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Automotive News & Views The End of Leasing? And do you care?
95 messages, Last post on Sep 03, 2008 at 4:58 PM
You are in the Automotive News & Views Forum. Your Hosts are steve_ & claires
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Replying to: hudsonthedog (Jul 30, 2008 6:19 am) I'm still one who holds onto the car forever so it doesn't much matter to me.
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Replying to: fezo (Jul 30, 2008 6:30 am) If you lease a first year model car that turns out to be a DOG of a car, that is bad enough to disappoint you but not bad enough to quality under Lemon Law, you get to dump it at the end of 36 months if you can't turn it in under a lemon law. If you had owned it, perhaps it would have such a bad reputation after 36 months, you couldn't give it away and would have to sell at a huge loss. Who wants to buy Consumer Reports' "Worst Car"? One thing that leasees don't seem to grasp is that money "up front" you are asked to pay is like throwing your money out the window of the car while you are on the freeway. You're just making advance payments on your monthly dues. Like paying extra rent in advance to your landlord and thinking you got a bargain when he lowers your monthly rent by $50 a month.
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Replying to: nippononly (Jul 29, 2008 7:18 pm) As long as you take care of your car, dont put any additional money down, and don't drive more that 15,000 miles a year, a lease is almost always better than buying when it comes to a NEW CAR. The only way buying makes sense is if you are willing to buy a 1 or 2 year old vehicle with most of the depreciation factored out. By the way, if your "owned" vehicle is not paid off, you do not OWN it. The financing company owns your vehicle until it is sold or paid off.
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Replying to: tmgeneral1 (Jul 30, 2008 10:50 am) I will say my buddy with the Subarus swears by his method. It helps I suppose that he picks slow depreciating cars. |
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I honestly think those that are so adamantly against leasing either don't understand it or wound up having a bad experience because they didn't do their homework. I can see why Chrysler would stop if they wrote alot of lease deals like we had on our '05 Pacifica. We got about $8k off sticker, had about a 50% residual ($18k on a $36k vehicle). Lease rate worked out to about 0.79%. 3 years and 45k miles later, the vehicle was worth around $12k, but we got to turn it back to the dealer and walk away. We ALMOST purchased it, but the low rate of the lease convinced us otherwise. I am every so thankful we leased! Saved us $6k in depreciation and several hundred in interest. |
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Replying to: tmgeneral1 (Jul 30, 2008 10:50 am) I don't see how my one-year depreciation is going to be any worse (and will probably be better) than someone who put down $2,500 and $350 a month for 12 months and now wants out of a lease. It's really not fair to use sub-vented leases as comparisons, unless you compare it to a heavy incentive on a new car purchase.
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Replying to: lemko (Jul 30, 2008 6:09 am)
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Replying to: Mr_Shiftright (Jul 30, 2008 12:20 pm) Hmmmm... why not? I did compare it to the purchase that was available at the time. The lease was better. Why is that not fair? I didn't set the rules. I just took advantage of them. I mean, I certainly wouldn't cry "no fair" if someone got a great, heavily subsidized purchase deal while the lease deal at the time wasn't so hot. And, really, no matter how good a purchase deal gets, it can't compensate for an overinflated residual like we got on the Pacifica.
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Replying to: qbrozen (Jul 30, 2008 12:33 pm)  It would be fairer to say something like this: "Look I'm a professional stock broker and I can beat the game". Yes you can, with a) your knowledge and b) a market in your favor. Right now, most people have little knowledge of leasing and the market is definitely not in favor of sub-vented leasing. But I'm not doubting that you got a killer deal...that one time....
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Replying to: ponytrekker (Jul 30, 2008 12:28 pm) That does sound like a lot of money for a 2005 vehicle. How many miles do you have on it? I think the most I ever spent on my 2000 Intrepid in a single year was $2,000. And that was just last year...2007. The car started that year with about 128,000 miles on it. I'm into it about $940 so far this year, but the a/c is dying so I have the choice to either throw more money at it or tough it out. And I'm finding that the older I get, I ain't so tough.  I guess one way to look at it though, with your 4runner, is this. That $3200 was probably a freak year. It also amortizes out to about $267 per month. I'm sure a new equivalent vehicle would set you back about $500 per month for a 60-month term and minimum down payment. Possibly more. Now, if you're still making payments on that rig, which is quite possible with it being a 2005, having to throw another $267/mo at it in maintenance/repair does hurt. But everything needs maintenance eventually. Even the most reliable vehicles need brakes, tires, belts, tranny servicings, coolant flushes, etc. So you're always going to be paying more than just the monthly payment, no matter how reliable the thing is.
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