Hang around here for a month and you will get a post like ...
"Six months ago, I LEASED a Honda Civic Coupe for 48 months and yesterday, I found out that I am pregnant with triplets and need an Odyssey and I am going to have to quit my job ...."
OR
"I leased a car for four years and I detest it but I am udside down ... and my job is being eliminated and I cannot afford the $600 lease payments ...
After years of buying cars and holding them only for 5 years tops, I'm convinced I am better off to lease. I want to unload an 05 Navigator w/6000 miles I bought in August - still owe $36K, but trade-in is probably worth $32K. But knowing I want to lease (with little or no money down), rather than buy, how do I handle that? Will a dealer take my "trade" if I'm leasing the new vehicle?
Another question - I've heard of people who technically lease the car, but don't have monthly payments -- they pay the full amount of a 3-year lease when they take possession, thereby avoiding financing charges. Is this possible?
to answer your first question, yes, a dealer will take a trade-in on a lease.
let me ask, though, if you have all this money with which to pay off the negative equity on your Nav and fully pay a lease up front ... why not use all of that to pay down the Navigator, get a nice 3-year loan on the balance, and then, at the end of 3 years, you have a nice '05 SUV all paid for?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I am looking at leasing a luxury car. My first lease after buying used cars and driving them until the wheels come off. However, I am now ready to drive my dream car. Approx purchase price of $56K.
Here is the math I have done so far to justify considering the lease: Purchase: $3920 tax payment up front. 7% $2000 down payment Total up front capital outlay: $5920 Monthly payment: $1041, 60 months. Yearly payment total: $12,492
1st year capital outlay: Purchase: $18,412 Lease: $11,832 Difference: $6580 Annual lease savings in year 2 and 3: $2160/yr. 3 year return if lease savings is invested: $10,900 7%=763 Total 3 year savings and return with lease: $11,663
Further let's say at the end of 60 months I have paid off the car. I now have an asset worth a fraction of what I have paid over 5 years with no warranty. I will have paid something like $60K in payments and will be able to sell it for maybe $20K. If I had leased those years I could have taken $20K in savings and put it somewhere else.
I guess my thought is why put any more money than necessary in a depreciating asset like car. Take the difference and put it in more useful areas such a IRA, stocks, or just use it to enjoy other things in life. I have never thought of cars as good places for my cash. Particularly in year 1-3 of the cars life.
Any thoughts?
There is a little problem with your math. If you are leasing for 3 years and comparing it to having the car for 5 years, what are you going to drive for the remaining 2 years of the 5 year comparison? Let's compare 3 years to 3 years.
Finance Finance the car for 60 months, but take a snapshot at 36 months. $1041x36 = $37476 + $3920 in taxes = $41396. You don't have to put money down to finance a car, if your credit is good. By the end of 36 months out of 60 you still have $31,360 in equity (56% residual) while owing $18,524 on it, for a net of $12,836 in cash equivalent if you were to sell the car.
Lease: You still have to pay tax on the monthly payment, so the $861 becomes $861+7%= 921.27. $921.27x36 = $33,165 + $750 + Disposal fee at the end of lease (let's say $500)= $34,415. You have no equity in the vehicle, and have nothing to show for it when you turn it in.
The difference between the $41,396 (finance) and $34,415 (lease) = $6981. You almost double that if you were to finance the car for 60 months and then sell it after 36 months.
So, whatever you gain in short term (lower monthly payment) you lose in long term. I highly doubt that there are any legal and stable investments you can make that give you 184% return.
I got the Navi with 0% interest so I financed the entire amount -- so they get my money over three years rather than most of it up front. Can't keep it, since I got a new job and it is too tall to fit in the parking garage where I now work. Also I am completely disappointed in the navigation system (doesn't allow you to program on the fly the way the Acura does).
you might be better off in the Nav then you think. where do you live and what other options does it have? My trusty little guide tells me a 4wd (it is 4wd, ain't it?) '05 navigator with navigation (never understood why this isn't standard on a vehicle called the navigator) and moonroof might be closer to $34k, if not more.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Can't keep it, since I got a new job and it is too tall to fit in the parking garage where I now work. Also I am completely disappointed in the navigation system...
