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Some sick, sick deals on new cars available right now

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Doppel said:
Here's a Volt thread:
http://gm-volt.com/forum/showthread.php?16526-VOLT-Interest-Surges-Due-to-Cheap-Leases...-USA-Today

Drivers could save enough on gasoline to make the lease payment, he says.
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That seems doubtful. At $269 a month for the 15k miles/year lease and fuel prices of $3.50/gallon, your old car would have to get less than 16 MPG in order for you to save enough on gas to make the lease payment. And that assumes that electricity is free.

Now, that's still pretty cheap, but let's not exaggerate here.
 
JackBurton said:
Potential job loss is a huge negative toward leasing IMO. If you lose your job, you'll most likely lose your car too. If you purchase the car, and it's paid off, you still have transportation. Hell, if it's not paid for, you can at least sell it (given you are not upside down). The real problem here is, people buying a car every 3 years. If you are REALLY that concerned about financial responsibility, buy a GOOD car and drive it for as long as you can. Don't give me this "new safety features" excuse. I have a 1998 truck and I'm still alive. Safety features are GREAT when you are in the market for a new car, but I wouldn't use it as an excuse to buy a new car.

Now, if you want to buy a new car every year, go for it. But don't try and pretend you are being financially savvy because leasing is more cost effective than buying a car every year. They are both bad financial decisions.
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Why would you lose your car just because you lose your job? That is what savings, unemployment, and possibly a second income are for. In this case the lower monthly payment is desirable.
 
Ferzerp said:
Unless you're getting interest free loans, you really should not be financing a car for longer than 36 months... 48 *maybe*. If you have to stretch it out farther and are paying interest of any sort, you really can't afford that car.
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I agree with this. Some would argue if you are leasing a car, you really can't afford that car either. Heck, I am seeing some 84 month loans on cars. My insurance agent was telling me she went 84 months on her new jag. "she didn't want to, but she 'really' wanted the car"
 
JackBurton said:
Some dealerships offer 0% for 60 months, and I think some even offer it for 72 months. Of course if you pay cash, you can take the cash discount over the free financing. 🙂
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cash discount should make some realize that it isn't really interest free... sadly it doesn't
 
JackBurton said:
Potential job loss is a huge negative toward leasing IMO. If you lose your job, you'll most likely lose your car too. If you purchase the car, and it's paid off, you still have transportation. Hell, if it's not paid for, you can at least sell it (given you are not upside down). The real problem here is, people buying a car every 3 years. If you are REALLY that concerned about financial responsibility, buy a GOOD car and drive it for as long as you can. Don't give me this "new safety features" excuse. I have a 1998 truck and I'm still alive. Safety features are GREAT when you are in the market for a new car, but I wouldn't use it as an excuse to buy a new car.

Now, if you want to buy a new car every year, go for it. But don't try and pretend you are being financially savvy because leasing is more cost effective than buying a car every year. They are both bad financial decisions.
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Think of it like a more expensive version of people buying new $500 smartphones every 6 months. Some people just like NEW. The tech, the smell, the peace of mind.
 
Ferzerp said:
Because financing for that long is throwing far too much money towards interest. If your finances are such that you need to spread the loan out that far, does it really make fiscal sense to pay all the extra interest, or just to buy a cheaper car?
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.99% interest rate is less than a savings account gives.

The argument above about owning the car while unemployed is not sound. A car owned is only such because you put a lot of money into it-- by definition at a rate faster than its equity declined. The lease on the other hand has money output and equity loss at a similar rate. Again: nothing is stopping a leaser from saving money elsewhere in a different account.

A car is not a bank, why try and treat it as such?
 
halik said:
For business purposes, leasing is an immediate expense where as you have to capitalize the purchase and depreciate it on a longer schedule.
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Or you can take 168(k) and possible to expense the entire thing in one year, same with section 179. Depends entirely on the vehicle and what you are trying to accomplish.

Just a note that leasing being advantageous for tax purposes got muddied back in 2002 or so 😀
 
Jumpem said:
Why would you lose your car just because you lose your job? That is what savings, unemployment, and possibly a second income are for. In this case the lower monthly payment is desirable.
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In this case, NO monthly payment is desirable.
 
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Doppel said:
.99% interest rate is less than a savings account gives.

The argument above about owning the car while unemployed is not sound. A car owned is only such because you put a lot of money into it-- by definition at a rate faster than its equity declined. The lease on the other hand has money output and equity loss at a similar rate. Again: nothing is stopping a leaser from saving money elsewhere in a different account.

