What is everyone thought on leasing, versus outright purchase. I am kicking a few ideas around for a new car or used. I think I will blame a fellow redliner for getting me interested in a certain car So, I buy used, I buy new or a lease a new one.

I have never leased, but with the way dealers treat you when trying to trade a car in, it pretty much makes me think screw it, cars are disposable, so lease, drive the shit out of it, give it back to them.. lol

 

I like the idea of leasing a vehicle that is going to depreciate a lot in the first 24 to 36 months.

I don't have much reasoning behind this, but I would not lease a domestic for longer than 12 to 24 months and an import for longer than 24 to 36 months.

 

[QUOTE=HondaGal,May 26 2006, 04:27 PM] What is everyone thought on leasing, versus outright purchase.

 

So far from what I hear leasing is the way to go, you do get something new every few years. I still want to keep the S2000, but now realize the mazda is worth pee all.

I posted a while back about being interested in a bmw. A fellow redliner is selling his, and he contacted me. This has got me going. Currently, my options are:

2003 bmw sedan 330 M package, the full meal deal. 28k KM Listing at 45K.
2004 bmw coupe 330, M package. 3K more. 36K KM.

I was going to actually purchase the 03 as I know the owner, and he is the sales manager at bmw regina. Trading in my mazda P5, 02, 34K KM. The numbers just weren't working out. Slap in the face with a trade in.

So I tell the SM I am tired of getting screwed on trade in, and depreciation. So his suggestion is, lease. I have interest in the 06 325i M Sport. It lists at 49,500 msrp.

My delima is what is best for me, and is leasing maybe something I should try. I would have to take a car loan anyways, so being locked in for 4 years is going to happen either way. My concern with leasing is there any chance that I will regret it, get involved with extra charges, etc etc..

However, at the end of the day you get something new quite often, but you never really own a vehicle. Your suggestions so far have been helpful and I value opinions of those who do and have done the leasing.

 

Leasing is usually the most expensive way to have a car. Your best value imo is to purchase a 2 year old car.

Leasing is your best option if you like a new car every few years and want lower payments. It costs more in the long run though.

 

Finacially leasing is more expensive, however, if you are like some on here that change cars often then leasing is a good way to go.

Oh btw, 330s are slow j/k

 

What do you mean more expensive? LIke I say I am trying to figure out the pros and cons here. Interest rates are up, even buying an 03 I will need 35K. The cost of borrowing works out to be the same as a lease cost. Keep the thoughts coming guys

 

You don't want to own a BMW that isn't under warranty. I'm still looking for a winter/drive the kids around car and I like some of the BMW products but they just don't stand the test of time...you just keep on paying, and paying.

 

Leasing costs more because you pay more interest in the long run. This links tells you how to calculate a lease payment. http://www.edmunds.com/advice/leasing/arti...65/article.html

2006 Honda S2000
Lease
Term: 48 months
Interest rate: 8.35% interest
Amount $51,755
Payments $909.03
Residual $23,641

Total payments $43, 633.44+ residual $25295.87= $68,929.31 Wow that's an expensive S2000! haha

Finance: $55000 at 8.35% for 48 months. Payments are around $1350 but total amount is roughly $65000.

So you see, if you plan to buy out the car, why not just finance? You save $4000. Or like Brady said, if you can make better use of that $450 by investing it, that works too. Because investing that $450 each month, 4 year term, 10% return a year, you'll have over $25k. haha

My RSX-S and 330 are both leased because I got a lease rate of 3.8 and 3.3% respectively hehe

For my SLK, I'm doing a 6 year finance at 6.75%.

Oh decisions decisions decisons. Good luck.

 

Just wanted to add, 330's in auto are slow, even slower with the A/C on but 325's, those are just gutless. haha j/k

Now IMO, here lies the problem, don't treat cars as an asset. They are an expense, like food, like rent, like anything else, you spend it, it depreciates, it's gone. Now don't feel so bad about losing X amount of dollars on the new car. Thinking about it too much will put you into depression.