re: Questions on Leasing a Vehicle

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this is obviously irking you. You may even be in a worse position than i thought if you honestly think i'm going to compile a list for you to prove my internet argument with some debt ridden kenner resident

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So you're just full of shite, got it. Sweet personal attack bro.

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There are several tax benefits from leasing a car if you use it for work.

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Like what?


Everyone says this but no one can tell me what they are.

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It's just tricky. I'm not sure how well a car like that would resell after several winter seasons of use, so a lease is attractive for knowing you will get out of the payment with no negative equity.

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That's where my head is. I wouldn't be the least bit surprised to find that cars out here depreciate faster. This winter we've had 50+ days of negative temperatures. I'm sure that has to take a toll.

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On the other hand, if you're going to be there a long time and know this car will keep you happy for say 8-10 years, buying is a better option IMO.

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I wouldn't want to keep ANY vehicle for 8-10 years.

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Lease (39 mos.): Down - $4,999 Monthly - $249 Tax (@ 5.75%) - $2,558 Total for 39 months - $17,268 Can purchase for $23,752 Buy ($40,000 vehicle with 39 month term): Down - $10,000 Monthly (@ 2.83%) - $806 Tax - (@ 5.75%) - $6,956 Total - $48,390 How much would the vehicle have depreciated?

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Two things you are forgetting here:

The back costs of a lease. Any ding, dent, paint chip, wear and tear that exists when you turn it in you have to pay for. This is where they get you. Which is why when you are signing the lease they will try to sell you "gap insurance" to cover those expenses when you turn in the car. Either way you will pay for it.

Any equity built up in the purchased vehicle. You have none in the lease, you could have some in the purchased vehicle.

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What isn't? Of course everyone in america wants to drive a NICE car. It takes time, effort, and dedication to be able to do these things while not overextending yourself and making a piss poor financial decision in process. You summed up the mentality of america and it's sickening.

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They don't give away the ones they sell outright either.

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Dealerships make far more money on leasing than purchases or finances. Why do you think when you see car ads or hear them on the radio they are always pushing "xxx per month!" leases and rarely disclose the MSRP or purchase price? They know they can suck more people in via monthly payments rather than a purchase price.

Dealerships don't make a lot of money when someone buys a car straight cash. But they are willing to negotiate more and drop the price down because they need to move inventory.

They can make some money on finances by selling the note to another bank, but not as much as leasing.

Leasing is where dealerships make their money and that is why they push it so hard. They try to convince you you are getting a good deal. Because they try to sell you on payments and not price.

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Do you know what they base the rate on? Any idea on average monthly rate?

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It's a decent amount of money. I was an idiot and tried to lease a car once. They suckered me in with the $199 per month payment. "I can afford that, I thought"

Then they get their sales techniques out. They fear monger you, saying "If you go without the gap insurance/wear and tear insurance, you will have to pay all of that at turn in and it can be a lot. Or you can pay so and so a month and be covered"

When all was said and done I added on extra milage which raised the payment about $25 a month and then the gap insurance/wear and tear insurance which brought the monthly payments from $199 a month to about $330.

I didn't end up signing BTW

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What isn't?

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Well that's just a bit of a cop out, eh? I think you're taking what I said a little too far. I don't know OPs full financials like you might, but it sounds like he can easily afford his payment while still saving a ton of money, so what's so wrong with him rewarding himself?

And I'm getting a little tired of the that's what's wrong with America argument. I never told him to overextend himself. But people like you come into every single thread about buying a car to say the same shot over and over. It gets old.

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ealerships make far more money on leasing than purchases or finances. Why do you think when you see car ads or hear them on the radio they are always pushing "xxx per month!" leases and rarely disclose the MSRP or purchase price? They know they can suck more people in via monthly payments rather than a purchase price.

Dealerships don't make a lot of money when someone buys a car straight cash. But they are willing to negotiate more and drop the price down because they need to move inventory.

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The same can be said for the "No Money Down" deals, which is what I'd have to do to buy something. I can't pay cash, it's just not an option. If I put more than $5k down, I won't have furniture.