What do you guys think about leasing cars?

OutHouse · Oct 12, 2011

my thoughts on leasing is this.

1. you are just renting a car. may as well go to Hertz and get one
2. car companies make leases attractive because they never want you to pay off a car, they want you to be a customer forever.
3. Leasing is a easy way to get more car than you can afford.

Leasing for a company vehicle or vehicles makes sense and i understand why companies lease vehicles. Me personally i am not interested in having a new vehicle every 3 years. I bought my Camry new in 2004 with a 4 year loan and ill tell ya, its very nice not having to write out a monthly car payment since 2008.

akshatp · Oct 12, 2011

As for minor dents and scratches, most dealers go with the "Credit card rule"

If its small enough to be covered up with a CC, you wont be charged for it.

Leasing is great if you normally get a new car every few years anyway, and you dont have to worry about the hassle of selling your old one/getting raped on a trade.

DominionSeraph · Oct 12, 2011

Leros said:
I haven't worked the math out yet. If I bought a car, paid it off over three years, and then sold it... would I spend more or less than leasing the same car for three years?

Depends on what the numbers are! You can find some horrendous leases.

Leros · Oct 12, 2011

Via said:
I would think less.

That Altima I linked to couldn't have cost more than $25000 new, and here it sits, five years later at $19,000.

You'd get all that cash back, making your driving cost $6000 over 5 years. Can you lease for that?

I find it strange than a 5 year old car that originally costs $25k would be valued at $19k. That seems overvalued.

I bought my Nissan Maxima (all the options included) when it was 5 years old (in 2005) for $9k.

OutHouse · Oct 12, 2011

ElFenix said:
P=(Cr(1+r)^N -Fr)/((1+r)^N -1)

guess what r is?

money factor.

Via · Oct 12, 2011

That's my point - the used car market is nuts right now. Use it to your advantage.

DominionSeraph · Oct 12, 2011

Via said:
That Altima I linked to couldn't have cost more than $25000 new, and here it sits, five years later at $19,000.

Altima SE with leather and moonroof? Probably over $30k MSRP new.
My '04 Grand Prix GTP was $31k with the same.

OutHouse · Oct 12, 2011

Via said:
I would think less.

That Altima I linked to couldn't have cost more than $25000 new, and here it sits, five years later at $19,000.

You'd get all that cash back, making your driving cost $6000 over 5 years. Can you lease for that?

Kelly Blue book list that car at 17,250 retail and 14.5 private party.

i think Edmunds is more realist in pricing for this car.

Edmunds list that car at
*Trade-in $10,116
*Private Party Sale $11,724
*Dealer Retail $13,208

akshatp · Oct 12, 2011

Via said:
I would think less.

That Altima I linked to couldn't have cost more than $25000 new, and here it sits, five years later at $19,000.

You'd get all that cash back, making your driving cost $6000 over 5 years. Can you lease for that?

I could list my 10 year old Mercury Cougar for sale and put a price of $40,000 on it. That doesn't mean someone will give me more than the $4,000 its worth.

The key words in your post were "here it sits"

OutHouse · Oct 12, 2011

Via said:
That's my point - the used car market is nuts right now. Use it to your advantage.

i agree with this. 7 months ago i bought a 2004 Toyota Matrix for my daughter. the car is a certified toyota and looked brand freaking new inside and out. It had brand new tires on it,the lettering still were blue, brand new brake pad all the way around, new oil and filter and a radiator flush. and carfax reported the previous owners were religious about getting the oil changed at the dealer. every oil change listed was right at 6K miles. the only downside is the milage was at 110K and for a toy that is no big deal at all. the sticker on it was 7,999. i talked them down to 6K flat and drove it off. to me that was a killer deal on a good reliable car that will last a long time.

my 2004 camry is about ready to hit 200K in mileage and still runs like a champ.

Via · Oct 12, 2011

DominionSeraph said:
Altima SE with leather and moonroof? Probably over $30k MSRP new.
My '04 Grand Prix GTP was $31k with the same.

Nope.

http://autos.msn.com/research/vip/p...ake=Nissan&model=Altima&trimid=104332#trimsel

$19,000 is high, but someone will pay $17000-18000.

DominionSeraph · Oct 12, 2011

OutHouse said:
Kelly Blue book list that car at 17,250 retail and 14.5 private party. i would go no higher than 16 for it.

It looks immaculate. Going with that, with the leather, Bose 6 disc, spoiler, and moonroof, the KBB is $17,670 private party

Via said:
Nope.

http://autos.msn.com/research/vip/p...ake=Nissan&model=Altima&trimid=104332#trimsel

And what do you think the base price of the up-engined Grand Prix was?

That Altima has two $2000+ option packages on it (going by 2012 offerings)

Via · Oct 12, 2011

My whole point is - people are desperate for used cars right now. That last time I was out looking there were 5-6 year old camrys and accords with 100,000+ miles still priced in the teens.

I would definitely buy and sell rather than lease.

Leros · Oct 12, 2011

Via said:
My whole point is - people are desperate for used cars right now. That last time I was out looking there were 5-6 year old camrys and accords with 100,000+ miles still priced in the teens.

I would definitely buy and sell rather than lease.

I was considering buying a 1-2 year old used car on the assumption that it would be vastly cheaper than a new car. If used cars are really that high in value, then I might lean towards buying a new car.

