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#2
07-21-2005, 12:42 AM
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Re: Leasing or buying a car
[ QUOTE ]
Which do you think is better? [/ QUOTE ] Leasing is just plain retarded... It's like buying implants for a girlfriend, you spend all that money but when you break up in 2 years, someone else is going to be playing with them titties while you're left with your cock in your hand. 
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#5
07-21-2005, 01:08 AM
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Re: Leasing or buying a car
Don't be so quick to write off leasing. In the metro Detroit area, you can lease a Dodge Dakota (just an example) for $1300 for 2 years. Granted, this isn't an awesome car, but you can't beat that deal.
Generally, however, i'm pro buying.
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#6
07-21-2005, 01:18 AM
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Re: Leasing or buying a car
Buying makes better financial sense in the long run, and you don't have to deal with keeping below a certain yearly mileage like you do on a lease.
However, leasing does have perks. Because of the lower monthly payment compared to financing, you can get into a car that you might not have been able to get into if you'd financed. If you can deal with the yearly mileage limit, this might be an option. But if you're intending on financing the car after your lease runs out, you'd be MUCH better off served by financing from the very beginning. Leasing and then financing is a very effective way of wasting money.
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#7
07-21-2005, 02:14 AM
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Re: Leasing or buying a car
[ QUOTE ]
Which do you think is better? [/ QUOTE ] Easy - I just went through this experience..... Last Friday, I bought a new Infiniti G35. Not to be screwed over by the salesperson, I had already done my research on the invoice price of the exact car I wanted...ended up getting it at about $100 over the Edmunds.com invoice price. Additionally, I came in with laptop and handy loan amortization spreadsheet (one of the other dealers I had visited had given me a good bottom line price, but attempted to hose me on the financing, so I was better prepared this time). Anyhow, if you buy a car, the amount that you finance works just like a normal loan - take your loan principle, APR, yadayadayada. You would think that a lease would work similarly: you could take the new car price, subtract the end-of-lease residual value (generally, 55-60% of the new car MSRP), and the difference would be the amount you are responsible for paying over the course of the lease. If this amount is financed, it should act just like a normal loan - again, loan principle, APR, yadayadayada. However, if you lease the car, it does NOT work quite the same way: they tack on a "lease charge" and it can be very costly. In my situation, the "lease charge" was about an extra $85 / month (and, yes, a "lease charge" is standard for all leases). I figured this out when the salesperson showed me his screen - the monthly lease payment amount I had calculated in my loan amortization spreadsheet was a subtotal on his screen; right below it was an added "lease charge", which explained the difference. When I ran the numbers, I made the startling discovery that by buying the car, over the course of my loan (60 months) I would pay less in loan interest than if I would pay in the "lease charge" plus loan interest over the course of my lease (36 months). Scary. You would think that the amount you would pay if buying a car outright would equal the amount you would pay over the course of the lease plus the residual value at the end of the lease. This is very much not the case. You pay a very hefty toll for the right to walk away from the car at the end of the lease.... Anyhow, hope this helps...don't lease, if you value money.
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#10
07-21-2005, 02:55 AM
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Re: Leasing or buying a car
Read that paperwork before you sign it. It's not unheard of for a dealer to agree to sell the car, then stick lease paperwork in front of you.
There should be a special circle of hell for car dealers.
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