TTQ B4U Posted January 3, 2012 Report Share Posted January 3, 2012 the one nice thing about a lease is that when the term is over then you have the option to buy, and if you decide to buy they usually make you a good deal in terms of an interest rate, also I'm sure that leasing a car first would help you to get a loan on it afterwards if you have poor credit (at least if you were making payments on time anyhow). In the early 90's GMAC and Pontiac called it a 3 year test drive. One of the best campaigns they did back then. You're exactly right. One of the 4 benefits of leasing is that you can purchase the car. You can sell it outright, trade it or buy it, depending on the terms, anytime, but most freely within the last 6 months. In fact the right car/lease is selected you should always be able to get out early. I've sold all but one of my leases and done well. There's no way you'll walk away or sell and get out even or make much if anything on a buy in as short of a time comparably. Not unless you would have put money down on the buy, and essentially walk away from that cash by selling. Like I said early, what's nice is the flexibility a lease affords you. The small difference in costs in the long run are usually worth it if you're young and life changes quickly. ie....single now, married later, have kids, change jobs or even lose a job, decide to downsize and buy a house or decide to upgrade and buy more. Flexibility that's harder to come by on a purchase. Quote Link to comment Share on other sites More sharing options...
zeitgeist57 Posted January 3, 2012 Report Share Posted January 3, 2012 One thing I do like about BMW - whether leasing or owning - is their all-inclusive maintenance contract: 4years/50k miles. Sounds good to know if you're doing $400/mo in a car you won't own; at least you won't be forking over additional dough in maintenance! Quote Link to comment Share on other sites More sharing options...
M0nk3y Posted January 3, 2012 Report Share Posted January 3, 2012 One thing I do like about BMW - whether leasing or owning - is their all-inclusive maintenance contract: 4years/50k miles. Sounds good to know if you're doing $400/mo in a car you won't own; at least you won't be forking over additional dough in maintenance! Yep, even if you're outside that and/or plan to buy a CPO car, I fricken love it. I have CPO on my car, and it's already paid for itself (some people think it's a waste of money). I blew an ignition coil down in Dayton. Parents home is in Cleveland, so I had no car...or anything to do. Called BMWUSA, they got a tow out for me, 15 miles to the nearest dealership. Got a loaner for the night, car was ready at 10am next morning. All I had to do was pay $50 on my end...apart of the CPO policy. :megusta: Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted January 3, 2012 Report Share Posted January 3, 2012 add 100 per month for zero down payment, and taxes, that turns it up to about 425 for a base 3 series. Not a bad payment I guess, but it certainly wouldn't get my money. More than that. Cap cost reduction on that program is $2,500, taxes in Ohio would be another $2,500 and even if you negotiated a selling price you're looking at $475 to $500 per month for that lease. Add in another $15-$20 month if you're going to drive it average miles vs low miles. Still not a bad deal all said considering if you financed it you'd be at around $760mo. at on a buy at month 27 you'd be hanging by your feet upside down. This is a very short term lease too. Not one you'd likely get out of 6 months early, but no doubt with in the last 3 you could. Now you could buy it, drive for the 60 month note, pay roughly $45k over that term and trade it for a guesstimate of say $21-23k in equity you'd have but in the end it will have still cost you roughly $400mo to own it. Not to mention the 3+ more years of ownership costs associated with it. Oh....and that $760mo payment for 60 months. Ouch. Not me man...lease the new one of buy a nice clean used one. Brand new luxury buys are hurtful to your pocketbook. Quote Link to comment Share on other sites More sharing options...
BigOxley Posted January 3, 2012 Report Share Posted January 3, 2012 Dave ramsey http://www.daveramsey.com/article/drive-free/ this is probably the best advice on buying a car. i really need to pay attention. Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted January 3, 2012 Report Share Posted January 3, 2012 this is probably the best advice on buying a car. i really need to pay attention. keep in mind, his philiosophy applies to buying a home. It's all about living below your means and paying yourself first. My father always told me, it's not about how much you make, it's about how much you save and invest. It's tough, but if you don't have money being invested getting rich becomes pretty difficult. Quote Link to comment Share on other sites More sharing options...
spoolin_s14 Posted January 3, 2012 Report Share Posted January 3, 2012 I'm in sales at a toyota dealer and around 60% of our sales per year are leases. never put any money down like they said!!!! The nice thing about a lease is a lower monthly payment and always having a car thats under warrenty!! Unless you are a cash car buyer, a lease is a nice option. After 3 years of driving the car you get to take a step back and figure if you like the car enough to continue to own it, or if another option might be better for you. It's like tim said, it'll take 2-3 years of paying a 60mth note to even start dipping into the equity of the car and by that time your so far upside down it it that your hosed. for example on a new toyota camry; est. $24k price plus tax title & doc fees 0 down purchase 60mths @2.9% -- $480-$500 per month 0 down lease 3/12k-- $289-$300 and that's if negotiation skills blow and they get you at msrp are the savings worth it to you? Typically look for what has the best incentivized lease program usually with toyota's you can lease 3-4 new cars with the same money that would buy 1 new one. That means 3-4 new cars always under warrenty over 9-12 years in the same cost as one purchased. and typically 85% of poeple trade their cars in before they are even payed off reguardless!!! Quote Link to comment Share on other sites More sharing options...
