Leasing
Registered User
Joined: Oct 2001
Posts: 147
Likes: 3
From: Central
You guys need to chill!! This is worse than a gun control debate, an Abortion debate, etc....
There are no wrong or right answers here. The only thing that I will say is that nobody cares whether you Lease or Buy! The truth of the matter is this.....There are 2 S2000's at a red light. Their owners both make 60K a year. One is Leasing and the other is buying. The guy Leasing has a couple of hundred extra bucks in his pocket at the end of each month, and the guy buying will wait 5 years of financing before he begins to have his full car payment in his pocket each month. Some people may Lease because they can't afford such a large car payment, and that may make you feel special because you can. I bet the same guys arguing against Leasing a car carries a $5,000 + balance on a credit card at 9% APR. Now....What did you guys say about hating to give the bank your money in a Lease? If you own a credit card with a revolving balance, then you can't afford to buy an S2000 any more than the rest of us.
There are no wrong or right answers here. The only thing that I will say is that nobody cares whether you Lease or Buy! The truth of the matter is this.....There are 2 S2000's at a red light. Their owners both make 60K a year. One is Leasing and the other is buying. The guy Leasing has a couple of hundred extra bucks in his pocket at the end of each month, and the guy buying will wait 5 years of financing before he begins to have his full car payment in his pocket each month. Some people may Lease because they can't afford such a large car payment, and that may make you feel special because you can. I bet the same guys arguing against Leasing a car carries a $5,000 + balance on a credit card at 9% APR. Now....What did you guys say about hating to give the bank your money in a Lease? If you own a credit card with a revolving balance, then you can't afford to buy an S2000 any more than the rest of us.
Joined: Jan 2001
Posts: 11,615
Likes: 1
From: North Richland Hills, TX
I bought, and I have a full lease payment's worth of extra cash in my pocket every month, since I paid cash in full. 
...and no, I don't revolve credit card balances, either. BTW, don't you think you final statement may be kind of broad? I don't think that's a very good indicator of one's ability to afford any car.
[QUOTE]Originally posted by gche37
[B]You guys need to chill!!
...and no, I don't revolve credit card balances, either. BTW, don't you think you final statement may be kind of broad? I don't think that's a very good indicator of one's ability to afford any car.[QUOTE]Originally posted by gche37
[B]You guys need to chill!!
Registered User
Joined: Dec 2001
Posts: 2,975
Likes: 0
From: Maricopa County, Arizona
I agree with Andrew, you can't fight the numbers. Unless the leasing company is subsidizing the residual value (incorrectly overvaluing the car or taking a risk), you typically can't beat the manufacturer's residual value. On the S2K most leasing companies are hoping that the demand will continue to hold high, it is not. Most new purchases are at MSRP or below (or should be there by now). The only good leases I have seen are on Cadillacs and Subarus. They want to sell the cars and are willing to subsidize the residual. A Cadillac STS will not be worth 70% in 3 years...
Always ask for the factors used and ask the leasing company to show you how they made the calculations. In the past, with leases my family has done, my father catches at least one mathematical mistake every time. The truth in lending is not as clear with a lease as on a finance and nothing is as straightforward as a straight purchase. I have seen people lease a car and they could have purchased it for less. Remember, they own the car, it is tougher to qualify for a lease than financing, you can control the situation.
Take your time, talk to your accountant or someone you trust if you are not sure if it is a good deal. Doing your homework always pays off. It is good that you are asking for opinions here, but now go for the real financial advice.
Good luck and Happy New Year!
Always ask for the factors used and ask the leasing company to show you how they made the calculations. In the past, with leases my family has done, my father catches at least one mathematical mistake every time. The truth in lending is not as clear with a lease as on a finance and nothing is as straightforward as a straight purchase. I have seen people lease a car and they could have purchased it for less. Remember, they own the car, it is tougher to qualify for a lease than financing, you can control the situation.
Take your time, talk to your accountant or someone you trust if you are not sure if it is a good deal. Doing your homework always pays off. It is good that you are asking for opinions here, but now go for the real financial advice.
Good luck and Happy New Year!
Registered User
Joined: Dec 2001
Posts: 46
Likes: 0
From: Nashville
Did someone say something about anti-gun control laws????
NO ONE HAS MENTIONED THE BALLOON PLAN. Its a good cross between leasing and purchasing. Cars in YOUR name (No purchase option etc) low payments (only pay for what you use) Then pay / trade / sell the residual off.
IMO - if you pay 33k for a car in a lump you lose opportunity to do something else w. the money.
NO ONE HAS MENTIONED THE BALLOON PLAN. Its a good cross between leasing and purchasing. Cars in YOUR name (No purchase option etc) low payments (only pay for what you use) Then pay / trade / sell the residual off.
IMO - if you pay 33k for a car in a lump you lose opportunity to do something else w. the money.