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sporty cars that lease well??

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Mr. Jones Newbie

Mr. Jones

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Why lease? For the money a used 350z can be had for, you can almost make your money back at resale.

 

Leasing has it's advantages....

 

Once The A4 and S8 are done I'll keep them in the stable and start leasing a weekend toy. The I get to give it back by the time I get bored with it and it needs maintenance. :)

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CRed05 Apprentice

CRed05

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Why lease? For the money a used 350z can be had for, you can almost make your money back at resale.

 

I have to agree with you. I dont see the benefit of leasing. Paying basically the same amount monthly as if you bought it, but when the lease is up all that money just disappears, along with the car. Plus you are limited to a certain amount of miles, and no modifications.

 

But 335 would be a nice car to have.

 

This is what a lease on a 2010 S4 will cost you:

 

'10 S4 6MT

$52k car

42 mo lease

10k mi/yr

$4200 out of pocket

$699/mo + tax

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Aaron Newbie

Aaron

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Paying basically the same amount monthly as if you bought it, but when the lease is up all that money just disappears, along with the car. Plus you are limited to a certain amount of miles, and no modifications.

 

 

A few things

 

A lease is almost never the same payment as a buy. Thats the whole point of a lease; to get into a car you CAN'T afford. A purchase of a 3 series (lets say 40k) for 72 months with 0% (which is NEVER for 72 months on BMW, usually 36) is 600/month; 750 with interest. A lease of the same car usually is somewhere in the 450-650 range depending on the lease deal. BMW has 328 lease deals for like 350-400/month right now, easily a 500+ car payment on a purchase.

 

My dad leased a 2005 S4 (52k) for 39 months, 15k/year, 0 down for 600. 0% for 72 would have been 770/month.

 

Also, you can change the mileage however you want. You don't have to stick to their 10 or 12k usual annual mileage. It usually adds 10-20/month for every bump up (10, 12, 15, 18 etc).

 

You most certainly can mod a lease as well. Just save the stock parts, and then sell the aftermarket ones when finished. You might loose the money on the chip (like i did on my A4, but its worth it).

 

Audi hasn't had good lease deals on any of their cars (compared to BMW and Mercedes who subsidize their leases, Audi doesn't) since early 2005.

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TTQ B4U Rookie

TTQ B4U

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I have to agree with you. I dont see the benefit of leasing. Paying basically the same amount monthly as if you bought it, but when the lease is up all that money just disappears, along with the car. Plus you are limited to a certain amount of miles, and no modifications.

 

The benefits of leasing are the drawbacks to a buy.

 

  • You drive more car for less monthly.
  • If you buy a car, buy used. It's the best way.
  • If you buy new, pay it off. It's the best way unless you're interest on investments offsets parting with the cash.
  • Leasing you have little risk. Lose a job today, and the commitment is much smaller than on a buy.
  • Leases vary, but if you get into a "good lease" without a huge residual to stick you in the full term, you can often get out of a 30mo in 24-36mos. A 60mo buy will average 42-48mos, especially in todays climate.
  • Another benefit is on a lease, you DON"T own the car. Wreck it and you don't have to care, it will be gone. On a buy, you own a car that just lost value and has been wrecked.
  • There are no mileage limitations. That's a myth. You can pre-pay the miles if you drive a lot. It's actually cheaper. Average cost is $.15-.19 per mile. No way you'll be that low on a buy. The car depreciates too fast. I get $.51 mile to drive my car from work....I can buy a lot of miles or a pretty nice car for that money.
  • On a lease, you can buy it out afterwards. Back in the early 90's Ponitiac called it a 3yr test drive. In the end, it will cost you a few dollars more to lease then buy, but you get to see if that new G8 is a lemon or if the new car will actually hold it's value.
  • On a lease, you can just walk away if need be. I did that on my beloved GXP. Damn car took a $32k list price hit down to not being able to sell it for just over $13k 2yrs later with only 16k on the ODO. I just dropped it off vs getting stuck with a rock that would have me upside down for years to come.
  • On a lease you can trade it in at anytime too. Just walk up and conduct the transaction.
  • SO in the end, a lease may have you with a monthly payment each month, but then so does a buy. I paid cash OTD for my Speed3, but in the end, I still pay a Monthly to drive it. It's just money pre-spent and the longer I keep it, the lower my cost to drive it goes down. However, I'll have to drive it for about 7yrs to break even with a typical lease. Now like me in this case, if you plan on keeping it for a while...as I will, over 7yrs, then it makes sense to buy. Most don't do this and who knows....I may not either.

