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Message
re: Lease vs buying vehicle advice
Posted on 7/29/15 at 1:59 pm to LucasP
Posted on 7/29/15 at 1:59 pm to LucasP
quote:
Downpayments are a ripoff.
Always get the longest payment plan, this lowers your monthly payment.
Shopping around is a waste of time, all car stores sell at the same price, and it's pretty insulting to your salesman. (He's a professional let him do his job)
Nice to see you returning to form
0
Posted on 7/29/15 at 2:03 pm to Supermoto Tiger
quote:
The total of all of your motorized vehicles should not exceed 1/2 of your annual pay. Mortgage should not exceed 1/4 of your monthly take home pay (after tax)
Lol
Posted on 7/30/15 at 5:31 am to LNCHBOX
quote:
According to whom?
Dave Ramsey
Posted on 7/30/15 at 6:21 am to Supermoto Tiger
The same guy that says no to buying new cars said cars can equal he your annual income? Posted on 7/30/15 at 6:34 am to Makinbacon
I'm with [ Barf ]
buy a used vehicle like every three years, pay cash if you can
new is a waste of money. and forgetaboutalease...
buy a used vehicle like every three years, pay cash if you can
new is a waste of money. and forgetaboutalease...
Posted on 7/30/15 at 6:39 am to Supermoto Tiger
Hats off to you if you have the discipline to follow Dave Ramsey's plan to be financially free. But you do realize that guy is not the only way to do things involving purchases right? Just because he says it, doesn't mean it's the gospel.
Posted on 7/30/15 at 7:10 am to Wtodd
quote:
Lease - you don't own shite
Buy - you own shite
This is true, but it's not some simple "good vs. evil" equation. I had a BMW dealer explain to me the "benefits" of leasing and why it can be an attractive option--under certain circumstance.
I won't write a book, but he essentially said if it's important to you (for business or personal reasons) to have vehicle that's no more than a few years old, you don't drive excessively, and you like the option of lower monthly payments (often considerably lower) consider leasing. Yes it means a car payment essentially becomes like a lifelong expense (as long as you're a leaser) but by the time the newness of your car wears off, you'll typically be within a couple of years of an upgrade and you never incur maintenance expenses.
I considered it but ultimately declined (didn't buy anything either). Going to drive the current one until the wheels fall off, but I've had to put a good bit of money into it since I brought it back from the desert.
Posted on 7/30/15 at 7:43 am to Makinbacon
I will help you with your decision.
Leasing provides a good deal for four parties - the sales person, the F & I guy, the dealership’s owner and the finance company (leasing company). It is a lousy deal for the customer. You owe something, but you own nothing. Leasing adds a layer of complexity to the deal that allows the salesman to hide or misrepresent the true purchase price.
Leasing has become an incredibly effective tool for dealers to sell their product at a significantly higher price and profit margin and is often “pushed” or “encouraged” through the sales process.
Leasing makes the car more affordable and therefore easier to sell. The buyer gets focused on being able to drive a nicer vehicle for a lower monthly note than what they most likely could not afford to buy.
Leasing allows the customer to afford a more expensive car, and the more expensive the car, the larger the profit.
Leasing allows the dealer to legally hide the true cost/price of the vehicle and charge you a higher price than you would normally agree to.
A leasing customer is more likely to return to the same dealership to get their next vehicle and next vehicle and next vehicle. Even though your original sales person will be long gone, the dealership is able to maintain customer retention and that’s where it pays off in the long run.
Leasing is a convenience that you’ll pay for in the end. Put another way, if you can’t afford to buy your next vehicle with a four-year loan or less, then you really can’t afford it. The better deal long-term is to buy a reliable vehicle (good, late model used vehicle or lower priced new vehicle) and hold onto it as re-leasing every three to five years is no way to build wealth.
Leasing provides a good deal for four parties - the sales person, the F & I guy, the dealership’s owner and the finance company (leasing company). It is a lousy deal for the customer. You owe something, but you own nothing. Leasing adds a layer of complexity to the deal that allows the salesman to hide or misrepresent the true purchase price.
Leasing has become an incredibly effective tool for dealers to sell their product at a significantly higher price and profit margin and is often “pushed” or “encouraged” through the sales process.
Leasing makes the car more affordable and therefore easier to sell. The buyer gets focused on being able to drive a nicer vehicle for a lower monthly note than what they most likely could not afford to buy.
