is leasing an s2000 wicked smaht or wicked dum
#3
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Excaaaaaaaaactly. With the interest rates the way they are, just buy it. It's a better deal to shop around and try to get a good price, you can find some damn good prices on our cars these days.
#6
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It is NOT like buying a house vs. renting whatsoever. You need to calculate the numbers yourself, no one can tell you definently which one is better without know every number that effects both the lease and the buy. If you are looking at a short term deal leasing typically comes out better. The major difference between cars and houses is that while house APPRECIATE in value, cars DEPRECIATE in value. Thus, while you are throwing money away on the lease, the way leases work is they TRY to make buying a car in the short term the same as leasing (money wise). You have to look at it like this. If you keep the car for 3 years (typical lease term) You will lose a certain amount of money on the car regardless of whether you lease or buy. Look at the depreciation over 3 years on our car. If you bought it new for 34k for example, and after 3 years the car is worth 20k, you lose 14k over 3 years (I would estimate losses by what you could get in trade-in because on a lease that's essentially what you are doing, part of the loss is due to convenience ie not having to sell privately). If you get a lease that you pay $388/month you are about even on both deals. However, you also don't have to pay taxes on the full amount of the car on a lease, you can also write it off as a business expense if you use (claim) it as a business vehicle (most likely claim a percentage of the car payment). Also, while the miles you are allowed on the car may seem like a bad deal on a lease, if you ever go way over, just trade it in somewhere else. In other words at any time there is also a buy out price for the car, and while it's not a good idea to buy it out early because of penalties worked into the deal, if you buy it out at the end you are usually ok. MOST of the time you can get around what the buy out for the car is from another dealer to avoid paying mileage charges at the end of the lease. Others may disagree with how I've compared the 2 deals, but mathematically as far as I've found, this is the correct way to approach the decision.
P.S. One more expense to the buying of a car, unless you are paying cash is the interest rate you get on the loan. While there is "interest" on a lease (related to money factor) it is built into the payment so the amount of money you are putting into the car through a lease in essence already includes that interest as well, be sure to factor in the interest on the loan you'd get when buying the car as part of your loss as well.
P.S. One more expense to the buying of a car, unless you are paying cash is the interest rate you get on the loan. While there is "interest" on a lease (related to money factor) it is built into the payment so the amount of money you are putting into the car through a lease in essence already includes that interest as well, be sure to factor in the interest on the loan you'd get when buying the car as part of your loss as well.
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#9
RBTX -
"whatsoever" is a bit strong don't you think? nobody said cars will APPRECIATE in value. I said buying cars are losing money.
My point was when you lease, you pay money out, and you own NOTHING. When you buy, you pay money out and you own SOMETHING. like renting vs. buying.
plus if you choose to buy once you've already leased, more times than not your residualy will be MORE than what you'd have left to pay if you'd bought it outright to begin with.
"whatsoever" is a bit strong don't you think? nobody said cars will APPRECIATE in value. I said buying cars are losing money.
My point was when you lease, you pay money out, and you own NOTHING. When you buy, you pay money out and you own SOMETHING. like renting vs. buying.
plus if you choose to buy once you've already leased, more times than not your residualy will be MORE than what you'd have left to pay if you'd bought it outright to begin with.