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- - lease prices (https://www.ft86club.com/forums/showthread.php?t=43659)

But we're not really talking about investing, as that is a whole new can of worms that doesn't need to be opened in this discussion. At the end of the day, the difference wouldn't be significant anyway.

$775 down
380 per month
404 after the 2 year service thingy.

Pretty damn fair!!!!!!!!!!!!

Start a "business". You get to deduct your lease payments directly off your business income and you can buy out the car for personal use after your lease expires. That's why most corporations lease computers, equipment, and etc.

Leasing makes sense if you are the type of person who trades-in a car every 2-3 years and is fickle. But there are other factors. Leasing, on paper, is not quite as straight forward as buying and you need to understand all the terms and conditions of the contract. For example, with buying you know the interest rate over the life of the loan. It is black and white. With leasing you need to figure out what that rate is based on money factor. There are other fees as well such as the acquisition fee. The out the door price of the car is a big factor when leasing (price you pay after price of the car, all fees, and all taxes).

People who just focus on a monthly payment (especially when putting large sums down on a lease) are more than likely to end up paying a lot more long term. It is the worst way to negotiate with a dealer.

If your leased car is totaled, the insurance company pays the leasing company, not you. Your contact is then cancelled. You don't get anything back, even with a down payment.
You can't be upside down on a lease in the case of an accident. You have gap coverage for that, I believe it's mandatory and included in most states.
If you want a lower payment, put the money you were going to use for the down payment in an account and use it to make part of your monthly payment.
Leasing can make sense if you want a new car every 2-3 years and your mileage is predictable.
If you know you're going to buy at the end of the lease, you're generally better off buying and financing.

Leasing is .... horrible....

It's pretty much renting a car on a contract. The thought of it makes me cringe.

Buy the frs put 2k down. If anything were to happen with your job you basically have 4k in the bank to make 8 months of payments if worst case happened

Quote:

Originally Posted by ultra_frs (Post 1125632)

This really doesn't make much sense. Your opinion is fine, but what are you talking about in regards to a savings account? You do realize that the average savings account pays 0.05% interest right? And the very best, is generally still under 1% which requires usually around a $100,000+ deposit.

What leasing does is a few things. It allows you to get into a car you normally probably couldn't afford. You're only paying for the diminished value of the car for the number of years you drive it plus fees and interest. Some cars hold their value very well, and it is much cheaper to "rent" it for 3 years instead of buying it. It also eliminates the possibility of negative equity in your car. This is especially important for people that get new cars relatively often. A lot of times, if you finance the car, the amount you still owe by the time you go to trade it in is more than what the car is worth. That's negative equity. Leasing eliminates this risk. If your car is in reality worth less than what the dealer quoted your residual at the end of the lease, the dealer takes the hit. On the flip side, if it's worth more, you walk away with some money in your pocket because you overpaid for your lease. It's a win win situation if you like to change cars every few years and can't afford to finance the car you really want.

It's also not a hassle at all to lease a car. My experience was very pleasant. It all depends on the person. Leasing and financing both have pros and cons. It really just depends on the person and situation as to what is better.

I wasn't saying that savings was going to grow exponetially...but cash on hand if you get bullied into a bad position is worth more than the best lease/finance terms any day. In this credit based economy people have forgotten the value of cash. I can get a plumber/electrician/etc. in my home with cash, within hours of calling and get a deal at that. "I pity the fool" who has to use credit in an emergency...a couple years ago in CT we had major widespread power outages, businesses only taking cash b/c they didn't have power...how quickly people realized that "cash is king."

"Leasing helps someone get into a car they otherwise couldn't afford..." if they can't afford it they can't afford it...this is where the "hassle" comes in because these type of people find themselves sunk when they have to settle up at the end of the lease or they have an accident in the car. *2 cents*

Gilt- I'm a firm believer in at all times have 5k in the bank and 500 dollars in cash hidden in the house. 500 cash in house can get me to a bank during national disaster and 5k ensures security.

Cash is king? I disagree. I'm relatively young (29) for what I have and I never have held a lot of cash in a bank account and I have $15 bucks on me right now. My retirement funds are all in the stock market, and any extra cash I get goes straight into my mortgage. In 3 years I've been able to pay my mortgage half down, which allowed me to refinance and save $1000 a month in interest, which allowed me to buy my v10 R8 NEW. What happens in an emergency you say? That's why I opened up a HELOC which is just as good as cash. I can write a check, get money from the bank as if it's a very large savings account, if I ever need it in an emergency! Pay off your debt first, save your cash later. Credit is just as good as cash in an emergency, and your money sitting in the bank is losing value!

As far as leasing goes, head down to the cars for sale forum on here and pic up a nice used FRS for close to 20k. My local credit union is offering 1.9% on USED cars, that's close to borrowing money for free. Remember, the cost of a car isn't what you buy it for, it's what you buy it for minus what you sell it for (depreciation). So let's say you buy a used FRS for 20k, sell it for 15k 3 years later, you only payed $139 in deprecation per month. Much less than the lease.

Turk- I max out my 401k at work, I am putting an extra 200 dollars on principle for mortgage to make it a 15 year loan vs 30year. I have a zero balance credit card with 8k limit. But again emergencies like a hurricane I was in once, no debit no credit and no checks. Used cash to get to a town 5 hours away got 2k out to last me 2 weeks at time I didn't know how long

Different living conditions I suppose, I live outside of Chicago. The worst we'll see is a blizzard or tornado which is typically only a few days of problems and very isolated (tornado).

If you lease through Toyota, it's a set chart of rates based on your credit score. They showed me the chart. There really is no tricky business with a Scion lease (at least at the dealer I used), so long as you avoid the extra stuff they try to sell. Get GAP. Make little to no down payment. Have good credit. Scion had a three years, $300 a month lease when I got mine.