Find a new parking garage, or park on the roof and buy a Magellan roadmate 760. Problem solved.
Except that he was looking for India and thought he had found it when he was actually in America! Exactly what happens when you don't have a navigation system!
Pretty much the same reason a Cobra doesn't come with a snake in the glove box.
That's about the funniest line I've read in some time. I nearly spewed my coffee
MODERATOR /ADMINISTRATOR Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name. 2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h) Review your vehicle
My fiance used to work for a Ford dealership. He was in sales. Then, became a F&I Manager, and a Sales Manager. He was telling me that there is a difference between a Lease and a Purchase Option. Can you clarify?
I got the Navi with 0% interest so I financed the entire amount -- so they get my money over three years rather than most of it up front. Can't keep it, since I got a new job and it is too tall to fit in the parking garage where I now work. Also I am completely disappointed in the navigation system (doesn't allow you to program on the fly the way the Acura does).
1) Put smaller wheels on it 2) Park on the street 3) Let the air out of the tires when entering garages. 4) Take the train. 5) Buy a commuter car.
I am just wondering how low is the garage ceiling at your work place. Most have to follow some code which limits how low it can be. I doubt it is lower than 7 feet. Is it? Is Navigator taller than 7 feet with stock wheels?
I am just wondering how low is the garage ceiling at your work place. Most have to follow some code which limits how low it can be. I doubt it is lower than 7 feet. Is it? Is Navigator taller than 7 feet with stock wheels?
Edmunds lists the Navigator at 77" tall..... :confuse:
I don't want to assume trolling, but the user account was created the day of that post...
A lot of members create an account on the first day they post - every member has had a first post at some point!!
If it's an older garage, it may very well have ceilings too low... built before the age of giant SUVs.
MODERATOR /ADMINISTRATOR Find me at kirstie_h@edmunds.com - or send a private message by clicking on my name. 2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h) Review your vehicle
I'm SURE this has been discussed before ... but I'm curious about leasing used cars. Good? Bad? indifferent?
Specifically, I'm thinking of something higher end that is only maybe a year or 2 old. It has taken that first year depreciation hit already and still has very low miles ... so I would think the lease rate would be lower than a comparable new one ... but, then again, with the manufacturer leasing support on new ones, maybe not.
thoughts?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I'm SURE this has been discussed before ... but I'm curious about leasing used cars. Good? Bad? indifferent?
Specifically, I'm thinking of something higher end that is only maybe a year or 2 old. It has taken that first year depreciation hit already and still has very low miles ... so I would think the lease rate would be lower than a comparable new one ... but, then again, with the manufacturer leasing support on new ones, maybe not.
thoughts?
Most financial companies (both manufacturer-based and private) have programs for leasing new cars. The problem, however, is that rates are usually very high. While the residual might not be as bad as a new car since a large chunk of depreciation is already gone, the money factor ("interest rate", for simplicity's sake) is typically very high. As a result, the payment often ends up being as much or more than a brand new car. When given the choice, most people would rather take the new car.
I've got a bit of a conundrum here, and I could use some advise. I currently lease a 2004 Subaru Impreza, that comes off lease this June. Good car, standard mileage. Not planning to keep, as I've decided to go a bit bigger and get something with better seats. Mostly looking at the 2006 Forester with power seats, and the 2006 Toyota RAV4 Limited.
The challenge is that, if I elect to purchase either of these vehicles instead of continuing the leasing route, I really need to put at least 5k down to avoid being upside down from the get-go. I can come up with 1-2k now, but 5k is too much.
Options I'm considering are:
1. Lease new car for three years, then buy the car at the end. Keeps more money in my pocket now, but of course it will cost me more in the long run. I can live with that.
