Leasing VS. Financing

**Redlyne_mr2** · 03-01-2003, 12:12 AM

What do you think is the better way to go leasing or financing? Personally if I'm looking at a car that i'm going to modify and keep for a while then financing is the obvious choice but for a nice daily driver then leasing does have it's advantages, the only thing about leasing is that I would feel like I'm putting money into something that I don't even own.

**max_boost** · 03-01-2003, 12:23 AM

Don't lease!
I would only lease if the interest rate is very low....sure you have lower monthly payments but once you factor in the residual value and interest payments, you realize how stupid of a choice it is!

Go fool around with the loan calculators on the websites and add up the final total, you'll know what I mean dude!

What car are you looking at?

**ninjak84** · 03-01-2003, 12:26 AM

Yeah I'd stay away from leasing too....
Alot of leases specifically say in the contract that you aren't allowed to modify the car, so be careful!

**RiceCake** · 03-01-2003, 12:32 AM

I also find too many conditions with leasing. You're allowed 20 000 kms a year or so. I rack up the kms fast and in no way would that work for me. Also I don't like the idea of paying for a car every month that's not mine to own.

**max_boost** · 03-01-2003, 12:42 AM

Here is a quick comparison of finance and lease for the Nissan 350Z balance of finance/lease is $44900

Finance
8.15%
48 months
$1099.29/month
Total $52765.92

Lease
9.2%
48 months
Residual Value $23348
$710.39
Total $57446.72

You are paying $4680.80 more for the lease! Do you think it is worth it? Only way I would lease if it is a business write off or if the interest rate is low!

**Glowrider** · 03-01-2003, 12:55 AM

I like leasing better. But that's just for me. I never stick with one car for to long. Financing just doesn't feel comfortable to me. But that's not for everyone, it really depends on what you're comfortable with, and what you want to do as far as cars are concerned.

**rage2** · 03-01-2003, 02:13 AM

I'm all about the lease. It's the only way I can "afford" my cars (I really am poor, honest!). Nice thing is after the 3 years is over, I can return the car (and even get money back for the next car), or if I like the car, buy it out at a very low price (residual #'s are usually really low to protect the leasing companies), in effect stretching out my payments over 6 years. One really nice thing about the lease is the residual is fixed, so if there's something seriously wrong with the car where the value drops significantly (ie I crash it harsh, or E46 M3's motor failures) you walk away from the lease without any commitments.

So I pay a few grand more over 6 years, but at least I can afford the car (no way I can get a loan to buy an SLK 32 to save about $5k).

**GTS Jeff** · 03-01-2003, 03:29 AM

id pick neither. its best to pay everything up front, so u arent throwing money away thru interest.

**James** · 03-01-2003, 06:03 AM

Originally posted by GTS Jeff
id pick neither. its best to pay everything up front, so u arent throwing money away thru interest.

Ya sure Tough Guy! cause everyone can do that

.....Did you pay Cash for your " 81 Hyundai Accent TR-X "R-Tuned Edition"
".. mister high roller!...

j/k

**FiveFreshFish** · 03-01-2003, 10:49 AM

Leasing is like long-term renting. You have to be aware of how much mileage you have on the car. The leasing company can rape you for excess mileage, plus any damage or unreasonable wear on the car when you return it without doing the buy-out. You are expected to perform scheduled maintenance.

As rage2 said, the fixed residual value is good feature of leasing. If the market value of the car at the end of your lease term is greater than the residual value, you can buy it out and sell it privately... you pocket the difference.

Just be sure you know every detail about the lease before you sign because leasing terms & conditions can vary greatly from one company to another.

**benyl** · 03-01-2003, 10:51 AM

I think that it all depend on how long you plan to keep the car. Short term 2-4 years, lease it. Long term 6-10 years, buy it.

If you can write off the payments for your company, lease for the first 3 years, then if you like it, buy it out.

**max_boost** · 03-01-2003, 03:01 PM

Originally posted by rage2
So I pay a few grand more over 6 years, but at least I can afford the car (no way I can get a loan to buy an SLK 32 to save about $5k).

SLK 32 AMG
Lease
$77500
Residual $34100
60 months
$1161.44/month
$103786.4 Total

Finance
60 months
$1553.10/month
$93186 Total

In your case Rage2, you are paying $10600.40 more but that isn't the point, you CAN afford it!

IMO, with the money you save, you can get some nice mods for the car.....not that you haven't already.....dam high rollers! haha

**rage2** · 03-01-2003, 06:11 PM

I'm only leasing for 3 years, with a decent sized down payment, so I'm actually not paying too much interest

.

And no, I wasn't approved for a 60 month finance, bank thought I can't afford $1700/month.

**max_boost** · 03-01-2003, 10:12 PM

Originally posted by rage2
I'm only leasing for 3 years, with a decent sized down payment, so I'm actually not paying too much interest .

And no, I wasn't approved for a 60 month finance, bank thought I can't afford $1700/month.

Yah, I was just doing a quick comparison, just noticed a little error in my previous post. I didn't mean to say that these are the numbers you are paying.....but what the heck, I'm sure everytime you get into your car, the 349hp and 332llbs torque justifies every penny you are paying! haha

**legendboy** · 03-01-2003, 10:25 PM

Leasing is good depending on what kind of car your going to get. Most people don't want to keep a car longer than 4 years, which is what makes leasing attractive. (becides lower payments)

Think of it this way. If you finance a car over 5 years (which is the only way to get reasonable payments with out loads of $ down) say you have payments of $550. You pay $550 a month for 4 years and then decide that you want another car. You still owe $10,000 or whatever. You screwed yourself. You just made yourself broke paying the $550/mo payment and then you have to be able to sell your car for at lease $10,000 to get out of your contract. You have just made yourself broke and tied up all your money for no reason.

The lease on the other hand. You pay $300/mo +tax for 4 years. You then take your residual (around 50% on average) of say 16,000. You can either give the car back and say have a nice day. (which sounds alot better then the above finance agreement) or if you buy car with a high resale value you may be able to sell it on your own and make a buck. Or if you fucked your vehicle up and put 350k on it you can still sell it and pay out the difference (couple grand at most) and you get away clean.

If you want to keep a vehicle for 6-10 years then just finance it. But be realistic, who the hell does that becided your grampa???

In general lease rates are a bit higher but your only paying intrest on the amount your actually buying, about 50% on a 4 year lease. The difference in what your paying intrest wise on a lease to a finance contract is minimal as long as your not going to buy the car after or finance the residual.

I always pushed leases on people. And now I'll bet there are alot of people who are greatful I did.

**rage2** · 03-01-2003, 11:50 PM

Originally posted by legendboy
If you want to keep a vehicle for 6-10 years then just finance it. But be realistic, who the hell does that becided your grampa???

I must be getting old... that 944's been in the garage for like 12 years now!

**szw** · 03-01-2003, 11:58 PM

I plan on keeping my car until its running on its last cylinder!

**max_boost** · 03-02-2003, 03:08 AM

Do dealerships lease USED cars? Just curious

**rage2** · 03-02-2003, 11:40 AM

Yes, the expensive used stuff can be leased and can be a real good deal because the first year depreciation is already gone

.

**legendboy** · 03-02-2003, 12:17 PM

Originally posted by rage2

I must be getting old... that 944's been in the garage for like 12 years now!

hahaha, sup G G=Grampa

Thread: Leasing VS. Financing

Thread Tools

Search Thread

Leasing VS. Financing

Posting Permissions