I don't think I will ever buy a new car again, but lease intead and here is why......
#81
Trolling Canuckistan
what about the balloon payment and the monthly tax payments? milage restrictions, and the fact that you have to pay for any damage to the car like rock chips paint scratches, etc....leasing is for people that don't drive much.
ever wonder why our society is on the brink of financial collapse? yeah that's right because people are lacking in the common sense. paying cash is always better than financing no ifs ands or buts about it.
ever wonder why our society is on the brink of financial collapse? yeah that's right because people are lacking in the common sense. paying cash is always better than financing no ifs ands or buts about it.
If you drive 25-30k per year leasing can make sense as well. If you buy a car and drive 25-30k per year and finance it for 5 years (national average is 5.5 years) when the car is paid off you have a 5 yr old 125000 to 150000 mileage car. How much do you think it's actually worth at that point? How much of your "investment" are you getting back? Keep in mind that you've most likely been out of warranty for 2/3 of you ownership of the car. People in this category kill the value of a car with excessive mileage. By leasing when the car is 3 years old it will have 75-90K on it and will still be a high mileage car but it's lack of value is the manufacturers problem not the consumer.
It doesn't make sense to do a 10k per year lease and then drive 25K but when you establish the mileage up front you get the miles at a discounted rate (10 cents per mile vs 20 in the case of an Acura).
There is a lot of misunderstanding with leases. They aren't for everyone, but in many peoples cases it make more sense to lease.
#82
Most leases do not have a balloon payment. In MA, when you buy a car you pay sales tax on the purchase price of the car, when you lease you pay sales tax on your base monthly payment. Leasing in MA save you roughly 50% on you sales taxes. Acura also covers up to $1500 of incidental damage (chips, scratches, lightly curbed wheels, door dings).
If you drive 25-30k per year leasing can make sense as well. If you buy a car and drive 25-30k per year and finance it for 5 years (national average is 5.5 years) when the car is paid off you have a 5 yr old 125000 to 150000 mileage car. How much do you think it's actually worth at that point? How much of your "investment" are you getting back? Keep in mind that you've most likely been out of warranty for 2/3 of you ownership of the car. People in this category kill the value of a car with excessive mileage. By leasing when the car is 3 years old it will have 75-90K on it and will still be a high mileage car but it's lack of value is the manufacturers problem not the consumer.
It doesn't make sense to do a 10k per year lease and then drive 25K but when you establish the mileage up front you get the miles at a discounted rate (10 cents per mile vs 20 in the case of an Acura).
There is a lot of misunderstanding with leases. They aren't for everyone, but in many peoples cases it make more sense to lease.
If you drive 25-30k per year leasing can make sense as well. If you buy a car and drive 25-30k per year and finance it for 5 years (national average is 5.5 years) when the car is paid off you have a 5 yr old 125000 to 150000 mileage car. How much do you think it's actually worth at that point? How much of your "investment" are you getting back? Keep in mind that you've most likely been out of warranty for 2/3 of you ownership of the car. People in this category kill the value of a car with excessive mileage. By leasing when the car is 3 years old it will have 75-90K on it and will still be a high mileage car but it's lack of value is the manufacturers problem not the consumer.
It doesn't make sense to do a 10k per year lease and then drive 25K but when you establish the mileage up front you get the miles at a discounted rate (10 cents per mile vs 20 in the case of an Acura).
There is a lot of misunderstanding with leases. They aren't for everyone, but in many peoples cases it make more sense to lease.
1. pay cash for the car and keep it until it is economically unfeasable to keep it running
2. if 1 is not possible, put as much down as you can down on the car as it
a. keeps you from being upside down
b. eat less interest penalty
take the cash you would otherwise be paying on your car and use it to pay down the biggest asset you have, your house.
#83
What if you can earn a higher interest rate investing the cash than the financing through the dealership costs you? IE You can get safe 4% on investment while APR for your lease is 2.9%.(Toyota still has 0% financing going on) In that case, if you take the long view, you are costing yourself potential earnings by paying cash.
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11-12-2015 08:41 PM