2. Buy a used version of these cars. Problem is that since they hold value so well, that used pricing isn't any great bargain and I'd likely need to put 3k down even on a used one.
3. Buy new with less money down, and trust that the car doesn't get wrecked, which would have me upside-down on the loan. Not a real comfortable option to me.
Any reasonable options that I've missed? If anyone has any other idea that I haven't considered, please speak up!
well, that's kind of what i figured. i just wanted to confirm. To be more specific, I was browsing the Benz site. Seems that I could lease a new E320cdi for about $650 a month. Then I started looking through the certified pre-owned. A couple of 1-year-old CDIs turned up. When I go to the payment calculator for these cars, which, by the way, are about $10-$15k less than new, it tells me $1000 per month to lease!? Just seems like the calculator is busted or something.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
"well, yes, i have another option. If you are concerned about wrecking the car and being upside-down, just get gap insurance. its very cheap."
I have gap on my leased car, which would have covered me when my car was damaged early in the lease if the thing had been totalled, but I'm talking about it with a purchase. I'm unaware of being able to have gap insurance on a purchased vehicle. Is that really possible, and if so, what should it cost? Gap was built into the lease from the leasing company.
yes, gap is possible with a purchase. Exact cost varies, but it should be less than a couple hundred bucks. There is a discussion here on edmunds about gap insurance.
On my last purchase, I decided to let the F&I dude at the dealership sucker me into their insurance. I'm sure its more than I could get it for through my own insurance company, but since its worked into the car's payments, its not bad. Basically, it came out to like $4 or $5 a month extra.
EDIT: ok ... i'm feeling generous ... or bored ... here is a link to the discussion: Gap Insurance
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
The trick with leasing a used car is finding the right one.
I am not sure about Mercs but for Land Rovers it needs to be the first year of a Major redesign so...
2003 Range Rovers lease well 2003 Discos lease well 2002 or 2004 Freelanders lease ok(The can of coke I am drinkning from right now has a higher residual value then a Freelander though so you do the math)
2005 LR3's lease very well right now and I haven't seen a used Range Rover Sport yet so no idea. They will probably lease just as good if not better then an LR3.
So you need to find the first year of a major redesign then you need to find one with low miles. To make it even better it needs to be a vehicle that the dealership originaly sold as new. The leasing company gives the dealership an original MSRP to use as a base for the residual calculation. These MSRPs are always lower then the real MSRP of the vehicle. If the dealership sold that exact car when it was new then they can prove the higher MSRP which will improve the gross dollar amount of the residual and lower your monthly payment.
i'm looking at this leasecompare site they recommend, but its not exactly thrilling me with low numbers just yet. Plus, its not just point and click. You need to know what the purchase price of said used vehicle would be before anything.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I have a good example for you we sold a 2005 LR3 to a woman last year. After driving the car for about 4,000 miles she decided she wanted a Range Rover Sport instead.
She traded in the LR3 for the sport and off she goes.
Her LR3 was an SE7 loaded avery single possible option with an original MSRP of about 53,000 dollars.
It would have leased for close to a $850 dollars a month all taxes in, Land Rover leases include the property tax and the sales tax in the lease payment, new on a 15,000 miles a year 30-39 month lease.
Our other salesman ended up buying it for his wife and doing a preowned lease on it. He bought it for what we owned it for which I think was around $44,000.
His lease payment for a 24 month 15,000 miles a year lease with all taxes in was around 450 dollars a month. That is some significant savings and even if we had leased that vehicle to a regular customer and sold the car for 46,000 or so the lease payment would only have jumped 80 bucks or so.
The trick is finding the right car to do a preowned lease on. He was able to get that killer lease payment because we used the orginal MSRP as the basis for the residual. The MSRP that the leasing company was giving us for that car was only about 47,000 dollars. That is because they just use the base MSRP with few if any options included as the basis for the lease residual. In 2005 a SE7 LR3 had a MSRP of around 47,000 dollars. This LR3 had a MSRP of 53,000 because it had so many extra options.