Leasing allows the customer to afford a more expensive car, and the more expensive the car, the larger the profit.
Leasing allows the dealer to legally hide the true cost/price of the vehicle and charge you a higher price than you would normally agree to.
A leasing customer is more likely to return to the same dealership to get their next vehicle and next vehicle and next vehicle. Even though your original sales person will be long gone, the dealership is able to maintain customer retention and that’s where it pays off in the long run.
Leasing is a convenience that you’ll pay for in the end. Put another way, if you can’t afford to buy your next vehicle with a four-year loan or less, then you really can’t afford it. The better deal long-term is to buy a reliable vehicle (good, late model used vehicle or lower priced new vehicle) and hold onto it as re-leasing every three to five years is no way to build wealth.
This post was edited on 7/30/15 at 7:44 am
Posted on 7/30/15 at 8:09 am to Makinbacon
Leasing is the dumbest thing you can ever do. Renting a car/truck? Come on!
Needles to say, I am dumb. But I will have mine paid off in 2 more painful years. I wanted a bad arse toy so much that I decided to basically pay 1998 style rent for the thing. Never again...and I will own this thing for another 8-10 years at least.
BUY. Don't lease.
Needles to say, I am dumb. But I will have mine paid off in 2 more painful years. I wanted a bad arse toy so much that I decided to basically pay 1998 style rent for the thing. Never again...and I will own this thing for another 8-10 years at least.
BUY. Don't lease.
Posted on 7/30/15 at 8:12 am to VetteGuy
quote:
Leasing is, 99% of the time, a bad idea anyway.
Posted on 7/30/15 at 8:13 am to marcnbc
quote:Why would you want to own something that depreciates at a rate like a car?
Why do you want to rent a car?
I do think in many cases, not all, the anti-lease crowd is really uninformed on how leases work. Some people are going to trade in their cars every 3 years. For those that do and don't put tons of miles on their cars, leasing is certainly a viable option.
Posted on 7/30/15 at 8:18 am to LNCHBOX
quote:I can't speak for all situations. I know when I leased, my monthly payment for 3 years was a good bit cheaper than it woulda been had I had a 5 year loan.
I bet that value is no better than a low trade value though. Can't say I've researched it, but it wouldn't surprise me.
Then the option to buy amount was cheaper than I could have sold it for, though it wasn't by much. I chose to turn it in as the hassle of buying it outright, setting up a loan, then reselling it wasn't worth the few hundred bucks or whatever it probably would have come out to.
Posted on 7/30/15 at 8:25 am to Makinbacon
Bad idea to lease period.
Posted on 7/30/15 at 8:28 am to YouAre8Up
quote:
Bad idea to lease period.
Why do people speak in definites like this?
Posted on 7/30/15 at 8:32 am to Croacka
quote:Reminds me of the crowd that blindly says owning a home is better than renting because...well that's just what I've always heard!!!
Why do people speak in definites like this?
If your argument is everyone should own a car for 8-10 years, of course. But not everyone does, some people want a new car every 3 or so years, and I fail to see how leasing is a bad option for those folks.
I've done both, I've leased for 3 years, and the car I bought after that I still currently have, 7 years later. They both can work well.
Posted on 7/30/15 at 8:38 am to shel311
quote:
the anti-lease crowd is really uninformed on how leases work.
When you buy into a lease, you are buying a car note forever.
Look, every single bit of empirical evidence points to the fact that all cars, irrespective of manufacturer, are far more dependable now than they were 10 years ago. With any kind of reasonable care, any car will last 150K.
quote:
Some people are going to trade in their cars every 3 years.
And those people, 99% of the time, would better off with an initial decent downstroke, buying the car and working the equity to a point that they had a very minimal note.
quote:
leasing is certainly a viable option.
I have softened my anti-lease sentiment a bit as I now agree that in very certain and particular circumstances it could make sense. I still think that, for 99% of car purchasers, it is a poor decision.
Posted on 7/30/15 at 8:44 am to shel311
quote:If your comparing the finances, wanting a car every 2 to 3 years is a poor financial move. That is where the advice comes from.
If your argument is everyone should own a car for 8-10 years, of course. But not everyone does, some people want a new car every 3 or so years, and I fail to see how leasing is a bad option for those folks.
Not every decision is purely financial, so there are situations where a lease is as good as a purchase but those situations are usually the result of a decision not born out of sound financial reasoning.
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