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Smart Shopper Smart Shopper-Archives Lease Questions - Ask Here 
23872 messages, Last post on Sep 20, 2005 at 8:08 AM
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Replying to: delrick (Sep 15, 2005 5:34 pm) This is the most important thing anyone needs to know about leasing." [..] Obviously one of the strongest inducements to lease has always been the prospect of driving a car you couldn't otherwise afford for less money. Exactly what is the logic behind your silly assertion to the contrary, other than some elitist notion about the unwashed driving the good stuff....... The benefits of leasing are: - Don't have to worry about selling the car. - Don't have to pay tax on residual [most states]. - Don't have to worry about diminished value following a collision. - Some cars are in fact cheaper to lease than to buy. The danger is that for whatever reason, you'll wind up in a changed situation where you have to drive a lot of miles, or you move abroad and need to end the lease, or your three-year-old pours Elmer's white glue down the AC vents of your 530i. When "stuff" happens, it can cost a bunch of extra money to get out from under. That is why you can't afford to lease cars you can't afford to buy. Elitist notions have nothing to do with this. We're not snobs here, which you'll see if you spend some time reading. -Mathias.
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Replying to: steine13 (Sep 15, 2005 5:46 pm) In fact among the myriad reasons for leasing, one of the strongest has always been the ability to acquire a better vehicle for less money. I suppose there is a subtle distinction here between costing less money and ability to afford, but I submit that the same litany of things that can go wrong is equally applicable to financing a purchase.. So perhaps your point is unless you can pay cash for a car, walk. |
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Replying to: delrick (Sep 15, 2005 5:34 pm) Well.. gee.. I find it pretty hard to be elitist when I have to punch a time clock everyday. I think you are the first person to ever accuse me of that... Although, I have been called a clown...  Leasing is just an alternative form of financing... You still have exactly the same costs as purchasing.. Depreciation, financing, maintenance, insurance, etc... The only difference is the cash flow schedule... On a purchase, you pay more of the money sooner, and less later, than on a lease... But, in the end, driving a car for three years doesn't cost any less by leasing... As Mathias pointed out, a person's situation and driving needs can change... If you put a decent downpayment on a car, and your loan is for 60 months or less, you can always sell your car to get rid of the debt, or if you can still afford the payment, but your driving needs have changed, you can pile on all the miles you want.. You have options... But, if instead of buying a $30K vehicle with 20% down and a $500 payment (assuming that is your budget), you go lease a car that MSRPs for 40% more, with the same $500 payment... and then you suffer a financial setback, or your driving needs change.... you are committed to a vehicle that will shortly be much more expensive than you can afford.. So, if you have a 20% downpayment and a budget of $500, and choose to lease that $30K car for $350/mo. instead... then no problem.. But, if your alternative is to use your entire $500/mo. budget to lease a $42K car, that you could never afford to purchase... then you are just setting yourself up for major financial problems.. regards, kyfdx Host-Prices Paid Forums |
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In fact among the myriad reasons for leasing, one of the strongest has always been the ability to acquire a better vehicle for less money. That was my whole point... You can't acquire a better vehicle for less money.. it just results in a smaller monthly payment... not any sort of real savings.. I agree... this is the reason many people lease... I just think it is the worst reason... regards, kyfdx |
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If you want to see where another member has posted... or how often they post, just click on their member name, and you can see their last ten posts... regards, kyfdx Host-Prices Paid Forums |
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Replying to: Car_man (Aug 22, 2005 2:08 am) And is there a way to keep the salesman honest about my credit tier? So I will not be given a quote calculated with tier B, while in fact I am qualified for tier A. Thank you.  Ning |
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| please advise if this is a good deal. journ/tech pkg,15k/yr,39months,612/mo with 1,700 incept. plus multiple sec. dep of $5,600. list is 51,100, sell is 48,724 mf is .0014, residual is 29,369. cars are on lot. please let me know carman | |
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Hello, I'm working a lease deal on a 2006 BMW 530i. In Texas (I live in Austin), sales tax must be paid on the full selling price. So, I'm trying to figure out if I pay the taxes in full at inception or roll them into the capitalized cost. The deal looks like this: 2006 BMW 530i MSRP $53,465 Sales Price $51,500 Acq Fee $825 Sales Tax (6.25%) $3223 Sec Dep $700 Residual 62% MF .00215 36 months; 12K miles/year Lease payment is ~$690/month So... 1) Does this look like a good deal? 2) How have others in Texas handled sales tax on a lease? Many thanks in advance, Sean |
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Car_man: Could you provide MF and residual for the following: 2006 Freestyle Limited, FWD, w/o Nav 12,000 miles per year 24, 36, 48 month lease 2006 Explorer Limited, 4x2, w/o Nav 12,000 miles per year 24, 36, 48 month lease Thanks/// |
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Gurus - On a lease - do you calculate your tax on the negotiated sales price of the car then divide by your number of months or do you calculate your monthly lease payment then multiply that by your tax rate ? |
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