Think about it like this the residual that the company gives you is fixed just for example lets say it was 53% cause I do not remember what it really was.
53% of 47,000 is 24,910 so that is about what the leasing company thinks the car will be worth after a two year 15,000 miles a year lease.
But if you can prove the higher MSRP of 53,000 well 53% of that is 28,090. That means you have to borrow less money for the lease so the payment drops dramaticly.
Now I know Land Rover will let you do this but I do not know if any other leasing companies do it so you might be out luck trying it at a Mercedes dealership.
If we have a used car that we sold new we will try and track down the orginal deal so we can prove the higher MSRP. That way when we quote a lease it is much easier to get to a lower payment.
That might be ok but lots of time the original sticker is missing and usually the leasing company wants proof as in an original bill of sale/buyers order. We can bring those up electronicly on our system and give them another copy of it.
The purpose of leasing is to take advantage of your options that keeps money in your pocket. Leasing a new car for 3 years is the best option. Leasing allows the manufacture to eat the negative equity. However, before you pull the trigger on the Forester, contact your lender to see if they are willing to negotiate the residual buy out. Depending on your market conditions, if you can get the off-lease for a song, buy it, sell it for profit and lease your next new vehicle.
When you trade a vehicle in on another vehicle, you only pay sales tax on the difference between the old and new car. If your state charges tax on each lease payment, how does the tax break work (if at all) for trading in a vehicle on a new car lease?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
when you trade in a vehicle, and let's say they give you $10,000 ACV, do you still get a tax credit on the full $10K even if there's a payoff of like $6K?
I am seriously considering leasing a new vehicle and putting my gas guzzeling pickup on blocks.
I have never leased before and I am curious as to the deal that Mazda has for a 3I sedan. The specifics are as follows:
$189/Month, 24-Month Lease, $2,389 due at Lease Signing. Includes 1st Month’s Payment and Security Deposit. Excludes taxes, title and fees. (**) Lessee responsible for excess wear and mileage over 24,000 at $0.15/mile. Total payments of $4,536. Purchase option at lease end for $11,075. I would appreciate any comments and or suggestions. Thanks in advance.
Can anyone give a non-car person some sane advice? I want to know whether to buy or lease a new car. I plan on keeping the car for 3-5 yrs., have the best credit but could also afford to buy outright. How does a person in my position decide what to do? Thanks!
If you KNOW you will only keep the car 3 years, if you KNOW you will only drive 15k miles per year, if you KNOW your situation will not change one bit (ie, you won't move further from your job or change jobs to one further from your house), then you are probably a good candidate for leasing.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
a 5 year lease is not a good idea. in most cases you are eventually making rental payments on a car that is out of warranty (so you pay for repairs while you are renting the car). Rule of thumb most seasoned vets around here have said time and again is if you can't afford the 3 year lease payment or 5 year loan payment, its too much car for you.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
My question is probably far simpler that I think, but here goes- I need a car for somewhere between 3 and 5 years. I want a reliable, safe car, and so I prefer a new one. I can afford a 3 year lease payment or 5 year loan payment or to buy it outright. I just don't know what makes the most sense for me. I plan to do mostly commuting type driving back and forth to work, and don't even know about how many miles per year this will be since I've never owned a car before. But I will not be doing much long distance driving. Sorry to be unclear but I am trying to learn what to ask and how to get the info that I need. Thanks for your patience!
Because this car will be for my daughter who will attend graduate school in LA for 5 years, then will go wherever she can find work. She may or may not at that time be in a position to keep the car, all depending upon where she finds work, which could be anywhere in the world because of the nature of her studies. I don't know at that time what she will do with the car as I have no idea where in the world she'll be!! Thanks!
