Mercedes-Benz 2004 C230 Sedan for $18,000? (In Hawaii only?)

[phenderson]

My own 2 cents.
Back in 98, I leased a brand new 98 VW Jetta TDI for about $340.00 a month. I had a residual of about $10000.00 on the car. I actually kept the lease for 4 years. At the end of 4 years, the car with 53,000 miles on it was worth more than the residual. Stupid me, I could have sold the car, with complete maintenance records, and just bought a new car. But I opted to refinance the car 2 years ago. It now black books for about $5000-7000.00. If I had've just sold it, I would be in better shape now than.

There are pro's and con's to leasing a car.
The good thing about Mercedez's is that the depreciation hit is not as bad as say a Mitsubishi Montero Sport, or a Kia. Once you finish the lease after 3 years, the car will probably be worth more than the residual.

 

[AbsolutDealage]

Originally posted by: phenderson
There are pro's and con's to leasing a car.
The good thing about Mercedez's is that the depreciation hit is not as bad as say a Mitsubishi Montero Sport, or a Kia. Once you finish the lease after 3 years, the car will probably be worth more than the residual.

It's pretty rare to be ahead of the game at the end of your lease. With the Mercedes, you may have a shot at it, but it is still not likely.

 

[KokomoGST]

Nobody mentioned that the car in question is not just ANY Benz... but the lowest of the low on the Merc heirarchy in terms of price & trim levels & fit/finish. C-class? POS... driven more than a few of them and they are definite not even close to a BMW 3-series in a pure luxury benchmark.

Sure, the seats are softer than a BMW's but when your interior looks no better than a Camry's and the commerical is prolly for the single unit that they'll let go at that price. It really could be pure bait... or it could be real for the most stripped down, piece of nothing you can get. No leather, no AC, no auto tranny, no power anything. no wood trim... NOTHING.

It's an overpriced POS with the MB TriStar slapped on it. Talk to any Merc service tech... that and the ML are exactly engineering excellence.

 

[jwells777]

Honestly, it should be a required 50 minute lecture in high school explaining what it means to rent vs. buy on large ticket items that appreciate/depreciate significantly. Having just recently bought my first house, I would like to slap the next person who says..."That's great, you're not throwing away money on rent anymore!". Anytime you are making a decision of this nature, you should run a cost/benefit/risk analysis over the time you intend to own or rent the house/car/etc.

Whether to lease or buy depends entirely on the terms of both sale/lease and your risk tolerance. Be careful with this type of analysis though...A man much wiser than me discovered a cardinal rule: "If it flies, floats, or f*cks....Rent it"

EDIT: Interesting...fornicate doesn't mean quite what I thought it did. Subtle difference, but important.

 

[SpaceHulk]

This whole thread is funny. I've spent more money on a Video card than than I paid for the car I was driving at that time.

I just spent more on my TV than on the car I'm currently driving.

I drive a *different* car every two years, although it is never new. I just can't handle that amount of depriciation and besides, I'd rather spend money on something I enjoy.

 

[wampa]

Originally posted by: jwells777
Honestly, it should be a required 50 minute lecture in high school explaining what it means to rent vs. buy on large ticket items that appreciate/depreciate significantly. Having just recently bought my first house, I would like to slap the next person who says..."That's great, you're not throwing away money on rent anymore!". Anytime you are making a decision of this nature, you should run a cost/benefit/risk analysis over the time you intend to own or rent the house/car/etc.

Whether to lease or buy depends entirely on the terms of both sale/lease and your risk tolerance. Be careful with this type of analysis though...A man much wiser than me discovered a cardinal rule: "If it flies, floats, or fornicates....Rent it"

I see that logic as flawed. So your saying that we should NEVER purchase anything but instead rent it because if we purchase it, it will depreciate. So instead of purchasing a microwave I should just go the local rent-a-center and rent it. Because if I purchase it, it will lose value over time. You are correct in saying that renting a house is a bad example. Since when you purchase a house it usually (not always) appreciates in value, than when you are purchasing a car that immediately depreciates in value once you drive it off the lot.