BigOxley Posted January 3, 2012 Report Share Posted January 3, 2012 keep in mind, his philiosophy applies to buying a home. It's all about living below your means and paying yourself first. My father always told me, it's not about how much you make, it's about how much you save and invest. It's tough, but if you don't have money being invested getting rich becomes pretty difficult. yeah, im trying that whole living below means thing. its tough. especially with looking at all the cool cars people have on CR and wanting them too. so far, i have no car payments, enough savings to cover 6-8 months, hopefully have my house paid off in 13 years, and just started two retirement accounts (one TSP and one deferred comp). other stuff includes no cable tv and i started actually looking a coupons. what makes it super easy for me is no wife and kids. i couldn't imagine doing it with any. Quote Link to comment Share on other sites More sharing options...
AudiOn19s Posted January 3, 2012 Report Share Posted January 3, 2012 I'd love to lease a new GT3, track the crap out of it for 3 years, take it to the dealer every time anything was wrong with it, at the end of the 3 years when it's got 5000+ hard track miles give it back and start over with a new one. Of course they don't lease them anymore for this very reason. Other than this scenerio a lease doesn't work for me. I do most of my own mechanical work so warranty isn't a huge issue for me and I get attached to cars and never feel the need to get rid of them (I've had the Audi nearly 10 years now). Quote Link to comment Share on other sites More sharing options...
downingracing Posted January 3, 2012 Report Share Posted January 3, 2012 I've been leasing my tow vehicles. GM makes a great truck, but around 60k miles, they need work! And when I drop them off at the end of the lease, they are used up. The leases I've had have a residual value that is very high. Lower monthly payment and cost too much to purchase on the back end. (Both of which are exactly what I look for in a lease) I use the vehicle up and hand it back in after 4 years (60k miles). Worked in the past for me, and i always came out ahead. Just my .02¢. Quote Link to comment Share on other sites More sharing options...
AWW$HEEET Posted January 3, 2012 Report Share Posted January 3, 2012 is there a clause in lease paperwork that says you cannot track cars? Quote Link to comment Share on other sites More sharing options...
zeitgeist57 Posted January 3, 2012 Report Share Posted January 3, 2012 is there a clause in lease paperwork that says you cannot track cars? You can track'em...just make sure you don't wreck'em!!! Or if you do, have the flatbed take it directly to the intersection of Sawmill and 161 and drop it in the center! :gabe: ewinters, I'm with Andy...don't give in!!! Keep up the good financial fight! I'm going on 12 years with my '00 Passat and planning on a "keep-it-or-sell-it" review...in 2015!!! ...IF WE LIVE THAT LONG [/2012 Mayan Calendar] Quote Link to comment Share on other sites More sharing options...
Orion Posted January 3, 2012 Report Share Posted January 3, 2012 Stock market average of 12%? :lolguy: Who got 22% on his assets last year, and 16% this year? This guy. :fuckyeah: Dave Ramsey tells the truth. Quote Link to comment Share on other sites More sharing options...
zeitgeist57 Posted January 3, 2012 Report Share Posted January 3, 2012 Who's ass grew 16% this year? This guy. :fuckyeah: Fixed. Srsly, PM me what you did to get that sort of ROI in life. I'm happy I broke 5% with the S+P 500 up 0.04 points from 1/01/11 through 12/31/11. Even if you factor in dividend reinvestment the index is only up 2.11% YOY... Quote Link to comment Share on other sites More sharing options...
TTQ B4U Posted January 3, 2012 Report Share Posted January 3, 2012 yeah, im trying that whole living below means thing. its tough. especially with looking at all the cool cars people have on CR and wanting them too. I hear ya. However, at the same time I say meh....because buying a car, even an $100k one is easy for the average single male making halfway decent money. The key isn't the $2k mo the car might cost, it's the fact that they don't usually have everything else that makes life way more enjoyable. so far, i have no car payments, enough savings to cover 6-8 months, hopefully have my house paid off in 13 years, and just started two retirement accounts (one TSP and one deferred comp). other stuff includes no cable tv and i started actually looking a coupons.You have a good start. Knock out the house and then you can enjoy a nice car that you own too. what makes it super easy for me is no wife and kids. i couldn't imagine doing it with any.Little ones are very expensive. However, like anything you adapt. I couldn't imagine life without mine. To me vacations are 3x more fun since I not only enjoy them for me and wife but through the eyes of our two kids. All in due time for most. Quote Link to comment Share on other sites More sharing options...
Orion Posted January 3, 2012 Report Share Posted January 3, 2012 Fixed. Shit, I WISH it was only 16%. :fuuuu: Doc, last years simple answer is this, I invested in a LOT of South African interest in Jan, lost my ass till the World Cup (cliffs: SA companies blew the eff up during the Copa Mundial), sold all that stuff about 3 days before the end, and made up for the crushing defeat I took in the rest of my portfolio. This year I bought a whole crapload of Japanese stuff in the days following the Tsunami, when folks thought the world was ending (read: got them for pennies on the dollar) and a lot of them have slowly recovered since then. They are still down from where they were pre-Godzilla, but up a nice little piece from where I got them. I don't have a huge portfolio, but what I do have is in the hands of people I trust. Also, when I ask them to do something specific, they do it. ON TOPIC: The BMW lease offers are very attractive, and damn if I don't want a BMW, but I have had bad lease experiences, so I'm out on those. Quote Link to comment Share on other sites More sharing options...
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