Is this a good deal?
i have plenty of remaining 2005 coupes left that i give away and the 2006 i have been doing an internet special pricing on them which sold a handful of 2006 models already. let me know if you need help. lease or finance --- if you want the lower payment and you will get another car in a few years then leasing is great.
Registered User
Joined: Jun 2003
Posts: 5,197
Likes: 1
From: Modesto, CA
Originally Posted by FAST1
You have many suppositions in your example that may or may not be true. Let's make this simple. I'll provide two examples: one for the G that I presently own and one for the M3 that I use to own.
I paid a tad over $34K for my G35C and I will sell it in three years and I'll be surprised if I don't get at least $25K for the car. I average around 8K a year on my cars and I keep them in perfect condition. So if my forecast is on target the G will cost me $3K a year or $250 a month.
I bought an M3 in '02 for around $53K and sold it 30 months later for $45K. No speculation on this example. So 30 months and 19K miles of driving an M3 cost me $8K or less than $270 a month.
Please help me to understand how leasing is less expensive. I use my cars at least partially for business purposes so I am able to deprecitae them on Federal and State Income taxes. Also, I would never buy a car that doesn't hold its value well. The M is about the best in that regard and the G isn't too far behind. For example I would never buy a car like an S4 because it depreciates so much.
I paid a tad over $34K for my G35C and I will sell it in three years and I'll be surprised if I don't get at least $25K for the car. I average around 8K a year on my cars and I keep them in perfect condition. So if my forecast is on target the G will cost me $3K a year or $250 a month.
I bought an M3 in '02 for around $53K and sold it 30 months later for $45K. No speculation on this example. So 30 months and 19K miles of driving an M3 cost me $8K or less than $270 a month.
Please help me to understand how leasing is less expensive. I use my cars at least partially for business purposes so I am able to deprecitae them on Federal and State Income taxes. Also, I would never buy a car that doesn't hold its value well. The M is about the best in that regard and the G isn't too far behind. For example I would never buy a car like an S4 because it depreciates so much.
Purchase...
34k selling price plus 3k for tax and DMV fee, 37k financed, with 5% for 5 yrs payment is 698.23, lets say 700 even. After three years, you will still be oweing around 15k(700x24=16800, and leave 1800 for interest), if you sold the car at 25k? you have 10k put back into your pocket, nice chuck of change...
Lease...
430/mos, after three years you will be oweing at most 21180 (430x6 + resdiual of 18600), sold the car at 25k? you put 3820 back into your pocket, plus 270 less a month you paid over 36 payment is 9720, minues the 1.5k he put down is 8220, add that to 3820, you end up 12040, which is bit more than 10k...
There are no absolutes which is better, it will depend on each individual case and one's mind set, some might think to puchase in this case is better for them, eventhough they might end up spend more money, cause they like to have something they can say its "theirs" and not just "renting" it, but for someone like you? it makes a pretty good case as why to lease is better than to purchase, sepecially you might able to get 20~ish less a month to request an 10k miles/yr rather that 15k/yr as thread starter did, and you know you will only keep the car for short period of time.
As the example you presented, you are not spend only 250/mos, it close to 378/mos when you add in sale's tax(8%) plus interest (5%) and not counting the interest on the 37k's loan amount for three years, which could be another 3500 more...
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Joined: Jul 2005
Posts: 1,090
Likes: 1
Originally Posted by limeg35
I had to delete reply to this couple days ago, cus I thought its very hard to sell G for 25k in three years and the link I saw was include the sedan which some of them are selling less tha 22k now but after I exculde the sedan, most 03 coupe are selling around 27K now. It really dosent matter how much you can sell it for down the road, cus you can also sell the leased car before the term is up and possible pocket the difference too, lets see if there are any difference...same scenario as before...
Purchase...
34k selling price plus 3k for tax and DMV fee, 37k financed, with 5% for 5 yrs payment is 698.23, lets say 700 even. After three years, you will still be oweing around 15k(700x24=16800, and leave 1800 for interest), if you sold the car at 25k? you have 10k put back into your pocket, nice chuck of change...
