most likely shouldn't have that car in the first place. You should get a car you can AFFORD and save up money for the car you WANT.
There are no advantages to "Leasing" a car. You're restricted on the amount of miles you can put on it. You're restricted from adding modifications or changing the car. And this topic is even more confusing because the OP mentioned paying the entire 3 year lease up front. If you can afford to do that, they you shouldn't have any problem buying the car.
Don't worry though. Leasing is a marketing ploy that the ignorant have been suckered into for many many years. No one, other than the individual who NEEDS the new car all the time for their job status; e.g. broker, realtor, etc. where their IMAGE is part of their business; is the only people that need to lease. But anyone else, there's NEVER been a legitimate reply as to WHY LEASE. Having spent many years traveling around the world and working in 14 countries, I still couldn't justify leasing a car. I know some will say: "To each their own". So true. It's your money. You earned it. You are free to waste it if you want. I'm still trying to hear a legitimate reason for leasing a new car instead of buying it. All I've ever heard is "Rationalization". Not reasons.
03-03-14, 07:00 PM
#25
I'm sure I will. My favorite response from some people have been: "You're always going to have car payments anyway, so leasing is cheaper that a car loan". That's got about as much logic as saying you'll always have monthly payments for a home, so it's better to rent than to own.
The thing is, the person who has rationalized leasing a car, will not have their mind changed. And that isn't my goal. I'm simply curious of the rationalization some people use to justify leasing a car instead of buying one.
There is only scenario where leasing is cheaper/better than buying a car. If you buy a car and trade it in every three years for new one, then it would be cheaper to lease. But if you're trading in a new car every 3 years for another new car and continuing with that; then that's just another level of ignorance which is no better than the person leasing.
All leasing does, is allows a person to drive a nicer car than they can afford. They get no equity from it. They have limited miles and pay generally $0.15 per mile over. They're told they can BUY the car at the end of the lease, but they find out that the money they spent leasing, barely covered the loss once the car rolls off the lot. "Average car loses 20% driving it off the lot". So basically, you can buy the car after 3 years, but the leased money that you paid doesn't really count.
I could go on, but it doesn't matter. People who lease will rationalize that they are saving money. They aren't, but they'll convince themselves they are. Any financial adviser you talk to will tell you leasing is a major ripoff. It's not like justifying rent vs owning a home. A home is a necessity. You have to live some place. You don't have to drive a new $50,000 every 3 years. That's just a big waste of money.
The thing is, the person who has rationalized leasing a car, will not have their mind changed. And that isn't my goal. I'm simply curious of the rationalization some people use to justify leasing a car instead of buying one.
There is only scenario where leasing is cheaper/better than buying a car. If you buy a car and trade it in every three years for new one, then it would be cheaper to lease. But if you're trading in a new car every 3 years for another new car and continuing with that; then that's just another level of ignorance which is no better than the person leasing.
All leasing does, is allows a person to drive a nicer car than they can afford. They get no equity from it. They have limited miles and pay generally $0.15 per mile over. They're told they can BUY the car at the end of the lease, but they find out that the money they spent leasing, barely covered the loss once the car rolls off the lot. "Average car loses 20% driving it off the lot". So basically, you can buy the car after 3 years, but the leased money that you paid doesn't really count.
I could go on, but it doesn't matter. People who lease will rationalize that they are saving money. They aren't, but they'll convince themselves they are. Any financial adviser you talk to will tell you leasing is a major ripoff. It's not like justifying rent vs owning a home. A home is a necessity. You have to live some place. You don't have to drive a new $50,000 every 3 years. That's just a big waste of money.
03-03-14, 08:47 PM
#27
I left the door open for the individual who's job/career depends on presenting a particular image. Where part of your career is "Selling yourself". People see someone driving a new caddi, lexus, bmw, mercedes, etc... and they consider that person to be "Successful". Therefor, if your job entails selling a particular goods or service, presenting a particular image can be beneficial to your career. And in some circumstances, you can even write the lease off on taxes.
But from a strictly financial position, it is not financially better to lease than to buy. Most cars, when bought new and taken care of with regular oil changes and tuneups, will last many more years than the traditional warranty.
Then again, I rarely buy a "Brand New" car either. I believe that too is a large waste of money. When I bought my Camry, I bought a 1 year old with 10,000 miles. I bought it "Certified Pre-owned" and it cost between $6,000 - $7,000 less than a new one. I bought that car 10 years ago. Only had payments for 3 years. I gave it to my son after he graduated college and he still owns and drives it. 150,000 miles later. He takes care of it. Regular oil changes and tuneups. Other than that, he's only had to put tires on it. And he's saved, or me if I still owned it, $5,000 a year on car payments. I just finally sold my 1994 Explorer. I owned it since 1999. 15 years with no "major" expenses other than the normal tuneups, oil, tires. And one alternator.
Basically, owning a car can mean 4-5 years of higher payments than a lease, but then there's no payments at all from that point on. Of course, if you have to impress your friends and co-workers by having a new car every 2-3 years, and thus want to have a continual $350-$400 a month car payment, then have at it.
The financial truth is: If instead of leasing a new car every 3 years, if you would buy the 1-2 year old car, hold it for 5-6 years instead of the 3 year lease, you will have the equity in the car so you can sell it; put that money as a down payment towards the next 1-2 year old car, and have the same payments 4 years as you would with the lease. The difference however is, if you don't sell the car after 5 years, you're actually MAKING MONEY. You're making $4000-$5000 a year.
