In 99.9% of cases, anyone who finances a car is not making a good financial decision, because cars are depreciating assets--unlike your home. So the equity discussion above is a bit out of place.

Now, reality: I have to finance my car because I don't have $30k lying around to pay cash. I would guess that is true for most of us.

Lease or buy? If you are only going to drive a fixed amount of miles per year and you want a new car every 3-4 years, then lease. Otherwise, you are better off to buy.

BTW: Here is ALG's residual percentages for a 2005 S2000, 15000 miles a year, July/August book:

36 months: 55%
39 months: 53%
48 months: 47%
60 months: 40%
66 months: 37%

 

Would you not trust a medical study on smoking crack if it only highlighted the bad?

 

Not if I knew there were some positives also. That's the point here, leasing has it's advantages. But that is not what the TS is asking. So I'm going to get into it.

Leasing is the cost of borrowing a car for a certain period of time. That's really all it is. At the end, you have the option of purchasing the vehicle for what the bank had predetermined it's value would be at the end of the leasing period. This amount IS negotiable, but some banks will not negotiate with you (AHFC being one of them).

 

depends who finances the study.

depends who the doctors are, if any.

depends what institute the study is performed at.

depends if there is a control.

depends if they are using progressive, regressive or prospective means.

depends why the study was put in place to begin with.

depends who publishes the study.



Get the drift?


Now, if the study says CRACK WILL KILL YOU, there isn't much point in looking at the positives, right?

 

erik and DrDre:

I brought up crack because erik said he didn't think the article was informative because it only highlighted the bad. Now when it comes to smoking crack, there's not much positve to highlight in a medical study. Does that mean a crack smoking study can't be informative either? Just a logical question.

 

Hello guys, I know topic on "leasing" is very popular these days,

just wanted advice on how I should do this.

I have couple options, here is my situation.

I have currently 5year fianced 04 TL 6mt, and I want to either sell it or trade it.

I see many used S2K on ebay, however the lease special seems like a good bargain to me, since my monthly will be shrinked.

Hoping the insurance rate will not change ( from TL to S2K ) should I lease now and enjoy the car, at the same time try to sell the TL

or

Trade the TL in and fiance a new S2K at 29500 or 30000?

Need help in confusing fiance world!!!

thanks guys.

 

If your TL is on a lease, the early payoff will cost extra in many cases. TLs hold their value pretty well. Regarless, you can roll that negative equity into your new financing--though as a banker, I advise against that. You would have a loan or lease on your S2000 at 100%+ loan to value.

Your insurance will go up. 4dr sedan to a 2 seat sportscar, you can bet on that.

 

[QUOTE]ALWAYS and I mean ALWAYS negotiate the "money factor"

 

i understand if there are advertised money factors, but they ARE negotiable, unless advertised stragith from the company.

Like 0% or 1.9% financing for 60 months on all so and so......

THOSE are non-negotiable.

but unless you specifically see a lease offer on paper with everything written down, like a special, the factor is always up to the finance manager. Thats how he makes money, "bumping" up a rate, kickback for "x" amount of deals to "y" bank in a month, flat fees for warranties and percentages of gross sales as a bonus for going over sales goals.

 

[QUOTE]Lease or buy?