As mentioned before leasing is not for everyone, and is different for every case/situation. If you plan on getting a new car every 2-3 years it is for you, since you won't have to deal with the hassle of selling the car every 2-3 years and its also good for the dealer. Because if the negotiated purchase price of a car after the lease is $28,000. Let's say that the sum of all your lease payments is $14,450, and the purchase price of the vehicle at the end of the lease is $14,000. So if you purchased the car the dealer would've made an extra $450 off you. The dealer did not make much money from this deal, and so they are hoping that you turn in the car so they can sell the car. Since dealers usually make more money on used cars than new ones. And for sure they are going to sell the car for more than $14,000.

 

[wampa]

Originally posted by: AnyMal

Originally posted by: hans007
i like to own things, and would never lease a car.

if i had to be at the point where i could lease a luxury car of just buy a not so luxury one i'd buy. i like to be able to do whatever i want with my car. and im also no poseur like the 5000000 leased bmw 325i drievrs in socal.

anyhow, leasing is only good for one reason. if you own a business lease. deduct your lease payments as an expense from your taxes, and basically get the lease for 1/3 off. you can only deduct depreciation on a bought car since it is an asset, but lease is not an asset.

Yes, but there's something has to be mentioned; if you buy a car through financing you DO NOT OWN it until it's paid for.

But the monthly payment goes toward the ownership of the car. But in leasing you are paying for the privilege to use the car.

 

[jwells777]

Originally posted by: wampa

Originally posted by: jwells777
Honestly, it should be a required 50 minute lecture in high school explaining what it means to rent vs. buy on large ticket items that appreciate/depreciate significantly. Having just recently bought my first house, I would like to slap the next person who says..."That's great, you're not throwing away money on rent anymore!". Anytime you are making a decision of this nature, you should run a cost/benefit/risk analysis over the time you intend to own or rent the house/car/etc.

Whether to lease or buy depends entirely on the terms of both sale/lease and your risk tolerance. Be careful with this type of analysis though...A man much wiser than me discovered a cardinal rule: "If it flies, floats, or fornicates....Rent it"

I see that logic as flawed. So your saying that we should NEVER purchase anything but instead rent it because if we purchase it, it will depreciate. So instead of purchasing a microwave I should just go the local rent-a-center and rent it. Because if I purchase it, it will lose value over time. You are correct in saying that renting a house is a bad example. Since when you purchase a house it usually (not always) appreciates in value, than when you are purchasing a car that immediately depreciates in value once you drive it off the lot.

As mentioned before leasing is not for everyone, and is different for every case/situation. If you plan on getting a new car every 2-3 years it is for you, since you won't have to deal with the hassle of selling the car every 2-3 years and its also good for the dealer. Because if the negotiated purchase price of a car after the lease is $28,000. Let's say that the sum of all your lease payments is $14,450, and the purchase price of the vehicle at the end of the lease is $14,000. So if you purchased the car the dealer would've made an extra $450 off you. The dealer did not make much money from this deal, and so they are hoping that you turn in the car so they can sell the car. Since dealers usually make more money on used cars than new ones. And for sure they are going to sell the car for more than $14,000.

See, this is why I said this should be required teaching in high school. Far more practical and useful for people than learning the finer points of Egyptian History (not that History classes aren't important also). You missed the entire point of what I was saying. Perhaps this was my fault in not fully explaining, but it would take too long to write it all out. Two of the key points relevant to this discussion; however, could be summarized I guess by saying:

1) Cost of ownership is not determined by solely the amount you pay each month.
2) When renting, you are not "throwing away money". You are paying for the utility of whatever you are renting during the rental period.

Depending on several factors, renting can be much cheaper than owning. Similarly, buying can be often much cheaper than renting. Regardless, everyone should have the basic understanding of how to analyze both cases.

 

[nealh]

Jeez..explain to me how renting is cheaper than owning the same house..you buy the house which in most cases will appreciate and provide an equity...

Rent maybe slightly cheaper but not generally by much on a home..you get to deduct the interest and pay down the loan faster and you have a solid assest that will in many cases be worth more than you paid for it..even taking into account interest. Not to mention you can refinance equity out of the home or obtain a home equity loan..


