Really need ADVICE: Buy out LEASE? Or Lease New Car again?

[iJeff]

Originally Posted by Th3rdSun

I've never really totally understood the point in leasing a car.It's basically like paying rent on a vehicle.

You're paying for the depreciation. If you plan to change cars under 4 or 5 years you can lose more by selling the car than if you just leased it in the first place.

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[why?]

Originally Posted by Th3rdSun

I've never really totally understood the point in leasing a car.It's basically like paying rent on a vehicle.

Exactly. Most times it is used to pay rent on a vehicle a person could not otherwise afford, aka all the BMW leases. There are people that would prefer to have a brand new car every 2 or 3 years and leasing is a great way to do that.

Most people can never "win" on a lease though, just break even. leasing is mostly used by people who view cars as status symbols, or companies that need their executives to always be driving the latest and greatest.

[PoRco]

Originally Posted by Th3rdSun

I've never really totally understood the point in leasing a car.It's basically like paying rent on a vehicle.

Leasing worked out PERFECT for my situation because

1) I wanted ONLY the FRS. I was either gonna get this car or nothing at all. (I actually hated being in a car before I got the FRS, I'd get nauseous etc. I didn't "want a car" and then stumble on the FRS. I saw the FRS and then wanted a car :P)

2) Wasn't sure if I was gonna do my Masters, which would mean lowering my income severely and I would need lower payments (I ended up doign my masters, so thank god for that)

3) I wasn't sure if I was gonna be in the country 3 years down the road, and since I was getting into the "Car-world" for the first time, it seemed less scarier to just hadn it off to leasing company than try to sell it

4) I have no family whatsoever in Canada to pass the car on to if I want to mvoe to a different country for further education

5) This was my first car, and I pretty much learned how to drive MT ON this car. So I wasn't sure how bad I was gonna ruin the clutch/transmission. So I wanted the option to return it without cost (Turns out I picked up MT pretty fast and didn't do any damage)

6) I was just scared =/

[Tcoat]

Originally Posted by why?

Exactly. Most times it is used to pay rent on a vehicle a person could not otherwise afford, aka all the BMW leases. There are people that would prefer to have a brand new car every 2 or 3 years and leasing is a great way to do that.

Most people can never "win" on a lease though, just break even. leasing is mostly used by people who view cars as status symbols, or companies that need their executives to always be driving the latest and greatest.

There are some great benefits for businesses to lease (tax reasons, no hit for depreciation on capital assets , etc). But ya for an individual it is just a way of having something they can't normally afford or if they will always get new every few years. Absolutely a horrid way to go if you clock up mileage though.

[Quentin]

I'd have been an idiot to buy instead of lease. I work for the big T, so my situation is different than most.


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[Ec1990]

Originally Posted by why?

Exactly. Most times it is used to pay rent on a vehicle a person could not otherwise afford, aka all the BMW leases. There are people that would prefer to have a brand new car every 2 or 3 years and leasing is a great way to do that.



Most people can never "win" on a lease though, just break even. leasing is mostly used by people who view cars as status symbols, or companies that need their executives to always be driving the latest and greatest.

Some people can come out on top but you just have to be well versed in understanding it. Such as getting a real low money factor and you can end up paying less that owning when done right. Additionally it can be better for those that like the safety aspect of it if something goes wrong such as it being a lemon. Much less hassle and less money lost. I've personally never leased but have looked into it. Also if it works out close to equal to buying but cheaper monthly why not take it and invest the rest. But hey that's just my opinion.

[why?]

Originally Posted by Ec1990

Some people can come out on top but you just have to be well versed in understanding it. Such as getting a real low money factor and you can end up paying less that owning when done right. Additionally it can be better for those that like the safety aspect of it if something goes wrong such as it being a lemon. Much less hassle and less money lost. I've personally never leased but have looked into it. Also if it works out close to equal to buying but cheaper monthly why not take it and invest the rest. But hey that's just my opinion.

You are right, but good luck going to a dealership and getting them to write the lease right for you. You need to understand every little aspect, and they make the lease forms so complicated it is not easy.

[RockRoll]

Originally Posted by Quentin

I'd have been an idiot to buy instead of lease. I work for the big T, so my situation is different than most.


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What is The Big T?
thanks

[Quentin]

Originally Posted by RockRoll

What is The Big T?

thanks

Sent from Tandy 400

[sachu]

I am leasing mine.
2 yrs, 15k miles per year deal. 268 a month.

Mainly to see how I like it and if it will fit into my lifestyle before i purchase.

after clocking 11k miles in the 9 months since purchasing it, I am still on the fence.

I am hoping someone can help me in understanding if there is a way to negotiate on the buyout price (currently at 22k). if I can buyout for 20k instead, i'd convert the lease to a buyout today!

[SkAsphalt]

Originally Posted by sachu

I am leasing mine.
2 yrs, 15k miles per year deal. 268 a month.

Mainly to see how I like it and if it will fit into my lifestyle before i purchase.

after clocking 11k miles in the 9 months since purchasing it, I am still on the fence.

I am hoping someone can help me in understanding if there is a way to negotiate on the buyout price (currently at 22k). if I can buyout for 20k instead, i'd convert the lease to a buyout today!

Leasing a car to own it is a terrible financial decision almost all of the time...

[fridayfrs]

Originally Posted by sachu

I am leasing mine.
2 yrs, 15k miles per year deal. 268 a month.

Mainly to see how I like it and if it will fit into my lifestyle before i purchase.

after clocking 11k miles in the 9 months since purchasing it, I am still on the fence.

I am hoping someone can help me in understanding if there is a way to negotiate on the buyout price (currently at 22k). if I can buyout for 20k instead, i'd convert the lease to a buyout today!

Finish the lease then buy new. The residual (buy at end price) is set by the manufacturer is pretty high which makes it inexpensive to lease typically. I agree above lease to buy is not a smart move most of the time.

[sachu]

yeah, that's what I figure. most of the mods i can carry over to the new car.

buyout at the end of my lease period is just under 19k I believe.

[ntron1]

Originally Posted by sachu

I am leasing mine.
2 yrs, 15k miles per year deal. 268 a month.

Mainly to see how I like it and if it will fit into my lifestyle before i purchase.

after clocking 11k miles in the 9 months since purchasing it, I am still on the fence.

I am hoping someone can help me in understanding if there is a way to negotiate on the buyout price (currently at 22k). if I can buyout for 20k instead, i'd convert the lease to a buyout today!

Yes you can negotiate. The buyout price is the maximum you would have to pay to keep the car.