Leasing Help
12-12-11, 08:36 PM
#16
Here they have an enviromental fee on every set of tires sold. New, old whatever. It goes into a pool to help pay for the disposal and recycling of the tires. You are buying a new vehicle with 5 tires so they govt charges you accordingly. Many places have an epidemic of used tires and the piling them in a field until someone sets them on fire that burns for the next 3 years has not proven to be a viable solution.
12-12-11, 09:48 PM
#17
BUYING a vehicle is the cheapest way to provide transportation to yourself IF you keep the vehicle for a long time, 8-10 years or you drive a lot of miles.
LEASING is cheapest if you just have to have a new vehicle every 3-4 years and can stay within the mileage allowance.
By definition your lease is based on the depreciated value of the vehicle, and it is a fact that most depreciation occurs within the first few years, so how can leasing be cheaper than owning? It can't unless the term of the lease/ownership is short.
I buy a vehicle and finance it for no more than 3 years, and then keep it at least 10 years, so I have absolutely no car payments for 7 years. I don't need a new vehicle every few years, and cars like Lexus are very reliable over a 10 year period. But to those that have to have the 'latest and greatest' every few years leasing may work, but you will perpetually have a pricey monthly payment and that is ugly for me. Who wants to pay for transportation forever?
For those that like vehicles like a Range Rover or most of the German cars you may think twice as these cars are money pits. Remember the slogan, "Never own a German car outside of the warranty period". It will eat you alive in maintenance costs which is why I don't even look at these sorts of rides.
LEASING is cheapest if you just have to have a new vehicle every 3-4 years and can stay within the mileage allowance.
By definition your lease is based on the depreciated value of the vehicle, and it is a fact that most depreciation occurs within the first few years, so how can leasing be cheaper than owning? It can't unless the term of the lease/ownership is short.
I buy a vehicle and finance it for no more than 3 years, and then keep it at least 10 years, so I have absolutely no car payments for 7 years. I don't need a new vehicle every few years, and cars like Lexus are very reliable over a 10 year period. But to those that have to have the 'latest and greatest' every few years leasing may work, but you will perpetually have a pricey monthly payment and that is ugly for me. Who wants to pay for transportation forever?
For those that like vehicles like a Range Rover or most of the German cars you may think twice as these cars are money pits. Remember the slogan, "Never own a German car outside of the warranty period". It will eat you alive in maintenance costs which is why I don't even look at these sorts of rides.
12-13-11, 12:44 PM
#18
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Ask him to go over the numbers with you and show you the screen where the lease payment is calculated. I have an app that calculates the lease payment. I come up with $538 using your numbers, with tax paid up front. I also went to www.leaseguide.com and input the numbers. Same $538.
>>>>>
Ok, so I spoke to the sales guy and got some final #'s.
MSRP: $49360
Final Sales Price: $45400
36mo /12k miles Lease
Money Factor- .0015
Residual - .61
Monthly Payment - $550
Due at signing - $2699.51 (Tax, title, registration fees)
>>>>>
Ok, so I spoke to the sales guy and got some final #'s.
MSRP: $49360
Final Sales Price: $45400
36mo /12k miles Lease
Money Factor- .0015
Residual - .61
Monthly Payment - $550
Due at signing - $2699.51 (Tax, title, registration fees)
12-13-11, 01:02 PM
#19
Lexus Champion
That's true, but that's not the true cost of leasing because after your lease period you go into ANOTHER lease which perpetuates the monthly payment, and after another three years ANOTHER lease starts, and on and on. But if you buy your vehicle and keep it ten years your total outlay is less than a continual lease. It really comes down to what matters to you most, a shiny new ride every 3 years or buying a vehicle and keeping it for 8-10 years. Just do a NPV calculation and you'll see how it works. Leases can be sold to the public because they ignore the fact that leasing costs never end, customers are too focused on the monthly costs and not the long term costs.
12-13-11, 01:28 PM
#20
To each of his own. There is NO one situation that fits all of us mankind.
Sometimes lease makes the perfect sense, other time not too much. If you know that you will keep you car for a long time (7-10 years) then buy it instead. but if you like to roll new wheels every 2-3 years then lease it.
NEVER put a down payment or big amount of money at signing when leasing (unless it is multiple deposits which is refundable at lease-end) because if you totaled your car that money is GONE.
Sometimes lease makes the perfect sense, other time not too much. If you know that you will keep you car for a long time (7-10 years) then buy it instead. but if you like to roll new wheels every 2-3 years then lease it.
NEVER put a down payment or big amount of money at signing when leasing (unless it is multiple deposits which is refundable at lease-end) because if you totaled your car that money is GONE.
12-13-11, 05:58 PM
#21
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Ask him to go over the numbers with you and show you the screen where the lease payment is calculated. I have an app that calculates the lease payment. I come up with $538 using your numbers, with tax paid up front. I also went to www.leaseguide.com and input the numbers. Same $538.
>>>>>
Ok, so I spoke to the sales guy and got some final #'s.
MSRP: $49360
Final Sales Price: $45400
36mo /12k miles Lease
Money Factor- .0015
Residual - .61
Monthly Payment - $550
Due at signing - $2699.51 (Tax, title, registration fees)
>>>>>
Ok, so I spoke to the sales guy and got some final #'s.
MSRP: $49360
Final Sales Price: $45400
36mo /12k miles Lease
Money Factor- .0015
Residual - .61
Monthly Payment - $550
Due at signing - $2699.51 (Tax, title, registration fees)
12-14-11, 06:39 AM
#22
12-14-11, 09:47 AM
#23
Lexus Champion
When we used to live in Connecticut. We pay property tax for every vehicle we own every year.
Mill rate depends on which city or town you park the car.
For example ur mill rate is $76/ $1,000 so if you purchased yours for $45,000.
That's 45 x 76 = $ 3,420 in a year.
And you pay that every year . Succeeding years will be lower factoring in the depreciation of the vehicle.
Mill rate depends on which city or town you park the car.
For example ur mill rate is $76/ $1,000 so if you purchased yours for $45,000.
That's 45 x 76 = $ 3,420 in a year.
And you pay that every year . Succeeding years will be lower factoring in the depreciation of the vehicle.
12-15-11, 11:09 AM
#24
Lexus Test Driver
And may I remind everyone of a " Chris Dodd".
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