Infiniti of Denver is having an "Event of the Year" sale. The lease is for $349 with $3990 due on delivery. The car has Premium package and all colors are availble. The MSRP on this is $34,445. Should I just buy it or lease it for 51 months.

 

I don't believe in leasing personally, I mean what do you have to show for it after the end of the lease except for a lighter wallet? just my 2 pennies worth. Of course if you are apt to change cars frequentl;y then a lease might be ok I guess, I like to hold onto my cars for awhile tho.


2004 Coupe, 5AT, Twilight blue / Willow int. Clear corners, Hypers. 18's, Aero, tint, Pemium.

 

in general, leases are only a good deal for the dealerships.
I think the main reason people lease is to get a lower monthly payment vs a purchase.

i have never known anyone who was happy with their lease, thought they got a good deal, and wanted to lease another car AFTER they got out of their first lease deal.

On the contrary, i have known and read about many people who wanted out of a lease soon after they got into it.



03 6MT coupe, red/willow, premium, aero, splash guards, alum pedals, clear corners, 15% tint

 

Leasing is great for some people. Especially ones that like to have a new car all the time that is always under warranty. You have to ask yourself how long are you going to keep your G. If you only want the car for three to four years then you might be better off leasing it. Basically that low $349 payment just pays for the depreciation. For all of you who bought their cars like me. Not only are you out the cost of your monthly payment but every month on average your car is worth $349 less than the previous month.

There are all kinds of websites devoted to buy vs lease. I would recomend that you read up on them so you don't get screwed if you decide to lease

Jim
'03 Sedan
Brilliant Silver/Graphite
6MT/ Premium package
Sport tuned suspension
Aerodynamic Body Kit
Navigation and Satellite Radio

 

it's just me but i would by a car... i really don't know the lease things but all i know is i pay for 3years for nothing(unless i buy that car).. it's just like rent... i use it but at the end, i don't own it... just like apartment.. people pay rent every month for just to live there but if you buy a house you pay monthly to pay off the debt and at the end it's your house...

 

Leasing costs might have some extra charges but for the most part represent costs any new car buyer faces...depreciation. Renting vs leasing real estate is different because real estate can appreciate, you may use it longer, and purchasing it can give greater tax relief.
I think leasing is more of a safe bet if you can be sure EXACTLY how long you'll have the car and how many miles you'll use.
The problem with leasing is how can you be sure exactly how long you'll want the car or how many miles you'll use in 2-4 years or even worse, 51 months?

 

Benathon:

As you can see from the previous posts, there are different opinions on leasing. I personally think leasing can be a good idea if you drive low mileage, like to change cars every 3 or 4 years, the car has a high residual value and to keep your monthly payment low. However, if these reasons don't apply to you, I would think about financing then.

Leasing can be a real shell game where the numbers are hard to follow unless you really understand leasing. When you see an advertisement for $349/month for 51 months with $3990 down, does not provide enough information to evaluate the deal. Questions you want to ask are:
1. What is the money factor on this deal?
2. What is the residual value at the end of this lease?
3. Is Gap insurance included in this lease.

Keep in mind that every component of the lease deal is negotiable, but always start with negotiating the sales price first. Once you have that, you can factor in whatever the competitive interest rate (money factor) and residual value of the car to determine if $349/month is actually a good deal. Another point to remember is the warranty runs out at 48 months and you'll have the car for 51 months. It's a small point, but you'll be responsible for the cost of any problem that is out of warranty.

If you want to learn more about leasing try this website:

http://www.carbuyingtips.com/lease.htm

I think its the most comprehensive website on car buying and leasing I have ever seen. (No, I have nothing to do with this website. I'm just a big fan and have saved literally thousands of dollars with this free information.)

I would be glad to help you with any questions about leasing.

Good Luck

 

Whether you buy or lease you should look upon it as the use of a car. People who talk about it and compare to say renting a house vs. buying do not understand about money. There is a chance of capital gains in a house but in most cases there is no chance of capital appreciation in a car unless it is a special car like some Ferrari models, Mclarens or antique cars.

Cars generally used for everyday driving depreciate and the way lease companies like IFS estimate what the car is worth in 3-4 years and structure the residual value accordingly and therefore the lease payments based on the going interest rate. So basically whether you are leasing or buying you are paying so much per month to drive a car. Some of the advantages of leasing is that you will be driving newer cars all the time and also drive the car within the warranty period and therefore not have to worry about repair costs. If you own a car and go beyond the warranty period your repair costs could be substantial if something goes wrong especially in these days of electronics.

However, if you buy you can mod the cars and do what you want with it. The problem is that when you want to sell it you do not know what the value of the car will be. Based on whether the car is in good shape, in high demand or not and the mileage, you may or may not get a good price of the car. Therefore you take the risk if the car depreciates more than you like.

If you lease the leasing company takes the risk. If your car is worth less at the time you return it and simply walk away. If the car is worth more than the residual value you still have the option to buy out the car at that time. Now if you drive the car a lot and put on a lot of miles and intend to drive it into the ground in 5-6 years then leasing is not good for you. It will be expensive to lease because high mileage cars these days are not worth much because of potential high repair costs especially luxury cars. Lease companies charge a high cost/mile over the allowable stated in the contract. Generally if you drive 12,000-15,000 miles (20,000-24,000 km) per year then leasing and owning a car may be a toss-up.

The other factor is that if you have a business that you can write off the car as a business expense it may be advantageous to lease it since it is simpler and cleaner from a tax stand point. So if you have home based business I suggest that you lease.

Also if you have to borrow money to finance a car and you cannot write off your car against your taxes, you are better off to lease the car and then borrow money and put it into a business where you can write off the money that you borrowed and see how you can fit the car into your business and use the write-off.

If you do not know how to write off a car and have a business, PM me and I can show you how to do it.

 

I believe the point uheenada is making above about leasing being comparable to apartment renting is in regards to ownership, not appreciation.

Obviously, a car does not appreciate as a home does.

But the fact is, a lease is nothing more than a fancy car rental deal. You do not own the car. Your just renting it for a long period of time. When you finish your lease (renting the car) its returned to them and you own nothing. The same way you do not own an apartment when you finish renting it. The payments you made did not go toward gaining equity, ownership or value in anything.

As far as tax advantages and disadvantages to leasing. I have never known leases to be better from a tax standpoint.
Company vehicles must be covered by corporate insurance and even when a vehicle is purchased, either the business mileage deduction or actual vehicle expenses can be dedcuted, whichever is greater.

And even IF they were, you would never want to incur an unnecessary expense just to gain a tax benefit. That would still result in a net overall loss.

I have NEVER seen a lease deal where the purchase price at the end of the lease deal was less than market value of the vehicle...or a discounted price, in any way.

It is simply not in a dealership's best interest to structure a lease deal with great purchase price to you at the end of a lease. After all, you HAVE to return the car to them, they always have the option of selling it to someone else at market value and when you return the car, they can hit you for vehicle damage and excess mileage. Typically the purchase price at the end of lease is above market value, since they know there is a fair chance, you may actually want to keep the car at the end.



03 6MT coupe, red/willow, premium, aero, splash guards, alum pedals, clear corners, 15% tint

 

Thanks everyone for the help and advice. I'm really glad that I can get good advice from you guys. I have decided to purchase a Laser Red/Willow w/o premium but with Tire & Wheel Package. I really want the navigation but I can't afford it. Thanks again, everyone.