One quick correction to the math above: it is easy to get an interest rate below 9% if you don't finance with the dealer. The dealer is given a fee by the lenders according to the interest rate they can get you to pay. That is why they will often give you a better price on the car if you finance through them.

The dealer's offer was 9%. My bank offered me a loan at 8.25%, because I am a "preferred" customer (I auto-deposit my paychecks). Instead, I got a loan for the full purchase price through PeopleFirst.com at 7.25%. I filled out the paperwork online, they called to say that it was approved 15 minutes later, and I had the check 19 hours later from FedEx. I walked into the dealer, filled in the amount of the purchase, signed the check and walked out.

I have mentioned this before, but I *highly* recommend PeopleFirst.com. It was easily the best experience I have ever had getting a loan.

 

While I had planned to just keep the car for awhile, I cannot bear the thought of parting with it now. I purchased mine and now plan to keep it!

I say, buy or lease, just get the car!

 

I certainly agree with andrewewing

The amount I can write off was not a critical part of my decision to get it. Keeping my other vehicles was. As much as I love the S2K and plan to buy it out at the end, who knows if I will. In three years, the buyout price should be simple for me to payoff straight out....if not I can finance a bit.

It is all about how much you want the car and what you need to do to get it (within your means!)

All these people that say BUY, BUY, BUY.....if they put 10,000 down, their payments are higher than mine, and either way you look at it (buy or lease) the bank or leasing company owns the car. When they say "My Car", theirs is no more theirs than mine is

I used to say that I would never lease. But at this point, it actually made sense to me. I would normally be well over mileage limits (the del Sol has 80k in 3.5 years) but I want to garage for the winter anyway....that will keep miles low. If I lived in a warm climate I would have probably sold my Sol and bought the S.

 

So you guys support leasing?

 

[QUOTE]Originally posted by Tanqueray
[B]One quick correction to the math above: it is easy to get an interest rate below 9% if you don't finance with the dealer.

 

That is it in a nutshell, none of us own the car except those who paid cash, if you lease or are financing you have a leinholder so live with it, since most are 5 yr Financing loans when i reach 3 yrs i will have the option and most likely the money to pay the 18-19 up front like stated above and then be done in less than 5 yrs, cause the money i am saving in finance charges are going into mutual funds and investment so i will have more than enough when i am done! The car is great imho but whatever way i pay less for it now its best for me... take the extra invest and who know what will happen in 36 month heck we dont even know what will happen withing the next 5 min.

 

I lease. I could have bought but it's better tax wise for my situation. I work from home so no Fringe Benefits Tax on personal use.

[Edited by Muz on 03-30-2001 at 05:33 PM]

 

Hmm... I guess so. But whenever I ask the dealer by phone what the rate is they never tell me anything. I guess it's really up to them what rate they want to give you? Is the rate negotiatable?

If I lease should I put something down? What's a good length for leasing? 3 years? And if I choose to buy after that would I be hit hard?

 

I have leased cars twice in the past. In both cases, it would have been cheaper for me to purchase an identical used car than to buy my leased vehicle at the end of the term.

Also, if you finance the portion you don't have cash for, you can always pay down the loan amount whenever possible -- saving interest payments in the long run. With a lease, you're locked into paying a fixed amount for a fixed term for fixed mileage.

 

I was using some lease calculators and somehow I always came out with higher "price for car" and not so much lower payments that a loan. Though maybe not paying a downpayment for a lease had something to do with it.