I am getting ready to try and purchase an 06 next week and people keep telling me that I should lease it instead of purchasing it.

I have always though and been told that leasing was a waste but I dont really know. One problem I see is that I will probably drive over 15k miles a year. Can anyone through in any input?

 

If you're driving over 15k miles a year...DEFINITELY BUY.

 

yea i am gonna guess that i would be driving at least 18k a year

 

buy

 

lease -- one good thing is that if you put a lot of miles on your vehicle you won't lose out on all the money you will be financing.... i look at it this way -- at least you won't lose $ on trading in the vehicle and when you lease you'll most likely be staying under warranty. whether you finance or lease -- you still never fully own the vehicle

 

Leasing is good and arguably better than buying...but if this guy is driving 18k miles a year he's going to get hammered in penalties when his lease is up.

Buying is the way to go for his situation, and thats not arguable.

 

thanks mikeymike

 

i've done leases w/ 25k miles a year. a good thing about that is that it only costs $0.10 cents a mile as opposed to 20 cents a mile if you go over your lease. you don't have to worry about trading it in and getting your car deducted for the high miles

 

what you should really do is do some research on the differences btw leasing and buying and make up your own mind. the internet is a beautiful thing isn't it?

 

Ask the salesman your talking to which he recommends. I'm 100% sure he'll say lease since it he makes more money that way. It's a zero sum game, that extra commision money is coming from somewhere.

Look on the forums and see how many people are in the middle of a lease and they want out so they can get the new 2007 sedan or another car. See how many got 12K/year and end up parking a 3 year lease after 2 years so they won't get killed by going over mileage.

Lots of them are at the end of the lease and want to keep the car, but leases don't really make this possible without taking a big hit in the wallet. Since your'reforced to basically get a new car at the end of the lease, your getting the new car deperation hit every time your lease runs out.

Basically leases take away all your control in exchange for less cash up front. If you have the money, buy it. The only downside possible with buying is that you tie up some cash in the car while you own it. You get it back out when you sell or trade it in. That is to say you get enough back so that it doesn't cost you any more than a lease does. The down side of leasing can be very expensive.

 

thanks grok, i decided to buy and put my deposit down today, should be in by may 5th

 

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Its because majority of ppl who leased simply dont understand how it works, they only see the monthly payment being lower and that is great selling point for sales ppl, sure, there are bit more places for sale's ppl can hide their profit, but then again if consumer are educated about the lease or purchase for that matter? there should be no way for sale's ppl to take advantage of you

Well, same goes for ppl who purchased, if they want to get rid of their car after couple of years? I willing to bet ppl who leased will come out ahead of ppl have had purchased, assuming that both have same terms(purchase price, interest rate...ect), and just in case someone think I am just talk out of my butt? here is one example, its bit of read but you be the judge...post 15 and 17...
https://g35driver.com/forums/buying-selling-leasing-discussion/76944-good-deal.html

WHAT? the lease end purchase price are already pre-determined which is your residual vaule, so when ppl sign the lease, they already know how much is going to take to keep the car when the lease is up, there should be no surprise, then again if you knew ahead of time that you will keep the car after the lease is up, it would be cheaper if you just purchase it, to be able to drive a new car every couple three years is biggest reason most ppl leasing rather than purchase.

There is no way to say which one is better, it will be up to each one's situations, you have to do your research.

 

True...I previously leased a 03' G35 sedan which is a tax write off every month for my business but also when it was time to turn it in my car was worth more than my residual value. So it made more sense for me to sell the car (3,000.00) in my pocket then to just return it. Research how to lease a car especially one with good resale value and it could be great to lease. Just remember a lease is a reverse purchase, put your down payment if u decide to buy the car at the end of your term and only drive off fees when u initially recieve the vehicle (beginning).

 

This is a good reason to lease from what I understand. If you can get the car put under your business you can write the entire payment off as taxes. However, if it's actually a business automobile, your much better off buying and keeping the car for many years. In business you want to keep your overhead down as low as possible because the rest is called profit. Taking a hit on new car depreciation each year isn't how to reduce overhead. For the purposes of a G35 though, business leas makes sense because it would obviouslly be more for personal use.

And if you had bought the car from the beginning, you would have been in the exact same shape. Your basically saying how leasing didn't turn out bad for you, which is fine. However, I can't think of any situation where buying turns out bad. Maybe if you get a car that is almost but not quite a lemon?

 

Good point. If you do your home work and your sharp. You can get a good lease deal. Buying is much more simple since you just have one number to worry about and that is what your paying to get out the door. Much easier to get a good deal in my opinion. But given that your a sharp guy, is leasing or buying better? I still think buying because even though I'm a sharp guy, leaseing forces me to predict the furture, which is a non trivial problem. Buying gives me the flexability to roll with the punches.

I haven't had time to read the above link yet (I will), thanks for posting it. Still, I'll take your bet. The best way out of a lease is usually to have someone else take over the lease payments. There is usually an early lease termination fee that eats into anything you make selling the car outright and paying off the lease. I'll have to read the link above, but I've never see anyone suggest that early termination of a lease works out better than buying so I'm interested to see how that would work.[/QUOTE]

Yes, but you want a high residual to make your payments small and a low residual value to make buying the car out at the end low. Everyone I've seen on the forums say that the buyout price is so high, it makes more sense to turn their 2003 car back in and get a 2004 for the same price as the buyout price. I have only seen one person actually buy the lease out and he said he got taken to the cleaners, but he still thought it was worth it because he had mods and loved the car.

I agree with this for sure. If you can't swing buying a G, you can still probably lease one. Leasing takes a lot less up front money and is why leasing is so popular. However, I still fail to see how if you have the money, buying isn't the correct option. Opportunity cost of the money tied up in the car is the only thing that comes to mind.