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YACT: Leasing Cars?

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Originally posted by: kermalou
lets see....i drive a 40k car, that i could have never afforded any other way but leasing.

my end cost will be about 17k after three years of driving the car and I have no worries of having to find a buyer and stuff....

it all depends on your priorities.
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If your priority is to own more car than you can afford, then you're doing the right thing. That's not my priority, and I would not recommend that anyone have that priority.
While your car will cost you a net $17k for 3 years (and probably 36k-45k miles), my last car cost me less than a net $10k for 5+ years and 80k miles of ownership. And as I had paid it off in 3 years, I got to own it for 2+ years with no car payment, and I really didn't care when I bought my new car how long it would take to find a buyer for it. I put it in Autotrader and knew that the right buyer would come along. He did in due time and I pocketed $11k in equity. Sure, it was only a $21k car, but it was a great car that never broke down (not once), that looked good enough to turn heads, and was sporty enough to get tickets.

There's nothing wrong with buying a new car. There is something very wrong in buying ANY car you can't afford. If you think that leasing automatically makes things better or cheaper, it doesn't.
 
vic, that is correct.

but the car i have now, would have cost me 40k back then and the blue book for this car now with excellent condition is about 20-23k. in the end it would be about a wash and plus I get a bus,. deduction as well.
 
Originally posted by: kermalou
vic, that is correct.

but the car i have now, would have cost me 40k back then and the blue book for this car now with excellent condition is about 20-23k. in the end it would be about a wash and plus I get a bus,. deduction as well.
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Ah... business deduction... why didn't you say so? That makes things MUCH different. My argument is that no one should every lease for personal use. For business, one should always lease. 2 entirely different worlds.
 
I just see leasing as being able to get a car that I wouldn't be able to finance because I can't afford it. But I also see it as throwing money down the drain faster.

What are some situations where it would be ok to do a personal lease? I'm thinking the answer is there none.
 
Originally posted by: WobbleWobble
I just see leasing as being able to get a car that I wouldn't be able to finance because I can't afford it. But I also see it as throwing money down the drain faster.
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Read that statement back to yourself. You know you can't afford it....yet you would still even consider it?
If you absolutely MUST have a "prestigious" car, then go ahead and lease, just understand what you're getting yourself into, and that you will save a lot more by keeping that Tercel as long as you can.
What are some situations where it would be ok to do a personal lease? I'm thinking the answer is there none.
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If you can write the cost off as a business expense (i.e. you are self-employed).
 
I like to lease, but it wasn't the best choice when I thought that the wife was going to continue to put 35K mi. on cars a year.

So, I bought and as of right now I'm very upside down on the 0% loan for my Traibazer, not that I want to get rid of it.

 
I'll probably look at a nicer used car. I was looking at some Preludes, but I've always been fond of the 3.2 TL and CL. But then people always question me when I say I want to do that because I can have a decent new car for that price. But I want something a little more then a Civic or something. Mazda3 is ok, but I want more. So I guess used is probably the route to go.
 
Originally posted by: WobbleWobble
I'll probably look at a nicer used car. I was looking at some Preludes, but I've always been fond of the 3.2 TL and CL. But then people always question me when I say I want to do that because I can have a decent new car for that price. But I want something a little more then a Civic or something. Mazda3 is ok, but I want more. So I guess used is probably the route to go.
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I guarantee it is. I would like to know why spending $30k CAN on a used car is a bad idea vs 30k on a new? If you sell either one in 3 years you'll be getting a lot more for the used one.

Best thing I ever did was buy my 93 sentra for $2300 instead of a new econobox, which I nearly bought (golf or sentra were in the running). A year after I bought it I spent $15k on my maxima (instead of $19k on a new altima or something). The maxima is more car than an altima 2.5S could ever dream of being, and it was cheaper, and I've been at the break even point on what I owe and what it's worth ever since I bought it - meanwhile dumping fully 25k/year on it. You buy a new car and put 25k on it in the first year you can kiss 25% of its value away.

If you buy a more prestigious used car it makes better financial sense and, for the same cost, you're driving a nice car instead of an econobox.

It's your money, but when in doubt UNDERSPEND. Trust me 🙂

 
Don't lease a car unless you're CERTAIN that your driving habits won't change over the next few years. If you move or get a job transfer that requires you to drive more than you're driving now, you will get KILLED in mileage penalties.

Also, don't get a lease if you have a hankering to modify your car. Your lease contract won't let you.
 
Can I tint windows on a lease? What about replacing the sound system? I'd replace the old one back when I return the car right? I guess that's the same deal with rims?

Or is that all a no-no?
 
Originally posted by: WobbleWobble
Can I tint windows on a lease? What about replacing the sound system? I'd replace the old one back when I return the car right? I guess that's the same deal with rims?

Or is that all a no-no?
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should be able to do both. just put the stock system back in the car, thats what a friend who leased a truck (worst mistake of his life) did
 
I don't even need to say this but you really just do not want to get a new car, lease or purchase. Really take a look at the friends you are thinking you want to impress... what are they driving?? Another thing to think about... isn't getting a used car thats a nice sedan still going to be a HUGE difference from what you are driving now?
 
Performance is an issue as well. While I'm not a street racer nor do I plan on doing so, it does feel good to have a few more horses under your foot. I never excessively speed, but I do follow the flow of traffic (which almost always isn't the speed limit). Driving to me is fun and not just a way to get from point A to point B.

I purposely like to go to places just a little further or go a route where I can take the highway. Driving is fun and that's my priority 🙂
 
Have you looked into RBC Royal Buy Back? That's what I have on the Prelude right now.

If you have a plan, then the RBB option can still make sense. Amortization is 5yrs and 2mnths I beleive, and I have it on a 4yr term with a buy back option at the end of the 4th year.

This gives me flexibility to either keep the car or ditch it at the end of the term. And I can put down extra principal payments anytime between now and the 4th year, so they can't take as big a bite on the interest portion. My plans are to throw extra money into the loan whenever I can to help out.

Royal Buy Back applies to not-so-used vehicles as well. With this option, you're not limited to any mileage restrictions as well.

 
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