Do not compare buying a home to renting a condo/apt...not the same investment

You will never convince me renting a home is abetter investment than buying

Also leasing a car unless you have a business to deduct the cost or must have a new car every 2 yrs or so..is an expensive proposition as you not only pay depreciation but also the privelege of driving it....becareful with a lease on any car..I am sure there will be very good leases that may break the rules so to speak..especially when an automaker needs to move a car

 

[tantos]

When renting, you are not "throwing away money". You are paying for the utility of whatever you are renting during the rental period.

You basically are throwing it away..I'm sure if renters had the down payment money they would all buy houses. Renting is just a necessity when you can't afford to buy.

 

[JeeMan2002]

"You will never convince me renting a home is abetter investment than buying "

Usually this is the case....but when real estate prices are artificially propped up in a particular area, say, due to low interest rates and loose credit standards creating a stampede of sub-prime buying demand, then it would probably be prudent to run the numbers.

In our area, rents are dropping, but home prices are appreciating at 15%/year. We could buy a townhouse like ours for about $3000/month mortgage or continue to rent for $1500. The risk here is that home/condo prices went higher than incomes, and thus has to come down, or will force a bunch of people into foreclosure when interest rates go up and they have to refi' their ARMs.

So, your statement isn't always true.

G

 

[gnawrot]

I purchased my first car late Fall of 1992. It was Chevy Corsica 2.2L 1991. It was accidented (salvage title). I paid around 5k for it. It cost me probably 1300 bucks in unexpected repairs (performed most of them myself) over the period of following years I owned it. Additionally, I had to pay for regular maintenance: oil change, brake jobs, tire purchases, etc. Many tasks were performed by myself. I doubt that it cost me over 1500 bucks.

I junked it in March 2001 for 40 bucks. Anyway 6k lost for a car for a period of over 8 years. I drove one year on this car 50k miles. Car had 141k when I sold it to junk yard.

This route suites me very well and many other people I know do the same way.

 

[UNCjigga]

To be clear, I don't think of leasing as a viable long-term option for someone who's got a mortgage payment, wife, kids and all those other expenses tacked on. Its best for the very rich who like driving a new luxury car every 2-3 years, or for folks just starting out. I needed a car after graduating college, and all I had was debt and a job. My Honda Accord EX came with an AWESOME lease deal. The car retailed for $20k. I paid $2000 down, and pay $180 a month for 36 months. Not only does my payment cover the cost of leasing the car, but it also covers ALL scheduled maintenance including oil-changes, alignments, scheduled tire changes etc. etc. etc. So at the end of next year, I will have a low-mileage, 2002 Honda Accord EX that is 100% dealer maintained (with all service records.) In the meantime, I've saved up a ton of money by having low payments and low insurance costs ($80 a month, I luv my Accord!)

 

[Buckshot]

Lock Lock Lock!!!

 

[wallsfd949]

Originally quoted from: Dave Ramsey
Fleasing a car is the most expensive way to operate a vehicle

Cash only paid for cars are the only way to go if you ever want to get out of debt and build wealth.

I drive reliable used cars that I can pay cash for. They are not the newest best thing on the block, but I'm also not in debt, which IMO is far better than having the coolest car on the road.

 

[gnawrot]

Originally posted by: wallsfd949

Originally quoted from: Dave Ramsey
Fleasing a car is the most expensive way to operate a vehicle

Cash only paid for cars are the only way to go if you ever want to get out of debt and build wealth.

I drive reliable used cars that I can pay cash for. They are not the newest best thing on the block, but I'm also not in debt, which IMO is far better than having the coolest car on the road.

I second your opinion. The only long-term debt I can justify is purchasing a home. Debt free living is just great and I enjoy it so much with my family. Even if I could afford to pay cash for brand new Porsche, I would not do it. Honda Accord or Toyota Camry plus minivan is enough for me. What is a point to buy fast sports car that you can drive at 40-50% of its possibility. It is like purchasing 3.2GHz PC and run it at 1.6GHz.

 

[FungusFeet]

Great! I'm picking up two this weekend.

 

[QuicknDirty]

You only live once. Buy what you can afford, whatever way works for you. Enjoy it. You people sitting on piles of debt free cash make no sense...you gonna have it shoveled in your coffin when they put you in the ground?

I bust my butt working to be able to afford the nicer things in life...my house, my cars, my vacations to Cancun every year...along with all the crap I pick up off of the deal forums (which is getting pretty expensive...LOL). I invest in the market for my retirement, using money to make money.