But no. Except for the business status/image that some occupations require in order to impress their customers; and thus "Make Money" selling them your services; there's no financial sense to leasing vs buying. Doing so is just an image thing to drive a car you can't afford. For those who can afford any car they want, and I know quite a few of these people, most of them don't lease either. They buy new and upgrade every 4-5 years. Most wealthy people I know didn't get that way by leasing a car. Not unless their career requires the image I mentioned earlier.
But from a strictly financial position, it is not financially better to lease than to buy. Most cars, when bought new and taken care of with regular oil changes and tuneups, will last many more years than the traditional warranty.
Then again, I rarely buy a "Brand New" car either. I believe that too is a large waste of money. When I bought my Camry, I bought a 1 year old with 10,000 miles. I bought it "Certified Pre-owned" and it cost between $6,000 - $7,000 less than a new one. I bought that car 10 years ago. Only had payments for 3 years. I gave it to my son after he graduated college and he still owns and drives it. 150,000 miles later. He takes care of it. Regular oil changes and tuneups. Other than that, he's only had to put tires on it. And he's saved, or me if I still owned it, $5,000 a year on car payments. I just finally sold my 1994 Explorer. I owned it since 1999. 15 years with no "major" expenses other than the normal tuneups, oil, tires. And one alternator.
Basically, owning a car can mean 4-5 years of higher payments than a lease, but then there's no payments at all from that point on. Of course, if you have to impress your friends and co-workers by having a new car every 2-3 years, and thus want to have a continual $350-$400 a month car payment, then have at it.
The financial truth is: If instead of leasing a new car every 3 years, if you would buy the 1-2 year old car, hold it for 5-6 years instead of the 3 year lease, you will have the equity in the car so you can sell it; put that money as a down payment towards the next 1-2 year old car, and have the same payments 4 years as you would with the lease. The difference however is, if you don't sell the car after 5 years, you're actually MAKING MONEY. You're making $4000-$5000 a year.
But no. Except for the business status/image that some occupations require in order to impress their customers; and thus "Make Money" selling them your services; there's no financial sense to leasing vs buying. Doing so is just an image thing to drive a car you can't afford. For those who can afford any car they want, and I know quite a few of these people, most of them don't lease either. They buy new and upgrade every 4-5 years. Most wealthy people I know didn't get that way by leasing a car. Not unless their career requires the image I mentioned earlier.
03-04-14, 05:04 AM
#28
Yeah; honestly - you have your opinions on it, and others have theirs. As posted above, you state you want to hear reasons why people would lease - but the rest of your statements appear to just want to show people how stupid they are for leasing.
Leave it alone, I'd say, and chock it up to people doing what they feel is best for their financial situation.
Leave it alone, I'd say, and chock it up to people doing what they feel is best for their financial situation.
03-04-14, 04:10 PM
#29
Who knows. Maybe someone can sway my opinion. I've asked and researched the lease vs own question for the last 7 years. The answer from most usually boils down to admitting the want a knew car but can't afford to buy one. Most even agree that in the long run it costs much more. Just curious if on this forum, I might get some different answers.
And for what its worth, the only statement I made that implied stupidity, is from a financial position. But money isn't everything. For what its worth, I do know of one reason a person I know leased instead of buy. And the reason was valid. Because of a bankruptcy and bad investments, he couldn't get a loan for any car. Not even used. But he was able to lease. And in that 3 years he was able to rebuild his credit and save money for a new used car after the lease was done. But then, he didn't lease a Lexus, caddy or BMW. He leased a Taurus.
And for what its worth, the only statement I made that implied stupidity, is from a financial position. But money isn't everything. For what its worth, I do know of one reason a person I know leased instead of buy. And the reason was valid. Because of a bankruptcy and bad investments, he couldn't get a loan for any car. Not even used. But he was able to lease. And in that 3 years he was able to rebuild his credit and save money for a new used car after the lease was done. But then, he didn't lease a Lexus, caddy or BMW. He leased a Taurus.
03-04-14, 04:43 PM
#30
Who knows. Maybe someone can sway my opinion. I've asked and researched the lease vs own question for the last 7 years. The answer from most usually boils down to admitting the want a knew car but can't afford to buy one. Most even agree that in the long run it costs much more. Just curious if on this forum, I might get some different answers.
And for what its worth, the only statement I made that implied stupidity, is from a financial position. But money isn't everything. For what its worth, I do know of one reason a person I know leased instead of buy. And the reason was valid. Because of a bankruptcy and bad investments, he couldn't get a loan for any car. Not even used. But he was able to lease. And in that 3 years he was able to rebuild his credit and save money for a new used car after the lease was done. But then, he didn't lease a Lexus, caddy or BMW. He leased a Taurus.
And for what its worth, the only statement I made that implied stupidity, is from a financial position. But money isn't everything. For what its worth, I do know of one reason a person I know leased instead of buy. And the reason was valid. Because of a bankruptcy and bad investments, he couldn't get a loan for any car. Not even used. But he was able to lease. And in that 3 years he was able to rebuild his credit and save money for a new used car after the lease was done. But then, he didn't lease a Lexus, caddy or BMW. He leased a Taurus.
I've always heard getting a lease is tougher with bad credit vs buying.