A car is not a bank, why try and treat it as such?
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You're not getting it. No one is treating a car like a bank. I put a lot less money into my truck that's 14 years old compared to someone leasing a car for 14 years. Point is, I'm not buying a new car every 3 years. In order for a lease to work out better financially, you'll have to compare it to someone that buys a car every 3 years. BOTH are not smart financial decisions, so quit pretending one is better than the other. BOTH equate to throwing thousands of dollars out the window.

But like I said, there is nothing wrong with someone buying a car every year or someone leasing a car for the rest of their life. If you can afford it, go for it. Just don't try and pretend you're being financially savvy by leasing over buying new.

I prefer buying (new) because it is mine (technically the banks until it is paid off). I don't have limitations on how many miles I can put on it in a year. I don't have to worry about dings that I get penalized once the term is up. I can mod it the way I want. It is MINE to do with it as I see fit. Again, I see leasing like renting a car, and I don't like renting my cars.
 
JackBurton said:
You're not getting it. No one is treating a car like a bank. I put a lot less money into my truck that's 14 years old compared to someone leasing a car for 14 years. Point is, I'm not buying a new car every 3 years. In order for a lease to work out better financially, you'll have to compare it to someone that buys a car every 3 years. BOTH are not smart financial decisions, so quit pretending one is better than the other. BOTH equate to throwing thousands of dollars out the window.

But like I said, there is nothing wrong with someone buying a car every year or someone leasing a car for the rest of their life. If you can afford it, go for it. Just don't try and pretend you're being financially savvy by leasing over buying new.

I prefer buying (new) because it is mine (technically the banks until it is paid off). I don't have limitations on how many miles I can put on it in a year. I don't have to worry about dings that I get penalized once the term is up. I can mod it the way I want. It is MINE to do with it as I see fit. Again, I see leasing like renting a car, and I don't like renting my cars.
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Almost always keeping a car for 14 years is cheaper than regularly buying a new car every 3 years. I won't argue otherwise.

I will argue that in some cases leasing is cheaper than financing and has ancillary benefits in addition to being cheaper, like being able to bail from the car if desired without any worries of trade-in/selling.

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Cash discounts are generally like unicorns and do not exist. A seller of a car typically couldn't care less how they get their money. They still get "cash" even if you get a .99% loan from a credit union, so that .99% IS .99%, it's not being papered over by a higher purchase price because you didn't pay with "cash".
 
JackBurton said:
In this case, NO monthly payment is desirable.
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I never expect to be in that position. I view cars as just another monthly expense. The only way to have no monthly payment is to pay much more upfront to payoff a car. Leasing allows you to have a lower monthly payment, and save the difference.
 
BrunoPuntzJones said:
Or you can take 168(k) and possible to expense the entire thing in one year, same with section 179. Depends entirely on the vehicle and what you are trying to accomplish.

Just a note that leasing being advantageous for tax purposes got muddied back in 2002 or so 😀
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Was that the light truck thing that made everyone and their mom lease H2s couple years back? Not a CPA, more on the CFA side of things 🙂
 
halik said:
Was that the light truck thing that made everyone and their mom lease H2s couple years back? Not a CPA, more on the CFA side of things 🙂
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Yeah they closed that after a year or two. SUVs were part of the 6,000lb threshold. Could buy a larger/nicer SUV than you were already going to buy and pay about the same amount once income tax was taken into account. Hey I don't write the laws, just make the best use of them 😉
 
I'm a Dave Ramsey fan, hence I like things that are paid off. I love cars, but not enough to want to pay for a car for years and not eventually own it outright.
 
Fenixgoon said:
are you missing a 0? $0.15/mile is insane. if you drive 1000 miles that's $150, which is over half the original lease cost.
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Leases aren't for people who drive a lot. But remember that that $150 for exceeding your allocated miles by 1,000 would get spread over 12 months, so it's $12.50 extra a month, a small fraction of the monthly lease cost.

Me, I'll probably keep driving older cars and saving LOTS of money over buyers and leasers alike.
 
Arkaign said:
I'm a Dave Ramsey fan, hence I like things that are paid off. I love cars, but not enough to want to pay for a car for years and not eventually own it outright.
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I was bad. I financed a bit of my Challenger. 🙁 Of course, in 2 months I'll have it paid off (a total of 13 months).
 
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