A 5-year old car can still be very nice to own. Our daughter's 99 Accord runs great and looks almost brand new.
If you buy her a nice car, it will be paid off in 5 years and your daughter will greatly appreciate that. If she leaves the country, she can easily sell it.
When our daughter got married in 1998, we gave them our 95 Accord. Since they were not making a car payment, they were able to buy a house, which has tripled in value since that time.
Do we spoil our daughter and her husband? Nope, they have spoiled us with two wonerful grandchildren.
Buy your daughter a nice car for less than $25K. You could do much worse than a Camcord (i.e. a Camry or an Accord).
i sell my 2001 current car (clear title) for $9000...
use $7000 to pay off debt...
lease a 2006 accord for around $300 a month.
as i see it, the pros are: i pay off debt, and i'm driving a new car.
if i bought a new car, and use my car as a trade in, the cons would be: my monthly car payment would be higher than a lease, plus i'd still have that $7000 credit card debt.
so, help me if i'm missing something here. does selling my current car and leasing a new one, while paying off a $7000 credit card debt, make sense??
C) Keep driving your current car.. An '01 car worth $9K is a pretty decent car.. no need for a new one.. Put $300/mo. toward your credit card debt.. In 29 months, your credit card will be paid off, and your car will still probably be worth $5000..
The benefit of this plan? If you have a financial emergency, you don't have to make the full $300 payment that month.. You don't have that option with the lease of a new car.. Also, you won't immediately have a large open credit limit that you can charge up again..
And, you'll have the self-satisfaction of paying down that debt by being fiscally prudent..
Buying (or leasing) a new car is not a good way to get out of debt..
"so, help me if i'm missing something here. does selling my current car and leasing a new one, while paying off a $7000 credit card debt, make sense??"
No, it makes no sense at all.
Don't obligate yourself to paying $300 per month, which is $10800 over three years.
Get your credit card debt paid off. Maybe you could re-finance your car and get a lower interest rate that you are paying on your credit card.
Comments
If you really think about it, Leasing is another gimmick to sell cars, to get you into the dealer every X years on a regular basis.
Excellent "cut to the chase" post cdnpinhead.
I agree and that was my point .. they are few and far between .... but you need to tell them, not me ....
Terry.
Hang around here for a month and you will get a post like ...
"Six months ago, I LEASED a Honda Civic Coupe for 48 months and yesterday, I found out that I am pregnant with triplets and need an Odyssey and I am going to have to quit my job ...."
OR
"I leased a car for four years and I detest it but I am udside down ... and my job is being eliminated and I cannot afford the $600 lease payments ...
Another question - I've heard of people who technically lease the car, but don't have monthly payments -- they pay the full amount of a 3-year lease when they take possession, thereby avoiding financing charges. Is this possible?
let me ask, though, if you have all this money with which to pay off the negative equity on your Nav and fully pay a lease up front ... why not use all of that to pay down the Navigator, get a nice 3-year loan on the balance, and then, at the end of 3 years, you have a nice '05 SUV all paid for?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
My first lease after buying used cars and driving
them until the wheels come off.
However, I am now ready to drive my dream car.
Approx purchase price of $56K.
Here is the math I have done so far to justify considering the lease:
Purchase:
$3920 tax payment up front. 7%
$2000 down payment
Total up front capital outlay: $5920
Monthly payment: $1041, 60 months.
Yearly payment total: $12,492
Lease:
License, Fees, Upfront costs: $750
Payment: $861
Total yearly payments: $10,332
1st year capital outlay:
Purchase: $18,412
Lease: $11,832
Difference: $6580
Annual lease savings in year 2 and 3: $2160/yr.
3 year return if lease savings is invested: $10,900 7%=763
Total 3 year savings and return with lease: $11,663
Further let's say at the end of 60 months I have paid off the car.