A car is not an investment. A car is a tool. I don't advocate leasing, because I think it's a rip off. However I don't spend $35k on a car thinking, gee, 3 years from now if I decide to sell it, it will be worth $xxxx! Money in the bank...NOT. I buy it because I like it, and because I can afford it...and I'll buy a new one 3 years from now (more than likely) when I get tired of this one.

Renting a home/condo/apt makes NO sense. No tax benefit to you. No equity. Nada. However, the person your renting from (and paying more than their mortgage so they make a handsome profit) does get the tax benefit, and does get the equity you're paying for. How does renting make sense to anyone?

The home I currently live in has increased in value some $35k since I purchased it TWO YEARS AGO. ..and this doesn't take into account the equity I've paid into it. Somehow I don't think that saving $300 a month renting someone elses handmedowns would pocket me the same value.

QnD

 

[hans007]

Originally posted by: VaG

Originally posted by: Ecliptic
but if you are rich, what are you doing in this forum

Staying rich.

my dad's friend who is worth probably 50 million dollars, still shops for dell computers for his office on techbargains.com


as my dad and he have told me you dont get rich by wasting money and it carries on with you into the future. i suppose if you never had to work for it and got rich (say someone handed you a billion dollars) you'd proabbly just spend like crazy.

 

[nealh]

Comparing the purchase of a home to condo/apt is not good comparison..condos can be very expensive with crazy appreciation at first and then drop like a brick...My father bought a condo over 15 yrs in Delray beach,FL; unfortunately he died unexpectedly and we need to get out from under the condo...a few yrs later it lost value(not to relator costs but actually depreciation in the area)..5yr till present if we had kept there would have be a nice appreciation.

Homes..in most cases tend not to do this..this assumes you live in area where there are homes and condos/townhouses..now a large city like NY this is different...buy in a condo in nice area will probably be a safe invest...

 

[slag]

Originally posted by: Jigga
Yep leasing is a good option...listen to what AnyMal says about cars depreciating. A car is an asset, no doubt, but it is depreciating and can't really be considered equity. You take your biggest hit the minute you drive off the new car lot.

Leasing is best when its a luxury car that will retain its value well (MB, Lexus etc.) Currently I'm leasing an Accord, and at the end of my lease I may actually be able to private sell the car, pay off the dealer, and come out with a few hundred towards my next downpayment. Then I can start over with a newer, nicer Accord or an Acura. Not too bad.

I put 21,000 on my new car since june 2003.

thats normal every day driving

Leasing is not an option for many people (actually, it sucks for most people since most people drive more than 12k a year anymore.)

 

[nealh]

wow..I thought I drove alot with about 7500 miles in 6mo...

 

[Sahakiel]

Leasing is very popular among real estate agents and small businesses. Nice car every few years and it's no worse than buying/selling new cars during the same period.

 

[rain2k4]

Originally posted by: Sahakiel
Leasing is very popular among real estate agents and small businesses. Nice car every few years and it's no worse than buying/selling new cars during the same period.

Ill put this to rest... I work for a bank/lease software company and the FACT is at least finacially, leasing does NOT make sense UNLESS you are a business(or can write off depreciation). Even then it really comes down to crunching some numbers to see if a lease is a better option than owning. The real estate, small business example you gave above could easily fall into this category. However this does not apply to a normal person who cant write some it off as an expense come tax time.


Leasing DOES provide a person who cant "truly afford" a car to get one or to swap cars every few years. But dont fool yourself to believe that you are making a better FINANCIAL decision, you will pay more for that luxury(which is just fine as long as you know that you are spending more).

 

[sxr7171]

Originally posted by: cheesewhiz

Originally posted by: goblue420 i dont get all why all of you guys are against leasing cars, my parents and I always do one yr leases on cars, its awesome bc u can get a new car every year.

Same reason people buy houses instead of renting: yeah you get more for less when you rent (or lease), but you're just throwing the money away: at the end, you have nothing. When you buy a car or a house, you build equity.. so you're not just throwing it away.

Equity in a rapidly depreciating asset isn't really that great. I think leasing is great for those people who want to have a new car every 2-4 years and understand that it costs more to keep having new cars rather than running your cars for 8 years or more. It's just a different preference.