[slabhurta02]

I've never really thought about it til' now but is leasing a car such a bad option? I get tired of cars really fast so I figured leasing wouldn't be so bad. How much does it cost to get into a lease (let's say on a 2008 300c for example) as fas as money put down and all that. I have great credit so is it always necessary to put money down? How much cheaper would payments be on a lease anyone know?

 

[xiaolong]

i lease.
here's why:

i keep my cars for only 2-3 years.
in this case, a lease will typically get you more car for the money due to the fact that you are only paying on the depreciation of the car.

yes you are limited on mileage, either 10k, 12k, 15k, or 20k per year.

i am at 15k per year.
most people dont realize that if you buy a car and decide you dont want it 2-3 years down the road, and you have put 20k miles on it per year or more, you are going to get hit for that excessive mileage when you trade it in, just like on a lease.

however, if you stay in and around your mileage (its not that strict) you can WALK AWAY from that car after your lease. no worries. if you have gone over your allowed mileage, and you choose to buy another car from that manufacturer, they will MOST definately work better with you.

i will only buy a car if it's a cheap, older car, or if i happen to become rather wealthy.

so if you are like me and only keep your cars for 2-3 years, i would recommend a lease.

if you plan on keeping the car, do not lease.

in 2010 when my lease is up, i will owe $25,000 on my SRT. do i think it will be worth that? nope.

i got a heck of a deal on my SRT and you may want to compare a C with an SRT just to look at the numbers.

the SRT has a better residual, and therefore in my case, a better lease.
due to the great lease available on the 300 SRT when i got mine, the 300C 5.7 would have cost me $90 MORE per month than my SRT.

i couldnt afford NOT to get the SRT.

hope this helps.

 

[slabhurta02]

Yea those are basically all the reasons I want to lease but Im not exactly sure how the payments work? Long of you don't mind me asking....how much did you put down and what do your payments look like?

 

[Rambit]

When you lease a car, you pay only for that portion of the car that you use. In other words, if you want it for two years, you'll pay only for two years' worth, without then having to resell the car or trade it in. If short-term use is your goal, a lease may make the most sense. However, if you will always need a car, but it doesn't have to be a new car, a lease is an expensive option.

At the end of the lease term, you'll have to replace the car with another lease, and another series of payments. When you purchase a car, you own it long after the monthly payments end. With leasing you're basically renting it for the term and have zero equity in it.

• A lease will cost you more than purchasing a car.
• A lease will typically result in a lower initial cash outlay and lower monthly payments. But at the end of the lease, you don't own the car.
• An open-end lease allows you unlimited miles, but you must make up the difference between the agreed-upon resale value and the actual value when the lease is terminated.
• A closed-end lease imposes a mileage limit. If you drive over this amount, you will pay a per-mile surcharge.
• Paying the entire lease price upfront can save you significantly on lease payments.

What leasing can do for you is get you into a more expensive car than you could probably affford if buying it. That's how I see it.

Bernie

 

[scopro]

Leasing cars is the most expensive option as you don't build up any equity.

A good comparison of leasing versus buying costs is here:

Compare the Costs: Buying vs. Leasing vs. Buying a Used Car

 

[Simans82]

Rambit and xiaolong brought up some great points in the lease vs. buy decision process. I've always leased due to the fact that I am in and out of a car every 18-24 months. In my case, purchasing a vehicle doesn't make much sense considering how upside down I would be on the what I owe vs. what I could trade it in/private sell it for.

This decision is definitely based on an individual basis. Your personal buying/selling trends come into play huge with deciding what direction you'd like to go. Think it through, talk it through... make the best decision for yourself.

 

[Simans82]

Leasing cars is the most expensive option as you don't build up any equity.

A good comparison of leasing versus buying costs is here:

Compare the Costs: Buying vs. Leasing vs. Buying a Used Car

This is the same argument that buyers always pose to those who lease. The fundamental difference that isn't taken into consideration is moving from car to car every 24 months. The cost to flip to another car (assuming you don't have a Shelby Cobra signed by Shelby himself lol) after such a short period would NOT be an option had I purchased a vehicle.

I have a friend who has said "oh, this is the car I want for years to come, no need to lease, I'm just going to buy it." Two years later, he's tired of it, takes a $7K hit on the trade in, and is out in another car. He's done that twice. He could have done a private sale, but being a car enthusiast along with getting anxious when new cars are released... this is a combination that can cause a lot of damage to the wallet.

Like I said, leasing is not for everybody, and neither is buying. Just depends on what type of buyer you are. :fing02:

 

[xiaolong]

Yea those are basically all the reasons I want to lease but Im not exactly sure how the payments work? Long of you don't mind me asking....how much did you put down and what do your payments look like?

i dont mind...
i put $700 ish down(which was the first month and then some) and my payments are $549/month for 39 months

 

[kevenj]

Leasing cars is the most expensive option as you don't build up any equity.

For someone that trades cars every 2 - 3 years leasing will avoid the negative equity that they will surely have on a purchase contract, assuming little or nothing down.

But for the life of me I cannot understand why people would do that (trade in a 2 or 3 year old car) unless it turns out to be a lemon. Cars are so much better now than they were 25 years ago it's not even funny. You should be able to drive a 300C for 10+ years and a quarter million miles. Trading in at 3 years is what's expensive whether you lease or buy.

The way to get the most for your money? Buy the car outright (yes - - actually save up if necessary and pay cash) and then drive it for 15 years. When it's worn out you should have enough cash on hand to replace it, since you have not had a car payment for 15 years.

 

[tony324]

For someone that trades cars every 2 - 3 years leasing will avoid the negative equity that they will surely have on a purchase contract, assuming little or nothing down.

But for the life of me I cannot understand why people would do that (trade in a 2 or 3 year old car) unless it turns out to be a lemon. Cars are so much better now than they were 25 years ago it's not even funny. You should be able to drive a 300C for 10+ years and a quarter million miles. Trading in at 3 years is what's expensive whether you lease or buy.

The way to get the most for your money? Buy the car outright (yes - - actually save up if necessary and pay cash) and then drive it for 15 years. When it's worn out you should have enough cash on hand to replace it, since you have not had a car payment for 15 years.

either u think like this^ and roll around in an old car 6 years down the line (which isnt worng, if u dont mind having an older car.) or roll around in a new car every 2 years. thats all it comes down too.