Lease rates/payments? Did u get a good deal?
#32
Here were my options:
1) Buy car/finance (trade in old or sell to private party)
2) Lease car (cash out for old or sell to private party)
3) Buy car/no finance
Obviously, buying a car with cash is your best bet, but I didn't have the $$. Considering the other two options, it was much more attractive to me to lease the car and deposit the money from my old car in an account. I put the extra between the lease vs buy payment in the same account. At the end of my lease, I'll have more than enough to buy it if I wanted and will come out about $900 ahead. Keep in mind, this does not account for the interest I will be making on the money in the account and that it gives me total flexibility if I want to do something different after the 3 years.
That's just my situation, I'm not trying to argue one way or another.
1) Buy car/finance (trade in old or sell to private party)
2) Lease car (cash out for old or sell to private party)
3) Buy car/no finance
Obviously, buying a car with cash is your best bet, but I didn't have the $$. Considering the other two options, it was much more attractive to me to lease the car and deposit the money from my old car in an account. I put the extra between the lease vs buy payment in the same account. At the end of my lease, I'll have more than enough to buy it if I wanted and will come out about $900 ahead. Keep in mind, this does not account for the interest I will be making on the money in the account and that it gives me total flexibility if I want to do something different after the 3 years.
That's just my situation, I'm not trying to argue one way or another.
#33
Originally Posted by mule65
What?! -- It's closer to $16k for a 3yr 15k sedan. A 59% residual and money factor of 0.0014 (3.36%) make the G sedan a very good lease. If the residual is bloated then the bank eats it instead of you. You can lease then buy it after 3 years. The down payment on a loan required to match the lease payment is very close to the residual value. The lease allows you to save your down payment for three years and insures you from a price collapse (ie Ford Exploder).
I guess I really don't see any purpose in leasing unless you're doing it for 1-2 years. That's just my opinion though. There are way too many constraints when it comes to leasing (mileage limitations, you don't own the car, mods are questionable, reconditioning cost). The biggest problem I see with leasing is you pay a more money for a car you don't own after 36-39
months.
Simple example, the average G35 sedan buyer pays around $37K and that's including financing and taxes. If the owner were to sell the car after 3 years, they'll easily get $25K for it assuming the miles are good (40-50K). In the end, they spent $12K on the car. The leasee on the otherhand will end up spending $16-20K over a 3 year period.
Even if the leasee were to put away his typical $15K downpayment and make 5%-6% on his investment, he'd still be behind the buyer.
As for a price collapse, I don't think you'll have resale problems with the G35 nor will there be a huge car market collapse. I guess anything is possible, but the used 03/04 G35s are very desirable and have very good overall reliability. The resale value of the 03/04 is quite good, especially in this weak used car market.
Last edited by DaveB; 08-25-2005 at 11:50 AM.
#34
Originally Posted by DaveB
Simple example, the average G35 sedan buyer pays around $37K and that's including financing and taxes. If the owner were to sell the car after 3 years, they'll easily get $25K for it assuming the miles are good (40-50K). In the end, they spent $12K on the car. The leasee on the otherhand will end up spending $16-20K over a 3 year period.
Even if the leasee were to put away his typical $15K downpayment and make 5%-6% on his investment, he'd still be behind the buyer.
As for a price collapse, I don't think you'll have resale problems with the G35 nor will there be a huge car market collapse. I guess anything is possible, but the used 03/04 G35s are very desirable and have very good overall reliability. The resale value of the 03/04 is quite good, especially in this weak used car market.
#35
G's around here are in high demand in the used market. Just like for any car, if they are desired they are easy to sell regardless of the market conditions overall for used cars. My dealer called me and mails me daily begging me to trade my car in just because they can sell it for 26 - 28 in the retail market as CPO. This and especially the coupe are a couple of the hottest used cars out there.
#36
There's a resale value guarantee you get with a lease too. If I'm leasing a car, and get in a big wreck, and I have it repaired to the leasing company's level of quality (necessary with a lease anyways) then the residual doesn't change.
If I owned that car, I just knocked several thousand off the resale price.
Also gap insurance is another compelling reason to lease.
It's all very subjective and it's different for everyone, but the general message is, if you don't intend to keep the car past 4 years or less, leasing makes financial sense; if you want to keep the car more than 4 years, then leasing is a the wrong option.
If I owned that car, I just knocked several thousand off the resale price.
Also gap insurance is another compelling reason to lease.
It's all very subjective and it's different for everyone, but the general message is, if you don't intend to keep the car past 4 years or less, leasing makes financial sense; if you want to keep the car more than 4 years, then leasing is a the wrong option.
#37
Originally Posted by mpgxsvcd
There is one HUGE flaw in your assessment! You assume that because the G35 will Blue Book around $23K-$25K that you would be able to get that after 3 years. Used cars are not as easy to get rid of as they used to be. They have to be in absolute mint shape with low miles to trade them into a place like carmax and some dealers won’t even take used cars unless you practically give it to them. Just because KBB says it is worth XXX dollars it doesn’t mean that someone will buy it for that. Heck $23K-$25K is probably the dealer price after 39 months of use. You would be lucky to get $20K-$21K from them for the car.