 

Options and little risk...that's a what leasing buys you. I drove a $38k SUV for 2yrs, 25,000 miles, paid $400 mo and sold it outright for a break even at that point. No way in hell that would have happened on a buy. I did the same on my 99 GTP (which was modified heavily) on my 03 Trailblazer, on my wifes Camery, her Alero, etc....all the time, I never paid one dime of maintenance other than OLF and never lost that new car smell. Can't do that with a finance or cash purchase for the same coin.

 

Modification wise, just return that bitch to stock. I modded all my leases.

 

Any questions, let me know. I grew up in a family that owned three dealerships and sold/managed for many years myself. happy to cover the ups and downs.

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matty2431 Newbie

matty2431

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I dont think its quite as easy as walking up and trading your lease out? Don't most companies have early termination fees and the like? I have always heard its quite costly to jump out of your lease early.

 

TO OP:

 

Mitsubishi has some sweet lease deals on the lancer. I got mine for basically nothing down, $240 a month. I got the ES sport so it comes with the ipod hook up, speakers, ground effects, spoiler and alloys. I'm pretty sure you could rope in a GTS or a ralliart for not much more a month since I leased mine before the great crash last sept. The ralliart I believe is AWD too, which is perfect for the ohio winters. The interior of the car is cozy, but nothing spectacular, but you cannot really argue with the outside looks of the car and its performance for the price you pay.

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OSUGT Newbie

OSUGT

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If you lease, make sure you are willing to make the commitment for whatever term you choose. Make sure your life circumstances are relatively stable. For example, I see a ton of young people in my store trying to trade out of a lease because they are now expecting a child or they want a dog and their current vehicle is not big enough.

 

I also see folks get taken in by low mileage lease payments just so they can drive a "cool" car. Be careful. Most people drive between 12-15k miles a year. Teaser lease rates are advertised most of the time around 10k miles per year. Just read the fine print.

 

Remember that if you decide to trade, your "payoff" is your residual PLUS any remaining unpaid payments.

 

My biased opinion would have you check out a 2010 Fusion Sport :)

 

http://images.google.com/imgres?imgurl=http://z.about.com/d/cars/1/0/w/Y/1/10_fusion_sport.jpg&imgrefurl=http://cars.about.com/od/whatscomingin2010/ig/New-and-redesigned-2010-cars/2010-Ford-Fusion-Sport-frt-vw.htm&usg=__PI6JuoFacep-yhH6NQfuve3QLP8=&h=850&w=1280&sz=333&hl=en&start=6&um=1&tbnid=9LyTAuF4Xt_ZGM:&tbnh=100&tbnw=150&prev=/images%3Fq%3D2010%2BFusion%2Bsport%26hl%3Den%26sa%3DN%26um%3D1

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SicShelby Newbie

SicShelby

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The benefits of leasing are the drawbacks to a buy.

 

  • You drive more car for less monthly.
  • If you buy a car, buy used. It's the best way.
  • If you buy new, pay it off. It's the best way unless you're interest on investments offsets parting with the cash.
  • Leasing you have little risk. Lose a job today, and the commitment is much smaller than on a buy.
  • Leases vary, but if you get into a "good lease" without a huge residual to stick you in the full term, you can often get out of a 30mo in 24-36mos. A 60mo buy will average 42-48mos, especially in todays climate.
  • Another benefit is on a lease, you DON"T own the car. Wreck it and you don't have to care, it will be gone. On a buy, you own a car that just lost value and has been wrecked.
  • There are no mileage limitations. That's a myth. You can pre-pay the miles if you drive a lot. It's actually cheaper. Average cost is $.15-.19 per mile. No way you'll be that low on a buy. The car depreciates too fast. I get $.51 mile to drive my car from work....I can buy a lot of miles or a pretty nice car for that money.
  • On a lease, you can buy it out afterwards. Back in the early 90's Ponitiac called it a 3yr test drive. In the end, it will cost you a few dollars more to lease then buy, but you get to see if that new G8 is a lemon or if the new car will actually hold it's value.
  • On a lease, you can just walk away if need be. I did that on my beloved GXP. Damn car took a $32k list price hit down to not being able to sell it for just over $13k 2yrs later with only 16k on the ODO. I just dropped it off vs getting stuck with a rock that would have me upside down for years to come.
  • On a lease you can trade it in at anytime too. Just walk up and conduct the transaction.
  • SO in the end, a lease may have you with a monthly payment each month, but then so does a buy. I paid cash OTD for my Speed3, but in the end, I still pay a Monthly to drive it. It's just money pre-spent and the longer I keep it, the lower my cost to drive it goes down. However, I'll have to drive it for about 7yrs to break even with a typical lease. Now like me in this case, if you plan on keeping it for a while...as I will, over 7yrs, then it makes sense to buy. Most don't do this and who knows....I may not either.