I now have an asset worth a fraction of what I have paid over 5 years
with no warranty. I will have paid something like $60K in payments
and will be able to sell it for maybe $20K. If I had leased those years
I could have taken $20K in savings and put it somewhere else.
I guess my thought is why put any more money than necessary in a depreciating asset like car. Take the difference and put it in more useful areas such a IRA, stocks, or just use it to enjoy other things in life. I have never thought of cars as good places for my cash. Particularly in year 1-3 of the cars life.
Any thoughts?
There is a little problem with your math. If you are leasing for 3 years and comparing it to having the car for 5 years, what are you going to drive for the remaining 2 years of the 5 year comparison? Let's compare 3 years to 3 years.
Finance Finance the car for 60 months, but take a snapshot at 36 months. $1041x36 = $37476 + $3920 in taxes = $41396. You don't have to put money down to finance a car, if your credit is good. By the end of 36 months out of 60 you still have $31,360 in equity (56% residual) while owing $18,524 on it, for a net of $12,836 in cash equivalent if you were to sell the car.
Lease: You still have to pay tax on the monthly payment, so the $861 becomes $861+7%= 921.27. $921.27x36 = $33,165 + $750 + Disposal fee at the end of lease (let's say $500)= $34,415. You have no equity in the vehicle, and have nothing to show for it when you turn it in.
The difference between the $41,396 (finance) and $34,415 (lease) = $6981. You almost double that if you were to finance the car for 60 months and then sell it after 36 months.
So, whatever you gain in short term (lower monthly payment) you lose in long term. I highly doubt that there are any legal and stable investments you can make that give you 184% return.
Doh!
you might be better off in the Nav then you think. where do you live and what other options does it have? My trusty little guide tells me a 4wd (it is 4wd, ain't it?) '05 navigator with navigation (never understood why this isn't standard on a vehicle called the navigator) and moonroof might be closer to $34k, if not more.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Find a new parking garage, or park on the roof and buy a
Magellan roadmate 760. Problem solved.
Because a true navigator doesn't need a stupid map. Columbus found America pretty easily without one.
Pretty much the same reason a Cobra doesn't come with a snake in the glove box.
Except that he was looking for India and thought he had found it when he was actually in America! Exactly what happens when you don't have a navigation system!
Now there's a reason for a taking a $10,000+ hit ...l.o.l....
... and who ever said our society was soft and spoiled.? ..... :shades:
Terry.
That's about the funniest line I've read in some time. I nearly spewed my coffee
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2015 Kia Soul, 2021 Subaru Forester (kirstie_h), 2024 GMC Sierra 1500 (mr. kirstie_h)
Review your vehicle
but it does come with snakes on the seats and fenders. ;b
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
1) Put smaller wheels on it
2) Park on the street
3) Let the air out of the tires when entering garages.
4) Take the train.
5) Buy a commuter car.
I am just wondering how low is the garage ceiling at your work place. Most have to follow some code which limits how low it can be. I doubt it is lower than 7 feet. Is it? Is Navigator taller than 7 feet with stock wheels?
Edmunds lists the Navigator at 77" tall..... :confuse:
I don't want to assume trolling, but the user account was created the day of that post...
If it's an older garage, it may very well have ceilings too low... built before the age of giant SUVs.
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Review your vehicle
Specifically, I'm thinking of something higher end that is only maybe a year or 2 old. It has taken that first year depreciation hit already and still has very low miles ... so I would think the lease rate would be lower than a comparable new one ... but, then again, with the manufacturer leasing support on new ones, maybe not.
thoughts?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
Specifically, I'm thinking of something higher end that is only maybe a year or 2 old. It has taken that first year depreciation hit already and still has very low miles ... so I would think the lease rate would be lower than a comparable new one ... but, then again, with the manufacturer leasing support on new ones, maybe not.
thoughts?
