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Leasing vs. Purchasing

517 messages,  Last post on Sep 17, 2009 at 12:47 PM

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What is this discussion about? Car Financing, Car Leasing

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#513 of 517 Lease or Purchase by ctsfan Sep 16, 2009 (10:57 pm)
I recently went to a dealer for quotes on the 2009 CTS. The 48 month lease (12,000 mi/year) quote was $540/month and the financing quote (0% for 72 months) to purchase car was $550/month. No money down for either quotes.    I've always leased my cars for no more than 39 months. So, is 48 months too long to lease a car (i.e. is it worth it)? Since I've never financed a car for purchase before, is 72 months too long of a time period to finance?    HELP! Replies to this message: kirstie_h (Sep 17, 2009 6:15 am) ctsfan (Sep 17, 2009 9:38 am) corvette (Sep 17, 2009 12:47 pm)
#514 of 517 Re: Lease or Purchase [ctsfan] by kirstie_h HOST Sep 17, 2009 (6:15 am)
Replying to: ctsfan (Sep 16, 2009 10:57 pm) Both certainly seem like a long time to me.   On the lease - be aware that it is difficult to impossible to get out of a lease once you're in it, without HUGE financial penalties. If you go the leasing route, you need to be sure that the 12,000 mile/year limit and the vehicle will suit your lifestyle for 4 years. Think about the future - any possibility of moving? is your job stable?   On the purchase - 72 months is also a long time. If you are used to changing vehicles every 3.5 years, 6 years may seem like an eternity. Since you're putting no money down, you are going to be upside-down on loan-to-value for a long time, meaning the vehicle will be worth less than you owe on it for the majority of the loan payment period. This means that if you don't like it or want to trade it in, you may not be able to do so (without significant negative financial implications) for about 5 years.   There isn't a one-size-fits-all decision here. You just need to be aware of the financial facts - if you look at them and think, "yeah, I can live with that," and you love the vehicle and can comfortably afford the payment, then it's reasonable for you to get the vehicle. Replies to this message: ctsfan (Sep 17, 2009 9:38 am)
#515 of 517 Re: Lease or Purchase [kirstie_h] by ctsfan Sep 17, 2009 (9:38 am)
Replying to: kirstie_h (Sep 17, 2009 6:15 am) Thank you kirstie h!
#516 of 517 CTS by stickguy Sep 17, 2009 (12:12 pm)
well, given these facts, the purchase seems to be a better idea.   Usually a lease is going to be significantly cheaper monthly. $10 doesn't seem to qualify!   Look at it this way. For $480 total over 4 years, you can effectivley "buy" a 4 YO CTS for $550/mo for 2 years.   look at it the other way, if you keep it 4 years, you will owe. $13,200 o nit. Do you think it will be worth at least that much at that piont? Is that less than the lease buy out price (which is what the leasing company is "betting" it will be worth at that point).   Hard to tell with 0% financing when you will cease to be upside down in the loan, but as Kirstie noted, getting out of a lease is nasty. If you want to trade the Caddy in after say 3 years, piece of cake.
#517 of 517 Re: Lease or Purchase [ctsfan] by corvette Sep 17, 2009 (12:47 pm)
Replying to: ctsfan (Sep 16, 2009 10:57 pm) Make sure you have gap insurance if you're putting 0 down and financing for 72 months.

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