I take very good care of my car's and I've ALWAYS gotten top dollar when I've sold them or traded them in. I'm a patient guy and I'll never be rushed into buying or trading. I'll wait until I get what I want.
#38
Originally Posted by DaveB
I was using my $18-20K price estimates from the numbers being posted on here.
Originally Posted by DaveB
you don't own the car
Originally Posted by DaveB
they'll easily get $25K
Originally Posted by DaveB
I've ALWAYS gotten top dollar when I've sold them or traded them in.
#39
Originally Posted by traebon
Here were my options:
1) Buy car/finance (trade in old or sell to private party)
2) Lease car (cash out for old or sell to private party)
3) Buy car/no finance
Obviously, buying a car with cash is your best bet, but I didn't have the $$. Considering the other two options, it was much more attractive to me to lease the car and deposit the money from my old car in an account. I put the extra between the lease vs buy payment in the same account. At the end of my lease, I'll have more than enough to buy it if I wanted and will come out about $900 ahead. Keep in mind, this does not account for the interest I will be making on the money in the account and that it gives me total flexibility if I want to do something different after the 3 years.
That's just my situation, I'm not trying to argue one way or another.
1) Buy car/finance (trade in old or sell to private party)
2) Lease car (cash out for old or sell to private party)
3) Buy car/no finance
Obviously, buying a car with cash is your best bet, but I didn't have the $$. Considering the other two options, it was much more attractive to me to lease the car and deposit the money from my old car in an account. I put the extra between the lease vs buy payment in the same account. At the end of my lease, I'll have more than enough to buy it if I wanted and will come out about $900 ahead. Keep in mind, this does not account for the interest I will be making on the money in the account and that it gives me total flexibility if I want to do something different after the 3 years.
That's just my situation, I'm not trying to argue one way or another.
In the end my accountant told me there's no right or wrong answer--it depends on you. If you're going to get a new car every 3-4 years anyway, and you drive low miles (and take care of a car), leasing is probably a cheaper option (because you also get to write off part of the lease payments which you can't do if you buy). Remember in a lease, all you're paying for is the depreciation.
He said it you're going to keep a car 4-5 years at least, buying is probably a better way to go. I just learned my lesson after my first lease that the trick is to find the cars that hold their value more.
#40
(Purchase)
$32,400 before fees, taxes, etc.
$35,400 after fees, taxes, etc.
2005 Sedan, Premium C, Splash Guards, Trunk Mat
I financed the car 0 down for 60 months @ 2.9%, which works out to be $641 / month. My former "new car" fund is currently sitting in a gmac money market account earning 4.4% interest (http://www.gmacbank.com/rateTable.do). Hah... rates went up slightly. Go figure.
$32,400 before fees, taxes, etc.
$35,400 after fees, taxes, etc.
2005 Sedan, Premium C, Splash Guards, Trunk Mat
I financed the car 0 down for 60 months @ 2.9%, which works out to be $641 / month. My former "new car" fund is currently sitting in a gmac money market account earning 4.4% interest (http://www.gmacbank.com/rateTable.do). Hah... rates went up slightly. Go figure.
#41
Originally Posted by doogie
That sounds like the worst lease deal in the world. Your residual is going to be zero
We're talking about lease payments apintojr
We're talking about lease payments apintojr
#42
#44
Originally Posted by mhollinger
(Purchase)
$32,400 before fees, taxes, etc.
$35,400 after fees, taxes, etc.
2005 Sedan, Premium C, Splash Guards, Trunk Mat
I financed the car 0 down for 60 months @ 2.9%, which works out to be $641 / month.
$32,400 before fees, taxes, etc.
$35,400 after fees, taxes, etc.
2005 Sedan, Premium C, Splash Guards, Trunk Mat
I financed the car 0 down for 60 months @ 2.9%, which works out to be $641 / month.
A lease comparison on the exact same car I leased on 8/24:
Diamond Graphite/Graphite
Premium C
Splash
Trunk Mat
MSRP - $35,140
Invoice - $32,164
Selling price - $31,164
36 months / 12k miles per year
money factor .0014
residual 59%
Drive off (license, fees, docs, first payment) is $728.44.
Monthly payment, including 8.25% sales tax, is $409.69.
I'm not making any commentary toward the buy vs. lease argument; I'm just putting the numbers out there for digestion. -scd
(But let's just say I'm glad to have the additional $230 a month in my pocket or my investment accounts.)
#45
Originally Posted by mule65
Where!? infiniti.com shows a 36 month lease for $369 plus $3,019 = 35 * 369 + 3,019 = $15,934. This is based on full MSRP which nobody should pay.
An illusion -- The bank owns your car.
You're dreaming. More like $21k. Check 2003 models in June 2006.
NOBODY gets top dollar on a trade-in. Good one!
Last edited by DaveB; 08-26-2005 at 03:06 PM.