FRS Leasing prices

[bfrank1972]

Originally Posted by Logical

Okay, sure. But if you stop paying for the car (for whatever reason) then you probably shouldn't have bought it. Living outside your means is a horrible thing. Anyways, sure the numbers 'seem' better but lets not forget all of the terms and legality into leasing a car versus buying it. For one 'anything' that you do to the car that eliminates the manufacturing warranty is prohibited if I'm not mistaken. If you're like me and everyone else that likes to modify their cars you wouldn't want something that doesn't allow you to do what you would want.

Lease vs. Finance is a never ending argument, and the person that decides has to live with that choice for a certain time period.

Actually only thing they care about is how the car is returned. Return it with a bunch of mods and yes you're at risk for fees. So true, if you want to heavily mod your car then leasing might not be the best. I'm not really arguing that pricing is better etc., just attempting to dispel the myth that leasing is a horrible idea. Just another financing structure.


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[spralwers]

Originally Posted by Logical

Lease vs. Finance is a never ending argument, and the person that decides has to live with that choice for a certain time period.

It's a never ending argument because leasing vs buying is for completely different people. It's generally pointless to convince people who lease that it's a waste of their money. That's because for people who like switching cars every few years, leasing is the cheaper and more hassle free option than buying via cash/financing, then selling/trading in. Now if someone is leasing just because of the lower monthly payments, then yes, that is ultimately a waste of money. In the long run, they are always making at least a few hundred dollars in car payments. If they bought, they'd eventually stop making monthly payments.

For my situation, I keep a cheap, fuel efficient, easy to fix car that I commute in, or drive if I just want to save as much gas as I can. I keep a second car on the side that I drive for fun. There're lots of fun new cars out there, so leasing lets me cycle through the options quickly and with little hassle.

Plus, as long as I follow the recommended service schedule, any problems the car has at the end of the lease is the company's to deal with.

[tennisfreak]

Originally Posted by spralwers

It's a never ending argument because leasing vs buying is for completely different people. It's generally pointless to convince people who lease that it's a waste of their money. That's because for people who like switching cars every few years, leasing is the cheaper and more hassle free option than buying via cash/financing, then selling/trading in. Now if someone is leasing just because of the lower monthly payments, then yes, that is ultimately a waste of money. In the long run, they are always making at least a few hundred dollars in car payments. If they bought, they'd eventually stop making monthly payments.

For my situation, I keep a cheap, fuel efficient, easy to fix car that I commute in, or drive if I just want to save as much gas as I can. I keep a second car on the side that I drive for fun. There're lots of fun new cars out there, so leasing lets me cycle through the options quickly and with little hassle.

Plus, as long as I follow the recommended service schedule, any problems the car has at the end of the lease is the company's to deal with.

I'm sorry but I personally (from experience) disagree with you.

When you buy (if done properly) you are:

• Paying more towards prinicipal of car
• Not mileage restricted
• Building equity in your vehicle much faster

Every purchase I have made has left me better off than leasing. When I go to trade in the vehicle I can always get more than my payoff, even if I only keep the vehicle for two years. Example: My two year old 2011 Prius with 50k miles traded in back in March got me $1500 more than payoff. That was cash I used to put down towards the next vehicle I bought.
When leasing you never have the chance of coming close to positive equity on your vehicle after the lease. Sure you can trade it in on another but you loose all the money you put in on it. If you decide to keep it now you have to refinance the damn thing and take an even bigger screwing.

For individuals the only reason leasing exists is to let people drive vehicles they really cant afford.

[TwinturboCamry]

Own business, lease 2 cars.

Expense that shit.

[TwinturboCamry]

Btw. It makes a lot more sense to lease a bmw for 3 years and then lease a new one than it is to buy out at the end of 3 if you consider the out of warranty costs and depreciation on a european lux car. No reason not to lease one with zero down given those rates.

So no, leasing is not for poor ppl.

[bfrank1972]

Originally Posted by tennisfreak

I'm sorry but I personally (from experience) disagree with you.

When you buy (if done properly) you are:

• Paying more towards prinicipal of car
• Not mileage restricted
• Building equity in your vehicle much faster

Every purchase I have made has left me better off than leasing. When I go to trade in the vehicle I can always get more than my payoff, even if I only keep the vehicle for two years. Example: My two year old 2011 Prius with 50k miles traded in back in March got me $1500 more than payoff. That was cash I used to put down towards the next vehicle I bought.
When leasing you never have the chance of coming close to positive equity on your vehicle after the lease. Sure you can trade it in on another but you loose all the money you put in on it. If you decide to keep it now you have to refinance the damn thing and take an even bigger screwing.

For individuals the only reason leasing exists is to let people drive vehicles they really cant afford.

Yeah, and my Toyota dealer approached me last year about ending my RAV4 lease with cash incentives to purchase because the residual on my RAV was lower than resale at that time Again, just different financing structures. Your last statement, btw, is just ridiculous (both financially and statistically speaking). Cheers!

[spralwers]

Originally Posted by tennisfreak

Example: My two year old 2011 Prius with 50k miles traded in back in March got me $1500 more than payoff. That was cash I used to put down towards the next vehicle I bought.
When leasing you never have the chance of coming close to positive equity on your vehicle after the lease. Sure you can trade it in on another but you loose all the money you put in on it. If you decide to keep it now you have to refinance the damn thing and take an even bigger screwing.

For individuals the only reason leasing exists is to let people drive vehicles they really cant afford.

Your example is a tricky situation because you put extremely heavy usage on the car - 50k miles in two years. If I was gonna do that much driving, I would have bought my FRS instead.

After 3 years 45k miles, I'd have to get a trade-in value/private sale of roughly $14,500 to be financially even with leasing if I bought with cash. I'm not too confident about that, especially if issues with the car come up.

[bfrank1972]

Originally Posted by spralwers

Your example is a tricky situation because you put extremely heavy usage on the car - 50k miles in two years. If I was gonna do that much driving, I would have bought my FRS instead.

After 3 years 45k miles, I'd have to get a trade-in value/private sale of roughly $14,500 to be financially even with leasing if I bought with cash. I'm not too confident about that, especially if issues with the car come up.

Like accident damage/repairs to the car, even if repaired very well, will still depreciate the car.

[BlueDubbinTDI]

The only thing the service manager said to me was to return it as stock as possible when my lease is up, anything I do to it between now and then is at my full digression. I plan to buyout asap so Im treating the car like It's mine already anyway. Don't give a fuck! YOLO!

[Braces]

All good points ... no perfect answer .... depends on the individual situation.

I will add:

1. Leasing works in a business because it is a DIRECT write-off. Owning a car means you would have to depreciate it, keep track of mileage, etc. etc.
2. Personal car that you intend to keep or modify .... buy it.
3. Lease disadvantages: mileage restrictions, possible lease turn in fees, car has to be in good shape or you will be hit with other fees.
4. Lease advantages: new car every few yrs.
5. Keep leases to 24-36 months MAX. Leasing for longer than 3 yrs does not make sense.
6. Negotiate the lease rate ... just like a finance rate.
7. In certain rare situations .... a lease car can gain equity if it is worth more than the residual at lease turn it.

[Derickie]

Originally Posted by TwinturboCamry

Own business, lease 2 cars.

Expense that shit.

Own business, buy 2 cars, 5 years straight depreciation, transfer zero value cars from business to yourself, sell car and get cash in your bank.

Own business, lease 2 cars, expense takes profit away from business, but you will never transfer cash to yourself without paying tax for it.

This is based on assumption that your business is making too much profit and you don't know where to spend it.