Lease...
430/mos, after three years you will be oweing at most 21180 (430x6 + resdiual of 18600), sold the car at 25k? you put 3820 back into your pocket, plus 270 less a month you paid over 36 payment is 9720, minues the 1.5k he put down is 8220, add that to 3820, you end up 12040, which is bit more than 10k...
There are no absolutes which is better, it will depend on each individual case and one's mind set, some might think to puchase in this case is better for them, eventhough they might end up spend more money, cause they like to have something they can say its "theirs" and not just "renting" it, but for someone like you? it makes a pretty good case as why to lease is better than to purchase, sepecially you might able to get 20~ish less a month to request an 10k miles/yr rather that 15k/yr as thread starter did, and you know you will only keep the car for short period of time.
As the example you presented, you are not spend only 250/mos, it close to 378/mos when you add in sale's tax(8%) plus interest (5%) and not counting the interest on the 37k's loan amount for three years, which could be another 3500 more...
Purchase...
34k selling price plus 3k for tax and DMV fee, 37k financed, with 5% for 5 yrs payment is 698.23, lets say 700 even. After three years, you will still be oweing around 15k(700x24=16800, and leave 1800 for interest), if you sold the car at 25k? you have 10k put back into your pocket, nice chuck of change...
Lease...
430/mos, after three years you will be oweing at most 21180 (430x6 + resdiual of 18600), sold the car at 25k? you put 3820 back into your pocket, plus 270 less a month you paid over 36 payment is 9720, minues the 1.5k he put down is 8220, add that to 3820, you end up 12040, which is bit more than 10k...
There are no absolutes which is better, it will depend on each individual case and one's mind set, some might think to puchase in this case is better for them, eventhough they might end up spend more money, cause they like to have something they can say its "theirs" and not just "renting" it, but for someone like you? it makes a pretty good case as why to lease is better than to purchase, sepecially you might able to get 20~ish less a month to request an 10k miles/yr rather that 15k/yr as thread starter did, and you know you will only keep the car for short period of time.
As the example you presented, you are not spend only 250/mos, it close to 378/mos when you add in sale's tax(8%) plus interest (5%) and not counting the interest on the 37k's loan amount for three years, which could be another 3500 more...
One last point. If what you post is true, the Banks are in the wrong business, because they are the ones buying the cars that are being leased, and they are borrowing the money from their depositors to buy those cars. But strangely enough more and more companies are getting into the leasing busines. I wonder why?
Lease Payment
$480 per month
Term
66 Months
Mileage Allowance
66000 Total Miles
Residual Value
$11,603
Money Factor
0.00270
Purchase Option
$12,103
Gap Insurance
Included
Down Payment
$0
Due At Signing
$480 + sales tax and title fees
Fee
Amount
Included Due at signing Due at lease end*
Documentation Fee
$99
Lease Turn-in Fee
$395
Mileage Penalty
$.18 per mile
Bank Acquisition Fee
$895
Last edited by FAST1; Dec 6, 2005 at 07:24 AM.
Registered User
Joined: Jun 2003
Posts: 5,197
Likes: 1
From: Modesto, CA
what are my "suppositions"?
The lease payment are from this thread starter which he posted in very first post, I didnt just pull those number out of a hat...
Msrp: $37,200
Lease payments: $429/month (figure includes tax)
Due at inception: $1500
Term: 42 months
Mileage: 15K miles per year
I didnt forget...
what are my false claims?...keep in mind this is end of year, many car company are offering deep discount on their cars, some might subsidize their lease thru their own finance company(GMAC, Infiniti Finance...), with low M/F and/or higher residual so to make payment lower or offer an speacial finance rate like 1.9% or lower to move their cars, so that really has nothign to do with any bank or lending company, but in your example, its from an outside source not directly with any car dealership, so they have no incentive to offer you an lower M/F cus thats where they get their money form the interest they charge you, like in your example, your M/F is 0.0027 which is equivalent to 6.48% unless you have below avg credit you can get much lower than that....
