No offence, but you really have no idea as to the benefits that certain people get by leasing.

 

I have seen entire chapters on the buy vs lease thing (maybe even books) and it sounds similar to the rent vs own concept.

In any case, not everyone's life cycle/budget is like yours so I can see reasons for both.

Sorry if that sounds offensive but I think it's just the way things are in this world.

 

Just got an email for 07 g35 coupe 290 per month 2800 down (and thats before negotiating)....

 

This car is honestly the best car for the buck. Technology is the best in its class, has the best hp, the best handling, must i go on. who said you couldnt have your cake and eat it to. Oh yeah dont forget that its also the best looking coupe on the road

 

I don't understand any of the benefits other than you don't have to take care of it, you dont need good credit, and you get to spend more money every 3 years to get a newer car. As it stand now my car payment will be about $675 a month. Which is the same as, what I am hearing, leasing a vehicle. But after 36 months, I will own a portion of my car where you will not. So what are the benefits?

 

you need credit -- no credit you won't get bought.. and if your credit sucks then you might need a security deposit or good luck trying to lease an Infiniti.

some people drive 25k miles per year and rather lease so they wont get buried in a trade in value.... thats a great benefit to lease

 

If thats the case, then you're absolutely right, but the sticker price on the Nissan I currently lease was 39k and I pay less then $400 a month. If i were financing, the car my payments would almost be double.

 

how mcuh did you put down?

 

Your missing 1 of the major advantages of leasing a car - write off. I am self employed, (understanding most poeple are not so this is not meant to be every buyer - covering statement).

For those who do work for themselves, if you buy a car, Uncle Sam will only let you write off approximately $4,000 to $4,400 per year on a car you buy, even if you use that car 95% of the time for business.

BUY: Even If you walked in and put very little down, say $2k, and if you ended up with a $600 per month car payment on whatever you buy, in the first year alone thats 600 X 12 = $7,200 + 2k = $9,200. You just lost the benefit of $4,800 in write offs that you cannot take ever. AND you will loose out every year because that $4k is an annual cap, even though it goes up slightly each year, your $7k in car payments wont go down!

Lease: I think it is almost 90% or more of the total costs in leasing you can write off. So now not only do you have a lower payment for the same car, you get to write off a lot more against income taxes, each and every year.

I might be off on some of these figures, but the bottme line is still the same...

 

See post #30 in this thread.

 

Don't remember the exact down cause it was in 2004 but it was around $2200.

 

Guys/Gals,

You misunderstood my post below. I was showing an example of a 2007 G35 SEDAN, not a G37 coupe. You can use the post and insert the G37 numbers to get the monthly payment. I do not know what the G37 numbers are but someone here posted that the residual was 56% and the money factor was 0.00295. Using those numbers, the lease for the G37 (6MT with NAV, Premium, and Spoiler) at MSRP would be:

Depreciation Portion

MSRP x 0.56 = $42,215 x 0.56 = $23,640

Negotiated Price - Depreciation = $42,215 - $23,640 = $18,575

$18,575 divided by the term (36 months) = $515.97


Interest Portion

(Negotiated Price + Residual) times money factor = ($42,215 + $23,640) x 0.00295 = $194.27

Total Lease = Depreciation + Interest = $515.97 + $194.27 = $710.24

So, your payment is $710.24 assuming you pay your taxes, security deposit, etc up front or you can roll it into the monthly payment.

The above is based on numbers that someone else here posted AND assuming no money off MSRP. If you can get $1,000 of MSRP, that would save you about $28 per month.

You can definitely get your hands on a nicely equipped 335i coupe (if it's one of your choices) for the same or less. Once the residuals go up (or money factors go down) this will make a much better lease.

 

I'd rather stay out of a lease vs buying war, but leasing is not only for people that can write it off. Some car companies have very good lease rates that make leasing attractive. So, it is car-dependant. You have to remember that to buy a $45k or $50k car, requires that you take that much out of the bank or investments. At a minimum you can work out a 5% interest rate on that money, so you're really spending $2,000-$2,500 every year in lost interest. That is $200 per month in equivalent payments. If your investments are making more, then that number could be $300 or more. So, technically, you can subtract that from the lease payment when doing a comparison since buying means you lose that much. On top of that when buying your left paying tax on 100% of the vehicle value that you will not get back when you sell. That could be another couple grand. I've done the math many ways on this and in some cases it makes much more financial sense to lease a car UNLESS you plan on driving it into the ground (not something I would ever do).

Just to show how not all leases are equal, a 335i sedan with a $47,500 sticker can be yours for about $560 per month (with tax, security deposit, DMV, bank fee up front). A $50,000 Audi S4 will lease for $1,000 per month. Same sticker price, but the 335 makes a much better lease because of high residuals and low money factors.

The best part about leasing is that you get to drive something new every 3 years (or 2 like I am doing) and don't have to deal with trying to sell a car out of your driveway for $30,000+ and hoping to find the right person. I've ALWAYS bought my cars outright but after doing the math and seeing how I was trading up every few years, I will be leasing this time around. Life is too short. If you enjoy cars, then this is the way to go.

 

Your payment is $675/month for 36 months (liek a lease would be)? That's only $24,300. I assume that payment is over a LONGER span or you put alot of money down. So, how much of what you paid for buying the car will you get back in 3 years? That is the comparison. And remember to take into account your lost interest for taking money out of investments.

 

Well, I am not self-employed so it wouldnt work out as a tax break. Also, sales taxes is a write-off now. My payments are for 72 months, and I am only financing 40k. Anything over I am putting money down. I do plan on keeping this car for a while (considering I am very picky and it has taken me 3 years just to decide on which car I want) and I plan on paying it off much sooner because I hate having car payments. So buying works for me.