Tipping point between leasing and buying
12-26-13, 03:13 PM
#91
Your fat friends eating habits has nothing to do with my argument. A Toyota Camry has excellent resale value with the same reliability as a Lexus. When did i say i want the latest and greatest for attention?! In Jersey you buy a beamer if you want attention, not a Lexus. I like having the latest and greatest for myself!! Judging by the douchy statement below doing something for yourself is likely a concept that is foreign to you.
"I get more attention than i care for already".....i am sure you do big guy!
"I get more attention than i care for already".....i am sure you do big guy!
So true!
12-26-13, 05:01 PM
#92
12-26-13, 05:25 PM
#93
It's only possible to do in retrospect once you have all of the numbers: purchase price, sale price, months of ownership. Subtract sale price from purchase price, divide by months of ownership. Maybe add in a factor for "opportunity costs" of what you could have made (or lost) had you invested the money.
To do it before you buy you have to estimate those things. As I said in an earlier post, it also helps a lot if you sell the vehicle yourself versus trading it in since the dealer rapes you on a trade-in. I have always had good luck selling my owner cars quickly for top dollar, but I take really good care of them. Negotiating a good purchase price and getting a good sale price can reduce the cost of ownership by $5k or more on a Lexus.
To do it before you buy you have to estimate those things. As I said in an earlier post, it also helps a lot if you sell the vehicle yourself versus trading it in since the dealer rapes you on a trade-in. I have always had good luck selling my owner cars quickly for top dollar, but I take really good care of them. Negotiating a good purchase price and getting a good sale price can reduce the cost of ownership by $5k or more on a Lexus.
12-26-13, 05:32 PM
#94
How do you get attention driving a dime-a-dozen car? The 3IS looks different than almost every other car on the road, and they are not very plentiful making them rather attention-getting, at least for now.
12-26-13, 05:40 PM
#95
That's exactly right, you'll lose all your money. What you don;t get is that you didn';t lower any monthly payment.. Well visually you did.. But you paid that 14k upfront for that.. So from that deal by renting the car to you, the dealer needs to make 20k over the lease period. You didn;t save any money, you'll still pay 20k is just you paid upfront most of it. and you pay monthly less.
That's why is never good to pay anything as downpayment when you lease.. The lease montly payment is low for a reason to make you afford that car to rent it rather than buying it.. If you thought the monthly payment is too high to a lease it just mean that you cannot afford that car as that was the less you could have that car for.
I truly hope nothing happen and you learn this lesson the easy way. Always read and do your research before you make a deal. That;'s why we have this forum for.
Here, this is a good read for you to get you familiar.
http://www.edmunds.com/car-leasing/d...ood-lease.html
That's why is never good to pay anything as downpayment when you lease.. The lease montly payment is low for a reason to make you afford that car to rent it rather than buying it.. If you thought the monthly payment is too high to a lease it just mean that you cannot afford that car as that was the less you could have that car for.
I truly hope nothing happen and you learn this lesson the easy way. Always read and do your research before you make a deal. That;'s why we have this forum for.
Here, this is a good read for you to get you familiar.
http://www.edmunds.com/car-leasing/d...ood-lease.html
12-26-13, 05:48 PM
#97
Keyframe, I called my insurance company and gave them my scenario of putting a proposed $14,000 down on a leased car. They said they will payoff the ACV on the car. The lease company gets paid first and if there any residual left it would be paid to me. They said if the car gets totaled or stolen early in the lease (first few months) I get more back, if it happens later after 2 to 21/2 into the lease I would not get anything because of the depreciation of the car and the lease company would get the check anyway. If I elect to put the $14,000 down when the car comes in, it is almost the equivalent of what they call a One Pay lease which I read about today. Im so confused right now I have no idea what I will do.
I know "gotta have it" urge can be tough especially when you like the car a lot but it needs to be done on better terms. You are not talking about the last car available. There will be plenty for you and maybe even one with ventilated and memory seats!
12-26-13, 05:49 PM
#98
Keyframe, I called my insurance company and gave them my scenario of putting a proposed $14,000 down on a leased car. They said they will payoff the ACV on the car. The lease company gets paid first and if there any residual left it would be paid to me. They said if the car gets totaled or stolen early in the lease (first few months) I get more back, if it happens later after 2 to 21/2 into the lease I would not get anything because of the depreciation of the car and the lease company would get the check anyway. If I elect to put the $14,000 down when the car comes in, it is almost the equivalent of what they call a One Pay lease which I read about today. Im so confused right now I have no idea what I will do.
