lease vs financing a car (insurance, luxury, motorcycle, hybrid)

[airics]

Originally Posted by Packrat1

ND_Irish is right on regarding the lease vs Finance. Additionally, you should look at resale values of vehicles you are interested in too. The reason is if you do decide to lease and buy the vehicle at the end of the lease for whatever reason, you want a vehicle that is worth at least what the residual is. For example and with all due respect to Ford owners, you wouldn't want to lease a Ford Taurus but a Honda Accord might be a good choice. Many Toyota's hold their value too.

Although it is rare, I have heard cases where a vehicle is so popular that the vehicle is worth more than the residual value. An example would be a Honda Ridgeline when they first came out. I suspect that a Tesla might be in that category but I am not sure.

I have known several people who have leased vehicles and none said they would do it again. Just my opinion.

Honda is a great choice. I remember when Honda had a zero down $199 a month lease on the Accords in the 90s. The buyout was crazy low. At the end of the lease people bought them and sold them with extra cash in the pocket.

[OmegaSupreme]

I appreciate all the info, but it's not all about residual value if you plan on keeping the car

If I've owned it from new, I know exactly what I'm driving and the history of the car

[airics]

Originally Posted by OmegaSupreme

I appreciate all the info, but it's not all about residual value if you plan on keeping the car

If I've owned it from new, I know exactly what I'm driving and the history of the car

it most certainly is about the residual value... thats what you are going to pay to keep the car at the end of the lease.

by leasing, you would also know the history and exactly what you are driving.

[snatale1]

Originally Posted by OmegaSupreme

can anyone explain to me how leases make money over financing from the seller's perspective

it seems like a lease is the way to go, then just finance the residual when the lease is up. but that shouldn't make sense since you would somehow have to be paying for that option

also, what are people's experiences with buying/leasing a car on memorial day, or is it better to go in a few days after that?

Leasing a car is as much of a scam as a timeshare. Paying for something you'll never own is a terrible investment. VERY few people make out when buying out the lease at the end, their specifically designed for people to NOT do that because it defeats the screwjob the dealerships try to accomplish with the leases in the first place. People who defend leases will make excuses that it's a good deal because "they always like having new cars" or something to that effect, regardless of excuse the math behind it doesn't lie.

[Nov3]

Originally Posted by snatale1

Leasing a car is as much of a scam as a timeshare. Paying for something you'll never own is a terrible investment. VERY few people make out when buying out the lease at the end, their specifically designed for people to NOT do that because it defeats the screwjob the dealerships try to accomplish with the leases in the first place. People who defend leases will make excuses that it's a good deal because "they always like having new cars" or something to that effect, regardless of excuse the math behind it doesn't lie.

100% true!!

[EA]

But at the same time, how many people actually pay off and keep their new cars long term? Most people I know with new cars trade them in every 2-3 years.

[ND_Irish]

Originally Posted by EA

But at the same time, how many people actually pay off and keep their new cars long term? Most people I know with new cars trade them in every 2-3 years.

This is an excellent point. I did price out the total cost of ownership on a car we paid cash for several years ago, and once it was out of warranty, the repair costs suddenly started adding up such that it was almost a wash compared to leasing two cars over the same six-year period. I take the view that cars are becoming more like computers in terms of technological obsolescence. Therefore, I am willing to pay a premium to stay current on technology and eliminate repair costs.

[richzx14]

Just my personal experience with a first time lease.

I leased a 2012 Toyota Camry with the XLE trim level for 3 years with zero down and I low $281 total payment including taxes. After 2 years (and low miles, excellent condition, and 1 year factory warranty remaining) I sold it to CarMax in Henderson for $20k which was $1,700 more than my payoff and pocketed the difference. I am sure the resale value of a Toyota in excellent condition, low miles etc contributed to the positive financial aspects of the sale to CarMax and not all lease sales would produce this same positive cash result. I am currently leasing a 2014 Ford Edge and will probably purchase the next vehicle upon expiration as I will either be close to or in retirement and want to keep my monthly expenses to a minimum.

[airics]

If you wouldve sold it on your own.. You would have gotten alot more. Carmax pays less than everyone else.

The Edge wont be anywhere near that. Why didnt you lease another toyota or honda?

[FML157]

if you want to optimize your monthly cash flow , then lease a car. Lease payments are usually cheaper than a traditional loan payment (assuming a 4/5 year loan with not much of a down payment).