Via · Oct 12, 2011

Leros said:
I was considering buying a 1-2 year old used car on the assumption that it would be vastly cheaper than a new car. If used cars are really that high in value, then I might lean towards buying a new car.

Imagine if you can get 0% interest.

OutHouse · Oct 12, 2011

Leros said:
I was considering buying a 1-2 year old used car on the assumption that it would be vastly cheaper than a new car. If used cars are really that high in value, then I might lean towards buying a new car.

you have to shop around by going to the lots and poke around. it took me 6 weekend of dealer lot hopping to find the matrix i bought. i was in no hurry which allowed me to find the right vehicle at the right price. That is a lot of power to hold over the nice salesman who offers you milk and cookies when you sit down to barter.

when you negotiate a fair price and the dealer says no. walk away. its amazing how that gets their attention and suddenly want to meet the fair price you put on the table.

DominionSeraph · Oct 12, 2011

Via said:
My whole point is - people are desperate for used cars right now. That last time I was out looking there were 5-6 year old camrys and accords with 100,000+ miles still priced in the teens.

A decked-out Camry can push $35k. KBB for a 2005 with 100k miles is $12k private party and suggested retail of $13.7k. Seeing them for $14/15k retail would not be a surprise.
If they were being offered for and actually selling for $19k, that would be something else.

OutHouse said:
you have to shop around by going to the lots and poke around. it took me 6 weekend of dealer lot hopping to find the matrix i bought. i was in no hurry which allowed me to find the right vehicle at the right price. That is a lot of power to hold over the nice salesman who offers you milk and cookies when you sit down to barter.

Yup, that can also be a big help.
I waited 4 months for my Grand Prix to fall out of the sky. I'm quite glad I waited for that particular deal to show.

Via · Oct 12, 2011

But the original retail of that 2005 car was $18,000.

http://autos.msn.com/research/vip/pricing.aspx?year=2005&make=Toyota&model=Camry&trimid=99557

So you can buy a car in 2005, drive it for 100,000 miles , and still get that kind of money for it?

Sign me up.

ElFenix · Oct 12, 2011

DominionSeraph said:
It has nothing to do with the customer.
If the leasing company loses millions because they finance that Veyron at 500% while offering it to you at $100/mo it doesn't change that you're getting a Veyron at $100/mo.

go play with your ponies.

OutHouse said:
money factor.

it's actually the monthly interest rate expressed as a decimal rather than a %. money factor is close to 1/2 of that number.

DominionSeraph · Oct 12, 2011

Via said:
But the original retail of that 2005 car was $18,000.

http://autos.msn.com/research/vip/pricing.aspx?year=2005&make=Toyota&model=Camry&trimid=99557

So you can buy a car in 2005, drive it for 100,000 miles , and still get that kind of money for it?

Something's funky with the KBB for the '05 Camry. It shows a stripped-down base (i4 with cassette) as being worth $800 more than a decked out XLE V6.

DominionSeraph · Oct 12, 2011

ElFenix said:
go play with your ponies.

Dr. Zaus · Oct 12, 2011

Do not lease. It is a bad idea.

DominionSeraph · Oct 12, 2011

DixyCrat said:
Do not lease. It is a bad idea.

It can be. Getting a loan from your credit union and buying new is far safer than going into leasing uninformed. I'm looking at a lease rate right now that would have someone paying $17,000 over 24 months on a $24,000 MSRP ($22k invoice) Camry. That's one way to blow $11,000.

Mr. Lennon · Oct 12, 2011

DominionSeraph said:
It can be. Getting a loan from your credit union and buying new is far safer than going into leasing uninformed. I'm looking at a lease rate right now that would have someone paying $17,000 over 24 months on a $24,000 MSRP ($22k invoice) Camry. That's one way to blow $11,000.

Jesus that is terrible. My previous car took a shit on me and I only had $2500 to spare for a new one. It was either get a complete piece of shit that might die on me (just moved to an area that I have no friends/family), or get a brand new 2010 Mazda 3S. After everything was all said and done, I'm paying $8,000 over 36 months.

vi edit · Oct 12, 2011

Leasing is one of those words that just turn people into irrational, emotional morons. Like I said earlier, there are bad ones, and there are good ones. And there are people who are perfect for them and people who aren't.

If you grow tired of cars quickly and would be trading out every 2 or 3 years they are the ideal setup for you. When VW or some of the luxury brands do their $0 down "sign and drive" or whatever they name them specials you are basically getting the car at a 0% interest rate and you don't have to worry about any depreciation or being upside down when you go to get rid of it when your lease is up.

The real big thing to look at is the money down required by the terms (that can be sneaky high amounts) and how your state handles taxes. If you live in a reasonable state (unlike IL) you'll only get taxed on the payments or the amount of the car you use. In IL you'll get taxed on the whole freaking MRSP. And if you want to keep the car, they'll be happy to tax you again on the lease buyout amount. LAME.

I only recommend leasing when the brand is offering special rates that are clearly definded. Usually they are dropping the money factor (interest rate of lease) down to almost nothing or jacking up the residiual to make the use % more in your favor.

If you like moving into different cars that is usually a financially poor decision, but so are a billion other choices you could make. It's your money, do what you want with it. If that's your lifestyle and there's something you like with decent payments then leasing is a better choice for you than financing/buying and trading in every couple years.

What do you guys think about leasing cars?

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