spider_007
Master Don Juan
haw many of you do it?
what is the advantage?
is it really worth it?
what is the advantage?
is it really worth it?
lease a car?
- Thread starter spider_007
- Start date
Re:
I do it.
Business/tax write-off.
Why? A little simple math/money logic, at least in my mind. I'll break it down.
When getting a "new" car, you are required to put down as much OR more down to buy it.
Then, you make payments that are TWICE as high than a lease.
Lastly, the payments last for 4-5 years for new cars. At that point, you normally trade it in. If NOT, most vehicles begin having the normal wear and tear problems, breakdowns, breaks, engine, etc. So those pieces are ALSO like payments. They ave. between 1-3k per year, plus the hassle.
So downsides to BUYING...
-higher payments
-more money down
-don't own it until the end
-you own the problems, too
Leasing...
Less money down, lower payments, and you give it back @ the end in good to great condition.
Yes, you're hampered by MILEAGE and you can't always get out early or sell out if you're in trouble (if you're in that much trouble, they'll just repo/foreclose) BUT, if you were going to get into financial trouble over a vehicle IT is more than likely going to happen with a buy rather than a lease because the payments are higher, therefore you're hampered more per month.
MOST people have the LEASE mentality, yet don't lease. MOST people want a new car in 4 or 5 years, while leasing is best at a max of 4 years.
When i was checking out my Honda Accord, it was between buying or leasing, and the dealership didn't care. The payments were higher, and the down payment was greater, too, so obviously it was attractice because I could SAVE the difference (if you're determined) for the NEXT lease.
To buy the honda was $450+, my lease is under $300, and the proceeds from my accident MORE than covered the downpayment to get off the lot. initially, I was worried and worried about a higher payment, but I was more than comfortable droping $300, rather than $500 to get one. Now, at the age of 26, I'll be upgrading, like most people do, and didn't go 4 years of paying $200 more dollars a month to get the same car.
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I would advise looking online for an EBOOK or lease guide that shows the optimal time to lease a certain brand and what a good value for the lease is. I do like leasing better, though I didn't before.
Obv. if you mod your car, it's bad right off the bad. If you don't treat it good. Or you drive cross country an insane amount. I'll go over my lease, but the extra penalty is OK, given that I saved money each month versus buying.
I think alot of college kids should consider it, since they're done, they don't have great credit and don't normally want to pay a lot for a new car right in the beg. Esp. when they'll upgrade by mid-20's to something new and sporty, like a BMW, mercedes, or Acura.
Short leases are ok on trucks, which is good, since trucks are crazy on repairs and depreciation. American vehicles are bad for buying and not great @ leases since the depreciation is high, therefore payments are higher.
The best leased vehicles are foreign, honda, accura, nissan, bmw, mercedes, etc. They're cheap, more car for the buck, and better than buying.
--------------------------
The argument is funny, b/c I had a friend who told me I was "dumb" but he was dropping $550/month on his Blazer real quick. And when he was done, he upgraded to a Chevy Avalanche for $800. He had the higher payment, worked to pay it off quick, then got another car in replace, for almost more money.
Most people looking back would say BUYING is bad since you're sinking BIG money into something you really do NOT want to own @ 4 or 5 years out. Think about it. A car is to be driven. All transportation costs ARE LOST, SUNK COSTS. You ride the train for $200/month, you ride the bus, whatever. GONE.
A car is no different, it's just a bigger liability. You get it for $$30k, pay $5k interest, and can only sell it for $15k. WOW. And the benefits are where?
I'd prefer LEASING...taking care of it, saving a little money for any overages or penalties, and getting a new 1 soon. Yes, there's nothing left in 4 or 5 years, but you could say the same of your car. All that evaporated equity!!! Not to mention, the BANK owns your car until you're done. Miss 3 payments, what happens?
REPO. It happens under both cases, only the leases are normally easier to make.
-------------------------
THE ONLY people I know buying them are those who can buy them outright, day 1. OR, those in the business. I have a few friends, and they wheel and deal cars, some mod them, other's have friends owning dealerships...with those connections, you get a nice deal on cars worth buying. My buddy got a JAG for $200/month. Of course he put $7k down, but if he sold it, he'd get ALL his money back and then some because the car was bought UNDER market value and a JAG with low miles in mint cond. holds its value WELL. You have to know what you're doing and I don't know how to deal with bought cars that well, nor have the time to fark around with them, selling them, or trading them in.
A-Unit
I do it.
Business/tax write-off.
Why? A little simple math/money logic, at least in my mind. I'll break it down.
When getting a "new" car, you are required to put down as much OR more down to buy it.
Then, you make payments that are TWICE as high than a lease.
Lastly, the payments last for 4-5 years for new cars. At that point, you normally trade it in. If NOT, most vehicles begin having the normal wear and tear problems, breakdowns, breaks, engine, etc. So those pieces are ALSO like payments. They ave. between 1-3k per year, plus the hassle.