Most financial companies (both manufacturer-based and private) have programs for leasing new cars. The problem, however, is that rates are usually very high. While the residual might not be as bad as a new car since a large chunk of depreciation is already gone, the money factor ("interest rate", for simplicity's sake) is typically very high. As a result, the payment often ends up being as much or more than a brand new car. When given the choice, most people would rather take the new car.
The challenge is that, if I elect to purchase either of these vehicles instead of continuing the leasing route, I really need to put at least 5k down to avoid being upside down from the get-go. I can come up with 1-2k now, but 5k is too much.
Options I'm considering are:
1. Lease new car for three years, then buy the car at the end. Keeps more money in my pocket now, but of course it will cost me more in the long run. I can live with that.
2. Buy a used version of these cars. Problem is that since they hold value so well, that used pricing isn't any great bargain and I'd likely need to put 3k down even on a used one.
3. Buy new with less money down, and trust that the car doesn't get wrecked, which would have me upside-down on the loan. Not a real comfortable option to me.
Any reasonable options that I've missed? If anyone has any other idea that I haven't considered, please speak up!
Thanks!
-Padron-
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I have gap on my leased car, which would have covered me when my car was damaged early in the lease if the thing had been totalled, but I'm talking about it with a purchase. I'm unaware of being able to have gap insurance on a purchased vehicle. Is that really possible, and if so, what should it cost? Gap was built into the lease from the leasing company.
-Dan-
On my last purchase, I decided to let the F&I dude at the dealership sucker me into their insurance. I'm sure its more than I could get it for through my own insurance company, but since its worked into the car's payments, its not bad. Basically, it came out to like $4 or $5 a month extra.
EDIT: ok ... i'm feeling generous ... or bored ... here is a link to the discussion:
Gap Insurance
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I am not sure about Mercs but for Land Rovers it needs to be the first year of a Major redesign so...
2003 Range Rovers lease well
2003 Discos lease well
2002 or 2004 Freelanders lease ok(The can of coke I am drinkning from right now has a higher residual value then a Freelander though so you do the math)
2005 LR3's lease very well right now and I haven't seen a used Range Rover Sport yet so no idea. They will probably lease just as good if not better then an LR3.
So you need to find the first year of a major redesign then you need to find one with low miles. To make it even better it needs to be a vehicle that the dealership originaly sold as new. The leasing company gives the dealership an original MSRP to use as a base for the residual calculation. These MSRPs are always lower then the real MSRP of the vehicle. If the dealership sold that exact car when it was new then they can prove the higher MSRP which will improve the gross dollar amount of the residual and lower your monthly payment.
could you possibly give me an example? Let's say by using an '05 LR3 vs. an '06 LR3?
And how would i know if that dealership originally sold it? Just ask? Or would the lease payment be so dramatically different that I would just know?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
http://www.usatoday.com/money/perfi/general/2004-07-22-used-car_x.htm
i'm looking at this leasecompare site they recommend, but its not exactly thrilling me with low numbers just yet. Plus, its not just point and click. You need to know what the purchase price of said used vehicle would be before anything.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
She traded in the LR3 for the sport and off she goes.
Her LR3 was an SE7 loaded avery single possible option with an original MSRP of about 53,000 dollars.
It would have leased for close to a $850 dollars a month all taxes in, Land Rover leases include the property tax and the sales tax in the lease payment, new on a 15,000 miles a year 30-39 month lease.
Our other salesman ended up buying it for his wife and doing a preowned lease on it. He bought it for what we owned it for which I think was around $44,000.
His lease payment for a 24 month 15,000 miles a year lease with all taxes in was around 450 dollars a month. That is some significant savings and even if we had leased that vehicle to a regular customer and sold the car for 46,000 or so the lease payment would only have jumped 80 bucks or so.
The trick is finding the right car to do a preowned lease on. He was able to get that killer lease payment because we used the orginal MSRP as the basis for the residual. The MSRP that the leasing company was giving us for that car was only about 47,000 dollars. That is because they just use the base MSRP with few if any options included as the basis for the lease residual. In 2005 a SE7 LR3 had a MSRP of around 47,000 dollars. This LR3 had a MSRP of 53,000 because it had so many extra options.