Go with multiple security deposits to get the payment down some and get the security deposits back at lease end.
12-26-13, 05:52 PM
#99
12-27-13, 12:31 AM
#100
Your fat friends eating habits has nothing to do with my argument. A Toyota Camry has excellent resale value with the same reliability as a Lexus. When did i say i want the latest and greatest for attention?! In Jersey you buy a beamer if you want attention, not a Lexus. I like having the latest and greatest for myself!! Judging by the douchy statement below doing something for yourself is likely a concept that is foreign to you.
"I get more attention than i care for already".....i am sure you do big guy!
"I get more attention than i care for already".....i am sure you do big guy!
- My friend is only 150lbs at 5'10, but good job assuming and resorting to petty attacks!
- Toyota Camry isn't fun to drive ...you missed the whole first and last paragraphs.
- Re-reading my statement (one sentence in particular) I can see how it could be misinterpreted as douchy but I assure you no harm was meant. In fact, till this reply of yours I would not have called this a "argument" but a discussion. The whole tone of my reply was merely to point out both sides have equal merits. Outside of that sentence that got misinterpreted, I gave you no fault in any way in my reply. If I meant to dishonor you, trust me it would not be passively aggressively. It would be direct and without question.
I have no desire to get caught up in a forum flame war, especially when my words came across in a way I did not intend. If you are ok with this than I will apologize but if you still hate me than so be it.
12-27-13, 03:20 AM
#101
Tying up cash in any sort of depreciating asset (like a car) is in my opinion, a very poor decision. Whether you keep the car for 2 years, 5 years or 10 years, really doesn't matter when it comes to reliability...these cars will cost very little to maintain throughout ownership and will probably run for 250,000 miles easily. The reason I like leasing all of my cars is that I am paying for only a percentage of the vehicle. A percentage of the tax, a percentage of the registration and a percentage of the depreciation. I agree that you should never buy or lease anything unless you can pay it off in cash tomorrow. I live by this as well and whoever said that no one needs a Lexus, is also right...but we all need a car. Whether it's a $100 a month car or a $1000 a month car is really neither here nor there. If you can write a check for $50,000 today for a car, wouldn't it be better to take $49k and pay down the principle on your home, put $1k down on a car and have a $500 monthly payment with 2.7% interest that if you own your own business you can write off? Or, just keep the money in the bank!!! It's better off there then with the dealer in one lump sum.
Leasing isn't for everyone I guess and it's definitely not for every brand. Lexus residuals are so good that if you sign for 27 months you're basically only paying for between 24-28% of the car over that period of time. Personally, I like paying for 25% of depreciating assets at 2.7% rather then 100% and tying up my cash. To each his own.
Leasing isn't for everyone I guess and it's definitely not for every brand. Lexus residuals are so good that if you sign for 27 months you're basically only paying for between 24-28% of the car over that period of time. Personally, I like paying for 25% of depreciating assets at 2.7% rather then 100% and tying up my cash. To each his own.
At the end of the day, its all about 1) need of leverage given the cost of living in your location, and 2) understanding/mentality of alternative investments. responses on this thread are not surprising if you look at peoples sig locations. you would be more hardpressed to find car owners in the west coast and north east because paying for things outright in cash makes less sense given the alternatives. cash could be put to much better use paying down a mortgage, or, just based on demographics, they are more inclined to invest in stocks, bonds, etc.
there is also a strong argument somewhere on wall street oasis, that in the most financial savvy industry, those that crunched the numbers on lease vs buying strongly favored leasing in the end. why? for the principles above, and a stronger understanding of investment alternatives better than that of a depreciating asset. for the example set forth previously - having 50k in cash and putting it towards a car makes less sense than 1k of cash in a down payment with 49k going towards your mortgage, or investing.
advertising is a good indication of this. certain areas (metro NYC for example) you will only see car ads with monthly lease quotes. alternatively, if you walk into a dealership in texas and start talking about leases, they may defer you to another salesman that knows what the hell your talking about.
interestingly enough, there is a geographic study that layers 3 items: Leasing vs owning cars, owning stock vs not, and cost of living index. the overlaps are startling.
...not placing preconceptions on people, as everyone has their own unique situation. just stating demographical studies...on a whole, the ratio of those leasing vs buying is strongly in favor of one or the other from a geographic standpoint..
Last edited by ThermonMer; 12-27-13 at 03:41 AM.
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