So downsides to BUYING...
-higher payments
-more money down
-don't own it until the end
-you own the problems, too
Leasing...
Less money down, lower payments, and you give it back @ the end in good to great condition.
Yes, you're hampered by MILEAGE and you can't always get out early or sell out if you're in trouble (if you're in that much trouble, they'll just repo/foreclose) BUT, if you were going to get into financial trouble over a vehicle IT is more than likely going to happen with a buy rather than a lease because the payments are higher, therefore you're hampered more per month.
MOST people have the LEASE mentality, yet don't lease. MOST people want a new car in 4 or 5 years, while leasing is best at a max of 4 years.
When i was checking out my Honda Accord, it was between buying or leasing, and the dealership didn't care. The payments were higher, and the down payment was greater, too, so obviously it was attractice because I could SAVE the difference (if you're determined) for the NEXT lease.
To buy the honda was $450+, my lease is under $300, and the proceeds from my accident MORE than covered the downpayment to get off the lot. initially, I was worried and worried about a higher payment, but I was more than comfortable droping $300, rather than $500 to get one. Now, at the age of 26, I'll be upgrading, like most people do, and didn't go 4 years of paying $200 more dollars a month to get the same car.
--------------------------
I would advise looking online for an EBOOK or lease guide that shows the optimal time to lease a certain brand and what a good value for the lease is. I do like leasing better, though I didn't before.
Obv. if you mod your car, it's bad right off the bad. If you don't treat it good. Or you drive cross country an insane amount. I'll go over my lease, but the extra penalty is OK, given that I saved money each month versus buying.
I think alot of college kids should consider it, since they're done, they don't have great credit and don't normally want to pay a lot for a new car right in the beg. Esp. when they'll upgrade by mid-20's to something new and sporty, like a BMW, mercedes, or Acura.
Short leases are ok on trucks, which is good, since trucks are crazy on repairs and depreciation. American vehicles are bad for buying and not great @ leases since the depreciation is high, therefore payments are higher.
The best leased vehicles are foreign, honda, accura, nissan, bmw, mercedes, etc. They're cheap, more car for the buck, and better than buying.
--------------------------
The argument is funny, b/c I had a friend who told me I was "dumb" but he was dropping $550/month on his Blazer real quick. And when he was done, he upgraded to a Chevy Avalanche for $800. He had the higher payment, worked to pay it off quick, then got another car in replace, for almost more money.
Most people looking back would say BUYING is bad since you're sinking BIG money into something you really do NOT want to own @ 4 or 5 years out. Think about it. A car is to be driven. All transportation costs ARE LOST, SUNK COSTS. You ride the train for $200/month, you ride the bus, whatever. GONE.
A car is no different, it's just a bigger liability. You get it for $$30k, pay $5k interest, and can only sell it for $15k. WOW. And the benefits are where?
I'd prefer LEASING...taking care of it, saving a little money for any overages or penalties, and getting a new 1 soon. Yes, there's nothing left in 4 or 5 years, but you could say the same of your car. All that evaporated equity!!! Not to mention, the BANK owns your car until you're done. Miss 3 payments, what happens?
REPO. It happens under both cases, only the leases are normally easier to make.
-------------------------
THE ONLY people I know buying them are those who can buy them outright, day 1. OR, those in the business. I have a few friends, and they wheel and deal cars, some mod them, other's have friends owning dealerships...with those connections, you get a nice deal on cars worth buying. My buddy got a JAG for $200/month. Of course he put $7k down, but if he sold it, he'd get ALL his money back and then some because the car was bought UNDER market value and a JAG with low miles in mint cond. holds its value WELL. You have to know what you're doing and I don't know how to deal with bought cars that well, nor have the time to fark around with them, selling them, or trading them in.
A-Unit
I personally would never lease. To me it feels as if im in my 20's again and renting an apartment and throwing away money. Id rather finance a car that I will eventually pay off, take care of and hopefully it will run for 10 years or so.
Bible_Belt
Master Don Juan
spider_007
Master Don Juan
i supose it all depends on the deal being offered and your long/short term plans....
unfortionetly we are in the age of mass production, i don't think you'll be seeing a 98 neon 20 years from now anywhere as a "AMERICAN CLASSIC" (by that time it would have turned back into a puddle of caw manuer)
bottom line is; **** breaks down. We just have to look into every option that is available to us to save a buck here and there.....
unfortionetly we are in the age of mass production, i don't think you'll be seeing a 98 neon 20 years from now anywhere as a "AMERICAN CLASSIC" (by that time it would have turned back into a puddle of caw manuer)
bottom line is; **** breaks down. We just have to look into every option that is available to us to save a buck here and there.....
If you want to talk, talk to your friends. If you want a girl to like you, listen to her, ask questions, and act like you are on the edge of your seat.
Quote taken from The SoSuave Guide to Women and Dating, which you can read for FREE.