Think about it like this the residual that the company gives you is fixed just for example lets say it was 53% cause I do not remember what it really was.
53% of 47,000 is 24,910 so that is about what the leasing company thinks the car will be worth after a two year 15,000 miles a year lease.
But if you can prove the higher MSRP of 53,000 well 53% of that is 28,090. That means you have to borrow less money for the lease so the payment drops dramaticly.
Now I know Land Rover will let you do this but I do not know if any other leasing companies do it so you might be out luck trying it at a Mercedes dealership.
If we have a used car that we sold new we will try and track down the orginal deal so we can prove the higher MSRP. That way when we quote a lease it is much easier to get to a lower payment.
But why is it so tough to prove the original MSRP? Don't you just need the window sticker?
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
I have never leased before and I am curious as to the deal that Mazda has for a 3I sedan.
The specifics are as follows:
$189/Month, 24-Month Lease, $2,389 due at Lease Signing. Includes 1st Month’s Payment and Security Deposit. Excludes taxes, title and fees. (**) Lessee responsible for excess wear and mileage over 24,000 at $0.15/mile. Total payments of $4,536. Purchase option at lease end for $11,075.
I would appreciate any comments and or suggestions.
Thanks in advance.
If you KNOW you will only keep the car 3 years, if you KNOW you will only drive 15k miles per year, if you KNOW your situation will not change one bit (ie, you won't move further from your job or change jobs to one further from your house), then you are probably a good candidate for leasing.
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
'11 GMC Sierra 1500; '98 Alfa 156 2.0TS; '08 Maser QP; '67 Coronet R/T; '13 Fiat 500c; '20 S90 T6; '22 MB Sprinter 2500 4x4 diesel; '97 Suzuki R Wagon; '96 Opel Astra; '11 Mini Cooper S
You stated that you can afford the five year payments, or to buy the car outright... If that is the case, buying is really the only way to go...
That way, if you need to sell early... or, even keep the car, you'll have the ultimate flexibility..
regards,
kyfdx
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If you buy her a nice car, it will be paid off in 5 years and your daughter will greatly appreciate that. If she leaves the country, she can easily sell it.
When our daughter got married in 1998, we gave them our 95 Accord. Since they were not making a car payment, they were able to buy a house, which has tripled in value since that time.
Do we spoil our daughter and her husband? Nope, they have spoiled us with two wonerful grandchildren.
Buy your daughter a nice car for less than $25K. You could do much worse than a Camcord (i.e. a Camry or an Accord).
i sell my 2001 current car (clear title) for $9000...
use $7000 to pay off debt...
lease a 2006 accord for around $300 a month.
as i see it, the pros are: i pay off debt, and i'm driving a new car.
if i bought a new car, and use my car as a trade in, the cons would be: my monthly car payment would be higher than a lease, plus i'd still have that $7000 credit card debt.
so, help me if i'm missing something here. does selling my current car and leasing a new one, while paying off a $7000 credit card debt, make sense??
C) Keep driving your current car.. An '01 car worth $9K is a pretty decent car.. no need for a new one..
Put $300/mo. toward your credit card debt.. In 29 months, your credit card will be paid off, and your car will still probably be worth $5000..
The benefit of this plan? If you have a financial emergency, you don't have to make the full $300 payment that month.. You don't have that option with the lease of a new car.. Also, you won't immediately have a large open credit limit that you can charge up again..
And, you'll have the self-satisfaction of paying down that debt by being fiscally prudent..
Buying (or leasing) a new car is not a good way to get out of debt..
regards,
kyfdx
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No, it makes no sense at all.
Don't obligate yourself to paying $300 per month, which is $10800 over three years.
Get your credit card debt paid off. Maybe you could re-finance your car and get a lower interest rate that you are paying on your credit card.