You didnt mention what the sale price those number are based on or if there are any discount from MSRP, for 34k car with the example you've posted, I come up with 462 not 480, so unless the sale price of the car are different(34K vs 35K)? they also make some money from the payment too, and if you look your example's residual amount? its less than 30% from MSRP of 37200, dose it match what you've posted before, about the high resale vaule of the G?...guess thats why more and more company are getting into leasing business, cus ppl just dont understand how it works and could not tell wheather its good deal or not!
I said it before, you can not say one or other is better, it depends on each individual's case and depends what kind deal you can make but just to say out right that lease is waste of money of throw money down the toilet, just isnt true....since you've always pay cash for cars so it doesnt really matter to you.
Lastly where in the hell did you get that killer lease?
Msrp: $37,200
Lease payments: $429/month (figure includes tax)
Due at inception: $1500
Term: 42 months
Mileage: 15K miles per year
BTW let's not forget those little fees that in this case add up to around $1400.
Lease...
430/mos, after three years you will be oweing at most 21180 (430x6 + resdiual of 18600), sold the car at 25k? you put 3820 back into your pocket, plus 270 less a month you paid over 36 payment is 9720, minues the 1.5k he put down is 8220, add that to 3820, you end up 12040, which is bit more than 10k...
430/mos, after three years you will be oweing at most 21180 (430x6 + resdiual of 18600), sold the car at 25k? you put 3820 back into your pocket, plus 270 less a month you paid over 36 payment is 9720, minues the 1.5k he put down is 8220, add that to 3820, you end up 12040, which is bit more than 10k...
One last point. If what you post is true, the Banks are in the wrong business, because they are the ones buying the cars that are being leased, and they are borrowing the money from their depositors to buy those cars. But strangely enough more and more companies are getting into the leasing busines. I wonder why?
You didnt mention what the sale price those number are based on or if there are any discount from MSRP, for 34k car with the example you've posted, I come up with 462 not 480, so unless the sale price of the car are different(34K vs 35K)? they also make some money from the payment too, and if you look your example's residual amount? its less than 30% from MSRP of 37200, dose it match what you've posted before, about the high resale vaule of the G?...guess thats why more and more company are getting into leasing business, cus ppl just dont understand how it works and could not tell wheather its good deal or not!
I said it before, you can not say one or other is better, it depends on each individual's case and depends what kind deal you can make but just to say out right that lease is waste of money of throw money down the toilet, just isnt true....since you've always pay cash for cars so it doesnt really matter to you.
Registered User
Joined: Jun 2003
Posts: 5,197
Likes: 1
From: Modesto, CA
I took quick look at lease compare, I come up with this, for MSRP of 37200, and sale price of 34k on the 05's coupe...for only 432/mo which is 48 buck less than your example...One can even find a decent deal among the worse of the worst deals, if you look hard enough...Not that I would've ever consider this is anywhere near "GOOD" deal!
Term 63 Months
Mileage Allowance 60,000 Total Miles 6k less but 3 mos less too, for 10 bucks more a month, you can drive 75k
Residual Value $14,508 (37%) vs 30% or less
Money Factor 0.00219 (5.256%) vs 6.48%
Purchase Option $14,858 only 350 rather than your's of 500!
Gap Insurance Included
Bank Acquisition Fee
$795
Documentation Fee
$99
Lease Turn-in Fee
$395
Mileage Penalty
$.18 per mile
Term 63 Months
Mileage Allowance 60,000 Total Miles 6k less but 3 mos less too, for 10 bucks more a month, you can drive 75k
Residual Value $14,508 (37%) vs 30% or less
Money Factor 0.00219 (5.256%) vs 6.48%
Purchase Option $14,858 only 350 rather than your's of 500!
Gap Insurance Included
Bank Acquisition Fee
$795
Documentation Fee
$99
Lease Turn-in Fee
$395
Mileage Penalty
$.18 per mile
Last edited by limeg35; Dec 6, 2005 at 12:58 PM.
one can look far enough but even i factored some deals through lease and finance -- leasing does save the time and trouble of selling your car when the time is up but the numbers for leasing and financing are pretty low it doesn't matter which route you go.
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