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Smart Shopper How Do I Calculate Monthly Lease Payments?
199 messages, Last post on Nov 02, 2009 at 6:41 AM
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Replying to: Poehler (Jan 16, 2009 7:31 am) Here is my advice on leasing. My personal belief is leasing is best suited for the person who can write off the lease payments for business purposes. For the casual consumer if you are considering leasing for financial reasons of a lower payment, then I would steer you to find a less expensive car. Find a car you can afford, pay it off in 3-5 years and drive it for 6-7 years. It makes the best economic sense. Key things on leasing. One, make sure you can adhere to the mileage limit. You will pay more monthly to get a lease with a 15K allowance, but that increase in monthly payment is far less than if you were to bring in the car with over mileage and have to pay 15-25 cents per mile. Second, if you have kids or this is the primary family vehicle. Consider that you are responsible for any damage that exceeds normal wear and tear. Cars are just more prone to dings, dents, and damages when shuttling kids around and parking at barks, rinks and ball yards. Finally, remember. Unlike a purchase you are committed to making those payments over 39 months. You are stuck with this vehicle for 39 months, even if you lose your job, drop in income etc...unlike a car you can always sell or trade in. Leasing and Financing our ways to "pay" for the use of a vehicle. How you purchase the vehicle does not change. So, shop around. Negotiate the selling price first and get the car for as low as you can go. My personal belief on the EXL is the bottom is around $30,500. (price plus dest.) So, I think you are very close - I would try to shave off another 200-400 hundred. As far as putting money down. My advice is to avoid it at all costs. In your case $600 is not that significant. But I profess never pay more than tags/regs/ and doc. The main reason being if you total the car - you are the only one that loses. Your insurance covers the amount due to the leasing Company so why put any of your money down, which no one will reimburse you for? Don't be fooled into seeing a lower monthly payment. In the end you pay the leasing company the same amount. Keep your cash. I did get your email, and I will send you the lease spreadsheet. Good luck. BTW I am looking at the EXL myself.
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Replying to: golic (Jan 16, 2009 12:29 pm) Nice advice. Sadly, most people can't afford new cars without leasing. Paying off a $35,000 car in 3 yrs is beyond 99% of the car buying public. Even people with money don't do this. Wealthy people are far more likley to lease than buy their cars. Granted, they go for more expensive cars. Finally, remember. Unlike a purchase you are committed to making those payments over 39 months. You are stuck with this vehicle for 39 months, even if you lose your job, drop in income etc...unlike a car you can always sell or trade in. Actually, you CAN trade in or sell a leased car. There is a payoff amount just like a purchased car. If you trade in a purchased car early in the term, you will be upside down same as in a lease. Leasing and Financing our ways to "pay" for the use of a vehicle. How you purchase the vehicle does not change. So, shop around. Negotiate the selling price first and get the car for as low as you can go. Be careful. Some manufacturers have bigger cash incentives for leasing than purchasing. If you go in and negotiate a cash price, you may be leaving money on the table. As far as putting money down. My advice is to avoid it at all costs. In your case $600 is not that significant. But I profess never pay more than tags/regs/ and doc. The main reason being if you total the car - you are the only one that loses. Your insurance covers the amount due to the leasing Company so why put any of your money down, which no one will reimburse you for? Very good advice.
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| Just wanted to say thank you all for the input. I think it's great to have a web site like this, very well done, kudos to all. Thank-You very much. -JMP | |
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Replying to: volvomax (Jan 16, 2009 3:40 pm) Paying off a $35,000 car in 3 yrs is beyond 99% of the car buying public. Even people with money don't do this. Wealthy people are far more likley to lease than buy their cars. Granted, they go for more expensive cars. You are right about this volvomax. And here is the system I use for our family car. I bought a car I could afford and pay off over 5 years and drove it for 7. However, in years 6 & 7 I still made those "car payments" into a savings account. Then I traded-in that old car for a few grand plus used the cash I was saving as a down payment and financed for 48 months. Same cycle. Drive it 2-3 years longer after the payoff and continue to pay myself. Eventually, I will get to the point of having the equity to get a car that meets a budget that I can pay off in 36 There are many affordable cars that can be financed for 60 months. It may not be the one to allow you to keep up with the joneses, but as someone once said, one should avoid investing/financing a depreciating asset. Will I drive Beemers or Lexus? No, but I am content with honda/toyota or a buick .
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Replying to: golic (Jan 16, 2009 3:57 pm) Which is fine. Most people would rather have a nicer car if they are always going to be making a car payment. |
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Replying to: golic (Feb 26, 2006 7:43 am) Can you also send me the excel sheet? I'm about to lease an Infinity 2008 G35 and no money down , $399 for 36 months, 10,000 miles per year. I do not know how they are calculating this on a car that's $30,000. Thanks in advance, jdl1
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Replying to: jdl2 (Jan 18, 2009 6:43 am) |
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Replying to: jdl2 (Jan 18, 2009 6:43 am) I would appreciate your sending me the lease calc on excel. Thanks for your help.
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Replying to: kevindkoenig (Feb 03, 2009 3:20 pm) Your email is set to private. Click on my name and send me an email and I will forward it to you. G |
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