 

Options and little risk...that's a what leasing buys you. I drove a $38k SUV for 2yrs, 25,000 miles, paid $400 mo and sold it outright for a break even at that point. No way in hell that would have happened on a buy. I did the same on my 99 GTP (which was modified heavily) on my 03 Trailblazer, on my wifes Camery, her Alero, etc....all the time, I never paid one dime of maintenance other than OLF and never lost that new car smell. Can't do that with a finance or cash purchase for the same coin.

 

Modification wise, just return that bitch to stock. I modded all my leases.

 

Any questions, let me know. I grew up in a family that owned three dealerships and sold/managed for many years myself. happy to cover the ups and downs.

 

Great info... I've always kind of debated this for the wife's car. She doesn't drive much and I think it would be more cost effective to give her a cheaper lease than it is to take a loan out on a new car. Her needs for it would be short term, so I think a lease would fit.

 

Thanks for the info.

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TTQ B4U Rookie

TTQ B4U

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I dont think its quite as easy as walking up and trading your lease out? Don't most companies have early termination fees and the like? I have always heard its quite costly to jump out of your lease early.

 

It actually is. Your trade will be evaluated and appraised the same regardless. No different than the way your car will depreciate. Whether you get a loan from your uncle, pay cash or finance your car, your car depreciates the same and is appraised the same way.

 

In the case of a lease, you'll either be upside down or at a break even/positive equity spot upon the appraisal. If you try and get out of it too, too early, sure, you'll be upside down. However, not nearly as far as you would if you bought the car and had a full loan/note sitting on your shoulder.

 

Let's look at a negative equity situation

 

Have the dealer put a buy figure on the car...true cash value....that is what will they give you for it without buying a new car. If that number comes in at $23,000 that's fine. Leave it for now.

 

Then have the dealer call for a buyout on your lease. Now if it comes back at $24,300 that's okay too. You're $1,300 upside down. Compare that $1,300 delta with the amount of your remaining payments. If you have 6 payments of $400 left, you'll clearly see that it's better to have them take it on trade and tack on the negative equity than it is for you to hold on to the car and make the remaining payments or doing so and turning it in. My personal advice, wait until there's no negative equity, then trade it. Even if you trade it 1-2 months early, at least you won't be left with any lease turn in issues if you're rough on your car.

 

The upside is if you enter into a lease with a good residual that's realistic and not artificially inflated to get you a low payment to begin with, you won't likely be upside down at all within those last 6 months of your term. That all depends on the car and leasing institution/contract, but then don't get suckered into long term or high residual leases. Remember the days of $200mo Toyota Camerys??? Great deal for payment buyers, but bad deals for those looking to get out early as the residuals were artificially high. Thanks Wells Fargo. Many turned in their cars and never benefited from the option of trading or selling outright.

 

My personal rule/insight:

 

Never put money down on a lease. Make first payment, security deposit, pay the taxes (newer OH law) and misc. admin fees, etc....but no cap-cost reduction. Dumb move. You'll lose that should you exit it early. If you can't afford the car that way, then you're looking at too high of a priced car. The whole idea of a lease is to keep your cash in the bank.

 

Sorry to go on and on, but if it helps even one person, it's all good.

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TTQ B4U Rookie

TTQ B4U

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Great info... I've always kind of debated this for the wife's car. She doesn't drive much and I think it would be more cost effective to give her a cheaper lease than it is to take a loan out on a new car. Her needs for it would be short term, so I think a lease would fit.

 

Thanks for the info.

 

Perfect situation for a lease. My wife was in law school and only needed a reliable low cost option for 2-3 yrs. We leased a Toyota and only paid for a few oil changes. after that she was making some real money and no longer needed just a basic car.

 

She then got a nice sporty coupe, but leased it too as we knew that within a couple years we'd be having kids and want something bigger. Perfect, we rolled out of the 2dr and into an SUV. Then we rolled out of that into a minivan.

 

We bought the minivan and ended up selling it to my inlaws and did the same again.

 

Now we own both our cars outright and plan on keeping them for a long while. I would be in a ZO6 now if it weren't for the economy begin in the shitter. Just not the wisest move to put all that money into a toy just yet. I'll wait a couple more years and save in the mean time. Who knows, perhaps I'l just lease a sporty car then and have the option of testing it out for 3yrs first :D

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Nitrousbird Newbie

Nitrousbird

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Great info... I've always kind of debated this for the wife's car. She doesn't drive much and I think it would be more cost effective to give her a cheaper lease than it is to take a loan out on a new car.

Ever hear of a used car?

 

My wife bought her A4 2 years used, saved a TON of dough, and still got plenty of warranty with it.

 

It is almost always smarter to buy used and let someone else eat the depreciation. A lease is an even worse idea; you basically JUST eat the depreciation.

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